CPI Aerostructures Announces $1.14 Million Military Contract Award.

EDGEWOOD, N.Y. -- CPI Aerostructures, Inc. (AMEX Symbol: CVU) announced today that is has been awarded a $1.14 million contract to provide the U.S. Government with five engine nose cowl assemblies for its E-3A Airborne Early Warning aircraft. The E-3A is used primarily by the United States and NATO to detect impending danger and perform electronic jamming functions.

"This award comes from Tinker Air Force base, and demonstrates the fine working relationship we have established with this Air Logistics Center," stated CPI Aero's CEO & President, Edward J. Fred. "CPI Aero was awarded its first nose cowl assembly contract for the E-3A back in August 2000. In September 2002, we received an order to produce an additional 14 cowls. This new award represents the second follow on order we have received for this assembly, bringing the total number of cowls ordered to 23, which is a testament to the quality of work that we have performed on this program," concluded Mr. Fred.

CPI Aero 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 Aero provides engineering, technical and program management services. Among the key programs that CPI Aero supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer, the A-10 Thunderbolt attack jet, the E-3 Sentry AWACS jet and the MH-60S mine countermeasure helicopter.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-KSB for the year ended December 31, 2005 and Form 10-Q for the quarters ended March 31, 2006, and June 30, 2006.