TAT Technologies announcing the entry into a new manufacturing contract with Embraer, Empresa Brasileira de Aeronautica S.A.

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."