MAX Mercury Air Grp.

Mercury Air Group, Inc. Announces Delay in Filing of Form 10-Q LOS ANGELES, May 26 /PRNewswire-FirstCall/ -- Mercury Air Group, Inc. (AMEX:MAX) announced today that it would require additional time to file its Quarterly Report on Form 10-Q for the third fiscal quarter ended March 31, 2005. In connection with a review of its third fiscal quarter financial statements, the Company is conducting a review of the accounting of its Long Beach FBO operations, delaying the closing of the books and records of the Company. It is not anticipated that the review will have a material impact on the Company's financial position. Mercury previously received an automatic 5-day extension for the filing of its Form 10-Q for the third fiscal quarter of 2005 pursuant to Rule 12b-25. As a result of the expiration of the 5-day extension, the Company will request from the American Stock Exchange a further extension for compliance under Section 1101 of the AMEX Company Guide. The Company expects to file the 10-Q no later than May 31, 2005. Preliminary Financial Results: For the third quarter ended March 31, 2005, the Company reported a net loss of $1.87 million, or $0.62 per basic and diluted share. For the third quarter of fiscal year 2004, the Company reported a loss of $1.82 million or $0.63 per basic and diluted share, which included a net loss from discontinued operations of $651 thousand or $0.22 per basic and diluted share. Revenue from continuing operations for the third quarter of fiscal year 2005 was $158.26 million, compared to $103.78 million for the same period last year, an increase of $54.48 million, or 52.5%. The increase in revenue from continuing operations is primarily due to the higher aviation fuel prices driven by higher worldwide petroleum product prices. The Company's gross margin from continuing operations for the third quarter of fiscal year 2005 was $4.12 million, an increase of 50.7%, compared to $2.73 million in the third quarter of fiscal year 2004. For the nine month period ended March 31, 2005, the Company reported a net loss of $2.00 million, or $0.70 per basic and fully diluted share, as compared to a net loss of $3.64 million, or $1.18 per basic and fully diluted share for the comparable period in fiscal year 2004. The fiscal year 2004 loss includes the after-tax settlement expense of $1.80 million associated with the J O Hambro Settlement and an accrual for debt premiums on the Senior Subordinated Note of $702 thousand, net of taxes. Revenue of $437.28 million for the first nine months of fiscal year 2005 was up $162.29 million, or 59%, compared to $274.99 million in the first nine months of fiscal year 2004. Gross margin of $13.57 million was up $3.50 million, or 34.7%, compared to $10.07 million in the same prior year period. The potential adjustments from the review of the accounting of its Long Beach FBO operations, if any, are not anticipated to exceed $180 thousand, net of tax, or $0.06 per share. About Mercury Air Group Los Angeles-based Mercury Air Group (AMEX:MAX) provides aviation petroleum products, air cargo services and transportation, and support services for international and domestic commercial airlines, general and government aircraft and specialized contract services for the United States government. Mercury Air Group operates three business segments worldwide: MercFuel, Inc., Maytag Aircraft Corporation and Mercury Air Cargo, Inc. For more information, please visit http://www.mercuryairgroup.com/. Certain statements contained in this news release which are not historical facts are forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission. The Company intends these forward-looking statements to speak only as of the time of the news release and does not undertake to update or revise them, as more information becomes available. Contact: Kent Rosenthal (310) 827-2737 DATASOURCE: Mercury Air Group, Inc. CONTACT: Kent Rosenthal of Mercury Air Group, Inc., +1-310-827-2737 Web site: http://www.mercuryairgroup.com/

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