News/ TECT Acquisition

Stony Point Arranges Precision Aerostructures Acquisition for TECT Corporation

ASHEVILLE, NC - August 3, 2005 - The Stony Point Group of Asheville, North Carolina (www.stonypoint.com) is pleased to announce that TECT Corporation, a Stony Point portfolio company, recently completed a stock purchase of the Wellington, KS, operations of BAE Systems Precision Aerostructures, Inc. Stony Point arranged and managed the transaction on behalf of TECT. This represents the third successful transaction completed by Stony Point for TECT in the past 10 months.

The BAE Precision acquisition is a clear and convincing example of the value Stony Point can bring to large corporations seeking a strategic divestiture of non-core and under performing assets. The key characteristics of the transaction include:

• High Asset Values and Depressed Earnings History
  Although the value of the target company's assets were high, the historical earnings of the company were insufficient to support the fair value of the assets. Relying on Stony Point's experience in turnaround management, TECT's history with its recent acquisitions of Neuvant and Tru Circle, the TECT corporate platform, and an asset based financing structure, Stony Point was able to bring BAE a fair asset value despite the lack of supporting historical earnings.
• Unique Operational Assets and Capabilities
  BAE Precision possessed some very unique capabilities in spar milling, long bed machining and jig level assembly. However, because of their geographic removal and lack of connection with the strategic plan of BAE these unique assets were highly underutilized. By teaming these unique assets with the strategic vision and financial support of TECT, Stony Point is confident these assets can be fully utilized and leveraged to bring maximum value to TECT and its customers.
• Positive Customer Transition Plan
  As always Stony Point approached this transaction with the Customer at the top of the transaction planning processes. By meeting with the Customers and demonstrating to them the Value they could realize through the combination of the Wellington assets and the strategic vision and financial support of TECT, Stony Point was able to quickly secure customer support for the transaction.

The former Precision Aerostructures operations provide state-of-the-art spar milling, long bed machining, sheet metal fabrication and jig level assembly capabilities for large, complex fuselage and wing structures. The Wellington, KS, facilities have 700,000 sq. ft. of manufacturing space and house more than 40 long-bed, 3-, 4-, and 5-axis milling machines consisting of multi-spindle and spar mills with beds up to 110 ft. in length. In addition to large component machining Typical products include, wing spars, wing planks, stringers, ladder assemblies, floor beam assemblies, and fuselage panel assemblies for commercial, military, business and general aviation aircraft. BAE Systems Precision Aerostructures was founded in 1951 as Welco Corporation to produce machined parts for military aerospace contractors in Wichita and St. Louis. Since its founding, Precision Aerostructures has been operated by Alloys Unlimited, Plessey, GEC, Marconi and, most recently, BAE Systems. Major customers include Cessna Aircraft Company, Spirit, The Boeing Company, Lockheed, Raytheon, Vought, Embraer and Airbus.

TECT Corporation (www.tectcorp.com) is a privately held, custom manufacturing services supplier of semi-finished and finished components and assemblies; including, airframe and wing structural components, aircraft subassemblies, solid and hollow fan blades, compressor blades and vanes, BLISKs, impellers, diffusers, turbine airfoils, rotor assemblies, disks, oversized and precision forgings, and other hardware. Headquartered in Thomasville, GA, TECT Corporation's Power and Aerospace business units serve the aerospace and power generation industries from operations in Cleveland, OH; Everett, Kent & Woodinville, WA; Newington, CT; Santa Fe Springs, CA; Thomasville, GA; Utica, NY; and Wichita, KS.