Acquisition Brings Aero Kinetics Technological Edge to Strat Aeros Global Team for Significant Progress and Expert Innovation in Aerospace

Fort Worth, TX, December 10, 2015 — Aero Kinetics, the first company to file for FAA Type Certification for multi-rotor unmanned aircraft, announces a deal with Strat Aero US Holdings, Inc., a U.S. subsidiary of Strat Aero PLC (LSE: AERO). The acquisition of Aero Kinetics is valued at $24US million with incentives. The deal will create expansion in the rapidly emerging UAS sector, allowing Aero Kinetics to broaden its reach domestically while working in conjunction with Strat Aero to bring forward advanced technologies for its clients.

"We are excited to move forward with Strat Aero, widening our global reach and breaking new ground in the unmanned aircraft space," said W. Hulsey Smith, Chief Executive Officer of Aero Kinetics. "Our company has been at the leading edge in one of the most promising and fastest-growing sectors of aerospace in decades. Working together, we will be at the forefront of the future of UAS, providing the technology for significant innovation and leadership in the industry
for years to come."

Aero Kinetics maintains a client roster including Fortune 100s. The deal with Strat Aero furthers Aero Kinetics resources to build better aircraft, enhance customer experience, and grow in the global market. Strat Aero, which began trading on London AIM last November making it one of two pure play publically traded unmanned aircraft companies, recently acquired two companies in the UAS space: Geocurve Holdings Limited and UAV Airways Limited. The UAS market is expected to grow to $82US billion by 2025, according to the AUVSI Economic Report 2013. W. Hulsey Smith will remain the Chairman and CEO of Aero Kinetics, and will become the President of Mission Systems for Strat Aero PLC.

"Aero Kinetics offers a full unmanned aircraft solution to its clients, whereby they fully integrate unmanned aircraft into their clients business operations as a service." said Tony Dunleavy, CEO Strat Aero PLC. "Strat Aero has significant unmet demand in our sales pipeline, along with operational and flight training expertise that will further enhance Aero Kinetics proven business model and market share. This transaction is accretive almost instantly, and fills out our management team with the addition of Hulsey Smith, a proven executive and aerospace visionary."

Aero Kinetics expertise in providing full UAS solutions integrates with Strat Aeros vision for rapid advances in the UAS market and international efforts. Aero Kinetics provides a true turnkey solution spanning across multiple industry disciplines to provide customers service, data, and delivery in the unmanned aircraft sector. Aero Kinetics parent company will retain the Special Missions, Aircraft Maintenance, and Aviation Consulting business units which will be rebranded in the first quarter of 2016.

ABOUT AERO KINETICS:
Aero Kinetics is an agile 21st century Aerospace and Defense firm with distinct business units in Unmanned Aircraft Systems, Aviation Engineering and Certification, Special Missions Operations, Aviation Consulting, and Aircraft Maintenance and Management. Founded by W. Hulsey Smith in 2003, Aero Kinetics rapidly delivers aerospace and defense technology, services, and solutions to clients enabling them to maintain technological and operational superiority, by bridging the gap between the conceptual and the tangible.

Aero Kinetics has a proven track record of success, spanning more than a decade. Committed to providing clients with the very best in diversified technologies, Aero Kinetics continues to focus its growth on the commercial sector through internal advancements in emerging markets such as Unmanned Aircraft Systems.

ABOUT STRAT AERO:
Strat Aero plc is a multi-divisional international aerospace services company, focused primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Civilian, law enforcement and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.