Bangalore, 6 February 2007. QuEST, a leading provider of engineering services offering end-to-end product development and engineering solutions, today announced a formation of 50:50 joint ownership company with Magellan Aerospace to launch India's first independent processing facility to cater to the needs of aerospace manufacturing industry.

The launch of this processing facility positions QuEST and Magellan as early adopters in aerospace supply chain development in India. This facility will initially focus on processes for aluminum, titanium, and stainless steel components for aerostructure and aeroengine components. The new facility, scheduled to open in early 2008, will be 10,000 sq. ft. and has a scaleable layout to accommodate future growth. Magellan is working closely with its key Customers to meet their needs in the Indian market.

Few months ago, QuEST launched its manufacturing facility, QuEST Machining & Manufacturing, and announced its 1st manufacturing customer Magellan Aerospace. QuEST had bagged contracts from Magellan to manufacture landing gear parts for the Boeing 747, 777 and 787 programs.

Magellan has been sub-contracting in India for three years finished machine parts without outside processing and treatments. This is seen as a gap in the supply chain. The key to fully develop the supply chain is to have OEM approved processing. Magellan, along with QuEST is being an early mover in the aerospace supply chain development in India, by putting up this processing facility.

"Along with Magellan, we are working closely with major Aerospace OEM's to ensure that the facility meets the short and long-term needs of the industry. This unique facility will address a critical need of the aerospace manufacturing industry in India by providing a solution for manufactured components to be processed within the Country," said Mr. Aravind Melligeri, President & CEO, QuEST Machining and Manufacturing. "Apart from enabling vendors to move up the value chain to do assemblies, this will also facilitate an increase in exports going out of India to the aerospace sector."

Magellan will support this Processing Facility with technical support for most special process and NDT inspection NADCAP approvals required for Aerostructure and Aeroengine components that it has within its divisions

"This is a key step in offering our Customers a global solution." said Mr. Jim Butyniec, President, Magellan Aerospace. "We are pleased with our decision to partner with QuEST to set up the processing facility and view it as a natural extension of our existing relationship. QuEST is a dynamic and innovative company that knows the Indian and international markets and has the manufacturing capabilities and capacities required to support aerospace market needs."

"We are extremely excited and honoured to grow our relationship with Magellan Aerospace from a customer to an equal partner. Magellan brings a very high-level of expertise to this relationship and we are looking forward to a successful partnership," said Mr. Aravind Melligeri, President & CEO, QuEST Machining & Manufacturing. "The setting up of this Processing Facility as result of this Company will mark another milestone in QuEST's endeavour to fulfil our vision to be an end-to-end product development solutions provider to our customers," said Mr. Aravind Melligeri, President & CEO of QuEST Machining and Manufacturing.

About Magellan Aerospace

Magellan Aerospace Corporation is one of the worlds most integrated and comprehensive aerospace industry suppliers. Magellan designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, and complementary specialty products. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout Canada, the United States and the United Kingdom. For more information, visit http://www.magellan.aero.