Canada 3000 Inc. sells part of Royal Cargo operation

Through its wholly owned subsidiary Royal Aviation Inc., CANADA 3000 INC. is selling a 50% interest in its cargo subsidiary Royal Cargo to Flagship International Marketing for $ten million, which will be received over a two-year period with $eight million to be received this year.

This agreement also includes the transfer of a Stage 2 Boeing 737-200 aircraft included in Royal Cargo’s assets. As a result of the sale, the company will be renamed CANADA 3000 Cargo Inc. effective August 2001. CANADA 3000 Cargo operates a dedicated overnight air freighter network within Canada, serving the freight forwarding industry.

Flagship International Marketing Inc. is owned and controlled by Ajay K. Virmani, who will be the President and CEO of CANADA 3000 Cargo Inc. Most recently Mr. Virmani was the President of EGL Eagle Global Logistics Canada Inc., a leading transportation company and the President and CEO of two predecessor companies, Fastair Cargo Systems Ltd., and Commercial Transport International (Canada) Ltd.