LMI Aerospace announces award of contract for design-build of Mitsubushi Regional Jet tailcone

LMI Aerospace, Inc. (NASDAQ:  LMIA), a leading provider of design engineering services, structural components, assemblies and kits to the aerospace, defense and technology industries, today announced that it has signed a long-term supply agreement with Mitsubishi Aircraft Corporation (MJET) to design and build the tailcone section of the new Mitsubishi Regional Jet (MRJ).  The MRJ is expected to enter into service in 2014.

LMI will participate in the entire product life cycle, from the joint development phase through sustaining production and beyond.  This effort will entail design, analysis, certification support, tool design/fabrication and test support, culminating in full-rate manufacturing and spares production.  The program is expected to require approximately 100,000 hours of engineering development and analysis before reaching recurring production.  The effort for non-recurring services and tooling will be funded through a series of milestone-based payments.  The first unit delivery of the tailcone structure to MJET is planned in the third quarter of 2011.

"By combining the talent and skills of our Engineering Services and Aerostructures segments, we have won our first major design-build project on the exciting new MRJ," said Ronald S. Saks, Chief Executive Officer of LMI.  "LMI has been pleased with the work relationship with MJET during preliminary design efforts, which began in the third quarter of 2009."

"With the acquisition of D3 Technologies in 2007, LMI began reshaping its strategic direction to provide customers a turn-key capability to design and manufacture aerospace structures," Saks said.  "This new award will require LMI to use the full scope of our capabilities, from primary skills of engineering, manufacturing and supply-chain management to our recent investment in product life-cycle management software and broadly expanded project management resources."