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 8, 2007, 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 '07. We'll update our guidance for the balance of fiscal '07 and we'll provide our initial outlook for fiscal '08.

Quarter three was a great quarter. Sales of $404 million were up 21% from a year ago. In spite of a 56% increase in R&D expense, net earnings were up 20.4%. Factoring in the effect of increased share count, earnings per share were up 18% to 59 cents.

Year-over-year sales were up in all five segments. Operating profit was also up in all five segments.

In the quarter, gross profit increased by $33.1 million. This was more than enough to cover a $10.1 million increase in R&D expense. Interest expense was up by $2.6 million, mostly because of the debt incurred to buy Zevex. Net earnings were up $4.3 million.

From an operational point of view this was another very busy quarter. Our Aircraft Group is in the midst of safety of flight testing on the 787 and the A400M. We're also supporting the flight test program on the Joint Strike Fighter. Our Space and Defense Group is heavily involved in proposal activity on the Ares I development program. This is the rocket that will launch the crew on the system that will replace the Space Shuttle. Sales have also been very strong in our Industrial and Components segments and we're learning the peculiarities of the market in Medical Devices.

Let me turn now to the segments.

Aircraft Q3

Total Aircraft sales of $149.8 million were up over 15% from a year ago. Military Aircraft sales of $82 million were up only 2%, but Commercial Aircraft sales were up 37%.

The notable increases on the military side were in equipment sold to the Japanese for their F-15J. Sales of over $7 million were up $3 million from a year ago. Sales of flight controls on the Indian Light Combat Aircraft were $2.6 million, up from $800 thousand a year ago. Revenue on the F-35 of almost $16 million was down $1.7 million from last year. On the other hand, the Moog content in this quarter of $10.1 million was actually up $300 thousand from a year ago and the difference was in the billings of our partner companies.