(EDGEWOOD, N.Y., Oct. 4, 2006) -- CPI Aerostructures, Inc. (AMEX Symbol: CVU) announced today that it has been awarded a $4.4 million contract to provide Sikorsky Aircraft ("Sikorsky") with Hover Infra Red Reduction System (HIRRS) module assemblies for use as spares on the UH-60 BLACK HAWK helicopter. This contract covers Sikorsky's anticipated spares requirements through 2007. There are two HIRRS assemblies used on each helicopter, and there are more than 1,000 UH-60 BLACK HAWK helicopters currently using this HIRRS configuration.
"We are very proud that Sikorsky, a leading helicopter manufacturer, has selected us to provide these assemblies," stated Edward J. Fred, CPI Aero's CEO & President. "Today's $4.4 million award is a validation of the quality and on-time delivery we've shown on previous purchase orders, and demonstrates our commitment to Sikorsky as a significant and valued customer."
Mr. Fred continued, "With this award, year-to-date contract awards total $21.1 million, which is 27% more than new contract awards for all of 2005. Of this amount, 28% is attributable to work from prime contractors. In 2005, approximately 13% of the $16.6 million in new contract awards were from primes. Additionally, for the trailing twelve month period from October 1, 2005 to September 30, 2006, new awards aggregated $31.5 million, which was the second highest twelve month award period in our 26 year history. The acceleration of business from prime contractors where we have focused and intensified our efforts is especially gratifying as this award represents our official entry into the helicopter sector, where we are pursuing additional business opportunities."
Discussing CPI Aero's outlook, Mr. Fred concluded, "While it is too early in our forecasting process to provide reliable guidance for 2007, based upon the level of new and anticipated orders, we expect our top line to improve considerably. Moreover, with the return of our historical gross margins coupled with overhead reductions taken earlier this year, we look forward to a healthier profit picture for 2007."