Thursday December 26. MAJOR SNOW DAY IN THE NORTHEAST. OFFICE CLOSED

Merry Christmas We are closing today for the Christmas lunch at 12:30. The office reopens on Thursday. I hope you all have a wonderful , peaceful holiday.

A E Ulmann Sr

Champion Aerospace appoints new Regional Marketing Manager

PC Spring Update Ask Nigel. PC spring is great to work with. They respond immediately. They do the necessary on pricing and they are paying commissions.

Allied UK is happy to provide this updated photo

Cher Monsieur Ulmann

Comme annonce dans mon fax du 11 19 2002; Claude Mercier(Directeur General )
Thomas Bernard et moi nous avons choisi la societe qui va nous representer
en Allemagne .
Malheureusement pour Klaus ,il va avoir beaucoup de travail car c'est lui
qui va nous representer en Allemagne.
Je pense que c'est une bonne decision pour Allied et nous.

Je suis tres heureux d'avoir participe au choix de votre societe pour nous
representer aux USA et en Allemagne.En effet je quitte la societe fin
Decembre pour une retraite attendue

Thomas Bernard sera votre support pour ces 2 pays et prends une partie de
mes resposabilites .Je suis sure que vous allez faire du bon business contre
Rotron. Rotron n ' a pas de chance contre cette machine de guerre !!!!

Bonne chance;je demanderai a Thomas de me contacter pour vous saluer
lorsque vous viendrez chez LMB .
J ai presente notre choix a Peter Hill qui est un franglais et qui me
remplace pour certaines fontions et qui est aussi un dirigeant dans le
groupe.Cest un debut d'officialisation de notre complicite dans le groupe .
Congratulations ;good luck;
Rene Chapalain

DEFENSE COMMUNICATIONS EQUIPMENT -- Both Shipments and Orders Soared During October

Industry shipments from U.S. manufacturers of defense communications equipment rose by a steep 14.6% between September and October. This followed two consecutive months of decline.

At the same time, the value of new orders received by defense communications equipment manufacturers soared by 24.8% during October, on the heels of an even-more-robust gain of 43.5% recorded between August and September.

The value of shipments from manufacturers in the industry was 8.2% higher this October than last October. And through the first 10 months of this year, the value of shipments from the industry was running a solid 4.4% ahead of the total for the same period a year ago. The value of new orders placed with U.S. manufacturers of defense communications equipment was up by 11.2% over the same period of time.







DEFENSE COMMUNICATIONS EQUIPMENT: U.S. Manufacturers' Shipments

Billions of $ %Change vs. Same Month Last Year %Change (Current 12 months vs. Prev. 12 months)
Jan-01 $0.28 12.8% 12.1%
Feb-01 $0.31 21.8% 13.3%
Mar-01 $0.27 1.5% 12.7%
Apr-01 $0.29 -0.3% 11.1%
May-01 $0.31 23.5% 13.2%
Jun-01 $0.30 6.1% 12.2%
Jul-01 $0.29 4.3% 11.4%
Aug-01 $0.33 17.4% 11.7%
Sep-01 $0.29 6.3% 11.3%
Oct-01 $0.30 -3.8% 8.5%
Nov-01 $0.31 8.5% 8.3%
Dec-01 $0.32 17.5% 9.2%
Jan-02 $0.33 18.1% 9.7%
Feb-02 $0.32 2.6% 8.1%
Mar-02 $0.30 11.9% 9.0%
Apr-02 $0.31 7.7% 9.6%
May-02 $0.33 5.2% 8.2%
Jun-02 $0.30 0.0% 7.7%
Jul-02 $0.31 4.8% 7.7%
Aug-02 $0.30 -8.2% 5.5%
Sep-02 $0.29 -0.7% 4.9%
Oct-02 $0.33 8.2% 6.0%
Forecast
Q4-02 $0.32* N/A 4.3%
Q1-03 $0.34* N/A 3.5%
Q2-03 $0.35* N/A 5.2%
Q3-03 $0.33* N/A 7.9%
Q4-03 $0.35* N/A 8.6%



* average month within quarter

SOURCE: COMMERCE DEPARTMENT. FORECAST: ELECTRONIC BUSINESS




ELECTRONIC COMPONENTS - Shipments Rose in October, Following Four Straight Months of Decline

Shipments of electronic components (excluding semiconductors) rose by an estimated 3.1% during October, after declining by a revised 3.8% during September, and by smaller amounts during June, July and August.

The value of October 2002 shipments from U.S. electronic component makers was 2.1% above the total for October of 2001 -- the fourth month in a row that the current month's total bested the year-earlier level.

And the value of new orders received by U.S. electronic components makers surged by 45.9% between September and October. Orders to U.S. electronic component manufacturers had declined by magnitudes of 8.9% in August and 21.7% during September. Manufacturers in the U.S. received orders worth 6.9% more during October of this year than in October of 2001.

Through the first 10 months of 2002, industry shipments were running 11.4% behind the year-ago pace, while orders were off by the lesser amount of 6.0% from last year's January-October total.

Industry inventory levels rose by 2.5% between September and October. But October 2002 industry-wide inventory values were worth an estimated 11.0% less than the level that had been recorded during October of last year.








ELECTRONIC COMPONENTS: U.S. Manufacturers' Shipments

Billions of $ %Change vs. Same Month Last Year %Change (Current 12 months vs. Prev. 12 months)
Jan-01 $6.21 2.4% 16.5%
Feb-01 $6.24 1.7% 14.5%
Mar-01 $5.46 -11.9% 11.3%
Apr-01 $4.29 -33.7% 5.4%
May-01 $4.54 -29.7% -2.8%
Jun-01 $4.74 -23.7% -2.9%
Jul-01 $3.97 -35.1% -6.9%
Aug-01 $4.15 -33.9% -11.1%
Sep-01 $3.84 -39.4% -15.4%
Oct-01 $4.09 -33.4% -18.9%
Nov-01 $4.31 -30.7% -22.0%
Dec-01 $4.14 -34.8% -25.4%
Jan-02 $4.23 -31.8% -28.1%
Feb-02 $4.23 -32.2% -30.9%
Mar-02 $4.15 -24.0% -32.0%
Apr-02 $4.17 -2.6% -30.1%
May-02 $4.32 -4.8% -28.5%
Jun-02 $4.27 -10.0% -27.6%
Jul-02 $4.23 6.5% -24.9%
Aug-02 $4.21 1.5% -22.3%
Sep-02 $4.05 5.3% -18.9%
Oct-02 $4.18 2.1% -16.0%
Forecast
Q4-02 $4.40* N/A -8.8%
Q1-03 $4.46* N/A 2.3%
Q2-03 $4.56* N/A 5.8%
Q3-03 $4.55* N/A 7.0%
Q4-03 $4.89* N/A 8.5%



* average month within quarter

SOURCE: COMMERCE DEPARTMENT. FORECAST: ELECTRONIC BUSINESS

Industry News I heard a couple of interesting rumors talking to an investment banker over the holidays. The United Airlines CH11 is a forgone conclusion. The investor who is going to take over is already meeting and planning with the airline management. Airline parts sales are expected to pick up in January as cannibalized stocks and repairable inventory are exhausted by the airlines.