75 years of Innovation
2004 marked our 75th anniversary on the New York Stock Exchange, a singular achievement that underscores the continued innovation and performance of our 5,600 employees worldwide. As a result of our employees’ dedication and success, Curtiss-Wright has provided shareholders with another record year of outstanding growth and unlimited opportunity for our future.

Our strategy of providing advanced technologies for high-performance platforms consistently results in shareholder value by:

• Meeting challenges in diversified markets;
• Providing customers with innovative solutions and unsurpassed performance; and
• Delivering disciplined growth and superior profitability.

2004 Performance
Successful execution of this strategy was demonstrated in our results with our 9th straight year of growth in sales and a 28% increase in our stock price. Net sales in 2004 grew 28% to $955 million. Operating income growth of 29% to $115 million reflects our focus on cost controls and efficient integration of acquisitions. Both our Flow Control and Motion Control segments enjoyed a record year for sales and profitability, and our Metal Treatment segment achieved 21% organic sales growth and a 48% increase in profitability.

In addition, we continued to generate strong cash flow growth and added flexibility to our capital structure by completing a new 5-year $400 million credit facility. While we made new investments that expanded our portfolio of complementary markets and products, we remained focused on profitability and cash flow. Delivering strong performance enables us to provide our shareholders with a consistent dividend and maintain a solid balance sheet.

2004 had many highlights, including winning many contracts on a variety of platforms as well as several key developmental contracts that will lay the groundwork for continued growth in the future. In 2004, we received a $5 million contract for development work on the next generation advanced marine propulsion technology for the U.S. Navy. In addition, we received a $30 million developmental contract for the U.S. Army’s next generation ElectroMagnetic gun which should provide significant additional opportunities for this technology in the future.

On the commercial side, we received an $8 million contract to supply a replacement reactor vessel closure head and control rod drive mechanism assemblies to Texas Utility’s Comanche Peak Steam Electric Station. Curtiss-Wright’s unique technology introduces a one-piece design which will significantly enhance reliability for the customer because there are no welded connections. This contract award represents a significant milestone in the expansion and growth of our commercial power business. Our revolutionary Deltaguard® coke deheading system had a record year in both sales and new orders and captured 100% of the new installations worldwide since the introduction of this product in 2001. Our revolutionary Laser Peening process continues to attract potential customers based upon our ability to improve the fatigue life and reliability of their products. We are currently working on approximately 50 potential applications for this highly technical and proprietary process. In addition to our four existing lasers we will be introducing two additional lasers in early 2005, including a mobile laser, and we expect this business to grow significantly in the future.

In our embedded computing business, we have consolidated the six recent acquisitions under the Curtiss-Wright Controls Embedded Computing brand, creating a single sales channel and a centralized marketing and communications organization. We believe this progress will provide customers with a seamless transition on current business as well as an attractive product portfolio to accommodate the offering of fully integrated, interoperable systems.