Air Industries Announces New Contract Valued at Over $700,000 for Welding Metallurgy Subsidiary

Business Wire,  March 26, 2008  

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Sets New Record for Contract Awards Received in a Quarter

BAY SHORE, N.Y. -- Air Industries Group, Inc. (OTCBB: AIRI), an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry, today announced that its Welding Metallurgy subsidiary has won a new contract valued at over $700,000. The new contract was received from a new customer, GKN Aerospace of Alabama, for helicopter welded assemblies over a multi-year period. Welding Metallurgy has reported new orders valued at nearly $2.5 million during the first quarter 2008, representing the largest aggregate amount of new contract awards in a quarter since Welding Metallurgy's inception nearly 30 years ago.

To accommodate the elevated level of business activity and in anticipation of future growth opportunities, Welding Metallurgy announced today that it has relocated to a 25,000 square foot facility in Hauppauge, NY. Welding Metallurgy, acquired by Air Industries Group in August 2007, has received AS9100/ISO 9001 certifications for its new facility, and has completed its audit by the National Aerospace and Defense Contractors Accreditation Program (NADCAP). NADCAP is a global cooperative standards-setting program for aerospace engineering, defense and related industries.

"Welding Metallurgy, like all Air Industries Group subsidiaries, is benefiting from intense demand for commercial and military aircraft," said Gary Settoducato, President of Welding Metallurgy, Inc. "While we are pleased with our strong relationship with Northrop Grumman Corp., which has traditionally been the largest customer for our division, we are gratified to note that approximately 95% of our record bookings in the first quarter were derived from other customers. This indicates that we have been successful in achieving improved customer and platform diversification. Moreover, with the added manufacturing capacity at our new facility, we are actively engaged in negotiations with numerous other customers for initial orders and long term agreements on large programs. We anticipate announcing new customer relationships and new contract wins in the near future."

Founded in 1979, Welding Metallurgy stands as one of the premiere suppliers of welded assemblies for the aerospace and other industrial sectors. Although specialty welding is its primary service, the company also has manufactured components for various sub-sectors of the commercial and military aerospace industries for nearly 30 years. These components include manifold and torque tubes, tube and duct assemblies, tank assemblies, structural assemblies and acoustic muffler assemblies. Welding Metallurgy's staff of 25 maintains a thorough knowledge of many aircraft platforms.

ABOUT AIR INDUSTRIES GROUP, INC.

Air Industries Group, Inc. (OTCBB: AIRI) is an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry. The Company has over 35 years of experience in the industry and has developed leading positions in several important markets that have significant barriers to entry. With embedded relationships with many leading aerospace and defense prime contractors, the Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts and flight controls. Air Industries Group also provides sheet metal fabrication, tube bending, and welding services, as well as distributing specialty metals that are a critical component in the aerospace supply chain. Information on the Company and its products may be found online at www.airindustriesgroup.com.

Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company's control. Certain of the Company's forward looking statements, with the projected backlog in particular, are formulated based on management's extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

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