Annual Meeting Remarks by Robert T. Brady, Chairman and CEO, 1/9/2008

01 / 09 / 2008

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Thank you Terry.

During the third quarter of fiscal '06, we announced the acquisition of Curlin Medical. This company became the foundation for our new Medical Devices segment. As a corporation, we had been thinking about entering the market for medical devices for a couple of years. We analyzed a great many market opportunities and ultimately decided to devote our energy and attention to infusion therapy. We set out to become a specialist in the production of infusion pumps. We supplemented our Curlin acquisition with the pump product line of McKinley Medical and during fiscal '07 we acquired Zevex, a producer of infusion pumps used in enteral feeding.

Revenues in the Medical Device product line were $68 million in '07, up from only $13 million the year before and it's a profitable business. Our initiative in the medical device marketplace has been led by Marty Berardi, who is the President of the Medical Devices segment. From the beginning, Marty has been ably supported by Sean Insalaco.

Sean is currently a Group Vice President, Business Development for Moog's Medical Device Group. Sean has been with Moog since '96. He came to Moog as part of our acquisition of Moog Controls Inc.

Sean is yet another Buffalo boy. He has a B.S. in Industrial Engineering from the University of Michigan and an MBA from Carnegie Mellon. After graduate school, he joined Wierton Steel in Pittsburgh and later came back to Buffalo to work for Moog Controls.

While at Moog, Sean has held various Marketing positions in our Industrial Division and our International Group. He's been a Marketing Manager, a Manager of Market Planning, and Director of Marketing for our entire International Group. Sean was one of the initial members of our Medical Devices Group, having been part of the team that devised our market entrance plan and completed the acquisitions of Curlin Medical, McKinley Medical and Zevex International.

Here's Sean.

Thanks Sean.

Thanks guys. I hope these presentations allow you to develop some appreciation for the breadth and depth of our Company's capabilities. Over the years, we've focused on the design and production of high-performance motion control and fluid flow components and systems. It's a technology specialty that provides an extensive range of opportunities in a number of different markets, many of which have been good to us in fiscal '07 and we expect will continue to be strong for us in fiscal '08.

So, let me move now to our forecast for fiscal '08. This is a forecast that we provided in our fourth quarter conference call on November 1. Sales are projected in a range centered around $1.8 billion. If we hit the middle of that range, it'll be a 16% sales increase over fiscal '07. We're projecting earnings in a range between $115 and $119 million and the midpoint of that range would generate $2.69 a share, a 15% increase over fiscal '07, right in line with our ten-year average.

In the Aircraft segment, we're forecasting an 11% sales increase to a total of $651 million. In '08, we're expecting increases in both military and commercial sales. Revenues will be up on the F-35 Joint Strike Fighter program, on the V-22 Tilt-rotor aircraft and there will be a substantial increase in the military aftermarket. On the commercial side, we're looking for increased OEM revenues at Boeing, mostly on the 787. We're also forecasting increases in business jets and in the commercial aftermarket.

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