Ithaca, Michigan, June 21, 2007 –Aircraft Precision Products, Inc. (APPI) has been approved by Rolls-Royce to become an official supplier of high precision gas turbine engine components for the company. The approval culminates almost a year of intensive and thorough review by Rolls-Royce.

Along with supplier approval, APPI secured a purchase order from Rolls-Royce for 263 components used on the T56 military turboprop engine. The T56 has been installed on a wide variety of propeller-driven aircraft including Lockheed Martin’s C-130 Hercules tactical transport and P-3 Orion anti-submarine warfare aircraft, and Northrup Grumman’s E-2C Hawkeye early warning aircraft.

“Being approved as a Rolls-Royce supplier validates our emphasis on quality, delivery and lean manufacturing,” said Bill Henderson, APPI president and CEO. “We look forward to a long and prosperous partnership with Rolls-Royce.”

APPI has long been an approved supplier to General Electric Aircraft Engines which supplies the majority of its business. Adding Rolls-Royce as a customer helps the company’s on-going customer diversification efforts.

Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, operates in four global markets - civil aerospace, defense aerospace, marine and energy. The company now has a total of 54,000 gas turbines in service worldwide and has a broad customer base.

Established in 1946, APPI employs 65 people in its modern 36,000 square foot facility. It has long been a leading component supplier to the commercial and military aircraft engine industry. APPI serves customers who insist on the ultimate in precision machining, thermal coating, and other phases of the metalworking industry.

For more information on Rolls-Royce visit:
www.rollsroyce.com

For more information on APPI visit:
www.aircraftprecision.net

For more information on the T56 military turboprop engine visit:
www.rolls-royce.com/defence_aerospace/products/transport/t56

Mid-Michigan Manufacturer Honored with MMA Michigan Manufacturer of the Year Award

William Henderson, president and CEO of Aircraft Precision Products, Inc. (APPI) in Ithaca, Michigan, has been named a Finalist in the 2007 John G. Thodis Michigan Manufacturer of the Year Award program. The awards, presented by the Michigan Manufacturers Association (MMA), recognize Michigan manufacturers’ positive contributions to the industry and local communities.

“Bill Henderson’s passion for the manufacturing industry comes through loud and clear in his actions, which make both his company and community stronger,” said John MacIlroy, MMA president and CEO. “We are pleased to recognize his accomplishments.”

Henderson helped his company recover from a major loss of business from a key customer in 2003 by implementing Lean manufacturing procedures to cut costs and developing product innovations that appealed to a more diverse customer base. The company hired eight new employees in the past 18 months — it now employs 65 — and invested $1 million in capital improvements over the same period. APPI manufactures complex parts for the aerospace industry.

Henderson is a vocal advocate on issues important to the Michigan manufacturing industry’s competitiveness, particularly quality education and affordable health care.

He is co-chairman of the Gratiot Area Chamber of Commerce’s Business-School Alliance Committee and has worked to break down barriers that had existed between the county’s school systems and the business community. He has shared his business expertise with schools and established apprenticeship, job shadowing and mentoring programs for students.

“Bill makes regular presentations to area service organizations and civic groups, encouraging participation in the Business-School Alliance,” said Robert Schooks, regional director of the Michigan Manufacturing Technology Center at Saginaw Valley State University. “More than 250 Gratiot County businesses now participate.”

Henderson is a member of the board of the Gratiot Medical Center in Alma and helped the hospital implement Lean systems, which resulted in 25 percent shorter patient wait times. The hospital was subsequently selected to participate in Governor Granholm’s Lean Health Care pilot project.

Ithaca manufacturer expands with new equipment purchase

Ithaca, Michigan, August 2, 2006 – Aircraft Precision Products (APPI) today announced expansion of its high precision, aerospace machining capabilities with the acquisition of two Daewoo Puma CNC Turning Centers.
The computerized machines and related tooling are being purchased for approximately $400,000. They will assist APPI with orders it currently has to manufacture transmission components used on the Army’s AH-64 Apache helicopter and allow it to pursue additional aerospace markets.

With its current machinery, APPI can machine parts with diameters from 4 inches to 50 inches. The new machines will help APPI improve its quality and delivery times for parts with smaller diameters.

“These machines expand our range while continuing to highlight our high quality precision machining expertise,” said Bill Henderson, APPI president. “They allow us to better serve our current customers while attracting new ones.”

Henderson added that the personal property tax reduction enacted last year by the Governor and Legislature was a factor in deciding to make the purchase.

“The personal property tax reduction does provide an incentive to consider new acquisition and expansion,” Henderson said.

The machines were purchased through Phoenix Machine Tools, Inc. of Plymouth, Michigan.

APPI employs 65 people and specializes bearing housings, retainers, rings, rotating and complex turning parts made from titanium, nickel, cobalt, stainless steel, aluminum, inconnel and other metals for gas turbine engines.

APPI is a primary supplier to GE Aircraft Engines and the U.S. Department of Defense. It was established in 1946.

For additional information:
http://www.army-technology.com/projects/apache/
http://www.geae.com/engines/military/t700/index.html

APPI lands Multi-Year Contract for New Generation
Jet Engine Components

ITHACA, MICHIGAN, March 10, 2005) Aircraft Precision Products, Inc. (APPI), has been awarded a $20 million, multi-year order from General Electric Aircraft Engines (GEAE) to manufacture seven components for the new GEnx engine program featured on the new Boeing 787 Dreamliner aircraft. The order begins this year and lasts through 2009.

"APPI is assisting GE both with concurrent engineering and manufacturing," APPI President Bill Henderson said. "GE is trusting us with critical components on their newest engine program. I'm pleased they recognize the experience and expertise of our employees."

The components are internal case rings and play valuable roles in the engine's compressor section. GEAE claims the GEnx will provide the highest compression ratio in aviation today at 23-1.

The 787 will be a mid-sized aircraft carrying 217-257 passengers on routes up to 8,500 nautical miles. It will use 20 percent less fuel for comparable missions than any other aircraft in its class and will travel up to Mach 0.85 speed which is the fastest in its class.

Boeing expects advances in engine technology will contribute as much as 8 percent of the increased efficiency of the new aircraft, representing a nearly two-generation jump in technology.

Established in 1946, APPI employs 65 people in its modern 36,000 square foot facility. It averages about $10 million in sales annually and has long been a leading component supplier to the commercial and military aircraft engine industry. APPI serves customers who insist on the ultimate in precision machining, thermal coating, and other phases of the metalworking industry.

For more information on the GEnx engine, please see:
www.geae.com/engines/commercial/genx/index.html
www.geae.com/education/genx/theatre/genx_theatre_go.html

For more information on the Boeing 787, please see:
Boeing 7e7

Federal Training Funds Help
APPI Beat Global Competition

ITHACA, MICHIGAN, March 10, 2005 Lean manufacturing training and counsel provided through two Federal Government programs helped a mid-Michigan company recently secure a five-year, $20 million contract with General Electric Aircraft Engines (GEAE).

Aircraft Precision Products, Inc. (APPI) will begin work this fall on the concurrent engineering and detailed machining of seven complex components for GEAE's new GEnx engine program. This engine will empower the new Boeing 787 "Dreamliner." APPI won the job against stiff global competition.

Just two years ago, APPI rapidly lost a significant amount of business to foreign competition. As a result, its leadership contacted the Michigan Manufacturing Technology Center (MMTC) in Plymouth, Michigan and the Great Lakes Trade Adjustment Assistance Center (GLTAAC) in Ann Arbor, Michigan. MMTC is part of a network of state manufacturing assistance centers funded in part through the Manufacturing Extension Partnership in the U.S. Commerce Department. GLTAAC is funded through the trade adjustment assistance program, also in the U.S. Commerce Department. It assists small to mid-sized manufacturers that have been adversely impacted by import competition.

Working collaboratively, MMTC and GLTAAC assisted APPI with "Lean Manufacturing" training resulting in significantly improved delivery times and cost savings.

"Working with MMTC and GLTAAC, we've been able to cut our monthly overhead costs by more than 30 percent with minimal layoffs," said Bill Henderson, president of APPI. "Just one step, assessing how we compile and complete our manufacturing process books, allowed us to save about $3,000 per month."

"Reducing overhead and accelerating our delivery while maintaining superior quality allowed us to bid aggressively for the GEnx components," Henderson said. "The training and counsel we've received from MMTC and GLTAAC allowed us to compete and beat competitors from across the globe. We wouldn't have won these jobs two years ago."

Established in 1946, APPI employs 65 people in its modern 36,000 square foot facility. It averages about $10 million in sales annually and has long been a leading component supplier to the commercial and military aircraft engine industry. APPI serves customers who insist on the ultimate in precision machining, thermal coating, and other phases of the metalworking industry.

For more information on the GEnx engine, please see:
www.geae.com/engines/commercial/genx/index.html

For more information on the Boeing 7E7, please refer to:
www.boeing.com/commercial/7e7/background.html

For more information on MMTC, please refer to:
www.mmtc.org

For more information on GLTAAC, please refer to:
www.gltaac.org