(INTRODUCTION FOR CONFERENCE CALL)

Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our most recent Form 10Q filed on August 4th, and in certain of our other public filings with the SEC.

Good morning. Thanks for joining us. We'll report, this morning, on the fourth quarter of FY'05 and our FY'05 year-end results. We'll describe the major influences on those results and update our guidance for FY'06.

Q4 Results

For the fourth quarter, sales of $281 million were very strong and, in spite of modest cost increases in most product lines, we generated earnings of $17.4 million, a 10.5% increase over the year previous. On a per-share basis, earnings of 44 cents were also up 10% from last year.

FY'05 Total

For the first time in our history, sales exceeded $1 billion. We finished the year at $1.051 billion, a 12% increase over the year previous. Net earnings of $64.8 million were 6.2% of sales and provided earnings per share of $1.64, a 13% increase over FY'04. This year's 13% increase in earnings per share required an $11.4 million increase in pre-tax earnings, which we achieved in spite of increased R&D of nearly $14 million, almost all of which relates to the Boeing 787, an increase in interest expense of $2.6 million, and an incremental $1.8 million paid to implement our initial Sarbanes 404 attestation. Given these expense increases, we think that the earnings result is an outstanding achievement.

Now, we'll go to the segments reports.

Aircraft in Total

Fourth quarter Aircraft sales were $123 million, up 17% over last year. Of the $18 million increase, 59%, or $11 million, was commercial. The total Aircraft sales level was noticeably higher than our most recent prediction. Quarterly aftermarket sales are somewhat volatile and, in this quarter, the aftermarket came in very strong, both military and commercial. Also, our subcontracting partners on the F-35 had a very big quarter. Since we are the contract lead, their sales pass through our books on their way to Lockheed.

As a result of this strong fourth quarter, total Aircraft sales for the year were $452 million, up almost 10% from the year previous.