The global market for aerostructures is estimated by Counterpoint Market Intelligence to total $24 billion in annual sales. Demand for commercial aerostructures is directly correlated to demand for new aircraft. New large commercial aircraft deliveries by Boeing and Airbus totaled 668 in 2005, up from 605 in 2004 and 586 in 2003, which was the most recent cyclical trough following the 1999 peak of 914 deliveries. Aircraft orders and deliveries in 2002 and 2003 were adversely impacted by economic recessionary conditions, the terrorist attacks of September 11, 2001 and SARS outbreaks in 2002. Demand has since rebounded, resulting in record orders in 2005 for 2,057 Boeing and Airbus aircraft, which are expected to be delivered over the next several years. According to published estimates by Boeing and Airbus, they expect to deliver a combined total of approximately 825 commercial aircraft in 2006. As of March 31, 2006, Boeing and Airbus had a combined backlog of 4,033 commercial aircraft, which has grown from a combined backlog of 2,597 as of December 31, 2004.

The business jet market segment is driven by corporate profitability, worldwide economic growth and the extent to which business jets are viewed as a viable alternative to commercial air travel. The Teal Group projects that over the next ten year period, over 10,000 business jets, worth approximately $141 billion in sales, will be produced.

The market for military aerostructures is dependent upon government development and procurement of military aircraft, which is affected by many factors, including force structure and fleet requirements, the DoD and foreign defense budgets, the political environment and public support for defense spending and current and expected threats to U.S. and foreign national security and related interests. Following the terrorist attacks of September 11, 2001, the DoD aircraft procurement budget rose to $20.9 billion in federal fiscal 2002, excluding supplementals, from $18.8 billion in federal fiscal 2001, and since 2002 has risen at a compounded annual growth rate of 4.85% to $25.3 billion in federal fiscal 2006.

The Company principally designs, engineers and manufactures commercial aircraft structures such as fuselages, nacelles (including thrust reversers), struts/pylons, wings and wing assemblies and flight control surfaces. The Company is the largest independent supplier of aerostructures to both Boeing and Airbus.

The Company’s structural components, in particular the forward fuselage and nacelles, are among the most complex and highly engineered structural components and represent a significant percentage of the costs of each aircraft. The Company is currently the sole source supplier of 96% of the products it sells to Boeing and Airbus, as measured by dollar value of products sold.

In addition to providing aerostructures to large commercial aircraft, the Company also designs, engineers and manufactures structural components for military aircraft. The Company provides a significant amount of content for the 737 Wedgetail and has also been awarded a significant amount of work for the 737 MMA and 737 C40. The 737 Wedgetail, 737 MMA and 737 C40 are commercial aircraft modified for military use. Other military programs for which the Company provides products are KC-135, V-22 and AWACs (E-3).

The Company has developed a direct sales and marketing channel for its aftermarket business. The Company has obtained parts manufacturing approvals from the FAA for 7,000 parts which allows the Company to sell spare parts directly to airlines and MRO organizations. In addition, all of the Company’s U.S. facilities are FAA repair station certified and have full technical capability to provide MRO services.

Cost of sales for the three months ended March 30, 2006 were $533 million compared to $1.1 billion for the period from June 17, 2005 through December 29, 2005.

Operating income for the three months ended March 30, 2006 was $60.1 million compared to $36.9 million for the period from June 17, 2005 through December 29, 2005.

Interest expense and financing fee amortization for the three months ended March 30, 2006 were $11.2 million compared to $25.1 million for the period from June 17, 2005 through December 29, 2005.

Net income for the three months ended March 30, 2006 was $32 million compared to a loss of $59.2 billion for the period from June 17, 2005 through December 29, 2005.