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Triumph Group Reports Third Quarter Results

WAYNE, Pa.--(BUSINESS WIRE)--Jan. 27, 2003--Triumph Group, Inc. (NYSE:TGI) reported today that for the three months ended December 31, 2002, net sales were $143.3 million, compared to $149.3 million for the three months ended December 31, 2001, a four percent decrease. Net income for the three months ended December 31, 2002 was $7.9 million, or $0.50 per common share, versus $11.8 million, or $0.75 per common share for the prior year quarter.

For the first nine months of fiscal 2003, net sales were $446.9 million, compared to $464.3 million for the first nine months of fiscal 2002, a four percent decrease. Net income for the first nine months of fiscal 2003 was $28.0 million, or $1.76 per common share, down from $34.9 million, or $2.19 per common share, in the prior year period. The nine month period ended December 31, 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.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "We experienced significant reductions in shipments to our OEM customers and weak maintenance demand from the commercial airline industry. Our military business remains strong, but growth in this sector did not offset the results in the commercial side of our business."

Continues Ill, "Our current financial condition is very strong and was enhanced by the significant cash flow generated in the quarter. Looking ahead, we expect commercial OEM build rates, airline maintenance requirements and military markets to remain at their current levels. We also expect our operating cash flow to remain significantly positive as we manage our way through a period of weaker demand."

Triumph's Aviation segment operating income for the third quarter of fiscal 2003 was $18.3 million, compared to $22.4 million for the prior year period. Net sales for the quarter decreased four percent, to $132.6 million, from $138.5 million in the prior year quarter.

The Metals Segment reported an operating loss for the third quarter of fiscal 2003 of $(0.9) million, compared to operating income of $29 thousand for the prior year. Net sales of $10.8 million for the quarter were unchanged from the prior year same quarter.

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 prospects for OEM build rates, the outlook for maintenance and military business and cash flow expectations, 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)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                 (in thousands, except per share data)


                              Three Months Ended    Nine Months Ended
                                 December 31,          December 31,
                              -------------------  -------------------
CONDENSED STATEMENTS OF
 INCOME                         2002       2001       2002      2001
                              --------- ---------  --------- ---------


Net Sales                     $143,347  $149,297   $446,874  $464,256

Ongoing Operating Income        15,244    20,704     52,679    68,120
Special Charge                       0         0          0    (5,044)
                                     -         -          -    -------
Operating Income                15,244    20,704     52,679    63,076

Interest Expense                 2,987     3,453      9,257     9,673
Income Tax Expense               4,351     5,415     15,415    18,502
                              --------- ---------  --------- ---------

Net Income                      $7,906   $11,836    $28,007   $34,901
                              ========= =========  ========= =========


Earnings Per Share - Basic       $0.50     $0.75      $1.77     $2.21
                              ========= =========  ========= =========

Weighted average common shares
 outstanding - Basic            15,836    15,778     15,830    15,782
                              ========= =========  ========= =========


Earnings Per Share - Diluted     $0.50     $0.75      $1.76     $2.19
                              ========= =========  ========= =========

Weighted average common shares
 outstanding - Diluted          15,887    15,844     15,939    15,925
                              ========= =========  ========= =========


                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)



SEGMENT DATA                  Three Months Ended    Nine Months Ended
                                December 31,           December 31,
                              -------------------  -------------------

                                2002      2001       2002      2001
                              --------- ---------  --------- ---------

Net Sales:
      Aviation                $132,574  $138,485   $413,691  $428,007
      Metals                    10,773    10,812     33,183    36,249
                              --------- ---------  --------- ---------
                              $143,347  $149,297   $446,874  $464,256
                              ========= =========  ========= =========

Operating Income (Expense):
      Aviation                 $18,282   $22,448    $58,922   $73,364
      Metals                      (926)       29       (365)      242
      Corporate                 (2,112)   (1,773)    (5,878)   (5,486)
      Special Charge                 0         0          0    (5,044)
                              --------- ---------  --------- ---------
                               $15,244   $20,704    $52,679   $63,076
                              ========= =========  ========= =========

Depreciation and
 Amortization:
      Aviation                  $6,190    $5,288    $17,949   $15,016
      Metals                       485       371      1,269     1,114
      Corporate                     32        25         89        72
                              --------- ---------  --------- ---------
                                $6,707    $5,684    $19,307   $16,202
                              ========= =========  ========= =========


Capital Expenditures:
      Aviation                  $8,120    $6,299    $22,038   $18,498
      Metals                     2,260       530      2,793     2,473
      Corporate                     86        22        112        35
                              --------- ---------  --------- ---------
                               $10,466    $6,851    $24,943   $21,006
                              ========= =========  ========= =========



                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)

Balance Sheet
                                                   Dec. 31,  March 31,
                                                     2002      2002
                                                   --------- ---------
                            Assets
    Cash                                             $7,410    $6,913
    Accounts Receivable, net                         99,066   104,450
    Inventory                                       203,421   182,102
    Prepaids and Other                                4,414     3,430
                                                   --------- ---------
          Current Assets                            314,311   296,895

    Fixed Assets, net                               195,090   176,061
    Goodwill, net                                   257,609   250,410
    Intangible Assets, net                           32,061    34,947
    Other                                            12,084    14,652
                                                   --------- ---------

    Total Assets                                   $811,155  $772,965
                                                   ========= =========

               Liabilities & Stockholders' Equity

    Accounts Payable                                $37,918   $46,082
    Accrued Expenses and Other                       37,707    46,713
    Income Taxes Payable                              9,749     6,445
    Deferred Income Taxes                             4,238     4,635
    Current Portion of Long-Term
     Debt                                             9,991    11,295
                                                   --------- ---------
          Current Liabilities                        99,603   115,170

    Long-Term Debt, less current
     portion                                        169,161   146,961
    Deferred Income Taxes and Other                  56,278    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                  258,588   258,256
    Treasury Stock, at cost, 173,260 and
     210,210 shares                                  (4,329)   (5,252)
    Accumulated other comprehensive
     income (loss)                                      248    (3,156)
    Retained earnings                               231,590   203,637
                                                   --------- ---------
          Total Stockholders'
           Equity                                   486,113   453,501
                                                   --------- ---------

    Total Liabilities and
     Stockholders' Equity                          $811,155  $772,965
                                                   ========= =========

CONTACT: Triumph Group, Inc.
John Bartholdson, 610/251-1000
jbartholdson@triumphgroup.com




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