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Triumph Group Reports Second Quarter Results
WAYNE, Pa., Oct 24, 2002 (BUSINESS WIRE) -- Triumph Group, Inc. (NYSE:TGI) reported today that for the three months ended September 30, 2002, net sales were $152.9 million, compared to $161.4 million for the three months ended September 30, 2001, a five percent decrease.

Net income for the three months ended September 30, 2002 was $10.1 million, or $0.63 per common share, versus $10.1 million, or $0.63 per common share for the prior year quarter.

The quarter ended September 30, 2001 included an after-tax special charge of $3.2 million, or $0.20 per common share ($5.0 million pretax), related to the write-off of the development expense on an aircraft program, which was deemed unlikely to go into production. All references to earnings per share herein are on the diluted basis.

For the first six months of fiscal 2003, net sales were $303.5 million, compared to $315.0 million for the first six months of fiscal 2002, a four percent decrease. Net income for the first six months of fiscal 2003 was $20.1 million, or $1.26 per common share, down from $23.1 million, or $1.44 per common share, in the prior year period.

Excluding the special charge, the prior year net income would have been $26.3 million, or $1.65 per common share.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "We are disappointed in the significant drop in aircraft build rates across our customer base in both the commercial and business jet markets, as well as the drop in passenger miles flown by the airlines. These build rates, along with the current challenge to the airlines, have clearly influenced our results. We remain committed to taking further cost out of our system and gaining more market share in order to address the challenges of the future."

Continues Ill, "Our diversity of product lines continues to be of great benefit in that our military business continues to grow and our development of proprietary product lines has helped us maintain or grow market share. Recently, we are encouraged by our ability to have sequentially grown revenue, over the last three quarters, in what is a difficult environment. This performance, combined with opportunities on the acquisition front, gives us reason to be optimistic about our ability to continue our growth strategy."

Triumph's Aviation segment operating income for the second quarter of fiscal 2003 was $20.4 million, compared to $25.7 million for the prior year period. Net sales for the quarter decreased five percent, to $141.3 million, from $149.0 million in the prior year quarter.

The Metals Segment reported operating income for the second quarter of fiscal 2003 of $0.1 million, compared to $0.1 million for the prior year. Net sales of $11.6 million for the quarter were down seven percent from $12.4 million in fiscal year 2002.

Triumph Group, Inc. headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and industrial gas turbine components and accessories.

The Company serves a broad, worldwide spectrum of the aviation industry, including commercial airlines and air cargo carriers, as well as original equipment manufacturers of aircraft and aircraft components and power generation equipment. The Company also distributes, processes and fabricates metal products.

More information about Triumph can be found on the World Wide Web Site at http://www.triumphgroup.com.

Statements which are not historical facts, including statements regarding the Company's prospects for achieving operating cost reductions and market share gains are forward-looking statements under the provision of the Private Securities Litigation Reform Act of 1995.

All forward-looking statements involve risks and uncertainties including statements regarding the outlook for continued opportunities for future growth. The company wishes to caution readers that several important factors 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 Form 10-K for the year ended March 31, 2002.

                  FINANCIAL DATA (UNAUDITED) FOLLOWS
                      FINANCIAL DATA (UNAUDITED)
                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                 (in thousands, except per share data)
                        Three Months Ended        Six Months Ended
                           September 30,            September 30,
                       ---------------------    ---------------------
CONDENSED STATEMENTS
 OF INCOME                2002       2001         2002        2001
                       ---------   ---------    ---------   ---------
Net Sales              $ 152,892   $ 161,427    $ 303,527   $ 314,959
Ongoing Operating
 Income                   18,769      23,863       37,435      47,416
Special Charge                 0      (5,044)           0      (5,044)
                       ---------   ---------    ---------   ---------
Operating Income          18,769      18,819       37,435      42,372
Interest Expense           3,179       2,982        6,270       6,220
Income Tax Expense         5,535       5,733       11,064      13,087
                       ---------   ---------    ---------   ---------
Net Income             $  10,055   $  10,104    $  20,101   $  23,065
                       =========   =========    =========   =========
Earnings Per Share -
 Basic                 $    0.63   $    0.64    $    1.27   $    1.46
                       =========   =========    =========   =========
Weighted average
  common shares
  outstanding - Basic     15,836      15,799       15,827      15,783
                       =========   =========    =========   =========
Earnings Per Share -
 Diluted               $    0.63   $    0.63    $    1.26   $    1.44
                       =========   =========    =========   =========
Weighted average
 common shares
 outstanding - Diluted    15,940      15,977       15,965      15,965
                       =========   =========    =========   =========
(Continued)
                      FINANCIAL DATA (UNAUDITED)
                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)
SEGMENT DATA          Three Months Ended       Six Months Ended
                        September 30,           September 30,
                      ------------------      ------------------
                        2002      2001          2002      2001
                      --------  --------      --------  --------
Net Sales:
    Aviation          $141,328  $149,013      $281,117  $289,522
    Metals              11,564    12,414        22,410    25,437
                      --------  --------      --------  --------
                      $152,892  $161,427      $303,527  $314,959
                      ========  ========      ========  ========
Operating Income
 (Expense):
    Aviation           $20,401   $25,727       $40,640   $50,916
    Metals                 146       104           561       213
    Corporate           (1,778)   (1,968)       (3,766)   (3,713)
    Special Charge           0    (5,044)            0    (5,044)
                      --------  --------      --------  --------
                       $18,769   $18,819       $37,435   $42,372
                      ========  ========      ========  ========
Depreciation and
 Amortization:
    Aviation            $5,791    $4,863       $11,759    $9,728
    Metals                 409       372           784       743
    Corporate               33        23            57        47
                      --------  --------      --------  --------
                        $6,233    $5,258       $12,600   $10,518
                      ========  ========      ========  ========
Capital Expenditures:
    Aviation            $8,773    $7,201       $13,918   $12,364
    Metals                 104       558           533     1,943
    Corporate               18         6            26        13
                      --------  --------      --------  --------
                        $8,895    $7,765       $14,477   $14,320
                      ========  ========      ========  ========
(Continued)
                      FINANCIAL DATA (UNAUDITED)
                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)
Balance Sheet
                                         Sept. 30,    March 31,
                                           2002         2002
                                        ----------   ----------
                Assets
Cash                                     $10,225       $6,913
Accounts Receivable, net                 108,090      104,450
Inventory                                200,586      182,102
Prepaids and Other                         4,869        3,430
                                        ----------   ----------
    Current Assets                       323,770      296,895
Fixed Assets, net                        190,338      176,061
Goodwill, net                            255,647      250,410
Intangible Assets, net                    32,786       34,947
Other                                     15,993       14,652
                                        ----------   ----------
Total Assets                            $818,534     $772,965
                                        ==========   ==========
    Liabilities & Stockholders' Equity
Accounts Payable                         $40,723      $46,082
Accrued Expenses and Other                39,607       46,713
Income Taxes Payable                       5,834        6,445
Deferred Income Taxes                      5,512        4,635
Current Portion of Long-Term Debt         16,153       11,295
                                        ----------   ----------
    Current Liabilities                  107,829      115,170
Long-Term Debt, less current portion     176,118      146,961
Deferred Income Taxes and Other           57,474       57,333
Stockholders' Equity:
    Common Stock, $.001 par value,
     50,000,000 shares authorized,
     16,027,324 and 14,178,789
     shares issued                            16           14
    Class D common stock
     convertible, $.001 par value,
     6,000,000 shares authorized,
     0 and 1,848,535 shares issued
     and outstanding                           0            2
Capital in excess of par value           258,500      258,256
Treasury Stock, at cost, 173,260 and
 210,210 shares                           (4,329)      (5,252)
Accumulated other comprehensive loss        (758)      (3,156)
Retained earnings                        223,684      203,637
                                        ----------   ----------
    Total Stockholders' Equity           477,113      453,501
                                        ----------   ----------
Total Liabilities and Stockholders'
 Equity                                 $818,534     $772,965
                                        ==========   ==========
CONTACT: Triumph Group, Inc., Wayne John Bartholdson, 610/975-0420 jbartholdson@triumphgroup.com
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