Third Quarter 2006

Financial Advisory Services www.investmentbanking.deloitte.com

Aerospace and Defense Update

Deloitte & Touche Corporate Finance LLC
Investment Banking

Investment Banking Advisory Services

• Sale & Divestiture
• Acquisition, Joint Venture & Alliance
• Capital Raising
• Corporate Development Advisory
Deloitte & Touche Corporate Finance LLC Transaction Highlight
The Plastics Division of
ThyssenKrupp Budd Company
has been acquired by
Continental Structural Plastics
The undersigned acted as exclusive financial
advisor to ThyssenKrupp Budd Company
Deloitte & Touche Corporate Finance LLC
Additional Recent DTCF Transactions
Duni Corporation
and
Duni Supply Corporation
wholly owned subsidiaries of
Duni AB
have been acquired by
The undersigned acted as exclusive
financial advisor to Duni AB
Deloitte & Touche Corporate Finance LLC
DTCF Aerospace & Defense Update / Q3 06 / Page 2
Deloitte & Touche Corporate Finance LLC (“DTCF”) is pleased to
announce its role as the exclusive financial advisor to ThyssenKrupp Budd
Company (“TK Budd”) in the sale of TK Budd’s Plastics Division to
Continental Structural Plastics, Inc. (“CSP”). Terms were not disclosed.
The transaction includes all the assets of the Plastics Division in the U.S.
as well as the equity holdings of its Mexican operations. The Plastics
Division produces molded pickup truck cargo boxes, exterior automotive
components, structural automotive components, proprietary raw sheet
molded compounds (“SMC”), and certain products used in non-automotive
applications.
Headquartered in Troy, Michigan, TK Budd is a leading supplier of high-
quality body and chassis components and systems to the automotive
industry. The company currently supplies approximately 100 vehicle
models with sheet metal stampings and assemblies, composite autobody
panels and pickup boxes, chassis modules and subframes, bumpers and
bumper reinforcements. TK Budd operates 30 facilities with more than
10,000 employees in North America.
This transaction is another example of DTCF’s role as financial advisor to
a large corporate entity involved in a carve-out divestiture of non-core
assets. Furthermore, the sale highlights DTCF’s experience in the
industrial manufacturing segment.
The sale of TK Budd’s Plastics Division to Continental Structural Plastics,
Inc., is the second divestiture that DTCF has advised TK Budd on this
year, having previously announced the sale of TK Stahl Co. in June.
has been acquired by
a division of Parkway Mayfair, Inc.
United Medical Corporation
an investment vehicle created and led
has been acquired by by
Hospital Metropolitano
The undersigned acted as exclusive financial The undersigned acted as exclusive financial
advisor to United Medical Corporation advisor to Parkway Products, Inc.
Deloitte & Touche Corporate Finance LLC Deloitte & Touche Corporate Finance LLC
Industry Trends
Aerospace & Defense Industry Trends
Aerospace & Defense Industry vs.
“After more than a decade of consolidation, portfolio shaping and process Dow Jones Industrial Average
improvements, is the aerospace and defense industry beginning to hit its stride?” Indexed Price
170
Such was the question posed by Aviation Week and Space Technology in its ‘2006 160
Top-Performing Companies’ study, released in July. The study, undertaken in 150

partnership with HOLT (a division of Credit Suisse), Deloitte Consulting LLC (“Deloitte 140
130
Consulting”) and High Strategy, focused on a variety of metrics to analyze and rank 120

the operating performance of publicly traded aerospace and defense companies. 110
100
90
The study noted that high marks and improvement in the industry have resulted often 80
70
from an increased focus on return on invested capital, careful pruning of portfolios, Sep-05 Dec-05 Mar-06 Jun-06 Sep-06
focus on cost control and successful integration of acquisitions. Typically, a focus on Dow Jones Industrial Average Aerospace Broad
Defense Defense IT
increasing return on invested capital can lead companies to steer away from their Maintenance, Repair and Overhaul
Source: Capital IQ
sometimes past practices of chasing top-line growth objectives at any cost.
Acquisitions in recent years of outsourced government service businesses reflect
this, for while they are typically lower margin businesses, they require far less capital
investment than large, new procurement platforms. $ per Barrel U.S. Crude Oil Spot Prices
80 Weighted by Estimated Import Volume

According to principals of Deloitte Consulting, good financial and operational 70

discipline, delivering on long-term strategies for profitable growth and relentless 60

attention to continuous improvement are all shared attributes of the leaders of the 50
study. However, while many aerospace companies are showing improved operating
40
results, they remain less efficient when compared to industries such as
30
semiconductors or automobiles. Excess capacity in the industry remains partly to
blame, particularly for multi-national European defense contractors. 20

10

General Economic Trends 0

Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06
Headlining economic news for the quarter, the Federal Open Market Committee Source: Energy Information Administration (WTI - Cushing, OK)
broke a three-year trend of 17 straight interest rate increases and held its target for
the federal funds rate steady at 5.25% during its August 8th and September 20th
meetings. This pause was due in large part to moderating economic growth, reduced Num ber of
Aircraft
Aircraft Orders and Deliveries1
inflationary pressures, and a cooling of the housing market. More specifically, the 2,500

increase in real GDP for the second quarter of 2006 tempered to an annual rate of
2,000
2.6% according to final estimates released by the Bureau of Economic Analysis. In
its most recent report, the Bureau of Labor Statistics reported the unemployment rate 1,500

to be 4.6%. Additionally, a slow-down in the sales of automobiles and related parts

1,000
has helped to keep inflationary woes at bay.
500
Inflation pressures were further alleviated as crude oil prices declined through the
close of the quarter to just over $62 a barrel after peaking at a record $78.40 in July. 0
1999 2000 2001 2002 2003 2004 2005 2006E
2

Curtailed Middle East tensions and a mild start to the hurricane season helped Commercial Jet Orders Regional Jet Orders
provide relief to the record prices. General Aviation
Source: Jet Information Service, Teal Group, GAMA, Company reports, SpeedNew s

1Commercial
Feeding off the movement of oil prices and a pause in interest rate hikes, major stock jets include Airbus and Boeing models. Regional jets include Embraer and
Bombardier models. Business jets include Cessna, Dassault, Gulfstream, Bombardier
indices rallied to approach record levels near the end of the quarter. Despite nearing and Raytheon models.

its year low in July, the Dow Jones Industrial Average rallied at the end of the third 2Represents annualized estimate of most recently available data.

quarter. The index narrowly missed setting a new all-time high close, which was later
achieved early in the fourth quarter. Other indices, including the S&P 500 and the
Nasdaq Composite, also surged in the later portion of the quarter. The Dow Jones Department of Defense Budget Authority

Industrial Average advanced 4.7% during the third quarter, while the S&P 500 and $ Billions
the Nasdaq Composite increased by 5.2% and 4.0% respectively. $600
$537 $559 $536
$504
$500 $484 $494
$464
$438 $441
In addition to the advancing equity markets, global M&A activity pushed forward in
$400 $360
the third quarter with approximately $745 billion in announced deals. This represents $310
$300
an increase of 15.5% over the same period last year, according to Thomson
Financial. Private equity investors continue to play an important role in M&A as $200

buyouts flourish in both the middle-market and large cap segments. Thus far, the first $100

nine months have seen more than $460 billion in buyouts, nearly twice that of the $0
same period last year. 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E

RDT&E Procurement O&M Personnel & Other Supplementals

Source: Department of Defense Budget Authority by Title, Nominal Dollars

DTCF Aerospace & Defense Update/ Q3 06 / Page 3

Highlighted Transactions
U.S. Middle Market M&A Deals Announced
Announced Deals
No. of Deals Avg. Val. ($M) • September 19, 2006 – Senior Plc agreed to acquire Aerospace Manufacturing
10,000 $75
Technologies Inc (AMT) for $110 million (GBP58.7 million) in cash.
5,839 6,776
8,000 5,575 $70
4,817
$66 • September 11, 2006 – Vneshtorgbank, the second largest Russian state-
4,316
6,000 $63 $68
$65 controlled bank, bought a 5.02 percent stake in European Aeronautic Defence &
$60
Space NV (EADS), worth $913m at the then current share price, making it the
4,000 $60 largest investor in Europe's leading aerospace and defense group outside the
$55
3,382 group of core EADS shareholders.
2,000 3,153 3,092 $55
2,242
3,081

0 $50
• September 6, 2006 – Separately, EADS agreed to acquire the remaining 20%
2002 2003 2004 2005 2006E stake in Airbus SAS held by BAE Systems Plc for EUR2.75 billion (US$3.5 billion
Disclosed Deals Undisclosed Deals Average Size / GBP1.9 billion).
Source: Thomson Financial

• August 24, 2006 – Firearms Training Systems Inc (FATS) entered into an
U.S. Middle Market M&A
Announced Deals
agreement to be acquired by Meggitt Plc's subsidiary Meggitt-USA Inc for $144
EV/EBITDA No. of Deals
million.
12.0x 250

• August 14, 2006 – L-3 Communications Holdings Inc, a satellite, marine and
241
10.0x 10.5x 10.7x
10.4x
220
avionics communications systems provider, agreed to acquire privately-held Nova
202 190
Engineering Inc for $45 million in cash plus up to an additional $10 million
8.0x 8.5x
8.7x contingent payout based upon Nova's future financial performance. Nova
160 Engineering makes communication systems for warfare and technology-driven
6.0x 150 152 applications.
130

4.0x
113
100
• August 6, 2006 – Cinven Group Ltd, a London-based private equity firm, agreed
2002 2003 2004 2005 LTM -Sep 2006 to acquire Avio SpA, a manufacturer of aero-engine modules and components,
Average EV/ EBITDA Deals w ith Multiples from The Carlyle Group LLC and Finmeccanica SpA for approximately EUR2.57
Source: Thomson Financial billion (US$3.31 billion) including debt.

Aerospace & Defense M&A Activity • July 28, 2006 – Teledyne Technologies Inc acquired research and development
Announced Deals
No. of Deals
Average Deal company Rockwell Scientific Co LLC from joint owners Rockwell Automation Inc
Value ($m m )
240 $800
and Rockwell Collins Inc for $167.5 million in cash.
210 107
Deals Closed
180 $600
87
73
150
• September 29, 2006 – Lockheed Martin Corp acquired Pacific Architects &
120 $374 $400
Engineers Inc for an undisclosed cash sum. PAE is a California-based provider
90
42 44
$239 of services that support military readiness, peacekeeping missions, nation building
$197
60
$205
$200 activities, personnel recruitment and training and disaster relief services.
$105
30
47 48 115 96 96
0 $0 • September 22, 2006 – Avingtrans Plc acquired UK-based B&D Patterns Ltd, a
2002 2003 2004 2005 2006E manufacturer and supplier of critical jet engine components to the aerospace
Disclosed Deals Undisclosed Deals Average Size
industry, for up to GBP10.5 million (US$19.85 million) in cash, stock and deferred
Source: Thomson Financial, CapitalIQ, Mergerstat, Factiva
consideration.

• September 5, 2006 – Ducommun Technologies Inc, a subsidiary of Ducommun

Aerospace & Defense M&A Activity Inc, has acquired CMP Display Systems Inc for an undisclosed amount.
Announced Deals
EV/EBITDA No. of Deals
16.0x 20
• August 17, 2006 – Teledyne Brown Engineering Inc, a subsidiary of Teledyne
Technologies Inc, acquired CollaborX Inc for approximately US$17.5 million.
CollaborX Inc, based in Colorado Springs, Colorado, provides government
13.0x 15
13
12 engineering services primarily to the US Air Force and select joint military
10 commands.
10.0x 10.8x 10
7 9.7x 9.9x
9.6x
9.2x • August 3, 2006 – GKN Plc, a manufacturer of automotive drive line systems and
7.0x
4
5 engineered products, acquired Stellex Aerostructures Inc, a manufacturer and
supplier of integrated aerospace assemblies and precision parts, for an
4.0x 0
undisclosed price.
2002 2003 2004 2005 LTM - Sep 2006

Average EV/EBITDA Deals with Multiples

Source: Thomson Financial, CapitalIQ, Mergerstat, Factiva

DTCF Aerospace & Defense Update/ Q3 06 / Page 4

 Market Snapshot
$U.S. in millions Reported Market Enterprise Enterprise Value to: EBITDA Reported Stock Performance Aerospace Broad Trading Multiples
Date Cap Value (EV) Sales EBITDA Margin P/E Quarter LTM Enterprise Value/EBITDA
Aerospace Broad
Aerosonic Corp. 07/28/06 $22 $23 0.7x 11.6x 6.1% 10.9x (18.1%) 1.7%
Arotech Corp. 06/30/06 $17 $28 0.7x N.M. (14.0%) N.M. (17.8%) (81.8%)
13.0x
Astronics Corp. 07/01/06 $125 $141 1.5x 12.6x 11.8% 24.5x 17.7% 63.2%
Avcorp Industries Inc. 06/30/06 $38 $61 0.6x N.M. 1.0% N.M. 18.1% 57.9%
Axsys Technologies Inc. 07/01/06 $181 $179 1.2x 8.6x 14.1% 18.2x 12.8% (13.3%)
Babcock International Group plc 03/31/06 $715 $753 0.9x 13.2x 6.8% 21.7x 5.7% 94.8%
11.0x
BE Aerospace Inc. 06/30/06 $1,649 $1,943 2.0x 13.5x 15.0% 13.8x (7.7%) 27.3%
Boeing Co. 06/30/06 $62,679 $65,006 1.1x 18.6x 6.2% 30.5x (3.7%) 16.0%
Bombardier Inc. 07/31/06 $6,109 $8,529 0.6x 8.6x 6.9% 45.1x 12.2% 21.6%
CAE Inc. 03/31/06 $2,393 $2,583 2.3x 12.6x 18.0% 29.6x 12.1% 21.9% 9.0x
Ceradyne Inc. 03/31/06 $1,102 $1,098 2.2x 7.2x 29.9% 15.8x (17.0%) 12.0%
Ceramic Protection Corp. 06/30/06 $189 $216 3.6x 9.8x 36.6% 16.0x (11.8%) 3.3% 11.0x 11.4x
Chemring Group plc 04/30/06 $437 $513 3.1x 15.4x 19.9% 36.0x 28.3% 141.7% 10.3x 10.4x 10.3x 10.6x 10.3x 10.2x
Cobham plc 06/30/06 $2,038 $2,038 2.0x 9.2x 21.2% 17.3x 8.7% 14.7% 7.0x
CPI Aerostructures Inc. 06/30/06 $26 $25 1.2x N.M. (2.9%) N.M. (34.7%) (52.9%)
Cubic Corp. 06/30/06 $523 $555 0.7x 17.4x 3.8% 23.6x (0.2%) 14.4%
Curtiss-Wright Corp. 06/30/06 $1,333 $1,685 1.4x 9.0x 15.9% 17.4x (1.7%) (1.6%)
Dassault Aviation SA 12/31/05 $6,557 $4,847 1.4x 10.9x 13.0% 21.5x 8.3% 15.6% 5.0x
Ducommun Inc. 07/01/06 $191 $230 0.8x 8.3x 10.1% 13.7x 0.8% (15.2%)
Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06
DynCorp International Inc 06/30/06 $718 $1,334 0.6x 7.9x 8.1% N.M. 21.3% N/A
Elbit Systems Ltd. 12/31/05 $1,227 $1,393 1.1x 9.1x 12.0% 37.3x 10.9% 36.1% Source: Capital IQ
Embraer-Empresa Brasileira De Aeronáutica S.A 03/31/06 $7,087 $7,586 1.8x 18.0x 10.1% 26.0x 7.7% 1.7%
Esterline Technologies Corp. 07/28/06 $860 $1,111 1.2x 8.9x 13.5% 16.3x (18.8%) (10.9%)
European Aeronautic Defence & Space Co. NV 06/30/06 $18,146 $14,237 0.4x 3.1x 12.4% 10.5x 1.0% (23.1%)
Finmeccanica SpA 03/31/06 $7,442 $9,239 0.8x 8.3x 9.4% 10.2x 1.4% 6.7%
First Aviation Services Inc. 07/31/06 $26 $38 0.3x N.M. 0.5% N.M. (12.6%) (13.3%)
GenCorp Inc. 05/31/06 $713 $1,117 1.7x N.M. 3.1% N.M. (19.9%) (31.2%)
Goodrich Corp. 06/30/06 $5,054 $6,597 1.2x 7.8x 14.9% 12.3x 0.6% (8.6%) Defense Trading Multiples
Hampson Industries plc 03/31/06 $130 $191 1.8x 20.8x 8.8% N.M. 8.6% 15.7% Enterprise Value/EBITDA
Harris Corp. 06/30/06 $5,971 $6,378 1.8x 10.7x 17.1% 24.9x 7.2% 6.4%
HEICO Corp. 07/31/06 $869 $922 2.6x 12.8x 20.1% 29.2x 21.0% 47.8%
Herley Industries Inc. 04/30/06 $182 $159 0.9x 7.1x 12.7% 16.0x 10.4% (33.5%)
Heroux-Devtek Inc. 06/30/06 $145 $194 0.7x 8.5x 8.6% N.M. (6.1%) 12.2% 13.0x
Hexcel Corp. 06/30/06 $1,325 $1,744 1.5x 9.8x 15.1% 7.8x (9.9%) (22.6%)
Honeywell International Inc. 06/30/06 $33,495 $37,792 1.3x 9.4x 13.7% 18.0x 1.5% 9.1%
Innovative Solutions & Support Inc. 06/30/06 $244 $182 9.0x N.M. (16.9%) N.M. 3.3% (6.4%)
Irvine Sensors Corp. 07/02/06 $26 $41 1.5x N.M. (3.9%) N.M. (34.3%) (49.4%) 11.0x
ITT Corporation 06/30/06 $9,468 $10,130 1.3x 9.7x 13.4% 30.3x 3.6% (9.7%)
K&F Industries Holdings Inc. 06/30/06 $744 $1,479 3.7x 10.1x 36.8% 18.0x 5.9% 12.3%
Kreisler Manufacturing Corp. 06/30/06 $18 $15 0.7x 6.3x 11.9% 15.1x (28.2%) 60.0%
Ladish Co. Inc. 06/30/06 $410 $460 1.4x 9.4x 15.2% 17.9x (22.9%) 65.6% 9.0x
LMI Aerospace Inc. 06/30/06 $207 $187 1.6x 9.9x 16.4% 19.7x 1.6% 136.0% 11.7x
Magellan Aerospace Corp. 06/30/06 $204 $414 0.7x 11.2x 6.5% N.M. (11.8%) (26.2%) 10.5x 10.7x 10.5x 10.2x 10.3x
10.1x 10.0x
Meggitt plc 12/31/05 $1,354 $1,668 2.6x 10.6x 24.4% 20.3x (2.3%) (3.8%)
7.0x
Moog Inc. 07/01/06 $1,448 $1,800 1.4x 9.8x 14.7% 17.9x 1.3% 17.4%
MTU Aero Engines GmbH 06/30/06 $1,621 $1,818 0.8x 6.1x 13.1% 22.7x 14.0% 13.6%
Northstar Aerospace Inc. 06/30/06 $145 $207 1.4x 10.9x 13.3% N.M. 3.2% (18.3%)
Orbit International Corp. 06/30/06 $32 $32 1.3x 9.1x 14.0% 12.1x (2.6%) (28.9%)
5.0x
Precision Castparts Corp. 07/02/06 $8,557 $9,584 2.5x 13.3x 18.9% 21.7x 5.7% 18.9%
RAE Systems Inc. 06/30/06 $178 $155 2.5x N.M. 1.8% N.M. (23.8%) (11.3%) Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06
Reinhold Industries Inc. 06/30/06 $41 $39 1.1x 5.4x 19.6% 7.6x 4.1% (35.7%) Source: Capital IQ
Rockwell Collins Inc. 06/30/06 $9,400 $9,520 2.5x 12.3x 20.5% 21.1x (1.8%) 13.5%
Rolls Royce Group plc 06/30/06 $7,932 $6,782 1.0x 6.5x 15.4% 9.3x 9.4% 21.3%
Safran SA 12/31/05 $6,524 $6,971 0.8x N.M. 2.5% N.M. (6.3%) (11.2%)
Senior plc 06/30/06 $172 $247 0.7x 7.2x 9.4% 11.3x (3.1%) (6.7%)
Sequa Corp. 06/30/06 $1,057 $1,671 0.8x 7.5x 10.6% 28.2x 15.2% 59.1%
SIFCO Industries Inc. 06/30/06 $22 $18 0.2x 9.5x 2.1% 30.1x (12.9%) 18.3%
Smiths Group plc 01/31/06 $5,052 $5,052 1.4x 8.6x 16.7% 21.5x 0.6% (6.5%)
Societe Industrie d'Aviation Latecoere 12/31/05 $220 $446 1.3x 9.5x 13.2% 9.1x (7.6%) (24.4%)
Defense IT Trading Multiples
TAT Technologies Ltd. 12/31/05 $83 $87 1.3x 9.7x 13.4% 23.6x 51.5% 94.4% Enterprise Value/EBITDA
Teledyne Technologies Inc. 07/02/06 $1,362 $1,399 1.1x 10.0x 10.9% 18.8x 20.9% 14.9%
Textron Inc. 07/01/06 $11,048 $18,872 1.8x 12.1x 14.8% 17.6x (5.1%) 22.0%
Thales 06/30/06 $5,901 $6,687 0.7x 6.6x 9.9% 17.3x 14.6% (9.4%) 13.0x
TransDigm Group Incorporated 07/01/06 $1,089 $1,993 4.7x 11.2x 41.8% N.M. 2.0% N/A
Triumph Group Inc. 06/30/06 $684 $895 1.1x 9.4x 11.8% 18.4x (11.8%) 13.9%
TVI Corp. 06/30/06 $70 $64 1.9x 8.8x 22.0% 17.7x (39.7%) (46.8%)
Ultra Electronics Holdings plc 06/30/06 $705 $736 2.0x 11.7x 17.2% 20.3x 8.6% 12.3% 11.0x
UMECO plc 03/31/06 $215 $241 0.8x 10.4x 7.9% 16.6x (1.0%) (19.8%)
VT Group plc 03/31/06 $842 $857 1.2x 9.5x 12.7% 20.2x (0.7%) 29.3%
Zodiac SA 02/28/06 $2,517 $4,004 1.8x 13.3x 13.8% 23.2x 6.4% (4.7%)
9.0x 12.9x
Average Aerospace Broad 1.5x 10.2x 12.4% 19.9x (0.1%) 9.4% 12.3x
11.7x
11.1x 10.9x
Defense 9.8x
Alliant Techsystems Inc. 07/02/06 $2,812 $4,005 1.2x 9.4x 12.9% 18.9x 6.2% 8.6% 7.0x 9.3x 9.2x
Allied Defense Group Inc. 09/30/05 $99 $100 0.9x N.M. (6.2%) N.M. (25.2%) (27.1%)
Applied Signal Technology Inc. 07/28/06 $176 $158 0.9x 7.8x 11.7% 25.2x (12.9%) (22.2%)
Argon ST, Inc. 07/02/06 $531 $465 1.7x 11.7x 14.4% 23.7x (10.0%) (18.3%)
Armor Holdings Inc. 06/30/06 $2,035 $2,845 1.5x 9.8x 15.3% 14.4x 4.6% 33.3% 5.0x
BAE Systems plc 06/30/06 $12,722 $12,722 1.0x 11.1x 9.4% 19.8x 6.9% 15.1% Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06
DRS Technologies Inc. 06/30/06 $1,754 $3,633 1.8x 13.0x 13.8% 16.1x (10.4%) (11.5%)
Source: Capital IQ
EDO Corporation 06/24/06 $466 $565 0.9x 9.9x 8.8% 18.3x (6.0%) (23.8%)
Firearms Training Systems Inc. 06/30/06 $80 $137 1.7x 12.5x 13.9% 24.9x 31.9% 7.7%
General Dynamics Corp. 07/02/06 $28,912 $31,162 1.4x 11.0x 12.4% 18.1x 9.5% 19.9%
L-3 Communications Holdings Inc. 06/30/06 $9,637 $14,155 1.2x 10.5x 11.8% 19.9x 3.9% (0.9%)
Lockheed Martin Corp. 06/30/06 $36,478 $37,879 1.0x 9.9x 9.9% 17.3x 20.0% 41.0%
Northrop Grumman Corp. 06/30/06 $23,451 $27,685 0.9x 9.2x 9.9% 16.8x 6.3% 25.2%
Raytheon Co. 06/25/06 $21,543 $24,654 1.1x 10.6x 10.4% 19.1x 7.7% 26.3%
United Industrial Corp. 06/30/06 $611 $641 1.1x 8.4x 13.2% 15.7x 18.2% 49.7% Maintenance, Repair and Overhaul Trading Multiples
Average Defense 1.2x 10.3x 10.8% 19.2x 3.4% 8.2%
Enterprise Value/EBITDA

Defense IT 13.0x
CACI International Inc. 06/30/06 $1,685 $2,029 1.2x 10.2x 11.3% 19.6x (5.7%) (9.2%)
Dynamics Research Corp. 06/30/06 $92 $115 0.4x 4.8x 8.3% 11.7x (26.7%) (37.9%)
ManTech International Corp. 06/30/06 $1,108 $1,132 1.0x 10.9x 9.6% 19.8x 7.0% 25.0%
MTC Technologies Inc. 06/30/06 $379 $464 1.2x 9.9x 11.8% 17.9x 1.7% (24.8%)
11.0x
SI International Inc. 07/01/06 $412 $495 1.1x 11.5x 9.7% 20.3x 4.3% 3.3%
SRA International Inc. 06/30/06 $1,683 $1,500 1.3x 11.7x 10.9% 26.5x 12.9% (15.3%)
VSE Corp. 06/30/06 $71 $66 0.2x 5.6x 3.9% 10.7x 1.1% (14.0%)

9.0x 12.6x
Average Defense IT 0.9x 9.2x 9.4% 18.1x (0.8%) (10.4%) 12.1x 11.7x
Maintenance, Repair and Overhaul 10.8x 10.6x 10.6x
AAR Corp. 05/31/06 $875 $1,061 1.1x 10.3x 11.0% 22.7x 7.2% 38.8% 9.6x 9.6x
Global Aircraft Solutions Inc. 06/30/06 $39 $44 1.0x 6.8x 14.3% 9.7x (19.2%) (35.3%) 7.0x
Hong Kong Aircraft Engineering Co. Ltd. 06/30/06 $18,412 $17,470 5.0x 15.3x 32.7% 25.3x 21.6% 86.4%
Pemco Aviation Group Inc. 06/30/06 $35 $68 0.4x N.M. (0.1%) N.M. (19.0%) (61.5%)
Singapore Technologies Engineering Ltd. 06/30/06 $8,328 $8,648 2.2x 8.5x 26.2% 20.5x (1.4%) 12.2%
Timco Aviation Services Inc. 06/30/06 $83 $135 0.4x N.M. (3.6%) N.M. 17.6% (37.4%) 5.0x
Vector Aerospace Corp. 06/30/06 $157 $232 0.7x 7.1x 10.0% 9.6x (16.0%) 12.0% Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06
Source: Capital IQ
Average Maintenance, Repair and Overhaul 1.6x 9.6x 12.9% 17.6x (1.3%) 2.2%
Source: Capital IQ

DTCF Aerospace & Defense Update/ Q3 06 / Page 5

Related Content
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Deloitte Research* Report

Global Economic Outlook 2007
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this report, that debate is examined, future scenarios are considered and suggestions are offered for managing the risks. In addition, the report provides
analyses of economic prospects in each major region, discusses threats to globalization and assesses the declining risk of doing business in emerging
markets. Read the report (or www.deloitte.com/research).

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Deloitte Insights is a complimentary audio news magazine that examines important business issues of the day.
Finding a Suitable Match: Why Private Equity Firms are Investing in Mid-Sized Companies
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world are studying the balance sheets of thousands of mid-sized private companies in hope of finding a good match. Click here to listen to or download the
podcast (or www.deloitte.com/us/podcasts).

Report
Behind the Curtain: What Mid-Sized Private Companies Need to Know about What Drives Private Equity Investments
As a private business executive in a highly active M&A market, shouldn’t you have a better understanding of how private equity investors evaluate private
companies? Know confidently how to attract the attention of investors and investment in your business? Understand the key factors of a successful
investment? Deloitte & Touche USA, LLP asked 269 private equity senior executives insightful questions to help demystify the private equity investment
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Financial Executives: Transactions & Business Events
Driving Value in Divestitures: Weighing Your Strategic Alternatives and Communicating Value
November 7, 2:00 pm ET
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2 1 2

Is now the time to divest all or part of your business? Many factors can impact your decision, and timing is critical. We will describe a general framework to
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Tax Executives: Private Companies

Private Company Valuation: Why You Should Consider an Objective Perspective
November 16, 2:00 pm ET
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There are many reasons to value your closely-held business, including raising capital, succession planning, tax planning, and acquisition or sale. But how
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Industries: Manufacturing
Can You Really Buy Happiness? Leveraging M&As and Ventures in Mature Manufacturing Sectors
December 14, 1:00 pm ET
Presenters: Duane Dickson , Kevan Flanigan 3 1

Manufacturing M&A markets are hot, but are acquisitions the right long-term growth vehicle for your business or just a quick way to boost the bottom-line?
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Article
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An article from The Deal
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and Acquisition practice discuss the rise of the private equity carve-out, some of the reasons for buyer and seller appeal, and offer suggestions for how to
overcome some of a carve-out’s unique set of challenges and risks. Read the article (or www.investmentbanking.deloittte.com).

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1
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DTCF Aerospace & Defense Update/ Q3 06 / Page 6

Deloitte & Touche Corporate Finance LLC
Deloitte & Touche Corporate Finance LLC (DTCF) is a wholly owned subsidiary of Deloitte Financial Advisory Services LLP.
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Business Development keflanigan@deloitte.com kemcfarlane@deloitte.com Jim Schwendinger
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Simon Gisby Brenda White
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Andrew Isgrig
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DTCF Aerospace & Defense Update/ Q3 06 / Page 7

This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a
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