Ducommun Inc. today announced that its AHF-Ducommun subsidiary has signed a contract with Boeing-Long Beach valued at $49 million to produce fuselage skin panels for the C-17 aircraft.

The contract involves the transition of the production of 96 large aluminum fuselage skin panels for the C-17 aircraft from Boeing's Long Beach facility to AHF's Gardena, Calif. facility. Performance under the contract began in the first quarter of 2000 and is expected to continue through C-17 aircraft number P-120 in 2003.

In addition, AHF-Ducommun has signed an option contract with Boeing-Long Beach for the production of C-17 fuselage skin panels for the period 2003-2007. The option contract, if fully exercised by Boeing, is valued at $62 million. Taken together, the $111 million contract is the largest contract award in Ducommun's history.

In connection with the contract, AHF-Ducommun is acquiring from Boeing two significant pieces of capital equipment: a 1,500-ton stretch press and a 5-axis CNC Torres router with a flexible pogo positioning system. AHF-Ducommun also is in the process of completing a 185,000-square-foot building addition to support the C-17 contract as well as other off-load opportunities from its customers.

Joseph C. Berenato, chairman, president and chief executive officer, stated: "While Ducommun has been a significant supplier to the C-17 program for some time, this contract represents entirely new work for the Company. The aluminum fuselage panels being formed by AHF include some of the largest panels in the aerospace industry.

"The contract also involves AHF-Ducommun's extensive program management capability since the completed fuselage panels we are delivering to Boeing require the integration of services provided by a variety of subcontractors.

"The C-17 contract is further confirmation of the soundness of our strategic direction. Over the past five years, we have invested in some of the largest and most extensive forming capabilities in the aerospace industry. Now, as the prime contractors and major subcontractors seek to reduce their cost structures, I believe Ducommun is well-positioned to capitalize on further significant off-load opportunities from our customers."

Founded in 1849, Ducommun manufactures components and assemblies for the aerospace industry.

The statements made in this news release are forward-looking statements that involve risks and uncertainties. The Company's future financial results could differ materially from those anticipated due to the Company's dependence on conditions in the airline industry, the level of new commercial aircraft orders, the production rate for the Space Shuttle program, the level of defense spending, competitive pricing pressures, technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses by the Company, increasing consolidation of customers and suppliers in the aerospace industry, availability of raw materials and components from suppliers, and other factors beyond the Company's control.