(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 May 11, 2006, and in certain of our other public filings with the SEC.

Good morning. Thanks for joining us today. This morning we'll report results for our third quarter of '06. We'll update our guidance for the balance of fiscal '06 and we'll provide our initial outlook for fiscal '07.

Quarter three was another very strong quarter, but much more in line with our expectations and not a big surprise like last quarter. Sales were $333 million, up 25% from a year ago. Net earnings of $21.2 million were up almost 28%. On a per share basis, net earnings were 50 cents, up 19% from last year's third quarter.

Sales were up in all four segments. Margins were up in every segment except Aircraft.

In the quarter, gross profit increased at a rate slightly faster than the sales increase and more than enough to cover another big increase in R&D expense. R&D for the quarter was $18.2 million and, of that, $8.7 million was spent on the Boeing 787.

In the quarter, SG&A expense was up only 15% reflecting the fact that much of our technical staff has been engaged in R&D work as opposed to bid and proposal sales engineering activity, which shows up in SG&A. Interest expense at $5.7 million was up over $2 million from a year ago due to the increased borrowings required to make the recent acquisitions. Our tax rate of 32% was up substantially from a year ago.

From an operational point of view, this was a very busy quarter. Our Aircraft Group has been doing an outstanding job of managing very complex development programs on the Joint Strike Fighter, the 787, the A400M, and the X-47. Each of these programs has its own technical challenges and a tight delivery schedule. Last week at the Farnborough Air Show, Mike Bair, the Program Director for the Boeing 787, commented in a press conference that Moog was doing a very good job on the flight-control actuation. It's great to hear a customer express his appreciation in such a public forum. Our other three segments are all successfully integrating their recent acquisitions. And today we're about to inaugurate a fifth segment, our new initiative in Medical Devices.

So without further ado, Iet me go to the segments.

Aircraft Q3'06

Total Aircraft sales of $130 million were up 15%. Military sales were up 9%. Commercial sales were up 25%.