SOURCE: Spade Defense Index

December 27, 2007 12:09 ET

Textron, Elbit, AAR, and Triumph Added to the SPADE Defense Index™

WASHINGTON, DC--(Marketwire - December 27, 2007) - The ISBC announced the results of its quarterly review of the SPADE Defense Index™ (AMEX: DXS). Effective December 31, 2007, Textron (NYSE: TXT), Elbit Systems (NASDAQ: ESLT), AAR Corporation (NYSE: AIR), and Triumph Group (NYSE: TGI) were added to the index. EDO and United Industrial exited the index during the quarter as acquisitions of both companies, by ITT and Textron respectively, were completed. The SPADE Defense Index serves as a benchmark for the value that the markets ascribe to companies involved with defense, homeland security, and space, and forms the basis for the PowerShares Aerospace & Defense Portfolio ETF (AMEX: PPA).

--  Textron Inc.: manufactures military helicopters and their recent
    acquisition of United Industrial gives them access to the unmanned aerial
    vehicle (UAV) market. Overall, the firm generates approximately 35% of its
    revenues from defense. An additional 35% is generated from its Cessna
    aircraft business line, which is increasingly being used for homeland
    security reconnaissance.
    
--  Elbit Systems: specializes in defense electronic and electro-optic
    systems including C4ISR systems for unmanned vehicles for defense and
    homeland security applications. Its operations include systems and products
    for military aircraft and helicopters, land vehicles, military
    communications, UAVs, electro-optic and countermeasures, and homeland
    security and C4I.
    
--  AAR Corporation: provides products and services to the aviation,
    aerospace, and defense industries worldwide including the maintenance,
    repair, and overhaul of aircraft systems. Other divisions are involved
    with cargo loading and handling systems for military aircraft and
    helicopters, and advanced composite structures. The addition of AAR
    provides exposure to a growing MRO market associated with the rising age of
    military aircraft and an expanding commercial aviation market. More than a
    third of revenues are derived from its defense operations with the balance
    from commercial aerospace.
    
--  Triumph Group: engages in the design, manufacture, repair, overhaul,
    and distribution of aircraft components worldwide. This company also
    provides exposure to the MRO market. One-third of the company's revenues
    are derived from military contracts.
    

"The SPADE Defense Index aims to cover the broad diversity of activities that is representative of companies involved with defense, homeland security, and space -- including industrial firms that manufacture aircraft, tanks, ships, and missiles and those involved with current and next generation systems related to network centric warfare and information technology; intelligence, surveillance, and reconnaissance; satellites; border security; and defense systems that protect the lives of our servicemen and servicewomen," said Scott Sacknoff, SPADE Defense Index manager.

"Companies are required to meet a variety of eligibility criteria including market valuation, liquidity, and listing on a major U.S. exchange. The addition of these firms provides the Index with added diversification in defense growth areas such as unmanned aerial vehicles, persistent surveillance, electro-optics, as well as operations and technical services."

The SPADE Defense Index has outperformed the S&P500 for eight consecutive years, with a year-to-date gain of 24.4%, nearly 20% better than the widely-followed broad market index.

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