Announcement by subsidiary

Market Release 26 January 2009

AVATION PLC

Announcement by subsidiary.

The Board of Avation PLC notes the announcement of interim results by its 51% 
owned subsidiary Capital Lease Aviation ("CLA") this morning. The text of the 
release can be found on CLA's website at  http://www.capitalleaseaviation.com/ and 
on the London Stock Exchange website at 
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?i
d=2076097&source=RNS and is included below in this announcement for the interest 
of Avation's shareholders.

Capital Lease Aviation PLC
("CLA")

HALF YEAR RESULTS - 31 DECEMBER 2008

The Board of CLA is pleased to announce the unaudited consolidated interim results 
for the period from 1 July 2008 to 31 December 2008.

HIGHLIGHTS:

 - Income for the period:     GBP  7,085,464; 

 - Profit after tax: GBP  3,429,326;

 - Earnings per share (after tax): 3.51 pence

Jeff Chatfield, Executive Chairman said "Results for the half year were in line with 
expectations given the obviously volatile operating environment. The aircraft that the 
Company owns and leases have all performed well. We anticipate that further growth 
is available as aircraft valuations may become more attractive to operating lessors 
such as ourselves, as financial investors, banks and the like leave the sector and 
release their aircraft into the market.

The CLA group continues to build on the portfolio of aircraft already established, 
remains ready with its US$100 million warehouse finance facility to seek out and 
acquire on potentially attractive terms, leased aircraft which complement and add 
value to the existing aircraft portfolio." 

The directors take responsibility for the contents of this announcement.

---ENDS---

Enquiries:

CAPITAL LEASE AVIATION PLC
Jeff Chatfield, Executive Chairman                           07783 942 553

STOCKBROKERS
WH Ireland Limited                                           020 7220 1690

NOMINATED ADVISER
James Joyce, David Porter
WH Ireland Limited                                           020 7220 1666

Website http://www.capitalleaseaviation.com/

Directors' Review of Operations and Strategy

The Company's results reflect profits from lease income resulting from aircraft 
acquisitions and the benefits of business systems put in place during our first year of 
operations.  The Company's fleet currently comprises of three F100's, two A321-200's 
and one A320. 

In October 2008, the Company secured approval for a US$100,000,000 
warehouse credit facility sourced from a European bank. A further US$50,000,000 
can be made available subject to a syndicated book build. Attractive 
aircraft buying opportunities should be available to lessors, such as CLA, that have 
financing facilities approved and a willingness to act. 

In its future acquisition of aircraft, the CLA group aims to focus on the Airbus 
A320 series and Boeing 737 family new generation aircraft as we believe these pose 
the lowest risk given their liquidity, appeal, little need for special mission 
customization and ability to remarket.

The risks to the business include typical aviation related risks, including but not 
limited to, any downturn in the global aviation industry, fuel costs, finance costs, war 
and terrorism and the like which may affect  our airline customers' ability 
to fulfil their lease obligations. Risks also include dramatic changes in exchange rates, 
particularly changes in the USD : GBP exchange rate, for the sake of clarity it should 
noted that all of the source lease revenues of the company are denominated in USD.

The business also relies on its ability to source finance on favourable terms. Should 
this supply of finance contract, it would limit our fleet expansion and therefore 
growth. 

Richard Sinclair
Chief Executive Officer
On behalf of the Board of Directors of Capital Lease Aviation PLC
23 January 2009   

HALF YEAR RESULTS

CAPITAL LEASE AVIATION PLC
CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD 1 JULY 2008 TO 31 DECEMBER 2008

                                               6 months ended               6 months ended
                                                  31 December                  31 December
                                                         2008                         2007
                                                          GBP                          GBP

From Continuing operations

Lease rental income                                 4,796,313                      332,054 

Other operating income                              2,289,151                      241,095

Total income                                        7,085,464                      573,149

Selling, general and administrative expenses         (579,116)                    (137,916)

Profit before depreciation & finance cost           6,506,348                      435,233

Depreciation                                       (1,476,469)                     (58,798)

Interest expense                                   (1,405,620)                     (14,245)

Profit before taxation                              3,624,259                      362,190

Income tax                                           (194,933)                           - 

Profit after taxation                               3,429,326                      362,190 

Pre-tax Earnings per share
-Basic                                             3.71 pence                   0.38 pence

- Fully Diluted                                    3.51 pence                   0.38 pence

After tax Earnings per share
-Basic                                             3.51 pence                   0.38 pence

- Fully Diluted                                    3.32 pence                   0.38 pence

CAPITAL LEASE AVIATION PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008

                                            As at 31 December            As at 31 December 
                                            2008                         2007
                                            GBP                          GBP
ASSETS

Current assets:
Cash and cash equivalents                   1,301,700                    9,452,278 
Trade and other receivables                 539,593                      598,187 
Total current assets                        1,841,293                    10,050,465

Non-current assets:
Plant and equipment                         72,895,523                   5,249,523 
Total non-current assets                    72,895,523                   5,249,523 

Total assets                                74,736,816                   15,299,988 

LIABILITIES AND EQUITY

Current liabilities :
Trade and other payables                    3,360,007                    308,240 
Loans and borrowings                        5,843,286                    -  
Short term provisions                       339,933                      -  
Provision for income tax                    338,500                      -  
Total current liabilities                   9,881,726                    308,240

Non-current liabilities:
Loans and borrowings                        42,194,982                   3,793,967 
Deferred tax liabilities                    1,118,756                    -  
Total non-current liabilities               43,313,738                   3,793,967

Capital and reserves:
Share capital                               97,808                       97,808 
Share premium                               10,743,621                   10,737,735 
Reserves                                    6,456,170                    60 
Retained earnings                           4,243,753                    362,178
Total equity                                21,541,352                   11,197,781

Total liabilities and equity                74,736,816                   15,299,988 

CAPITAL LEASE AVIATION PLC
CONSOLIDATED CASHFLOW STATEMENTS
FOR THE PERIOD 1 JULY 2008 TO 31 
DECEMBER 2008
                                                       6 months                   6 months
                                                       ended                      ended

                                                       31 December                31 December
                                                       2008                       2007
                                                       GBP                        GBP

Cash flow from operating activities:
Total profit                                           3,429,326                  362,190 
Adjustments for :
 Income tax                                            194,933                    -  
 Depreciation                                          1,476,469                  58,798 
 Interest expense                                      1,405,620                  14,245 
 Interest income                                       (5,766)                    (195,150)
Operating profit before working capital changes        6,500,582                  240,083 

 Trade and other receivables                           (463,133)                  (598,187)
 Trade and other payables                              1,054,847                  293,995  
 Short-term provisions                                 229,625                    -  
Cash from operations                                   7,321,921                  (64,109)
Interest paid                                          (1,405,620)                -  
Net cash flows from (used in) operating activities     5,916,301                  (64,109)

Cash flows from investing activities:
 Interest received                                     5,766                      195,150  
 Purchase of plant and equipment                       -                          (5,248,482)
Net cash from (used in) investing activities           5,766                      (5,053,332)

Cash flows from financing activities:    
 Proceeds from issuing of new shares, net of 
expenses                                               -                          10,785,443
 Proceeds from borrowings                              -                          3,793,967 
 Repayment of borrowings                              (2,690,039)                 -  
Net cash (used in) from financing activities          (2,690,039)                 14,579,410 

Net effect of exchange rate changes in consolidating 
subsidiaries                                          (2,484,785)                 (59,779)

Net increase in cash flow                             747,243                     9,402,190 
Cash and cash equivalent at beginning of period       554,457                     50,088 
Cash and cash equivalent at end of period             1,301,700                   9,452,278 

Approved by the board of Capital Lease Aviation PLC on the 23rd of January 2009.

The above financial information has been extracted from the management accounts 
and has not been audited.  

---Ends---

Enquiries:
Avation PLC                                				    07783 942 553
Jeff Chatfield, Chairman

Advisor                                     				    0207 628 1128
Frank Lucas, Loeb Aron & Company

Avation plc