Precision Aerospace Components, Inc. plans to relocate and consolidate the activities of its headquarters operations, as well as the operations of its Freundlich Supply Company Inc. and Tiger-Tight Inc. subsidiaries from Staten Island, New York to Bensalem, Pennsylvania, at the present location of its Aero-Missile Components Inc. subsidiary, prior to the end of the calendar year 2012. This relocation will allow the Company to better serve its customers through the co-location of a broadened inventory and will enable the Company to realize additional efficiencies from its recent acquisition of the assets of Fastener Distribution and Marketing Company, Inc.; these assets included Aero- Missile and Creative Assembly Systems, Inc. The operations and service provided by Freundlich Supply Company and Tiger Tight Corp. will continue unabated at their new location.

As a result of this relocation, the Company anticipates significant and continuing savings from the elimination of the facilities costs associated with its Staten Island location. Additionally, the lower overall tax environment outside of New York City and State will be beneficial to the Company.