During the third quarter of the financial year, several additional development projects were completed.

Several features have been integrated into our proFLIGHT App, and a requested addition to AVENTUS Full Flight in the form of a significantly improved optimization of the flight path has recently been presented to the market. These supplements have been received with great interest. 

Our previously decided investments in marketing and sales continue. At the end of the summer period, two more people were recruited to our market group. The market group's focus during the quarter has been to generate interest, contacts and meetings with the airlines.

The increased product range and the successively increased interest in tools that support the airlines' increasing need to save fuel, become more environmentally responsible and avoid turbulence during the flight mean that our product range seems to attract more and more airlines.

Unfortunately, we can see that the time from interest to decision is still illogically long. The third quarter did not entail any further new contract, although we have, as previously announced, more airlines testing our products. Every new customer seems to want to conduct tests in their own operations so far. The time for preparation of tests, conducting tests of at least 3 months, analysis of results and contract negotiations is a process that so far has never been less than a calendar year. However, with an increased number of airline users, we generally expect that the test period with new customers should be shortened.

There seems to be increasing concern in the airline industry, caused by, among other things, uncertainty about the effects of global warming in aviation. An expected global economic downturn as well as signs that more airlines are moving towards a period of lower profitability is another contributing factor. Continued uncertainty about the 737 MAX flight stop will also affect the focus of several of AVTECH's current and future customers. Despite these factors, we can see a growing interest in our products.  

Events after the end of the period

The entire content of the webinar is available on AVTECH's YouTube channel (link on the website). The content of the webinar provides an informative description of our new optimization product developed in collaboration with Norwegian. The aircraft type Boeing 737, the most flown aircraft model in the world, has a computer on board that is powerful in comparison to other aircraft computers but lacks the features to plan for more than one flight level at a time. In these aircraft, one should be able to obtain a significantly greater benefit than in other aircraft models for utilizing our new optimization solution. For this reason, the first phase of the deployment of our new optimization solution will focus on the airlines operating many B737s in their fleet.

Judging from the reactions from the presentation, AVTECH is the first company in the world to be able to have both of these complementary systems coordinated in a user-friendly format. The presentation, from Chicago, of proFLIGHT with a data warehouse that handles IATA turbulence reports can be listened to through a link on our website. The image below shows the different layers of weather information that together provide pilots with critical information to effectively avoid turbulence.

This information is also available in SIGMA for the aircraft that have used ACARS as a form of communication. In these cases, you get the information in real time during the flight and get an update every time the pilot wishes.

Met Office and AVTECH have also decided to increase joint marketing efforts by designing customer-specific mini-seminars. The joint assessment is that the market is gradually beginning to realize the advantages of 10K based weather forecasts, processed in Aventus Full Flight form, can achieve. More customer-specific information meetings are planned to be implemented in the coming six-month period.

Kista, October 16, 2019 AVTECH Sweden AB (publ), the Board of Directors. This report has not been reviewed by the company's auditors.

For further information, please contact
Christer Fehrling, President and CEO, +46 (0) 8 544 104 80
Britt-Marie Lodenius, Chief Financial Officer, +46 (0) 8 544 104 80
or visit the company's website www.avtech.aero, https: / /www.avtech.aero/report#content
AVTECH Sweden AB (publ), corporate identity number 556568-3108, has its registered office in Stockholm municipality.
Postdress: Färögatan 33, 24 tr, 164 51 KISTA, Sweden.
The company's B-share (short-term AVT B) has been traded on the NASDAQ First North Growth Market since February 2012. The company's A-share is not traded on any marketplace. Certified Adviser is Redeye AB (www.redeye.se), tel: 08-121 576 90, e-mail address certifiedadviser@redeye.se. For explanation of technical terms, see glossary on page 73 of the Company's New Issue Prospectus 2011. 0 The information was submitted, through the above contact person's provision, for publication on October 16, 2019 at CET 08:30 AM

AVTECH develops products and services for digital air traffic management systems. Customers are players in the global aviation industry such as airlines, airports, air traffic management suppliers, technology companies and aircraft manufacturers. With the company's products and services, every single flight or entire flight operation can be optimized in terms of finances, noise and emissions, efficiency, capacity, punctuality and safety. The head office is located in Stockholm, Kista. For more information, see www.avtech.aero.