Wednesday, April 14, 2010

CPI Aero to Take $10 Million in Additional Work under Its A-10 Wing Long-Term Requirements Contract from the Boeing Company

Total Firm Orders on Program Increase by $1.3 Million and Now Stand at $14.7 Million

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE Amex:CVU) today announced that the Boeing Defense, Space & Security unit of The Boeing Company ("Boeing") has expanded the scope of work that CPI Aero will perform under its previously announced long-term requirements contract to support Boeing's A-10 Wing Replacement Program. In June 2007, Boeing received an Air Force contract worth up to $2 billion to produce up to 242 enhanced wings for the United States Air Force's A-10 "Thunderbolt" attack jet. The initial $70 million contract to CPI Aero from Boeing, announced in July 2008, was for the production of leading edges, wingtips, trailing edges, main landing gear pods and various other structures. In May 2009 the contract from Boeing to CPI Aero was increased to approximately $71 million to add installation of fueling/de-fueling subsystem into the main landing gear pod assembly. Since May of 2009, Boeing has added additional structural assemblies and subsystem installations to the CPI Aero contract. These additions, which are valued at $10 million over the 242 aircraft program, include leading edge pylon covers, center trailing edge wedge fittings, lower outer trailing edge panels, wingtip covers, wingtip light installations and aileron light installations. The contract between Boeing and CPI Aero, as revised, has increased in value to approximately $81 million, of which CPI Aero has received $14.7 million of orders to date.

Edward J. Fred, CPI Aero's CEO and President, stated, "We are proud of our performance on this program and we are excited to expand CPI Aero's work scope under this contract. Earlier this year, we started delivering major assemblies for the first wing being produced in Boeing’s Macon, Georgia facility. As we continue to demonstrate our assembly capabilities to the Boeing A-10 Wing Replacement Team, we hope to be considered for additional opportunities for systems integration on this platform."

CPI Aero is engaged in the contract production of structural and other aircraft parts for leading prime defense contractors, 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 E-2D Hawkeye surveillance aircraft, the UH-60 BLACK HAWK helicopter, the S-92® helicopter, the MH-60S mine countermeasure helicopter, the Gulfstream G650, C-5A Galaxy cargo jet, the T-38 Talon jet trainer, the A-10 Thunderbolt attack jet, and the E-3 Sentry AWACS jet. CPI Aero is included in the Russell Microcap® Index.

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, 2009.

CPI Aero is a registered trademark of CPI Aerostructures, Inc.


See also:
Boeing expands A-10 wing contract (UPI, April 14, 2010)

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