Mr. Fred continued, ‘‘These subcontracting opportunities have begun to materialize, and we have been awarded some initial subcontracts. We currently have proposals submitted to multiple prime contractors, and while we cannot predict the timing of awards, some of our outstanding proposals are so significant in size that any single award could increase our revenue and net income substantially.’’

He went on to say, ‘‘While CPI Aero’s 2005 results may be disappointing, given the general slowdown in the award process, CPI Aero still had a 13% success rate on the bids awarded, which continues to be well above the industry average of 5%. Contract awards decreased from approximately $35 million in 2004 to $16.6 million in 2005, indicative of the slowdown in the award process. We are well positioned to resume a higher level of production and performance on the larger releases should they be awarded.’’

Mr. Fred concluded, ‘‘Based on this outlook, and the in-house work currently slated for delivery in 2006, we project that revenue for 2006 will be approximately $25 million, with net income in the range of approximately $2 million. These projections assume no receipt of any major awards, but simply the ‘‘normal’’ type of awards that we have historically bid on. The receipt of any major award or multiple successes, a return to the historic ordering pattern of the U.S. Government or significant releases on our previously awarded contracts will alter these projections significantly. For the first quarter, we are projecting revenue to be approximately $5 million.’’

CPI Aero’s President and CEO, Edward Fred, and CFO, Vincent Palazzolo, will host a conference call today, March 30, 2006 at 11:00 am ET to discuss fourth quarter 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. We suggest listeners use Microsoft Explorer as their browser.

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. CPI Aero was recently named to the Fortune Small Business list of the 100 fastest growing small companies in America and on Forbes list of the 200 Best Small Companies.


CPI Aero News Release March 30, 2006				Page 3

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, 2004 and Form 10-Q for the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005.


Contact:				Vince Palazzolo Investor Relations Counsel Chief Financial Officer The Equity Group Inc. CPI Aero Linda Latman (212) 836-9609 (631)586-5200 www.theequitygroup.com www.cpiaero.com

(See Accompanying Tables)

CPI Aero News Release Page 4

March 30, 2006

CPI AEROSTRUCTURES, INC.
CONDENSED STATEMENTS OF INCOME


	For the Three Months Ended December 31,						For the Year Ended December 31,
	2005			2004			2005			2004
	(Unaudited)						(Audited)
Revenue	$	6,515,624		$	8,971,974		$	25,526,404		$	30,269,030
Income (loss) from operations		(13,985	)		2,269,526			2,670,284			6,870,846
Income (loss) before provision for income taxes		(19,914	)		2,268,550			2,657,433			6,870,031
Provision for income taxes		(97,000	)		(133,000	)		(1,138,000	)		(1,794,000	)
Net income (loss)	$	(116,914	)	$	2,135,550		$	1,519,433		$	5,076,031
Earnings (loss) per common share – basic	$	(0.02	)	$	0.40		$	0.28		$	0.94
Earnings (loss) per common share – diluted	$	(0.02	)	$	0.35		$	0.25		$	0.83
Shares used in computing earnings (loss) per common share:
Basic		5,430,082			5,409,456			5,422,101			5,386,595
Diluted		5,430,082			6,136,935			6,114,808			6,096,302


Balance Sheet Highlights	Audited 12/31/05		Audited 12/31/04
Cash	$	877,182	$	1,756,350
Cost and estimated earnings in excess of billings on uncompleted contracts		28,389,202		26,030,507
Total current assets		31,458,345		29,609,862
Total assets		32,663,784		30,759,124
Total current liabilities		4,926,429		5,213,460
Working capital		26,531,916		24,396,402
Short-term debt		87,617		83,144
Long-term debt		42,188		129,276
Shareholders’ Equity		27,162,272		25,416,388
Total Liabilities and Shareholders’ Equity	$	32,663,784	$	30,759,124

#### ####


	•	Income from operations decreased 61% to $2,670,284 from $6,870,846; and,


	•	Net income was $1,519,433 or $0.25 per diluted share, compared to net income of $5,076,031 or $0.83 per diluted share.


	•	Gross margin was 12% compared to 36% in last year’s Q4;


	•	Loss from operations was $13,985 compared to income from operations of $2,269,526; and,


	•	Net loss was $116,914 or $0.02 per diluted share, compared to net income of $2,135,550 or $0.35 per diluted share.