LAI wins $5.2 million contract with Lockheed

April 25, 2007

LAI International, Inc. (www.laico.com) has been awarded a three-year manufacturing contract valued at $5.2 million from Lockheed Martin for the production of titanium skins for the F-22 Raptor stealth fighter jet aircraft.

“These components were identified by Lockheed Martin as some of the most difficult skins to produce for the F-22 program,” John Hartley, LAI’s Director of Aerospace Products, said.

LAI was initially given this opportunity based on our past performance in dealing with technically challenging airframe parts, and the results were impressive.

LAI’s corporate headquarters are located in Scottsdale, Ariz, and the company operates manufacturing facilities in Phoenix and Tucson. The company specializes in precision waterjet processing and laser machining to manufacture complete components for aerospace, armor, automotive, defense, electronics, medical, power generation and other industries.

LAI provides High-Definition Waterjet Machining and precision waterjet cutting and drilling services. LAI also offers advanced laser machining services, including high-speed cutting, small-hole drilling, precision welding and localized heat-treating.

Founded in 1979, LAI operates four manufacturing facilities nationwide, including LAI East, Westminster, Md.; LAI Midwest, Minneapolis, Minn.; LAI Southwest, Phoenix, Ariz.; and Southwestern Laser, Tucson, Ariz.

LAI was acquired in 2005 by Spell Capital Partners, LLC, Minneapolis, Minn. LAI Midwest, Minneapolis, Minn., had earned Lockheed Martin's Raptor of Distinction subcontractor award in 2004 for its manufacturing excellence in producing components for the F-22 Raptor air dominance fighter.

LAI is a key supplier of waterjet-drilled screen panels for the F-22. LAI Midwest, which was named Lockheed Martin Corporation STAR Supplier Facility in 2002, was originally named a STAR Supplier by Lockheed Martin's Aeronautics Material Management Center in 1997. The company was the first F-22 unique supplier to receive the award. LAI is known as the world’s largest combined laser and waterjet machining service provider.