(EDGEWOOD, N.Y., Feb. 16, 2006) -- CPI Aerostructures, Inc. ("CPI Aero") (AMEX: CVU) today announced the receipt of three orders for C-5 structural parts valued in the aggregate at approximately $737,000. These orders come within weeks after the publication of the Department of Defense's ("DoD") 2006 Quadrennial Defense Review ("QDR") (http://www.defenselink.mil/qdr/), which discusses the U.S. Air Force's plan to upgrade its C-5 aircraft fleet with new engines and modernized avionics to improve fleet reliability and mission capability rates.
None of the orders are part of the seven-year C-5 TOP contract awarded to CPI Aero by the U. S. Air Force in May 2004. Two orders come from the Defense Supply Center Richmond and the third order is from Vought Aircraft Industries, Inc. for the manufacture of four different C-5 subassemblies in support of Vought's C-5 TOP contract. These subassemblies are in addition to the 31 subassemblies that are contained in the previously announced long-term agreements with Vought.
Edward J. Fred, CPI Aero's President & CEO stated, "We have been supplying many different critical parts for the C-5 since 1995, nearly a decade before the C-5 TOP award. For CPI Aero, the value of these latest awards goes far beyond the dollar amount they represent. Rather, these are the first new C-5 orders we've received since the DoD published its goal of 112 modernized and reliability-enhanced C-5s. It appears that those stated goals are turning into action and orders. We have a higher degree of confidence that the DoD's goals may translate into additional orders for 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 Form 10-Q for the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005.
Vincent Palazzolo, 631-586-5200
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609