Dear Shareholders:

2007 was a banner year for Curtiss-Wright as measured by many different achievements. We proudly posted another record- breaking year of growth and higher profitability due to the dedication and commitment of our approximately 7,500 employees. Our strategic diversification produced superb results with our core markets firing on all cylinders. In addition, we made several material investments to our ongoing operations, including four acquisitions that expand our existing portfolio of technologies and provide strategic opportunities for future growth. Looking forward, we feel the horizon of opportunity is vast and we have a clear vision for tomorrow.

Clear Focus on Financial Performance

Our two-pronged strategy of organic growth and strategic acquisitions delivered $1.6 billion in sales in 2007, representing 24% consolidated revenue growth over 2006. Operating income increased 27% to $179 million and our net earnings rose 30% to $104 million, or $2.32 per diluted share.

Finally, we booked new orders of $1.9 billion in 2007, an increase of 40% over the prior year, and our year-end backlog had record growth of nearly 50%, achieving $1.3 billion, which is indicative of robust markets ahead. Our backlog indicates a strong commercial market, in particular in our energy markets. Our defense markets continue to be solid as well. The U.S. Navy, our largest defense customer, procures through multi-year orders; we are currently nearing the end of the prior multi-year order for the Virginia class submarine and have nearly completed our work on the CVN-78 aircraft carrier. Our defense backlog will replenish as new multi-year orders are authorized through the Department of Defense budget.

As a result of our strong performance and solid outlook, we increased our dividend 33% in September which is the fourth double-digit increase in our dividend since 2000. This dividend increase reflects our confidence in the company’s ability to continue to produce strong revenue and profitable growth while simultaneously returning tangible value to our shareholders.

Vision for Market Diversification

In 2000, we set out to create a balanced portfolio of businesses that could weather shifts in the global marketplace. Today, our three business segments operate in four core markets: defense, commercial aerospace, power generation and oil and gas. These markets provide us with a high degree of diversification and stability, as well as significant avenues for growth. Not only do we have multiple markets in which to direct our resources, we have considerable scope within each of those markets. Let me take a moment to discuss each of our end markets.

In the defense market, we have broad exposure to the naval, aerospace and ground platforms. In the naval defense market, we are dedicated to providing superior engineering and manufacturing for the nuclear aircraft carrier and submarine programs, as we have done since the inception of the U.S. Nuclear Navy. In the fiscal year 2008 defense budget, Congress increased the rate of production of Virginia class nuclear submarines from one to two per year commencing in fiscal year 2011, a remarkable advance to the Navy program. We eagerly anticipate the opportunity to provide state-of-the-art shipboard launching and arresting technologies for the new Ford class aircraft carrier. In addition, we have expanded our content on non- nuclear platforms such as the Zumwalt class destroyer program and we have similar opportunities on the littoral combat ship and CG(X) cruiser programs. As these programs continue to evolve, we feel we have additional areas in which to compete for content on both conventional and nuclear powered designs.

In military aerospace, we have a stable of critical technologies that support nearly every U.S. fighter jet platform, including the F-22 Raptor, F-16 Falcon, F-35 Joint Strike Fighter, V-22 Osprey and F-18 Hornet, as well as the Global Hawk unmanned aerial vehicle. On new programs, we have been awarded significant content on the P-8A Poseidon. We have already started shipping our products on this program, although initial aircraft deliveries are not anticipated until the beginning of 2009.

While our legacy aerospace business concentrated on aircraft, helicopter programs were a driving force in our aerospace growth during 2007. The Black Hawk UH-60 has become a significant program for us and the U.S. Army is procuring this helicopter in significant quantities. In addition, we received a contract from Sikorsky Aircraft Corporation for the supply of helicopter shipboard landing systems to be fitted on H-92 helicopters destined for the Canadian Maritime Helicopter Program.

In ground defense, strong demand for the Bradley Fighting Vehicle, Abrams Tank and Future Combat System technology in 2007 is expected to continue in 2008. In addition to the domestic market, we received an order from Patria of Finland for our hydrop suspension system with the Slovenian armed module vehicle. This award is indicative of our technology leadership and worldwide presence in the ground defense markets.

As a final comment on the defense market, I would like to note that despite the headline pressure typical of an upcoming election, we feel there is a bipartisan consensus for strong defense spending in the next few years. The debate on a U.S. withdrawal from Iraq will continue to dominate the budget discussions, but it is unlikely to impact our operations materially. There is a need to replenish our armed forces’ infrastructure and provide adequate resources to the local forces in Iraq and Afghanistan, significant opportunities to upgrade current program technology, and a global environment that requires a dedicated long-term strategy.

In our commercial markets, oil and gas continues to produce record-breaking growth due to significant demand for our technologies and robust spending in the market. As we described in detail during our investor day in September, we are focused on providing superior solutions that enable automation of traditionally manual operations, thus enhancing the safety of the entire operation. In particular, demand for our DeltaValve products continues to be strong in the U.S., while international orders increased significantly in 2007. In addition to the unsurpassed safety record of the DeltaValve system, it also provides significant economic advantages by reducing cycle times, thus increasing throughput, minimizing maintenance costs, and enabling refineries to process less expensive, heavier grades of crude oil. At the price of crude oil today, these savings can be substantial.

In 2007, we invested in a next-generation DeltaGuard® design that will enable us to work with fewer suppliers to provide our customers turnkey products. We also developed new products such as cutting tools, isolation valves and control systems that will enable us to offer a fully automated coke deheading system solution. Finally, we completed the acquisition of Valve Systems and Controls in June which firmly established Curtiss-Wright as a leader in turnkey coker systems solutions.

Additionally, we achieved the operational efficiency goals that we targeted through consolidation of our Tapco and Enpro businesses in 2007 and we are well positioned to further penetrate the robust fluidic catalytic cracker unit (FCCU) market. As part of the EPA’s National Petroleum Refinery Initiative, many of our customers will be making capital expenditures to lower emissions as well as increase production capacity, improve reliability and increase efficiency. The combination of mandatory compliance plus market economics should drive demand for our technology for the next several years.

In the commercial power market, operating reactors in the U.S. generated solid organic growth and we expanded our product portfolio with the acquisition of Scientech in May 2007. In addition, we announced a $293 million award for our participation in the new construction of four Westinghouse AP1000 nuclear power plants to be built in China. The nuclear accord between China and the U.S. represents the beginning of a dramatic shift in the global approach to supplying clean energy worldwide and we are very proud of our leadership in this critical technology. To satisfy demand for our technologies in the nuclear new construction market, we announced a $62 million expansion of our Cheswick, PA, facility, which is currently underway and due to be completed in 2009.

In the commercial aerospace market, we are meeting the challenge of Boeing 737 production ramp up, which impacts our inventory and cash flow early on but contributes significantly to our long-term growth and profitability. We also began initial shipments on the 787 program which promises to be a steady contributor with solid bookings going forward. And, we have significantly increased our content on regional jets and the new Eclipse Very Light Jet, which positions us nicely in a market that continues to enjoy robust growth. Surging traffic demand and improved airline financial stability create a favorable outlook over the next several years.

In the general industrial market, we were pleased to announce two contracts for our laser peening technology. We will be shaping wing sections for The Boeing Company’s 747-8 program and enhancing the performance of Siemens Power Generation’s advanced steam turbine blades. These contracts are a testament to the significant benefit that this advanced technology can offer for critical applications beyond our traditional shot peening techniques. We anticipate additional demand for this advanced service in our existing markets as well as other markets, such as medical, oil and gas drilling and performance racing.

Investing for Tomorrow

Organically, we continue to make notable strides in the energy markets with our oil and gas and nuclear power businesses, which continue to grow faster than the market. We are expanding our production facilities and investing in next- generation designs to support these high-growth markets. At the same time, we’ve made four acquisitions this year with a total purchase price of $280 million that will significantly enhance our product offerings and systems capabilities. These businesses are offsetting somewhat slower defense growth primarily related to the ongoing war in Iraq and its drain on funds for new programs in research and development. The need for replenishment and more sophisticated technologies has not waned, however, and we see strong indications for growth in our defense markets going forward.

We expanded our Board of Directors in February 2008 with the addition of Admiral (Ret.) John B. Nathman. During his 37-year career with the U.S. Navy, Admiral Nathman held a variety of positions in naval air- and sea-based operations, finishing his service as Commander, U.S. Fleet Forces Command. His long and distinguished U.S. Navy career will provide a wealth of experience in the procurement and operations of one of our most important customers. We welcome his seasoned perspective and look forward to his contributions to our company.

It is with sincere regret that we say farewell to our colleague and close friend Admiral (Ret.) James B. Busey IV in 2008 due to the mandatory retirement requirements of our Board of Directors. Jim has been an integral member of our Board for 13 years, shepherding our strategy through tremendous change and successful growth. During his tenure, Jim served on all four Board committees and most recently served as Chairman of the Directors and Governance committee. Awarded his Navy wings of gold in 1954, Jim’s extensive combat and naval operations experience and personal commitment provided a wealth of astute insight and judicious counsel for which we will be forever grateful. Thank you Jim, it has been an honor working with you.

Curtiss-Wright’s horizon is vast and we have a clear vision for tomorrow. With critical positions on key programs and a growing portfolio of highly engineered technologies, we are a competitive force in the global market. Our core markets are robust and we continue to pursue complementary acquisitions that will provide additional avenues for strategic growth.

Sincerely,

Martin R. Benante
Chairman and Chief Executive Officer