Analysis of Asset Allocation

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AAA Selection: Aerospace and Defense Sector
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AVIALL INC - NYSE
Distributes new aircraft parts and supplies, including variety of airframe spares, undercarriage items, piston engines and parts; And provides on-line inventory information services to the aviation and marine industries.

BE Aerospace, Inc. - NASDAQ
Designs, manufactures, sells and services commercial aircraft cabin interior products such as aircraft seating, passenger entertainment and service systems, and galley structures and inserts; Provides audio and video entertainment products and services to ground transportation industry; And provides upgrade, maintenance and repair services for interior products its supplies and other manufacturers.

BOEING CO - NYSE
Manufactures commercial transportation equipment including passenger and cargo jetliners, hydrofoils, rapid rail vehicles and automated personal rapid transit systems; Produces military aircraft; Provides support programs for military jets and helicopters.

DUCOMMUN INC - NYSE
Holding company with subsidiaries which manufacture components and assemblies for commercial, military aircraft, defense and space programs.

Hawker Pacific Aerospace - NASDAQ
Repairs and overhauls aircraft and helicopter landing gear, hydromechanical components and wheels, brakes and braking system components; And distributes, manufactures and sells new and overhauled spare parts and components for fixed wing aircraft and helicopters.

HEXCEL CORP - NYSE
Develops, produces and sells lightweight composite materials, parts and structures, reinforcement fabrics, and honeycomb used in commercial and defense aerospace, construction, industrial, athletic and outdoor goods and other markets.

LOCKHEED MARTIN CORP - NYSE
Designs, develops, manufactures and integrates space systems, including spacecraft, space launch vehicles, manned space systems and supporting ground systems and services, strategic fleet ballistic and defensive missiles.

Primex Technologies, Inc. - NASDAQ
Provides ordnance and aerospace contract manufacturing for tank and other large and medium caliber ammunition, ball power propellant, electronic products and space products for defense and aerospace industry; Supplies forged steel petroleum pipeline components and other heavy industrial cylindrical steel products to commercial markets; Manufactures precision metal assemblies for use in tactical missiles and rockets, a range of solid propellant products, and small gas generators and devices incorporating gas generators; And provides ammunition demilitarization contract services.

SPACEHAB, Incorporated - NASDAQ
Develops, owns and operates habitable modules which provide space-based laboratory research facilities and cargo services aboard space shuttle systems; And provides full range of pre- and post-flight experiment and payload processing services and in-flight operations support to assist astronauts and researchers.


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