TAT Technologies Announcing the Entry Into a New Manufacturing Contract With Embraer, Empresa Brasileira de Aeronautica S.A.
September 29 2009 - 6:29AM
PR Newswire (US)
GEDERA, Israel, September 29 /PRNewswire-FirstCall/ -- TAT
Technologies Ltd. (NASDAQ:TATTF) today announced that it has been
awarded, for the second time in the past 6 months, a contract by
Embraer, Empresa Brasileira de Aeronautica S.A., one of the world's
largest manufacturers of commercial aircraft, to be responsible for
the design, manufacture, integration, testing, supply, and product
support for the Pack Back-Up Heat Exchanger to be incorporated into
the Legacy 450 midlight & Legacy 500 midsize, new executive
jets being developed by Embraer. Earlier this year, TAT was awarded
a contract by Embraer to supply the Pre-cooler Heat Exchanger to
the same program. Assuming the successful development and marketing
of the new aircraft, TAT anticipates revenues from this new
contract in approximately $10 million over a ten year period which
should commence some time in 2010. In addition, it is expected that
the product will, in the future, generate significant additional
aftermarket and support revenues. TAT also anticipates incurring
certain developmental expenses over the next two years in
connection with the development of the product. TAT's anticipated
aggregate revenues in its two programs with Embraer exceed
$35million. TAT's President and CEO, Dr. Shmuel Fledel, remarked
that "the signed contract with the customer is a significant
achievement for the company and demonstrates TAT's continuing
ability to support Embraer with Turn Key Solutions. This contract
furthers TAT's strategy - to be one of the leading designers and
manufacturer of Heat Transfer solutions and products. This contract
significantly adds to TAT's market position and enlarges the
relationship between TAT & EMBRAER." About the Company TAT
Technologies Ltd. provides a variety of services and products to
the military and commercial aerospace and ground defense industries
through its Gedera facility in Israel, as well as through its
subsidiaries, Bental Industries Ltd., in Israel and Limco -
Piedmont, Inc., in the U.S. TAT operates under four operational
segments: (i) OEM of Heat Transfer products (ii) OEM of Electric
Motion Systems (iii) MRO services; and (iv) parts services, each
with the following characteristics. TAT's activities in the area of
OEM of Heat Transfer products primarily relate to the (i) design,
development, manufacture and sale of a broad range of heat transfer
components (such as heat exchangers, pre-coolers and oil/fuel
hydraulic coolers) used in mechanical and electronic systems
on-board commercial, military and business aircraft; and (ii)
manufacture and sale of environmental control and cooling systems
and (iii) a variety of other electronic and mechanical aircraft
accessories and systems such as pumps, valves, power systems and
turbines. TAT's activities in the area of OEM of Electric Motion
Systems primarily relate to the design, development, manufacture
and sale of a broad range of electrical motor applications for
airborne and ground systems. TAT activities in this segment
commenced with the acquisition of Bental in August 2008 and
accordingly, the results in this segment for fiscal year 2008 are
not compared with the previous years. TAT's MRO services include
the remanufacture, overhaul and repair of heat transfer equipment
and other aircraft components, APUs, propellers and landing gear.
TAT's Limco subsidiary operates FAA certified repair stations,
which provide aircraft component MRO services for airlines, air
cargo carriers, maintenance service centers and the military. TAT's
parts segment focuses on inventory management and sale of APU
parts, propellers and landing gear. TAT offers parts services for
commercial, regional and charter airlines and business aircraft
owners. Safe Harbor for Forward-Looking Statements This press
release contains forward-looking statements which include, without
limitation, statements regarding possible or assumed future
operation results, synergies, customer benefits, growth
opportunities, financial improvements, expected expense savings and
other benefits anticipated from the merger. These statements are
hereby identified as "forward-looking statements" for purposes of
the safe harbor provided by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks
and uncertainties that could cause our results to differ materially
from management's current expectations. Actual results and
performance can also be influenced by other risks that we face in
running our operations including, but are not limited to, general
business conditions in the airline industry, changes in demand for
our services and products, the timing and amount or cancellation of
orders, the price and continuity of supply of component parts used
in our operations, and other risks detailed from time to time in
the company's filings with the Securities Exchange Commission,
including its registration statement on form F-4, its annual report
on form 20-F and its periodic reports on form 6-K. These documents
contain and identify other important factors that could cause
actual results to differ materially from those contained in our
projections or forward-looking statements. Stockholders and other
readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made. We undertake no obligation to update publicly
or revise any forward-looking statement. TAT's executive offices
are located in the Re'em Industrial Park, Neta Boulevard, Bnei
Ayish, Gedera 70750, Israel, and TAT's telephone number is
+972-8-862-8500. DATASOURCE: TAT Technologies Ltd CONTACT: TAT's
executive offices are located in the Re'em Industrial Park, Neta
Boulevard, Bnei Ayish, Gedera 70750, Israel, and TAT's telephone
number is +972-8-862-8500.
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