Innovative Aerosystems (NASDAQ:ISSC) announced today that it has entered into a development and purchase agreement with a leading developer of electric vertical takeoff and landing ("eVTOL") aircraft, to develop the main display and avionics architecture based on the Company’s Liberty Flight Deck.

Under the agreement, Innovative Aerosystems will provide the design, development, manufacturing, production, and delivery of the aircraft's main display system and supporting avionics architecture for integration into the customers eVTOL program. The collaboration combines the customers’ expertise in advanced air mobility aircraft development with Innovative Aerosystems' proven experience in certified avionics, integrated flight decks, and mission-critical display technologies.

Innovative Aerosystems expects early engineering work to begin in late 2026, with initial production targeted for the second half of 2027. The Company expects to achieve run-rate production during 2028 in support of the customers targeted 2028 full-scale commercial launch. The customer currently holds a total of over 400 eVTOL orders from partners. Based on current estimates, Innovative Aerosystems believes the total contract value could exceed $50 million for forward fit orders, with potential for additional aftermarket and services revenues.

"The advanced air mobility market represents one of the most exciting frontiers in aviation, and we are honored to be selected for this program," said Shahram Askarpour, Chief Executive Officer of Innovative Aerosystems. "Our expertise in integrated avionics architectures and display technologies, combined with our vertically integrated engineering and manufacturing capabilities, positions us to deliver a reliable, certifiable solution. This program reflects our continued focus on developing next-generation systems that enable safer, smarter, and more capable flight across both traditional and emerging aviation platforms."

ABOUT INNOVATIVE AEROSYSTEMS

Headquartered in Exton, Pa., Innovative Aerosystems is a U.S.-based company specializing in the engineering, manufacturing, and supply of advanced avionics solutions. Its extensive global product reach and customer base span commercial, business aviation, and military markets, serving both airframe manufacturers and aftermarket providers for fixed-wing and rotorcraft applications. IA offers advanced, cost-effective solutions while maintaining support for legacy product lines. The Company is positioned to leverage its experience to pursue growth opportunities in next-generation navigation systems, advanced flight deck and special mission displays, precision air data instrumentation, autothrottles, flight control computers, mission computers, and software-based situational awareness solutions supporting autonomous flight. Supported by a robust patent portfolio and the highest aircraft certification standards, IA is positioned to address the aerospace industry's demand for increasingly sophisticated and technologically advanced products. For more information, please visit us at www.iascorp.com.

FORWARD-LOOKING STATEMENT DISCLAIMER

In addition to the historical information contained herein, this press release contains "forward-looking statements" within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In this press release, the words "anticipates," "believes," "may," "will," "estimates," "continues," "intends," "forecasts," "expects," "plans," "could," "should," "would," "is likely," "projected," "might," "potential," "preliminary," "provisionally," "look forward," and similar expressions, as they relate to the business or its management, are intended to identify forward-looking statements, although they are not the exclusive means of identifying such statements. All forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company, including, without limitation, statements regarding the expected benefits of the acquisition. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time, and speak only as of the date on which they are made. Because forward-looking statements are subject to assumptions, risks, and uncertainties, actual results may differ materially from those expressed or implied by such statements. Factors that could cause results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the Company’s ability to efficiently integrate acquired and licensed product lines into its operations; a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the economic and business environments in which the Company operates. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and subsequent reports filed with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond management’s ability to control or predict. Readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements or to make any other forward-looking statements.

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INVESTOR RELATIONS CONTACT

Paul Bartolai or Noel Ryan

ISSC@val-adv.com