Half-yearly report

AVATION PLC
                                     ('Avation' or the 'Company')
                                CONSOLIDATED UNAUDITED RESULTS FOR THE
                                   SIX MONTHS ENDED 31 DECEMBER 2008

Avation announces its interim results for the six months to 31 December 2008.

HIGHLIGHTS

    *       Total assets increased to GBP 100.6 million.

    *       Group operating revenues increased by 262% to GBP 7.8m.

    *       Profits attributable to shareholders amounted to GBP 2.5m.

    *       Earnings per share 10.19p

Enquiries:

Avation Plc
Jeff Chatfield, Executive Chairman                                07783 942 553

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

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

Websites:  www.avation.net

The directors of the Company accept responsibility for the content of this announcement.

CHAIRMAN'S STATEMENT

I  am  pleased  to  present Avation's interim results for the six months ended 31 December  2008  (the
"Period").   The  continued success of our aircraft leasing business has resulted  in  improved  Group
operating  results with ordinary Group revenues for the half year increasing to GBP  7,828,643  (2007:
GBP 2,164,417).

The  Group's  net  profit  after  income tax attributable to the  shareholders  was  recorded  as  GBP
2,578,548.

These  results are superior in terms of recurrent earnings per share (10.19p) as the comparable  prior
period results were skewed by a one time gain of GBP 5.5m without which the earnings per share at that
time would have been 4.04p.

The  Company's  results reflect increased profits in lease income generated from  the  acquisition  of
aircraft. Current trading is in line with expectations, all subsidiary parts of the Avation PLC  group
remain profitable and cash flow positive.

The  Company is subject to the typical risks associated with the aviation business, 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 fulfill their lease obligations. Risks
also  include changes in exchange rates, particularly changes in the USD / GBP exchange rate. For  the
sake  of  clarity  it  should  be  noted that all of the source lease  revenues  of  the  company  are
denominated in USD as are its borrowings.

The  group  also relies on its ability to source finance on typical commercial banking  terms.  Should
this supply of finance contract, it would limit our fleet expansion and concomitant growth.

I would like to take this opportunity of thanking you, the owners of this enterprise, for your support
over this busy period and look forward to updating you.

Jeff Chatfield
Executive Chairman

UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
In Great Britain Pounds

                                                             6 months ended          6 months ended
                                                              31 December             31 December
                                                                  2008                    2007
 Continuing operations                                                                      

 Revenue                                                           7,828,643                 2,164,417
 Cost of sales                                                     (801,086)                  (27,215)

 Gross profit                                                     7,027,557                           
                                                                                             2,137,202

 Other operating income                                            2,383,162                          
                                                                                             5,741,223

 Selling, general and administrative expenses                     (846,216)                  (279,363)

 Earnings before depreciation/finance cost                         8,564,503                 7,599,062

 Depreciation                                                    (2,066,914)                 (409,897)

 Interest expense                                                (1,746,883)                 (259,644)

 Earnings after depreciation/finance cost                          4,750,706                 6,929,521

 Income tax                                                        (499,333)                 (307,230)

 Profit after income tax                                           4,251,373                 6,622,291

 Minority Interests                                              (1,672,825)                 (176,667)

 Attributable to the shareholders                                  2,578,548                 6,445,624

 Earnings per share                                                   10.19p                  27.55p

UNAUDITED CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
In Great Britain Pounds

                                                                      As at                     As at
  ASSETS                                                           31 Dec 2008               31 Dec 2007
  Current assets:                                                                        
  Cash and cash equivalents                                                                                
                                                                         2,446,203               10,591,280
  Trade and other receivables                                                                              
                                                                         1,378,786                  884,150
  Inventories                                                                                           700
                                                                            11,382
  Total current assets                                                                   
                                                                         3,836,371               11,476,130

  Non-current assets                                                                     
  Property, plant and equipment                                                                            
                                                                        95,527,442               16,944,199
  Goodwill                                                                                                 
                                                                         1,324,541                1,324,541
  Total non-current assets                                                               
                                                                        96,851,983               18,268,740

  Total assets                                                                           
                                                                       100,688,354               29,744,870

  LIABILITIES AND EQUITY                                                                 
  Current liabilities:                                                                   
  Trade and other payables                                                                                 
                                                                         4,033,950                  458,793
  Provision for taxation                                                                                   
                                                                         1,178,631                  434,860
  Loans and borrowings                                                                            
                                                                         8,372,297                        -
  Short-term provisions                                                                           
                                                                           560,670                        -
  Total current liabilities                                                              
                                                                        14,145,548                  893,653

  Non-current liabilities:                                                               
  Trade and other payables                                                                                 
                                                                           738,635                  323,093
  Loans and borrowings                                                                                     
                                                                        51,718,349               11,399,732
  Deferred tax liabilities                                                                                 
                                                                         3,343,083                  996,762
  Total non-current liabilities                                                                            
                                                                        55,800,067               12,719,587

  Equity attributable to shareholders:                                                   
  Share capital                                                                                            
                                                                           255,805                  243,392
  Share premium                                                                                            
                                                                         1,223,086                1,309,284
  Reserves                                                                                                 
                                                                         8,918,932                2,123,756
  Retained earnings                                                                                        
                                                                         9,837,345                6,993,209

                                                                        20,235,168               10,669,641
  Minority Interest                                                                                        
                                                                        10,507,571                5,461,989

                                                                        30,742,739               16,131,630

  Total liabilities and equity                                                           
                                                                       100,688,354               29,744,870

UNAUDITED CONSOLIDATED GROUP CASH FLOW
FOR THE SIX MONTHS ENDED 31 DECEMBER 2008
In Great Britain Pounds

                                                                     6 months ended       6 months ended
                                                                      31 December           31 December
                                                                          2008                 2007
Cash flows from operating activities                                                     
Profit after income tax                                                    4,251,373             6,622,291
Adjustments for:                                                                         
Income tax                                                                   499,333               307,230
Depreciation expenses                                                      2,066,914               409,897
Gain on dilution of subsidiary                                                     -           (5,500,181)
Interest expense                                                           1,746,883               259,644
Interest income                                                             (10,305)             (201,649)
Operation profits before working capital changes                           8,554,198             1,897,232
Trade and other receivables                                              (1,015,920)             (514,337)
Inventories                                                                 (10,647)                   (3)
Trade and other payables                                                   2,205,829               226,302
Short term provisions                                                        261,334                     -
Cash generated from operations                                             9,994,794             1,609,194
Interest paid                                                            (1,746,883)              (259,644)
Interest received                                                             10,305               201,649
Income tax paid                                                             (85,084)               (21,370)
Net cash generated from operating activities                               8,173,132             1,529,829

Cash flow from investing activities                                                      
Purchase of property, plant and equipment                                (4,492,740)           (7,593,231)
Additional investment in subsidiary paid by minority shareholders                  -            10,785,443
Net cash (used in) generated from investing activities                   (4,492,740)             3,192,212

Cash flow generated from financing activities                                            
Proceeds from borrowings                                                   3,537,715             5,951,752
Repayment of borrowings                                                  (4,187,760)             (857,487)
Proceeds from issuing shares (net of cost)                                    12,421               206,440
Net cash (used in) generated from financing activities                     (637,624)             5,300,705

Net effect of exchange rates in consolidating subsidiaries               (1,854,090)             (259,811)

Net increase in cash                                                       1,188,678             9,762,935
Cash at beginning of period                                                1,257,525               828,345
Cast at end of period                                                      2,446,203            10,591,280

Notes:

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

    2)       The  calculation on earnings per shares have been on a weighted average 25,303,751 (2007:
        23,392,512) ordinary shares in issue during the 6 months period.

    3)      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 2008 and 30 June
        2007.  The interim figures have not been audited.

    4)        The  interim statement for 2008 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.

    5)       The  exchange rate applying at 31 December 2008 was USD - GBP 0.69069.  The average  rate
        applied during the six months period ended 31 December 2008 was USD - GBP 0.58296.

Avation plc