MESA, Ariz., Feb. 23, 2007   -  MD Helicopters' new production facility in Monterrey, Mexico, (MDM) delivered its first single-engine fuselage in January and is rapidly ramping up to full production of 23 fuselages in 2007.

MD Helicopters Inc. (MDHI) plans to utilize the facility for production of fuselages for its single-engine helicopters, and subassemblies in support of the company's plan to deliver 48 helicopters this year.

"The Monterrey production facility supports our strategy of vertical integration," said company President Chuck Vehlow. "It will help us drive down costs and increase deliveries - and that's good for customers and the company."

Dedicated last August to national acclaim in Mexico, the production facility houses a climate-controlled manufacturing operation that includes capabilities such as detail part processing, welding, bonding, and mylar reproduction. It is the first aviation fabrication facility in Mexico and government officials have described it as their "prize jewel."

Working with fuselages from Monterrey, and other components from various providers, MD 500s and MD 600s are assembled in Mesa and completed at MDHI subsidiary Hertiage Aviation in Texas, or in Mesa, depending on the requirements.

A team of 100 employees in Monterrey includes fully trained assembly personnel and experienced manufacturing professionals responsible for the Quality Assurance, Customer Support, and Supplier Quality functions. The assembly team has completed months of classroom, practical and on the-job-training to ensure top quality, and inspectors and Federal Aviation Administration (FAA) officials work on site.

MDHI designed and built the facility to support future expansion.

# # # 

About MD Helicopters:
MD Helicopters is a leading manufacturer of commercial and military helicopters. The MDHI family of rotorcraft is world renowned for their value, versatility and performance. The MD Helicopters family includes the twin-engine MD Explorer®, and single engine versions of the MD 600N®, MD 520N®, MD 500E® and MD 530F®. The NOTAR® system for anti-torque control is the exclusive property of MD Helicopters. The Company is based in Mesa, Arizona.

About Patriarch Partners, LLC
Patriarch Partners, LLC is an investment firm in New York and Charlotte, North Carolina which together with its affiliates, provides portfolio management services and serves as investment advisor to multiple leveraged funds and a private equity fund. Founded in 2000 by Lynn Tilton, Patriarch provides innovative financial solutions, strategic direction and operational expertise to companies undergoing periods of pervasive change. Patriarch currently monitors credit facilities in respect to approximately $5 billion dollars of assets under its management, including  equity positions (majority and minority) in more than 65 companies. Lynn Tilton serves as Chairman of the Board of MDHI. Funds managed by Patriarch Partners own a majority and controlling interest in MDHI.

Contact: Debbie Jones, MDHI
(480) 346-6474
debbie@mdhelicopters.com