(EDGEWOOD, N.Y., Nov. 14, 2005) -- CPI Aerostructures, Inc. ("CPI Aero") (AMEX: CVU) today announced that it was awarded a contract by Northrop Grumman Integrated Systems ("NGIS") to manufacture the pod structural housing for the U.S. Navy's airborne-laser mine-detection system ("ALMDS"). ALMDS uses light-detection and ranging technology to detect, classify and localize floating and near-surface moored sea mines so that ships can maneuver through clear sea lanes. Contained in external equipment pods mounted on a Navy MH-60S helicopter, the mine-detection system also provides accurate mine-location information for follow-on neutralization by other systems such as NGIS's rapid airborne mine-clearance system ("RAMICS".) The pod structural housings to be built by CPI Aero are pressurized and thermally conditioned structural assemblies that contain the ALMDS pod electronics.
In April 2000, NGIS was awarded a three-year, $40 million contract for engineering and manufacturing development of the ALMDS system for the U.S. Navy. On June 16, 2005, NGIS announced that the program had reached Milestone C, signifying the end of system development and demonstration, and is now poised to enter its production phase. NGIS's purchase order to CPI Aero, valued at $1,166,000, is for the manufacture of three pod structural housings and associated tooling related to the production phase. Defense Daily Network has reported that the U.S. Navy plans to order a total of 57 ALMDS systems by 2012.
CPI Aero's President & CEO, Edward J. Fred stated, "This contract award is important to us for several reasons. First, we are continuing to build a relationship with a solid Northrop Grumman team. Second, CPI Aero's capabilities are again being recognized for an important U.S. Navy program. This confirms our belief, initially expressed last year with the RAMICS award, that we have added a new dimension to our business. Finally, the revenue potential of this program is significant."
About Northrop Grumman Integrated Systems
NGIS is a premier aerospace systems integration enterprise. NGIS 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.
About CPI Aero
CPI Aero 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 Aero provides engineering, technical and program management services. Among the key programs that CPI Aero 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 Aero's SEC reports, including CPI Aero's Form 10-KSB for the year ended December 31, 2004 and Forms 10-Q for the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005.
Vincent Palazzolo (CPI Aero)
Investor Relations Counsel:
The Equity Group Inc.
Linda Latman, 212-836-9609
Andreas Marathovouniotis, 212-836-9611