Air Industries Group (the "Company" or "Air Industries") Announces

Results for the Second Quarter and Six Months Ended June 30, 2014 and an Agreement in Principle to Acquire Electronic Connection Corporation of Bloomfield Connecticut

BAY SHORE, NY--(Marketwired - Aug 5, 2014) - Air Industries Group (NYSE MKT: AIRI)

Financial Results for the Six Months ended June 30, 2014 and 2013:

For the six months ended June 30, 2014, consolidated net sales were $28,813,000, a decrease of $152,000 or less than one-percent compared to consolidated net sales of $28,965,000 for the comparable period of the prior year. Net sales during the 1^st half of 2014 at Air Industries Machining Corp. were $14,266,000, a decrease of $1,400,000 or (9%) from $15,666,000 for the same period of the prior year. Net sales during the 1^st half of 2014 at Welding Metallurgy, Inc. were $7,076,000, an increase of $630,000 or 10% from $6,446,000 for the same period of the prior year. Welding Metallurgy acquired Decimal Industries, Inc. on July 1, 2013, Miller Stuart on November 6, 2013 and Woodbine Products, Inc. on April 1, 2014. Accordingly Welding Metallurgy's results for the first six months of 2013 do not include results of any of the acquisitions and include results for Decimal Industries and Miller Stuart, Inc. for the full six months of 2014 and for Woodbine Products Inc. for the three months beginning April 1, 2014. Net sales for the 1^st half of 2014 at Nassau Tool Works were $7,194,000, an increase of $341,000 or 5% compared to $6,853,000 for the 1^st half of the prior year. Net sales at Eur-Pac Corporation for the period June 1, 2014 (date of acquisition) to June 30, 2014 were $277,000.

Consolidated gross profit for the 1^st half of 2014 was $7,398,000, an increase of $120,000 or 2% compared to $7,278,000 for the comparable period of 2013. Consolidated gross profit as a percentage of sales remained relatively constant at 26% for the 1^st half of 2014 and 25% for same period of 2013.

Consolidated operating costs were $5,912,000 in the six months ended June 30, 2014, an increase of $891,000 or 18% compared to $5,021,000 for the first six months of the prior year.

For the six months ended June 30, 2014, consolidated operating income was $1,486,000, a decrease of $771,000 or (34%) from $2,257,000 for the 1^st half of the prior year. Consolidated income before tax for the 1^st half of 2014 was $816,000, a decrease of $608,000 or (43%) from consolidated income before tax of $1,424,000 in the prior year. Consolidated net income for the first half of 2014 was $957,000, an increase of $452,000 or 90% compared with $505,000 for the first half of 2013.