Exhibit 99.1


May __, 2006


Dear Fellow Shareholders:

The fiscal year ended January 31, 2006 showed significant improvement for your
company. We achieved record sales and gross profit of $131.5 million and $23.1
million, respectively. Net income improved from a loss of $2.2 million in the
prior year to a $1.0 million profit, or $0.14 per share.

These results were achieved, in large part, by execution of our strategy of
investing in systems and people to provide superior technology and services to
our customers while keeping our cost structure as competitive as possible. The
net result was increased sales and profitability.

We announced last year that we selected SAP as our new ERP system. We are
pleased that this important project was completed on time and on budget, going
live shortly after the close of the year. Installing a major ERP system is
integrally related to reviewing and revising business practices in the Company.
It is a healthy, yet painstaking process to carry out. For API, it has been
successfully implemented with ongoing effective transformation on our business
practices. This multimillion dollar investment provides us with excellent
systems that are compatible with the majority of major airlines, suppliers and
customers in our industry; and it provides significant capability for future
growth. This was a company-wide effort that challenged and motivated the entire
team.

We have also invested heavily in our proprietary Electronic Supply ProgramSM
(ESPSM); a supply chain management IT system that has had an excellent reception
in the marketplace and has given API a competitive advantage in inventory
management programs.

Another major investment was in the Raytheon product line. We acquired a
significant inventory pool from Raytheon Aircraft and the rights to sell parts
for Raytheon piston, turboprop and certain turbofan aircraft. We expect this
will be a valuable addition to our product line for our customers in the general
aviation and corporate markets.

The improved performance was in the face of a turbulent period in the
marketplace. Corporate aviation continues to be a bright spot in the market
while lighter general aviation aircraft are more susceptible to the pressure of
escalating operating costs and increasing complexity of the airspace system. The
airlines' well-documented problems, both at the regional and major level, have
made it arguably one of the most challenging times in the industry's history.

Long-term, we are very optimistic about the state of the aviation marketplace
and the areas in which we compete. We see continued growth and improved
profitability once the current industry is fully rationalized. We see positive
trends in the need for OEMs to outsource functions that are API's core
competencies and believe the continued growth in emerging markets such as India
and China will be a positive trend for technically sophisticated, global
competitors.




For this reason, we used the year to complete our plans for Asia and are
expanding our capability in China to benefit from future growth opportunities in
this important region. API has been selling into China for a number of years and
has had operations in the Philippines to serve the Asia/Pacific market since
2000. We recently created our China subsidiary, Aerospace Products International
(Shanghai) Ltd. headquartered in Shanghai, and will begin operations this
summer.

The Company continues to study all its options relating to facility expansion --
a complex decision considering the many evolving opportunities in the
marketplace. We also decided to settle our outstanding legal claims against
Superior Air Parts on terms favorable to the Company to avoid the costs and
distraction of litigation.

We are very grateful to the entire First Aviation team, shareholders and
directors for making this a year of progress. The team enjoys winning in the
marketplace, being the technological innovator and creating long-term value for
its customers and its shareholders.


Sincerely,


/s/ Aaron P. Hollander                      /s/ Michael C. Culver
- ------------------------------              ------------------------------
Aaron P. Hollander                          Michael C. Culver
Chairman                                    Chief Executive Officer