(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 10K filed on November 27, 2007, and in certain of our other public filings with the SEC.

We've provided some financial schedules to help our listeners better follow along with the prepared comments. For those of you who do not already have the document, a copy of today's financial presentation is available on our investor relations home page and webcast page at http://www.moog.com. 

Good morning. Thanks for joining us. This morning we'll report on the first quarter of fiscal '08, and we'll update our guidance for the year. We've had a very good start in '08. Sales of $446 million were up 25%. Net earnings of $27.7 million were up 15% and earnings per share of $.64 were up 14%.

Our sales growth of about $90 million includes almost $33 million of revenue from recent acquisitions. As you know, purchase accounting has the result that acquisitions don't produce much in the way of earnings in their first year. Excluding the acquisitions, our sales growth was about 16%, only slightly faster than our 15% growth in net earnings. If you look at our P&L, our gross margin was down slightly as a percent of sales, reflecting normal shifts in the mix of business. R&D of $24.1 million was up only 8%. SG&A expenses were up about 26% in line with sales growth and reflecting the added SG&A expenses in the companies we acquired. Our interest expense was up $4 million, mostly the result of borrowing to complete the acquisitions. All-in-all, though, with net earnings up to $27.7 million, it's a very good start for the year.

Now let me go to the segments.

Aircraft Q1 '08

Total Aircraft sales of $159.6 million were up 22%. Sales were up on both the military and the commercial products.

Military aircraft sales of $90.8 million were up 14%. Of the $11 million increase about $5 million was increased revenue on the F-35 Joint Strike Fighter. F-35 revenue in this quarter was over $23 million. We've entered a period of increased workload as we complete design and development on the short takeoff version of the F-35 and the carrier version.

Our production programs; the F-18, the V-22 and the Blackhawk helicopter, generated almost $19 million in sales, another $5 million increase. The military aftermarket at $26.8 million was up over $2.5 million from last year's first quarter.

Commercial sales of $68.8 million were up 34% from last year. We had a big increase in OEM sales to Boeing, driven by a $5.5 million increase in revenues on the 787. Revenues in business jets doubled to almost $16 million. Revenues are up with every one of our business jet customers driven primarily by the Hawker 4000 and the Challenger 300. Commercial aftermarket, at $21.4 million, was up only slightly from last year's first quarter. However, last year's first quarter included an unusually high complement of initial provisioning spares for business jet customers.