EDGEWOOD, N.Y.--(BUSINESS WIRE)--Dec. 13, 2004--CPI Aerostructures, Inc. ("CPI") (AMEX: CVU) today reported that it was awarded a contract from Northrop Grumman Integrated Systems, valued at approximately $500,000, to manufacture the pod structural housing for the U.S. Navy's Rapid Airborne Mine Clearance System ("RAMICS"). RAMICS is an airborne mine neutralization system designed to operate from an MH-60S organic mine countermeasure helicopter and deploy from surface combatants and aircraft carriers in carrier battle and amphibious ready groups. The pod structural housings to be built by CPI are pressurized and thermally conditioned structural assemblies that contain the RAMICS pod electronics.
In April 2002, Northrop Grumman Integrated Systems was awarded a three-year, $36.9 million contract to develop a RAMICS system for the U.S. Navy. For this initial stage of the program, CPI will produce and deliver two pod structural housings that will be used by Northrop Grumman for development tests. According to a January 2004 article in National Defense magazine, the U.S. Navy is planning to buy 44 RAMICS systems for initial operational capability in 2007.
CPI's President & CEO, Edward J. Fred, "This is an important win for us for several reasons. First, we are joining a solid Northrop Grumman RAMICS team. Second, CPI's capabilities are being recognized for an important U.S. Navy helicopter program, which adds a new dimension to our business. Finally, the revenue potential of a 44 unit pod structural housing order is significant. We expect to deliver the two test structural assemblies in the second quarter of 2005."
Northrop Grumman Integrated Systems is a premier aerospace systems integration enterprise. Integrated Systems has the capabilities to design, develop, integrate, produce and support complete systems, as well as airframe subsystems, for airborne surveillance and battle management, early warning, airborne electronic warfare and air combat aircraft. It is also integrating these capabilities for emerging network-centric warfare concepts.
Founded in 1980, CPI Aerostructures is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the armed forces. In conjunction with its assembly operations, CPI provides engineering, technical and program management services. Among the key programs that CPI supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer, the A-10 Thunderbolt attack jet , the E-3 Sentry AWACS jet and the MH-60S mine countermeasure helicopter.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI's SEC reports, including CPI's Form 10-KSB for the year ended December 31, 2003 and Forms 10-QSB for the quarters ended March 31, 2004, June 30, 2004 and September 30, 2004.
CPI Aerostructures, Inc.
Vincent Palazzolo, CFO, 631-586-5200
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609