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Toni Perazzo FOR IMMEDIATE RELEASE AEROCENTURY CORP. REPORTS THIRD QUARTER RESULTS (BURLINGAME, CA), November 8, 2007 — AeroCentury Corp. (AMEX:ACY), an independent aircraft leasing company, today reported its operating results for the third quarter ended September 30, 2007. As discussed and shown in the tables below, comparative information for the third quarter of 2006 and first nine months of 2006 has been restated in connection with the Company’s adoption of Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”) and Financial Accounting Standard Board Staff Position AUG AIR-1, Accounting for Planned Major Maintenance Activities (“FSP AUG AIR-1”). For the quarter ended September 30, 2007, the Company reported total revenues of $6.4 million compared with revenues of $4.6 million for the same period a year ago. For the nine months ended September 30, 2007, the Company reported total revenues of $16.4 million compared with revenues of $13.8 million for the same period a year ago. The Company reported net income of $1,064,000 or $0.69 per basic share and $0.66 per diluted share for the third quarter of 2007 compared to net income of $308,000 or $0.20 per basic and diluted share for the third quarter of 2006. The Company reported net income of $2,501,000 or $1.62 per basic share and $1.58 per diluted share for the nine months ended September 30, 2007 compared to net income of $152,000 or $0.10 per basic and diluted share for the same period a year ago. Operating lease revenue was approximately $1,304,000 and $2,128,000 higher in the three months and nine months ended September 30, 2007, respectively, versus the same periods in 2006, primarily because of increased operating lease revenue from aircraft purchased in the fourth quarter of 2006 and first nine months of 2007 and lease modifications which involved rent increases for several of the Company’s aircraft. In addition, in the three months ended September 30, 2007, the Company recorded revenue from several aircraft which had been off lease for part of the same period in 2006. The aggregate effects of these increases were partially offset by a decrease in revenue related to aircraft which were off lease for part of the 2007 periods. Total expenses were approximately $727,000 higher in the three months ended September 30, 2007, respectively, versus the same period in 2006, primarily because of increases in interest, depreciation and management fee expenses as a result of aircraft purchases, and other taxes. Those increases were partially offset by a decrease in the amount of maintenance expense. The Company’s maintenance expense is dependent on the aggregate maintenance claims submitted by lessees and expenses incurred in connection with off-lease aircraft. As a result of lower total lessee claims and less expense incurred for off-lease aircraft in 2007, the Company incurred approximately $494,000 less in maintenance expense in the three months ended September 30, 2007, respectively, versus the same period in 2006. Total expenses were approximately $711,000 less in the nine months ended September 30, 2007, respectively, versus the same period in 2006, primarily because of the change in maintenance expense from year to year. As a result of lower total lessee claims and less expense incurred for off-lease aircraft in 2007, the Company incurred approximately $2,305,000 less in maintenance expense in the nine months ended September 30, 2007, respectively, versus the same period in 2006. The decrease in maintenance expense was partially offset by increases in interest, depreciation, and management fee expenses resulting from aircraft purchases, as well as increases in professional fees and general and administrative expenses and other taxes. Due to the recent adoption of FSP AUG AIR-1, the Company was required to discontinue the accrue-in-advance method of accounting for planned major maintenance for financial reporting periods beginning on January 1, 2007. The Company has adopted the direct expensing method, under which actual costs incurred are expensed directly when maintenance is performed and the accrual of non-refundable maintenance reserves from the Company’s lessees for planned major maintenance is reflected as income. Because the net effect of recognizing income when maintenance reserves are billed and accruing maintenance expense as incurred within any given period will vary, it is likely that the new accounting method will result in uneven effects on the Company’s results of operations. AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net operating leases. The Company’s aircraft and engines are on lease to regional airlines and commercial users worldwide. (See tables following.) AeroCentury Corp.
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