TAT Technologies Ltd. — Capital/Financing Update 2006

Oct 19, 2006

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TAT TECHNOLOGIES LTD.

P.O.BOX 80, GEDERA 70750 ISRAEL

AT THE COMPANY

Mr. Israel Ofen Executive Vice-President and Chief Financial Officer 011-972-8-859-5411

FOR IMMEDIATE RELEASE

October 19,2006

TAT Technologies Ltd. Signs a Letter of Intent

GEDERA, Israel, October 19,2006 TAT Technologies Limited (NASDAQ: TATTF) announced today that it has signed a letter of intent with Stork N.V. ("Stork") and its aerospace subsidiary, Fokker Services B.V., to sell to Stork a controlling interest (51%) in Piedmont Aviation Component Services LLC ("Piedmont") and a substantial minority interest (49%) in Limco Airepair, Inc. ("Limco"), both wholly owned subsidiaries of TAT. The projected price that will be paid to TAT amounts to USD 38.375 million depending on the successful completion of due diligence activities in the near future.

Piedmont, based in Kernersville, North Carolina, is active in the growing aerospace maintenance, repair and overhaul ('MRO') business. It specializes in providing MRO services for auxiliary power units, landing gear and propellers used in many aircraft, including aircraft manufactured by Boeing, ATR, Embraer and Bombardier. Piedmont employs approximately 130 employees.

Limco, based in Tulsa, Oklahoma, is a leader in the aerospace industry, serving customers both as an original equipment manufacturer ("OEM") of heat transfer equipment used in commercial, regional, business and military aircraft and complete environmental control systems and cooling systems for electronics and as a MRO repair station for heat transfer equipment and pneumatic ducting. Limco employs approximately 150 employees.

Stork develops and produces advanced components and systems for the aviation and aerospace industry, and supplies integrated services and products to aircraft owners and operators. Stork most recent acquired AIRINC, based in Fairhope, Alabama. AIRINC provides component repair and overhaul services to aircraft operators worldwide and specializes in hydraulic, pneumatic and avionic components installed on a wide variety of aircraft, including Airbus and Boeing.

The Stork aerospace group achieved a turnover of € 551 million in 2005 with 3,385 employees out of the total Stork turnover of €1.82 billion.

The letter of intent contemplates a closing date early in 2007, after completion of Stork's due diligence and the execution of a definitive agreement. Upon completion of the transaction TAT will continue to own a controlling interest in Limco and a substantial minority interest in Piedmont.

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Both parties believe that this transaction will promote meaningful business development in the future, and that the partnership with Stork will lead to increased revenues for both Piedmont and Limco.

As a result of this contemplated transaction TAT expects that it will report a capital gain before taxes of approximately $30 million.

TAT Technologies Ltd. together with its subsidiaries is principally engaged in the manufacture, repair and overhaul of heat transfer equipment, such as heat exchangers, precoolers and oil/fuel hydraulic coolers used in aircraft, defense systems, electronic equipment and other applications. In addition the Company repairs and overhauls aircraft accessories and systems such as APU's ,landing gear, propellers, pumps and valves.

Certain statements made herein that use the words "estimate," "project," "intend," "expect," "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's services, inability to timely develop and introduce new technologies, services and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's Annual Report filed with the Securities and Exchange Commission and its other reports as filed from time to time with the Securities and Exchange Commission.

For further information, please contact:

Mr. Israel Ofen Executive Vice-President and Chief Financial Officer TAT Technologies Ltd. +972-8-859-5411