News Release

Exchange Income Corporation acquires certain assets of Wings Over Kississing

Exchange Income Corporation, a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, announced today that it has completed the acquisition of certain assets and operations of Wings Over Kississing for a purchase price of $10 million, subject to customary post-closing adjustments. The purchase was funded by the issuance of $2.2 million of EIC common shares to the vendors and $7.8 million of cash from its unutilised credit facility.

Wings is an operator of fixed wing and rotary wing aircraft in the province of Manitoba. EIC has acquired Wings' rotary wing operations that are focused in the Island Lake region, its King Air 200 charter operations focused in Thompson, a 27,000 square foot hangar at St. Andrews Airport and its fueling operations at Thompson Airport.

"The acquisition of these operations and assets significantly strengthen our aviation operations in Manitoba," said Mike Pyle, chief executive officer of EIC. "The King Air charter operations provide us with a new charter platform, and combined with the fueling station at Thompson Airport, allows us to better serve this key travel hub for communities in northern Manitoba. The addition of the rotary wing operations enables us to continue to build our partnership with customers in the Island Lake region. The St. Andrews hangar represents a significantly upgraded facility for custom. Continued investment in the province is important for EIC and we look forward to breaking ground on the previously announced new 60,000 square foot hangar at the Winnipeg International Airport in the near future as part of EIC bringing the heavy maintenance for the fixed wing search and rescue to Manitoba. Accretive acquisitions and investment in our operations is the foundation to our business model. This model has led to robust growth in EBITDA and adjusted EPS over the last number of years, particularly in 2018, and is expected to continue in 2019."

Curt Enns, the founder and president of Wings stated, "We are very pleased that our St. Andrew's base, fuel, King Air 200 and Island Lake helicopter operations found a good home with EIC. As a proud Manitoban, we are happy that our operations are going to a great company with its home base in Manitoba. My wife, Juanita, and I will continue to focus on our lodge and remaining aircraft platform, including float operations. We look forward to working with EIC as we focus on our other businesses."