AEROBOX - FLYING into a 915m Market

Acs was founded in Albuquerque, New mexico, in 1998 to pursue the development of composite materials for use in manufacturing specialised products for the freight and air cargo industries. ACS initial application of its composites technology has resulted in the development of a unique air freight and baggage container that is cheaper, lighter,stronger,more durable and more easy repaired than the traditional aluminium containers now in airline service. The ACS aeroplaz container has received federal aviation authority certification in the USA for its use aboard commercial aircraft.



It was announced on the 21 may 2003 that aerobox and watermark group, the airline industry support services supplier have formed a joint venture company called aerobox uld ltd with a 50/50 share holding to market and supply worldwide the lightweight and durable air freight containers produced by aerobox. Watermark is providing its worldwide marketing expertise in support of the joint venture. Aerobox and watermark are confident that the joint venture company will meet those targets based upon serious initial interest generated by watermark with several of its airline clients.

Aerobox uld ltd annouces on the 10 September that 15 airlines have agreed to commercial trials of their lower deck model LD3. Aerobox has agreed to supply 15 airlines with 10 containers each on trial for 3 months. The trials if successful represent the first major orders for aerobox. Airlines joining the trials include British Airways,Virgin Atlantic,Singapore Airlines,Northwest Pacific,Cathway Pacific,Aer Lingus who have all agreed they will purchase the units following satisfactory trials.



Interim results for the six months ending 30 june 03 ( Brief )



The loss on ordinary activities for the period to 30 june amounted to £569K with no turnover conducted. The loss per share is 1.6p and no dividend is recommended. Cash outflow before financing amounted to £536K as aerobox continue to invest in research and development and market the aerobox products.



Placing and additional listing 10 September:



Aerobox is pleased to announce that it has completed a share placing to raise £1.2 mln before expenses. Aerobox has issued 5,000,000 new ordinary shares of 1p each in the company at a price of 24p per share to provide additional working capital.

Aerobox has also issued a further 1,681,250 new ordinary shares of 1p each in the company at 24p per share in consideration for professional services provided to the company. Aerobox has made application for the 6,681,250 new ordinary shares to be admitted to trading on AIM and dealings are expected to commence on 15 September 2003.



Aerobox receives approval from the CAA 23 September 2003:



Aerobox announces the granting of a joint technical standards order by the civil aviation authority which specifically authorises the use of the new aerobox unit load device.

The UK CAA has granted a European permit covering all 37 countries subscribing to the joint aviation authority and regulations. This follows the initial granting of the US federal aviation authority's permit for Us airlines to operate the aerobox and susequent trials with 15 airlines, which was announced on 10 September 2003.



Outlook:

Having successfully initiated trials with 15 airlines, aerobox now moves into the next important stage of its development. The results of the trials will be a major factor in determining the success of the business and an annoucement concerning their outcome will be made towards the the end of the year or early 2004.



My opinion:



I have currently purchased a very tiny holding of just 3500 just for fun but the more research i do the more i take this company serious, in fact i'm in arrangement stage via e-mail with the chief executive Robert Bushman to go over and view the manufacturing base at New Mexico and have a good look at the products then decide if i want to purchase more share in the region 250,000.



Products on this company can be viewed at www.aeroboxuld.com