(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 10, 2006, and in certain of our other public filings with the SEC.

Good morning. Thanks for joining us. This morning we'll report on the fourth quarter of fiscal '06, our '06 year-end results, and we'll update our guidance for fiscal '07.

FY'06 Total Year

Fiscal '06 was a great year for our Company. Sales of $1.3 billion were up 24% from last year. Net earnings of $81 million, at 6.2% of sales, were up 26% over last year's $65 million. You'll recall that we issued some equity in the early part of '06, and as a result, our earnings per share of $1.97 represent a 20% increase over last year's $1.64. If we'd been expensing stock options last year, the increase would be 23%. This financial performance was achieved in spite of a $25 million increase in R&D expense to $69 million or 5.3% of sales. Included in that amount was $31 million spent on the new Boeing 787, an investment which we believe will pay off handsomely in years to come.

In addition to our financial performance, this was a year characterized by a number of technical accomplishments, success on some important new programs and the start of our new medical segment.

Q4 Results

The fourth quarter was a strong finish for the year. Sales of $341 million were up 21%, a $60 million increase from last year. The strong sales allowed us to overcome some program cost increases and some purchase accounting expenses, and still achieve $21.8 million in net profit or $.51 a share. On a per share basis, that's a 16% increase over last year's fourth quarter.

Now to the segments.

Aircraft Q4'06

The Aircraft Group had a big finish for '06. Total aircraft sales in the quarter were up 16% to $143 million. Military sales were up 13% and Commercial sales up 21%.