Arthur August, Chairman of CPI Aerostructures, Inc. Implements Stock Trading Program Under SEC Rule 10b5-1.

Business Editors

EDGEWOOD, N.Y.--(BUSINESS WIRE)--Aug. 5, 2003

CPI Aerostructures, Inc. ("CPI") (AMEX:CVU) announced today that Arthur August, its non-executive Chairman, has implemented a previously disclosed stock trading program under Rule 10b5-1 of the Securities Exchange Act of 1934. Rule10b5-1 permits corporate insiders to adopt written plans at a time when they are not in possession of material nonpublic information and to sell shares according to the plan on a regular basis (for example, weekly or monthly), regardless of any subsequent nonpublic information they receive.

Mr. August's plan calls for the sale of up to 10,000 shares per month commencing in August, 2003. Mr. August's stock sale is being undertaken in connection with the previous reduction in active service to CPI and his planned retirement at the end of 2004, at which time he will be 70 years old.

The Company's secondary offering prospectus dated February 12, 2003, disclosed that Mr. August was permitted to establish a Rule 10b5-1 plan as an exception to his lock-up agreement with the underwriter.

Founded in 1980, CPI Aerostructures is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the armed forces. In conjunction with its assembly operations, CPI provides engineering, technical and program management services. Among the key programs that CPI supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer and the E-3 Sentry AWACS jet.

The above statements include forward-looking statements that involve risks and uncertainties, which are described from time-to-time in CPI's SEC reports, including CPI's Form 10-KSB for the year ended December 31, 2002 and Form 10-QSB for the quarters ended March 31, 2003 and June 30, 2003.