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Mar 25, 2023

Exchange Income Corporation’s Subsidiary, Carson Air, Awarded the Fixed Wing Medevac Contract for the Province of British Columbia

WINNIPEG, Manitoba, June 05, 2023--(BUSINESS WIRE)--Exchange Income Corporation

WINNIPEG, Manitoba, June 05, 2023--(BUSINESS WIRE)--Exchange Income Corporation (TSX: EIF) ("EIC" or the "Corporation") a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, is pleased to announce its subsidiary, Carson Air Ltd. ("Carson Air"), has been awarded a long-term contract, by the Province of British Columbia, to provide fixed wing medevac coverage for the whole of British Columbia.

The contract has an initial ten-year term plus options and requires a fleet of new King Air aircraft to service the province. With the purchase of the new aircraft, EIC will be one of the largest King Air operators in the world. This scope of operation led to EIC's strategic decision to enter into a contract to purchase a full motion simulator, for pilot training, to support all of our King Air operations. The simulator not only provides more training time for pilots but also significantly reduces fuel burn and corresponding GHG emissions for both training and travel to training thus reducing our carbon footprint.

"EIC is excited to expand our medevac business with one of our largest long term government contracts in our history," said Mike Pyle, CEO of EIC. "Historically this work in British Columbia has been divided into multiple contracts with different suppliers. Carson Air has now been awarded a contract to provide medevac services throughout the Province evidencing the quality of its work and the confidence placed in Carson Air by the British Columbia government."

Mike continued, "The investment in this contract is significant at approximately $200 million. We have contracted directly with the OEM for the new King Air aircraft. It will take a period of time to obtain the aircraft from the OEM and modify them with state-of-the-art medical interiors. In preparation for the potential award of this contract we purchased slots at the OEM to ensure we can meet the Province's timelines."

"The aircraft will be phased into service once received and when the medevac conversions are complete," explained Carmele Peter, President of EIC. She continued, "It is important to note the existing fleet of aircraft utilized in British Columbia are still in very good condition and will be deployed in other aviation opportunities in Canada. The full financial impact of this contract will not be evident in our results until all the new aircraft are modified and put into service and the existing aircraft are deployed into other opportunities."

Mike concluded by saying, "Our medevac operations have provided consistent, reliable profitability in all economic environments. We are interested in pursuing growth in this segment of our business and this contract is a massive step forward in our strategy. Further details will be provided during our Q2 conference call."

About Exchange Income Corporation

Exchange Income Corporation is a diversified acquisition-oriented company, focused in two sectors: aerospace & aviation services and equipment, and manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to the Corporation, including all public filings, is available on SEDAR (www.sedar.com).

About Carson Air

Founded in 1990, Carson Air is the primary provider of fixed wing air ambulance services in BC. The company provides fixed wing air ambulance services, air cargo services, and operates a flight school. These services are collectively provided from its three bases in Kelowna, B.C., Vancouver, B.C., and Calgary, AB.

Caution Concerning Forward-looking Statements

The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, COVID-19 and pandemic-related risks, the dependence of Exchange Income Corporation on the operations and assets currently owned by it, the degree to which its subsidiaries are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with the Corporation's financial performance, dilution, restrictions on potential future growth, the risk of shareholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the industries, seasonality of the businesses, poor weather conditions, and foreign currency fluctuations, legal proceedings, commodity prices and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Except as required by Canadian Securities Law, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Exchange Income Corporation with the securities regulatory authorities, available at www.sedar.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230605005204/en/

Contacts

Mike PyleChief Executive OfficerExchange Income Corporation(204) [email protected] Pam PlasterVice President, Investor DevelopmentExchange Income Corporation(204) [email protected]

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