Continental Motors Group® Announces New Factory and global investment plan

Mobile (AL, USA), March 27th, 2017 — Continental Motors Group® Ltd (CMG), an AVIC International
Holding Corporation® company, announced it has chosen the city of Mobile, Alabama, USA for the first
step of a 3-year global investment plan to take its manufacturing, customer service and engineering
infrastructure to the next level. This first step will build a new, state of the art manufacturing facility and
corporate office located at the Mobile Aeroplex at Brookley and will replace the company’s current 11
building footprint with a single, state-of-the-art facility designed for lean manufacturing and office
systems.

The Company has spent the past year working with manufacturing experts, conducting benchmarking
visits and planning an investment program that renews its commitment to not just assembling aviation
piston engines, but also manufacturing the core parts that make the engines. The new facility will be
nearly 225,000 square feet (21,000 m2) with the majority being dedicated to advanced engine and parts
manufacturing. The facility will be populated with new manufacturing equipment and include a special
area designated for evaluation of new manufacturing techniques and processes, including additive
manufacturing and automation.

“We currently occupy 11 buildings on 44 acres at the Mobile Aeroplex at Brookley, with most of the
buildings built before the second World War. The current operation being spread throughout multiple
buildings, drives many challenges and inefficiencies,” said Mr. Michael Skolnik, Executive Vice President
Global Operations. “Continental Motors® has been a big part of the local Mobile community for over 50
years and is pleased with the community support that allows us to renew our commitment to the region
and our great team members for many years to come. The “greenfield” facility will modernize our
manufacturing processes into a world class, high productivity, vertically integrated center of
manufacturing excellence in the new center of aviation in Mobile, Alabama, USA.”, he finished.

Building a new factory is only one part of the plan to profoundly transform Continental Motors and the
way the company designs, manufactures, certifies, and support products. CMG will build a new
customer and technical service infrastructure and environment that will allow assisting customers
through phone, email, and app support, regardless of their location in the world, 24/7/365. Furthermore,
Continental Motors will increase its capacity to develop new products and expand China market access
with a new engineering and design service center based in China.

“Continental Motors has been supported by its excellent team members and the community of Mobile,
Alabama for over 50 years. We are pleased today to announce a renewed partnership with all to secure
the company’s future for another 100 years. Further, I am pleased to announce our commitment to our
global team members and customers with a firm investment to modernize our facilities, products and
support.” said Rhett Ross, President and CEO of Continental Motors Group, Ltd.

“Continental Motors has been an outstanding partner to our community for many years. We are pleased
to support them in making this major investment in the City of Mobile,” said Mayor Sandy Stimpson.
“Mobile is open for business, and it’s a great time to invest in Mobile.”

Continental Motors will finish building design and equipment selection in 2017 and will move into its new
North American facility in 2019.