Triumph Group Reports Strong Third Quarter Fiscal 2009 Earnings; Affirms Fiscal Year 2009 Guidance

Triumph Group, Inc. (NYSE: TGI):

• Net sales for the third quarter fiscal 2009 increased 4% over the prior fiscal year to $285.2 million
• Operating income for the third quarter fiscal 2009 increased 6% to $30.4 million, reflecting an operating margin of 10.7%
• Backlog increased to $1.28 billion, an increase of 4% over prior year and 2% sequentially
• Earnings per share from continuing operations increased 33% to $1.33 per diluted share
• Net income per share increased 37% to $1.28 per diluted share

Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the third quarter of fiscal year ending March 31, 2009 totaled $285.2 million, a four percent increase from last year’s third quarter net sales of $275.1 million. Income from continuing operations for the third quarter of fiscal year 2009 increased twenty-two percent to $21.9 million, or $1.33 per diluted share, versus $17.9 million, or $1.00 per diluted share, for the third quarter of the prior fiscal year. Net income for the third quarter of fiscal year 2009 increased twenty-six percent to $21.1 million, or $1.28 per diluted share, versus $16.7 million, or $0.93 per diluted share, for the third quarter of the prior fiscal year. The number of shares used in computing diluted earnings per share for the third quarter of fiscal year 2009 was 16.6 million shares. During the quarter, the company generated $25.8 million of cash flow from operations.

Net sales for the first nine months of fiscal year 2009 were $929.2 million, a twelve percent increase over net sales of $829.9 million last fiscal year. Income from continuing operations for the first nine months of fiscal year 2009 increased thirty-six percent to $74.0 million, or $4.47 per diluted share. Net income for the first nine months of fiscal year 2009 increased forty-eight percent to $70.9 million, or $4.28 per diluted share. During the nine months ended December 31, 2008, the company generated $76.8 million of cash flow from operations.

The Aerospace Systems segment reported net sales for the quarter of $222.8 million compared to $213.0 million in the prior year period, an increase of five percent. Current quarter sales were impacted by an estimated $26.0 million due to the machinists strike at Boeing. The organic sales growth for the quarter was estimated to be approximately nine percent after adjusting for the effect of the Boeing strike. Operating income for the third quarter of fiscal year 2009 was $34.3 million, compared to $26.1 million for the prior year period, a thirty-one percent increase. Operating margin increased from twelve percent in the prior year’s third quarter to fifteen percent. Operating income for the quarter included $0.6 million of legal expenses associated with the ongoing trade secret litigation. The segment’s operating results were impacted by a number of unusual items including the Boeing strike, a charge to align the treatment of non-recurring engineering costs, a charge to terminate a defined benefit pension plan and a favorable settlement of a retroactive pricing agreement. The net unfavorable impact of these items on the quarter’s operating income was estimated to be approximately $2.8 million.

The Aftermarket Services segment reported net sales for the quarter of $63.1 million, compared to $62.7 million in the prior year period, a one percent increase, all of which was organic. Operating income for the third quarter of fiscal year 2009 was $2.2 million, compared to $6.5 million for the prior year period, a sixty-six percent decrease. The segment’s results continue to be significantly impacted by losses at the Phoenix APU operations resulting from residual execution issues. Excluding these operations, the segment’s year over year revenue growth was fifteen percent and operating margin was in excess of ten percent.

During the quarter, the company retired $10.0 million of its convertible notes for $8.2 million cash and recorded a $1.8 million pre-tax gain on the early extinguishment of the debt. Also, during the quarter, the company wrote off $0.5 million of acquisition-related costs on a potential acquisition that was not consummated. The effective tax rate for the quarter was lower than the prior fiscal year primarily as a result of the retroactive reinstatement of the research and development tax credit.

Richard C. Ill, Triumph’s President and Chief Executive Officer, said, "We are very proud of the results achieved during the third quarter. We delivered strong cash flow and earnings despite the impact of the Boeing strike, which affected shipments throughout our company for a longer period than we originally projected. Our management of working capital continues to improve and we remain focused on controlling costs. We believe that our broad and diverse product offerings and our underlying entrepreneurial culture allow us to capitalize on new opportunities that may present themselves in this uncertain environment.”

In commenting on the outlook for fiscal year 2009, Mr. Ill said, "We are maintaining our prior guidance that earnings per share from continuing operations for the fiscal year will be in excess of $5.40 per diluted share, computed on approximately 16.7 million shares. This guidance reflects our strong backlog position as well as the short term challenges associated with resumption of production following the Boeing strike and the impact of the delay in production of the Boeing 747-8 and 787 aircrafts.”

As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2009 third quarter results. The conference call will be available live and archived on the company’s website at http://www.triumphgroup.com. A slide presentation will be included with the audio portion of the webcast. An audio replay will be available from January 30^th until February 6^th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1323587.

Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and accessories. The company serves a broad, worldwide spectrum of the aviation industry, including original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components, as well as commercial and regional airlines and air cargo carriers.

More information about Triumph can be found on the company’s website at http://www.triumphgroup.com.

Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including expectations of future

aerospace market conditions, financial and operational performance, revenue and earnings growth, future operating margins and sales and earnings results for fiscal 2009. All forward-looking statements involve risks and uncertainties which could affect the company’s actual results and could cause its actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company. Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph’s reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2008.