CPI Aerostructures, Inc. (“CPI Aero®”) (AMEX: CVU) announced today that it has been awarded a long-term requirements contract of approximately $70 million to provide various assemblies to the Boeing Integrated Defense Systems unit of The Boeing Company in support of its recent $2 billion award to produce up to 242 enhanced wings for the A-10 “Thunderbolt” attack jet. The first ordering period is to run until September 30, 2011, and the contract calls for an additional option period that runs from October 1, 2011 through September 30, 2016. The initial order under this contract is expected to be received by CPI Aero within the next thirty days.
Edward J. Fred, CPI Aero’s CEO and President, stated, “This is a very exciting day for CPI Aero. We have been named a subcontractor to the premier aerospace and defense company in the world, and we continue to work on a program that we have participated in since 1995. This contract extends the life of a valuable platform that supports our warfighters in accomplishing their mission to defend freedom around the globe. We look forward to this outstanding opportunity to team with The Boeing Company to enable the A-10 fleet to fly at least 20 more years. We are also quite excited that as this program reaches higher rates of production, CPI Aero will create 12 to 15 internal aerospace jobs for the Long Island region. Additionally, we will look to provide subcontracting work to Long Island-based companies whenever possible on this program, which will further impact the Long Island job market in a positive way.”
The A-10, first introduced in 1976, is a twin-engine jet aircraft designed for close-air support of ground forces. The simple, effective and survivable single-seat aircraft can be used against all ground targets, including tanks and other armored vehicles.
CPI Aero is engaged in the contract production of structural aircraft parts for the U.S. Air Force, other branches of the armed forces and leading prime defense contractors. 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, UH-60 Black Hawk helicopter, the Sikorsky S-92 helicopter, the MH-60S mine countermeasure helicopter, and the Gulfstream G-650.
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-K for the year ended December 31, 2007, and Form 10-Q for the quarter ended March 31, 2008.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
Contacts:
Vincent Palazzolo, 631-586-5200
Chief Financial
Officer
www.cpiaero.com
or
Investor
Relations Counsel
The Equity Group Inc.
Linda Latman,
212-836-9609
Lena Cati, 212-836-9611
www.theequitygroup.com
