Half-yearly report

AVATION PLC
                                     ('Avation' or the 'Company')
                                CONSOLIDATED UNAUDITED RESULTS FOR THE
                                   SIX MONTHS ENDED 31 DECEMBER 2007

Avation,  the aircraft leasing company, presents its interim results for the six months to 31 December
2007.

HIGHLIGHTS

    *   A maiden interim dividend will be payable to shareholders on 10 April 2008 to shareholders of
        record as at 28th March 2008. The dividend has been fixed at 0.5p per ordinary share;

    *   Group operating revenues increased by 266% to GBP 2,164,417 (six months to 31 December 2006 :
        GBP 591,219);

    *   Profits attributable to shareholders increasing to GBP 6,445,624 (six months to 31 December
        2006: GBP 174,169), this includes an extraordinary gain of
        GBP 5,500,181 recorded as a result of the successful listing on the AIM market of Capital
        lease Aviation PLC;

    *   Management remain modestly confident that there will be augmentations to both the revenue and
        profit figures for 2008 and looks forward to continue to deliver value for all shareholders over the
        coming years.

Enquires:

Avation PLC
Jeff Chatfield, Chairman                                         07783 942 553

Advisor
Frank Lucas, Loeb Aron & Co.                                     0207 628 1128

Financial Public Relations
Bishopsgate Communications                                       0207 562 3350
Maxine Barnes
Nick Rome, Nick Farmer

Websites:  www.avation.net

CHAIRMAN'S STATEMENT
I  am  pleased  to  present Avation's interim results for the six months ended 31 December  2007  (the
"Period").   The Company announces that the aircraft leasing business has resulted in  improved  Group
operating  results with ordinary Group revenues for the half year increasing to GBP  2,164,417  (2006:
GBP 591,219).

The  Group's net profit after income tax was recorded as GBP 6,622,291 compared to GBP 174,169 for the
same  period last year.  A substantial proportion of the profit was attributable to gains  related  to
the Capital Lease Aviation PLC spin off and listing on the Alternative Investment Market of the London
Stock  Exchange.   Ongoing  and sustainable operating revenues increased substantially  which  led  to
increased profits from continuing operations.

I  am  particularly  pleased  to be able to announce a maiden interim dividend  payment  of  0.5p  per
ordinary share. Shareholders will note that the Board has declared the details for this dividend to be
payable  on the 10th of April 2008 to shareholders on the share register at close of business  on  the
28th of March 2008.

The Company's results are presented and prepared in accordance with IFRS and are un-audited.

TRADING
From  continuing  operations the overwhelming contributor to profits are activities  relating  to  the
leasing  of aircraft to various commercial airlines. The Company has acquired and owns four  aircraft,
three  of  which  are  leased to Skywest Airlines Pty Ltd.  The timing of  the  acquisition  of  these
aircraft  could  be most fortuitous, given that the market value of aircraft have risen  significantly
since  the  purchases together with a concomitant firming of the leasing market and an environment  of
aircraft  shortages,  especially in respect of  narrow body aircraft  such  as  those  owned  by  your
Company.

RISKS
There  are,  in  addition to the multitude of normal commercial risks, specific and substantial  risks
extant  in  the aircraft leasing industry. Investors should be aware of such risks and their potential
impact on operations.

 I would like to take this opportunity of thanking you - the shareholders - for your continued support
and encouragement and look forward to keeping you updated on the progress of our Company.

Jeff Chatfield
Executive Chairman,

UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

                                                             6 months ended          6 months ended
                                                              31 December             31 December
                                                                  2007                    2006

 Revenue                                                          2,164,417                   591,219
 Cost of sales                                                      (27,215)                 (280,364)

 Gross profit                                                                                 310,855
                                                                  2,137,202

 Other operating income                                           5,741,223                        22

 Selling, general and administrative expenses                      (279,363)                  (62,702)

 Other operating expenses                                                 -                    (1,429)

 Earnings before depreciation/finance cost                        7,599,062                   246,746

 Depreciation                                                      (409,897)                     (503)

 Interest expense                                                  (259,644)                         -

 Earnings after depreciation/finance cost                         6,929,521                   246,243

 Income tax                                                        (307,230)                  (72,074)

 Profit after income tax                                          6,622,291                   174,169

 Minority Interest                                                 (176,667)                         -

 Profit attributable to shareholders of the company               6,445,624                   174,169

 Earnings per share                                              27.55p                  0.93p

UNAUDITED CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

                                                                   As at                   As at
                                                                 31 Dec 2007            31 Dec 2006
ASSETS                                                                                               
Non-current assets                                                                                   
Property, plant and equipment                                       16,944,199                  1,716
Intangible assets                                                    1,324,541              1,344,889
Total non-current assets                                            18,268,740              1,346,605

Current assets                                                                                       
Cash                                                                10,591,280                 29,374
Trade and other receivables                                            884,150                409,535
Inventories                                                                700                  5,567
Total current assets                                                11,476,130                444,476

TOTAL ASSETS                                                        29,744,870              1,791,081

EQUITY AND LIABILITIES                                                                               
Equity                                                                                               
Share capital                                                          243,392                186,392
Share premium                                                        1,309,284              1,203,789
Reserves                                                             2,123,756                 (4,537)
Accumulated profits                                                  6,993,209                174,169
                                                                    10,669,641                       
                                                                                            1,559,813
Minority interest                                                    5,461,989                      -
                                                                    16,131,630              1,559,813
Current liabilities                                                                                  
Trade and other payables                                               458,793                159,280
Income tax payables                                                    434,860                 13,507
Total current liabilities                                              893,653                172,787

Non-current liabilities                                                                              
Borrowings                                                          11,399,732                      -
Trade and other payables                                               323,093                      -
Deferred tax liabilities                                               996,762                 58,481
Total                                                               12,719,587                 58,481

TOTAL EQUITY AND LIABILITIES                                        29,744,870              1,791,081
UNAUDITED CONSOLIDATED GROUP CASH FLOW
FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
In Great Britain Pounds

                                                                     6 months ended       6 months ended
                                                                      31 December           31 December
                                                                          2007                 2006
Cash flows from operating activities                                                     
Profit after income tax                                                6,622,291               174,169
Adjustments for:                                                                         
Income tax                                                               307,230                72,074
Depreciation expenses                                                    409,897                   503
Gain on dilution of subsidiary                                        (5,500,181)                      
                                                                                                     -
Interest expense                                                         259,644                     -
Interest income                                                         (201,649)                  (22)
Operation profits before working capital changes                       1,897,232               246,724
Trade and other receivables                                             (514,337)                      
                                                                                              (315,339)
Inventories                                                                   (3)                  149
Intangible assets                                                              -               (20,348)
Trade and other payables                                                 226,302                48,807
Cash generated from (used in) operations                               1,609,194               (40,007)
Interest paid                                                           (259,644)                   -
Interest received                                                        201,649                    22
Income tax paid                                                          (21,370)                   -
Net cash generated from (used in) operating activities                 1,529,829     
                                                                         (39,985)

Cash flow from investing activities                                                      
Purchase of property, plant and equipment                             (7,593,231)                    -
Additional investment in subsidiary paid by minority shareholders     10,785,443                     -
Net cash generated from investing activities                           3,192,212                     -

Cash flow generated from financing activities                                            
Proceeds from borrowings                                               5,951,752                     -
Repayment of borrowings                                                 (857,487)                    -
Proceeds from issuing shares (net of cost)                               206,440                     -
Proceeds from advance from director                                            -                73,761
Net cash generated from financing activities                           5,300,705                73,761

Net effect of exchange rates in consolidating subsidiaries              (259,811)               (4,402)

Net increase in cash                                                   9,762,935                29,374
Cash at beginning of period                                              828,345                     -
Cast at end of period                                                 10,591,280               29,374

Notes:

    1)  The financial statements do not reflect this interim dividend payable which will be accounted
        for in the period when the funds are actually paid to shareholders.

    2)  The results for the Period are derived from continuing activities.

    3)  The  calculation on earnings per shares have been on a weighted average 23,392,512 (2006:
        18,639,195) ordinary shares in issue for the during the 6 months period.

    4)  The un-audited results have been prepared on a going concern basis and on the basis of the
        accounting policies adopted in the audited accounts for the period ended 30 June 2007 and 30 June
        2006.  The interim figures have not been audited.

    5)  The  interim statement for 2007 was approved by the board of Directors.  Copies of  this
        statement will be available to shareholders and members of the public, free of charge, from its
        corporate adviser (Loeb Aron & Co, Georgian House, 63 Coleman Street London EC2 5BB) and the Company's
        registered office and the Company website at www. avation.net.

    6)  The  exchange rate applying at 31 December 2007 was USD - GBP 0.50092.  The average  rate
        applied during the six months period ended 31 December 2007 was USD - GBP 0.49207.

Avation plc