TAT Technologies Reports Third Quarter 2009 Results

GEDERA, Israel, November 12 /PRNewswire-FirstCall/ -- TAT TechnologiesLtd. (NASDAQ: TATTF), reported today its results for the three month and ninemonth periods ended September 30, 2009.

TAT Technologies Ltd. ("TAT"), directly and through its subsidiaries,provides a variety of services and products to the commercial and militaryaerospace and ground defense systems industries. Such products and servicesprimarily include the design, development, manufacture, maintenance andrepair of (i) a broad range of heat transfer components (such as heatexchangers, pre-coolers and oil/fuel hydraulic coolers) used in mechanicaland electronic systems on-board commercial, military and business aircraft;(ii) environmental control and cooling systems on board aircraft and forground applications; (iii) a variety of other electronic and mechanicalaircraft accessories and systems such as pumps, valves, power systems,turbines, APUs, propellers and landing gear; and (iv) a broad range ofelectrical motion applications for airborne and ground systems.

Third Quarter Financial Highlights:

TAT announced net income of $1.1 million on revenues of $18.8 million forthe three months ended September 30, 2009 compared to net income of $0.7million on revenues of $26.7 million for the three months ended September 30,2008.

The 30% decrease in revenues for the three month period ended September30, 2009 compared with the three month period last year, reflects lowerrevenues in the MRO and Parts operations in the U.S. while OEM operations inIsrael maintained similar levels of revenues compared to the third quarter of2008.

The 57% increase in net income for the three month period ended September30, 2009 compared to the third quarter last year, is primarily attributableto an income tax benefit related to a settlement of a tax uncertainty infavor of our OEM operations in Israel, which resulted in the reduction of apreviously recorded tax provision.

Revenue breakdown by the four principal operational segments for thethree-month and nine-month periods ended September 30, 2009 and 2008,respectively, was as follows:

Three Months Ended September 30. 2009 2008 Revenues % of Revenues % of in Total in Total Thousands Revenues Thousands Revenues unaudited Unaudited Revenues MRO services $ 10,909 58.2 % $ 14,054 52.6 % OEM of Heat Transfer products 6,039 32.2 % 6,067 22.7 % Parts services 788 4.2 % 4,773 17.9 % OEM of Electric Motion Systems 2,797 14.9 % 3,066 11.5 % Eliminations (1,777) (9.5)% (1,258) (4.7) % Total revenues $ 18,756 100.00 % $ 26,702 100.00 % Nine Months Ended September 30. 2009 2008 Revenues % of Revenues % of in Total in Total Thousands Revenues Thousands Revenues unaudited unaudited Revenues MRO services $ 34,128 52.7 % $ 40,264 55.8 % OEM of Heat Transfer products 20,737 32.0 % 19,464 27.0 % Parts services 5,611 8.7 % 13,360 18.5 % OEM of Electric Motion Systems 8,811 13.6 % 3,066 4.2 % Eliminations (4,557) (7.0)% (4,009) (5.5) % Total revenues $ 64,730 100.00 % $ 72,145 100.00 %

For the nine months ended September 30, 2009 TAT announced net income of$2.7 million on revenues of $64.7 million compared to net income of $3.6million on revenues of $72.1 million for the same period ended September 30,2008.

The 10% decrease in revenues for the nine month period ended September30, 2009 compared with the nine month period ended September 30, 2008,reflects lower revenues in the MRO and Parts operations in the U.S.; off-setby increased revenues in the OEM operations in Israel due to organic growthin the OEM of Heat Transfer products segment, as well as revenues in the OEMof Electric Motion Systems segment derived from the Company's 70% controlledsubsidiary, Bental, acquired by TAT in August 18, 2008.

The 25% decrease in net income for the nine month period ended September30, 2009 compared to the same period last year, is primarily attributable toreduction of income before tax and as a result of the above mentioned incometax benefit related to a settlement of a tax uncertainty in favor of our OEMoperations in Israel, which resulted in the reduction of a previouslyrecorded tax provision.

Other Highlights:

During the quarter on July 2, 2009, we completed the merger, between awholly-owned subsidiary of TAT with and into TAT's US subsidiaryLimco-Piedmont Inc., ("Limco", formerly Nasdaq: LIMC), pursuant to which TAT(which owned 61.8% of Limco's common stock) acquired all of the shares ofLimco's common stock held by the public. Pursuant to the merger agreement,each share of Limco common stock held by the public was converted into onehalf of an ordinary share of TAT. Upon the closing of the merger, TAT issuedan aggregate of 2,520,372 ordinary shares to the former Limco shareholdersrepresenting 27.8% of the TAT ordinary shares at the merger date and Limcobecame a wholly-owned subsidiary of TAT.

Dr. Shmuel Fledel, TAT's CEO commented: "During the third quarter wereached a milestone by completing the merger with Limco-Piedmont, our U.S.based subsidiary. This strategic merger resulted in increased synergy betweenour operations in the U.S. and Israel and will enable us to reduce expenses.Our goal is to continue to expand our business offerings worldwide and to bea leader in MRO and OEM products for the commercial and military aerospaceand ground defense industries.

Our third quarter results reflect similar levels of revenues withimproved operating profitability in our OEM operations compared to the prioryear. Our MRO and Part services operations experienced a decrease in revenuesand gross margins over the prior year resulting from the weakness in theaviation sector.

We have appointed a new CEO and CMO for our U.S. operations and we willcontinue to control and reduce our expenses in order to increaseprofitability of our U.S. operations".

We were also very excited to announce the signing of definitiveagreements in connection with the FAvS transaction. This transaction willposition the group as a leading MRO "One- Stop -Shop" for ground and aviationmarkets. It will also enhance and support the Parts operations transferred toFAvS while enabling us to focus on our core businesses: landing gear, APU,heat exchange and regional markets.

We believe that FAvS' product and service platform to the aerospaceindustry worldwide combined with our MRO business will enable TAT tosignificantly grow its business as well as expand its global reach".

TAT TECHNOLOGIES AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September September 30, 2009 30, 2008 ASSETS Current Assets: Cash and cash equivalents $ 26,098 $23,201 Marketable securities 10,774 21,110 Trade accounts receivable (net of allowance for doubtful accounts of $138 and $245 at September 30, 2009 and September 30, 2008, respectively) 17,614 21,445 Inventories 37,011 37,736 Other accounts receivable and prepaid expenses 6,515 5,966 Total current assets 98,012 109,458 Funds in respect of employee right upon retirement 2,567 4,424 Long-term deferred tax 160 -- Property, plant and equipment, net 14,802 15,263 Intangible assets, net 3,729 2,672 Goodwill 5,873 6,075 Total assets $125,143 $137,892 LIABILITIES AND EQUITY Current Liabilities: Current maturities of long-term loans 424 165 Trade accounts payables 6,888 11,885 Other accounts payable and accrued expenses 3,577 7,710 Total current liabilities 10,889 19,760 LONG-TERM LIABILITIES: Fair value of Call options to minority --- 2,408 Long-term loans, net of current maturities 7,432 5,247 Liability in respect of employee rights upon retirement 3,215 5,030 Long-term deferred tax liability 1,264 1,000 11,911 13,685 EQUITY: Share capital Ordinary shares of NIS 0.9 par value - Authorized: 10,000,000 shares at September 30, 2009 and 2008; issued and outstanding 8,887,566 shares at September 30, 2009 and 6,547,671 shares at September 30, 2008, 2,790 2,202 Additional paid-in capital 64,371 39,468 Accumulated other comprehensive loss (934) (347) Treasury stock, at cost, 185,477 shares at September 30, 2009 (1,422) - Retained earnings 34,313 34,538 Total shareholders equity 99,118 75,861 Noncontrolling interest 3,225 28,586 Total equity: 102,343 104,447 Total liabilities and equity $125,143 $137,892 TAT TECHNOLOGIES AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 Revenues: MRO services $ 10,909 $14,054 $ 34,128 $ 40,264 OEM - Heat Transfer products 6,039 6,067 20,737 19,464 OEM - Electric Motion Systems 2,797 3.066 8,811 3,066 Parts services 788 4,773 5,611 13,360 Eliminations (1,777) (1,258) (4,557) (4,009) 18,756 26,702 64,730 72,145 Cost and operating expenses: MRO services 9,222 11,123 29,942 31,877 OEM - Heat Transfer products 3,831 5,419 13,626 15,145 OEM - Electric Motion Systems 1,749 1,940 5,572 1,940 Parts services 1,444 3,676 5,351 10,570 Eliminations (1,725) (1,474) (4,542) (4,178) 14,521 20,684 49,949 55,354 Gross Profit 4,235 6,018 14,781 16,791 Research and development costs 125 -- 497 -- Selling and marketing expenses 804 1,329 2,792 3,468 General and administrative expenses 3,348 3,085 9,053 8,718 Relocation Expenses 20 -- 426 -- Operating income (62) 1,604 2,013 4,605 Financial expense (118) (296) (1,397) (637) Financial income 205 491 1,349 1,481 Other (expenses) income, net 127 -- 271 -- Income before income taxes 152 1,799 2,236 5,449 Income taxes (1,582) 818 (966) 1,375 Net income 1,734 981 3,202 4,074 Share in results of affiliated company -- 252 -- 686 less: Net loss (income) attributable to noncontrolling interest (571) (554) (431) (1,178) Net income attributable to controlling interest $1,163 $679 $2,771 $3,582 Basic net income per share attributable to controlling interest $0.13 $0.10 $0.38 $0.55 Diluted net income per share attributable to controlling interest $0.13 $0.10 $0.38 $0.55 Weighted average number of shares - basic 9,012,767 6,547,671 7,369,603 6,544,338 Weighted average number of shares - diluted 9,021,682 6,557,559 7,379,771 6,559,186

Management's Discussion and Analysis of Financial Condition and Resultsof Operations

Background

TAT operates under four operational segments: (i) Original EquipmentManufacturing or "OEM" of Heat Transfer products (ii) OEM of Electric MotionSystems (iii) Maintenance, Repair and Overhaul or 'MRO" services; and (iv)parts services, each with the following characteristics.

TAT's activities in the area of OEM of Heat Transfer products primarilyrelate to the design, development, manufacture and sale of (i) a broad rangeof heat transfer components (such as heat exchangers, pre-coolers andoil/fuel hydraulic coolers) used in mechanical and electronic systemson-board commercial, military and business aircraft; (ii) environmentalcontrol and cooling systems on board aircraft and for ground applications;and (iii) a variety of other electronic and mechanical aircraft accessoriesand systems such as pumps, valves, power systems and turbines.

TAT's activities in the area of OEM of Electric Motion Systems primarilyrelate to the design, development, manufacture and sale of a broad range ofelectrical motor applications for airborne and ground systems. TAT activitiesin this segment commenced with the acquisition of its 70% controlledsubsidiary Bental in August 2008.

TAT's MRO services include the remanufacture, overhaul and repair of heattransfer equipment and other aircraft components, APUs, propellers andlanding gear. TAT's Limco subsidiary operates FAA certified repair stations,which provide aircraft component MRO services for airlines, air cargocarriers, maintenance service centers and the military.

TAT's parts segment focuses on inventory management and sale of APUparts, propellers and landing gear. TAT offers parts services for commercial,regional and charter airlines and business aircraft owners. TAT has enteredinto an agreement to sell its parts segment (See "Subsequent Events").

Three Months ended September 30, 2009 compared with three months endedSeptember 30, 2008

Revenues. Total revenues decreased to $18.8 million for the three monthsended September 30, 2009 from $26.7 million for the three months endedSeptember 30, 2008, a decrease of 29.8%. This reflects decreased revenues inthe MRO and Parts services operations in the U.S. while OEM operations inIsrael maintained revenues in similar levels compared with the third quarterof 2008.

Cost of revenues. Cost of revenues decreased to $14.5 million for thethree months ended September 30, 2009 from $20.7 million for the three monthsended September 30, 2008, a decrease of 29.3%. The decrease in cost ofrevenues was primarily attributable to the decreased revenues in the MRO andPart services operations. Cost of revenues as a percentage of revenues was78% in the three months ended September 30, 2009, similar to 77.5% for thethree months ended September 30, 2008.

Research and development. Research and Development expenses were $0.1million for the three months ended September 30, 2009, and are related to newproducts and technologies within the OEM operations in Israel. Research andDevelopment expenses as a percentage of revenues was 0.1% in the three monthsended September 30, 2009. TAT did not incur any material research anddevelopment expenses in the years ended December 31, 2008 and 2007. TAT doesexpect to continue to incur and record research and development expenses incoming years.

Selling and marketing expenses. Selling and marketing expenses decreasedto $0.8 million for the three months ended September 30, 2009, from $1.3million for the three months ended September 30, 2008, a decrease of 39.5%.The decrease in selling and marketing expenses was primarily attributable todecreased payroll expenses in the Israel and U.S.. Selling and marketingexpenses as a percentage of revenues were 4.3% for the three months endedSeptember 30, 2009, compared to 5.0% for the three months ended September 30,2008.

General and administrative expenses. General and administrative expensesincreased to $3.4 million for the three months ended September 30, 2009, from$3.1 million for the three months ended September 30, 2008, an increase of8.5%. The increase in general and administrative expenses was primarilyattributable to one time expenses associated with the merger of awholly-owned subsidiary of TAT and Limco mentioned above and to increasedexpenses in the OEM operations as a result of the addition of Bentaloperations commencing August 18, 2008. General and administrative expenses asa percentage of revenues increased to 17.8% for the three months endedSeptember 30, 2009 from 11.6% for the three months ended September 30, 2008.

Relocation Expenses. On July 28, 2009 the Company had determined not togo forward with the planned relocation of the operations of Limco's Tulsa,Oklahoma based subsidiary to the location of Limco's Piedmont AviationComponent Services, Inc. subsidiary in Kernersville, North Carolina. As aresult, relocation expenses were immaterial for the three months endedSeptember 30, 2009,

Operating income (loss). For the three months ended September 30, 2009TAT reported an operating loss of $0.06 million compared to an operatingincome of $1.6 million for the three months ended September 30, 2008. Theloss is attributable to decreased revenues, gross and operational margins inthe MRO and in the Parts services segments compared to the third quarter in2008; off-set by product mix with higher margin sold in the OEM of HeatTransfer Products segment, as well as operational income in the OEM ofElectric Motion Systems segment derived from the company's 70% controlledsubsidiary, Bental Industries Ltd. commencing August 2008.

Financial expenses. Financial expense for the three months endedSeptember 30, 2009 was $0.1 million, compared to $0.3 million for the threemonths ended September 30, 2008. Financial expense during the quarterprimarily resulted from changes in the exchange rate between the U.S. dollarand the Israeli Shekel, as well as interest payments on long-term loans.Financial expense during the previous year's quarter primarily resulted fromchanges in the exchange rate between the U.S. dollar and the Israeli Shekel.

Financial income. Financial income for the three months ended September30, 2009 was $0.2 million compared to $0.5 million for the three months endedSeptember 30, 2008. In both periods financial income was primarilyattributable to hedging activities related to exchange rate between the U.S.dollar and the Israeli Shekel and interest received for short-terminvestments.

Other Income. TAT had other income of $0.1 million for the three monthsended September 30, 2009 compared to insignificant other income for the threemonths ended September 30, 2008. Other income for the three months endedSeptember 30, 2009 primarily resulted from a change in the fair value ofunrealized forward transactions gains as of September 30, 2009.

Net income attributable to noncontrolling interest. TAT recognized a netincome attributable to noncontrolling interest of $ 0.6 million for the threemonths ended September 30, 2009 compared to $0.55 million for the threemonths ended September 30, 2008.

Taxes. Total tax income for the three months ended September 30, 2009amounted to $1.6 million, compared to tax expense of $0.8 million for thethree months ended September 30, 2008. Tax income for the three months endedSeptember 30, 2009 is primarily attributable to reduction of income beforetax as explained above, and as a result of an income tax benefit attributableto a settlement of a tax uncertainty in favor of our OEM operations inIsrael, which resulted in the reduction of a previously recorded taxprovision of approximately $1.6 million.

Net income to controlling interest. For the three months ended September30, 2009, net income increased 56.6% to $1.2 million, from net income of $0.7million for the three months ended September 30, 2008.

Nine Months ended September 30, 2009 compared with Nine months endedSeptember 30, 2008

Revenues. Total revenues decreased to $64.7 million for the nine monthsended September 30, 2009 from $72.1 million for the nine months endedSeptember 30, 2008, a decrease of 10.3%. This reflects decreased revenues inthe MRO and Parts services operations in the U.S.; off-set by increasedrevenues in the OEM operations in Israel due to organic growth in the OEM ofHeat Transfer products segment, as well as revenues in the OEM of ElectricMotion Systems segment derived from the Company's 70% controlled subsidiary,Bental, commencing August 18, 2008.

Cost of revenues. Cost of revenues decreased to $50.0 million for thenine months ended September 30, 2009 from $55.4 million for the nine monthsended September 30, 2008, a decrease of 9.6%. The decrease in cost ofrevenues was primarily attributable to the decreased revenues in the MRO andPart services segments and to product mix with higher margin sold during theperiod in the OEM of Heat Transfer Products segment. Cost of revenues as apercentage of revenues was 77% in the nine months ended September 30, 2009, aslight increase compared to 76% in the nine months ended September 30, 2008,primarily as a result of product mix with lower margin products sold duringthe nine months ended September 30, 2009, as well as to additional cost inthe MRO segment, related to Repair Center and Storefront agreements affectedretroactively .

Research and development. Research and Development expenses were $0.5million for the nine months ended September 30, 2009, and are related to newproducts and technologies within the OEM operations in Israel. Research andDevelopment expenses as a percentage of revenues in this segment were 1% inthe nine months ended September 30, 2009. TAT did not incur any materialresearch and development expenses in the years ended December 31, 2008 and2007. TAT does expect to continue to incur and record research anddevelopment expenses in coming years.

Selling and marketing expenses. Selling and marketing expenses decreasedto $2.8 million for the nine months ended September 30, 2009, from $3.5million for the nine months ended September 30, 2008, a decrease of 19.5%.The decrease in selling and marketing expenses was primarily attributable todecreased payroll expenses in Israel and the U.S.. Selling and marketingexpenses as a percentage of revenues were 4.3% for the nine months endedSeptember 30, 2009, compared to 4.8% for the nine months ended September 30,2008.

General and administrative expenses. General and administrative expensesincreased to $9.1 million for the nine months ended September 30, 2009, from$8.7 million for the nine months ended September 30, 2008, an increase of3.8%. The increase in general and administrative expenses was primarilyattributable to one time expenses associated with the merger of awholly-owned subsidiary of TAT and Limco mentioned above and to increasedexpenses in the OEM operations as a result of the consolidation of Bentaloperations commencing August 18, 2008 off-set by one-time expenses in 2008associated with the retirement of certain management members. General andadministrative expenses as a percentage of revenues increased to 14% for thenine months ended September 30, 2009 from 12% for the nine months endedSeptember 30, 2008.

Relocation Expenses. On July 28, 2009 the Company had determined not togo forward with the planned relocation of the operations of Limco's Tulsa,Oklahoma based subsidiary to the location of Limco's Piedmont AviationComponent Services, Inc. subsidiary in Kernersville, North Carolina.Relocation expenses were $0.4 million for the nine months ended September 30,2009, compared to none during the nine months ended September 30, 2008. TATexpects not to incur additional material costs related to that item.

Operating income. Operating income decreased to $2.0 million for the ninemonths ended September 30, 2009 from $4.6 million for the nine months endedSeptember 30, 2008, a decrease of 58%. The decrease in operating incomereflects decreased gross and operational margins in the MRO and in the Partsservices segments in 2009 compared to 2008; offset by increased gross andoperational margins in the OEM operations due to improved margins in the OEMof Heat Transfer products segment, as well as operational income in the OEMof Electric Motion Systems segment derived from the company's 70% controlledsubsidiary, Bental Industries Ltd. commencing August 18, 2008.

Financial expenses. Financial expense for the nine months ended September30, 2009 was $1.4 million, compared to $0.6 million for the nine months endedSeptember 30, 2008. In the first nine months of 2009 financial expenseprimarily resulted from changes in the exchange rate between the U.S. dollarand the Israeli Shekel, as well as interest payments on long-term loans. Inthe first nine months of 2008 financial expense primarily resulted fromchanges in the exchange rate between the U.S. dollar and the Israeli Shekel.

Financial income. Financial income for the nine months ended September30, 2009 was $1.3 million, compared to $1.5 million for the nine months endedSeptember 30, 2008 and was primarily attributable to hedging activitiesrelated to exchange rate between the U.S. dollar and the Israeli Shekel andto interest received for short-term investments.

Other Income (expenses). TAT had other income of $0.3 million for thenine months ended September 30, 2009 compared to insignificant other incomefor the nine months ended September 30, 2008. Other income for the ninemonths ended September 30, 2009 primarily resulted from a change in the fairvalue of unrealized forward transactions gains as of September 30, 2009.

Net income attributable to noncontrolling interest. TAT recognized a netincome attributable to noncontrolling interest of $0.4 million for the ninemonths ended September 30, 2009 compared with a net income attributable tononcontrolling interest of $1.2 million for the nine months ended September30, 2008.

Taxes. Total tax income for the nine months ended September 30, 2009amounted to $1.0 million, compared to tax expense of $1.4 million for thenine months ended September 30, 2008. Tax income for the nine months endedSeptember 30, 2009 is primarily attributable to reduction of income beforetax as explained above, and as a result of an income tax benefit attributableto a settlement of a tax uncertainty in favor of our OEM operations inIsrael, which resulted in the reduction of a previously recorded taxprovision of approximately $1.6 million.

Net income to controlling interest. For the nine months ended September30, 2009, net income was $2.8 million, compared with net income of $3.6million for the nine months ended September 30, 2008.

Liquidity and Capital Resources

During the three months ended September 30, 2009, TAT received a $1.3million loan from Bank Leumi to finance Bental's working capital.

As of September 30, 2009 TAT had cash and cash equivalents and short-termdeposits of $26.1, in addition to marketable securities of $10.8 million, ascompared with cash and cash equivalents and short-term deposits of $23.2million, in addition to marketable securities of $21.1 million, as ofSeptember 30, 2008.

On July 15, 2009 Limco entered into a credit facility with a U.S. bankproviding for borrowings of up to $15 million under certain conditions. As ofSeptember 30, 2009, this credit facility had not been utilized.

Seasonality

TAT believes that the growth of its business over the last three yearshas masked a historical seasonal trend in the MRO services sector.Historically, TAT has seen many airlines decrease their maintenancerequirements in the peak air travel summer months and increase itsmaintenance requirements in the winter months when air travel is lower.

Subsequent Event

On August 13, 2009, TAT's Board of Directors approved a stock repurchaseplan under Rule 10b5-1 of the Securities Exchange Act of 1934. The plan willbe in effect for a period of six months (subject to extension) and willprovide for the purchase of shares in an aggregate amount of up to 2 millionU.S. dollars. As of the date of this report, 208,700 shares had beenpurchased for a total amount of $1.626 million (average of $7.77 per share)constituting 2.3% of TAT's issued shares.

On November 12, 2009, subsequent to the balance sheet date, TAT's Boarddeclared a cash dividend in the total amount of NIS 10 million (approximately$2.66 million), or NIS 1.123 per share (approximately $0.30 per share), forall of the shareholders of TAT. The dividend will be paid to shareholders ofrecord on November 23, 2009. TAT will pay the dividend on December 7, 2009.

On November 9, 2009 TAT has entered into a Stock Purchase Agreement withFirst Aviation Services Holdings, Inc. ("FAvS") pursuant to which, amongother things, TAT's US subsidiary, Piedmont, will acquire 37% of FAvS commonstock and $750,000 of its preferred stock, in exchange for the contributionof Piedmont's parts and propeller businesses. FAvS is a leading supplier ofproducts and services to the aerospace industry worldwide, including theprovisioning or aircraft parts and components, and supply chain managementservices. FAvS also performs overhaul and repair services for wheels, brakesand starter/generators, and builds custom hose assemblies. Simultaneously,the parties announced that FAvS has entered into an agreement to acquire allof the assets of Kelly Aerospace Turbine Rotables ("KATR"). KATR is aprovider of overhaul and repair services for landing gear, safety equipment,hydraulic and electrical components, brakes and hose assemblies forcorporate, regional and military aircraft. Piedmont has agreed to provide a 2year guaranty up to $7 million for the debt being incurred by FAvS inconnection with the KATR acquisition. In addition, FAvS and TAT will signmutual marketing agreements as part of the transaction. The transaction issubject to certain conditions and its closing is anticipated before the yearend.

TAT's executive offices are located in the Re'em Industrial Park, NetaBoulevard, Bnei Ayish, Gedera 70750, Israel, and TAT's telephone number is972-8-862-8500.

For more information of TAT Technologies, please visit our web-site:http://www.tat.co.il

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which include,without limitation, statements regarding possible or assumed future operationresults, synergies, customer benefits, growth opportunities, financialimprovements, expected expense savings and other benefits anticipated fromthe merger. These statements are hereby identified as "forward-lookingstatements" for purposes of the safe harbor provided by the PrivateSecurities Litigation Reform Act of 1995. These forward-looking statementsinvolve risks and uncertainties that could cause our results to differmaterially from management's current expectations. Actual results andperformance can also be influenced by other risks that we face in running ouroperations including, but are not limited to, general business conditions inthe airline industry, changes in demand for our services and products, thetiming and amount or cancellation of orders, the price and continuity ofsupply of component parts used in our operations, and other risks detailedfrom time to time in the company's filings with the Securities ExchangeCommission, including its registration statement on form F-4, its annualreport on form 20-F and its periodic reports on form 6-K. These documentscontain and identify other important factors that could cause actual resultsto differ materially from those contained in our projections orforward-looking statements. Stockholders and other readers are cautioned notto place undue reliance on these forward-looking statements, which speak onlyas of the date on which they are made. We undertake no obligation to updatepublicly or revise any forward-looking statement.

Contact: Miri Segal-Scharia Yaron Shalem - CFO MS-IR LLC TAT Technologies Ltd. Tel: +1-917-607-8654 Tel: +972-8-862-8500 msegal@ms-ir.com yarons@tat.co.il

SOURCE TAT Technologies Ltd