CPI Aerostructures Announces First Quarter Results.

EDGEWOOD, N.Y. -- First bullet point should read: $6,245,102 (sted $6,245,102 million). Fourth graph, third sentence of release should read: In the absence of any major awards with deliveries slated for 2006, we continue to project XXX (sted: In the absence of any major awards with deliveries slated for 2006, we are continue to project XXX). Seventh graph, first sentence should read: Form 10-K (sted Form 10-KSB).

The corrected release reads:

CPI AEROSTRUCTURES ANNOUNCES FIRST QUARTER RESULTS

CPI Aerostructures, Inc. ("CPI Aero") (AMEX: CVU) today announced operating results for the first quarter ended March 31, 2006.

First Quarter 2006 versus 2005:

--Revenue was $5,030,193 compared to $6,245,102;

--Gross margin was 19% compared to 29%;

--Income before provision for income taxes was $116,894 compared to $932,656;

--Net income was $68,894 or $0.01 per diluted share compared with $578,656 or $0.09 per diluted share.

Edward J. Fred, CPI Aero's President & CEO, stated, "As previously forecast, revenue was approximately $5 million for the current first quarter. Gross profit percentage continues to be below our normal rate because factory overhead and labor costs have remained essentially the same with a lower level of revenue for the first quarter compared to the same period in the prior year. As previously reported, we have maintained our factory overhead and labor cost structure in anticipation of releases on contracts that we have already been awarded, including the C-5 TOP contract, as well as additional awards on some of our major outstanding bids. If these events are not forthcoming, we expect that we will need to reduce our expenses in future periods."

He went on to say, "New orders for 2006 through April 30th, including new releases on previously awarded contracts, totaled $6.9 million as compared to $3.2 million for the same timeframe in 2005. We have approximately $360 million in outstanding bids, including unawarded bids from 2005, which represent approximately 40% of the total 2005 solicitations.

Mr. Fred concluded, "CPI Aero's results were as anticipated, given the general slowdown in the award process over the last two years. But with the large dollar amount and number of unawarded solicitations, we remain optimistic that we are well positioned to resume a higher level of production and performance on larger releases should they be awarded. In the absence of any major awards with deliveries slated for 2006, we continue to project that 2006 revenue will be approximately $25 million, resulting in net income of approximately $2 million."

CONFERENCE CALL

CPI Aero's President and CEO, Edward Fred, and CFO, Vincent Palazzolo, will host a conference call today, May 11, 2006 at 11:00 am EDT to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Interested parties may participate in the call by dialing 706-679-3079. Please call in 10 minutes before the scheduled time and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.cpiaero.com and click on the "Investor Relations" section, then click on "Events". Please access the website 15 minutes prior to the call to download and install any necessary audio software. The conference call will be archived and can be accessed for approximately 90 days.

Founded in 1980, 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-K for the year ended December 31, 2005.

CPI AEROSTRUCTURES, INC.
                    CONDENSED STATEMENTS OF INCOME
                              (Unaudited)

                                                Three Months Ended
                                                     March 31,
                                                 2006         2005
                                             ------------ ------------
Revenue                                      $ 5,030,193  $ 6,245,102

Income before provision for income taxes         116,894      932,656

Provision for income taxes                        48,000      354,000

Net income                                        68,894      578,656

Income per common share:
Basic                                        $      0.01  $      0.11
Diluted                                      $      0.01  $      0.09

Shares used in computing income per common
 share:
Basic                                          5,445,475    5,417,300
Diluted                                        6,126,967    6,167,995


                                               Unaudited     Audited
BALANCE SHEET HIGHLIGHTS                        3/31/06      12/31/05


Cash                                         $   522,639  $   877,182

Total current assets                          30,677,073   31,458,345

Total Assets                                  31,858,476   32,687,784

Total current liabilities                      4,417,730    5,428,429

Working capital                               26,259,343   26,029,916

Current portion of long-term debt                 75,398       87,617

Long-term debt, net of current portion            25,899       42,188

Total Shareholders' Equity                    27,349,039   27,162,272

Total Liabilities and Shareholders' Equity   $31,858,476  $32,687,784