Riverhawk Aviation, Inc. (fka RHWA)

[FRED8]

I did not know this:

River Hawk Aviation sells Eastern Caribbean Airlines and Viva Air Dominicana S.A. to Southland Holding Corp.


Last Update: 6:01 AM ET May 11, 2007

TRAVERSE CITY, Mich., May 11, 2007 (BUSINESS WIRE) -- River Hawk Aviation, Inc. (Pink Sheets: RHWA)("River Hawk") announced today that it has completed a stock purchase agreement with privately held Southland Holding Corp. ("Southland") that provides for the sale of all of River Hawk's equity interest in its subsidiaries, Puerto Rico based Eastern Caribbean Airlines Corporation and Santo Domingo, Dominican Republic based Viva Air Dominicana, S.A. The agreement provides for the assignment of certain recorded liabilities of the Company, having an aggregate value of approximately $1.25 million, to Southland. Additionally, Southland has assumed any damages awarded against River Hawk in the outstanding litigation matter of Ivan Figueroa versus Eastern Caribbean Airlines Corporation and Viva International, Inc. (predecessor name of River Hawk Aviation, Inc.).
Calvin Humphrey, CEO of River Hawk, stated , "I am pleased to announce that River Hawk has reached a sale agreement of its interest in Eastern Caribbean Airlines and Viva Air Dominicana, which will enable River Hawk to focus on its aviation business and in the process strengthening our balance sheet. Our Board of Directors decided that Eastern Caribbean and Viva Air did not fit the strategic business plan of the Company and negotiations with the Southland group and their predecessors were initiated."
Mr. Humphrey, further stated, "The Southland agreement removes a number of obstacles that were blocking and inhibiting our path to developing our business and access to capital. As such, I expect a renewed sense of urgency and attention to our project; I look to moving this organization forward."
About River Hawk Aviation, Inc.
River Hawk Aviation, Inc., is an aviation parts and components supplier in the aviation industry, currently specializing in Saab and other commuter aircraft parts and components as well as a provider of consulting services, marketing and appraisals to the aviation community. At present, the Company maintains executive offices in Michigan and also has offices and inventory warehousing in San Antonio, Texas.
The Company's plan for future growth and development will focus on the acquisition of aviation-related operating businesses and airlines that display the potential for restructuring into profitable and sustainable aviation-related growth concerns.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe", "expect", "intend", "anticipate", "project", or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) managing acquisitions and expansion of operations; (2) our ability to obtain necessary financing and to manage existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) the Company's ability to comply with federal, state and local government and international regulations; and (5) other factors over which we have little or no control. Further information on potential factors that could affect River Hawk Aviation, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.
SOURCE: River Hawk Aviation, Inc.
For River Hawk Aviation, Inc. 18KT.TV,LLC. D/b/a EquityDigest.com Media & Investor Relations: Joseph J. Malone, 786-375-0556 [e-mail] www.EquityDigest.com Copyright Business Wire 2007
--------------------------------------------------
~F8