(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 10K filed on December 8, 2005, and in certain of our other public filings with the SEC.

Good morning. Thanks for joining us this morning. We’re reporting on our results of the first quarter of FY’06. As you’ll see in a minute, this was a very strong quarter for us, particularly given some unusual expenses recorded during the quarter. I do want to point out, though, that because of the way our fiscal calendar works, this year will be a 53 week year for us and we decided to make the first quarter our fourteen-week quarter. The following three quarters will each be thirteen weeks. In FY’05, the first quarter was thirteen-weeks and the whole year was 52 weeks.

Sales for the quarter were $310 million, up 24% from a year ago. Of the $61 million sales increase, $26 million came in three recent acquisitions, and, excluding those revenues, our Company’s organic growth was a very strong 14%.

Net earnings were $16.8 million, up 12% from last year. Earnings per share at 43 cents a share were up 13% from last year. We had provided guidance of 41 cents per share for this quarter.

Looking at the P&L, gross margins were up in the quarter overcoming a $4.6 million increase in R&D expense. Our work on the Boeing 787 accounted for $3.3 million of the R&D increase. SG&A expenses were up as a percentage of sales because of higher than normal sales commissions. Interest was up $2.9 million from last year, and our tax rate was much higher. The higher tax rate was caused by an unusual writeoff of a tax asset in Europe. This $1.9 million after tax writeoff was occasioned by an adverse ruling in the European tax court which, in effect, eliminated the value of a tax asset on the books of our U.K. company.

Although the results for the quarter were very respectable, the quarter could have been a much stronger earnings quarter were it not for the tax writeoff and two other unusual expense items which are worthy of note.

The first of the unusual items is stock options.

This is the first quarter in which our Company is recording an expense for stock options. We’ve known for many months that we were going to adopt this convention in the first quarter, and we expected that the expense would be, on an after-tax basis, about $550,000 or a little over a penny a share. However, there is an aspect of FAS123R that we hadn’t fully appreciated. It requires that options granted in our plan to people who are eligible for early retirement have to be expensed immediately even though the recipient has no intention of retiring. Also, two of our option holders retired in the first quarter. As a result, the expense recorded in the quarter was, on an after-tax basis, not $550,000, but $1.4 million and, therefore, the difference from our plan was two cents a share.

The second unusual item has to do with expense associated with the termination of an agreement with a long-standing sales representative. In 1952, one year after our Company was founded, Bill Moog signed an agreement with a man named Owens Miller for sales representation in southern California, which at the time was the hotbed of the aerospace industry. At that time, of course, our Company had no staff in California. Over the intervening fifty-three years, our Company’s relationship with the Owens Miller organization has been extremely successful for both parties. In recent years, however, we have acquired two companies in Los Angeles and we have a substantial sales staff there now. The nature of our business with our California customers has also changed and their preference is to work directly with the Company. The termination of our relationship with the Owens Miller organization occurs at a convenient time, since some of the principals are about to retire. Our representation agreement provided that on termination, they would continue to receive commissions on certain of the orders placed in the recent past and in the near future. In the interest of eliminating the uncertainty of revenue for them and expense for us, we have negotiated a settlement of all our obligations for a fixed amount. Since the obligation is now a fixed liability, we have booked the entire expense in this quarter. The impact in the quarter is about $1.3 million after tax or three cents per share.

I’ll now move to a discussion of the segments and then Bob Banta will discuss our cash flow and debt levels.