Gales Industries Incorporated 7% Convertible Preferred Stock ~ May 2007

Gales Industries Incorporated is a holding company engaged in the consolidation of manufacturers and related companies in the aerospace/defense and commercial aviation industries. Its platform company, Air Industries Machining manufactures aircraft structural parts and assemblies principally for prime defense contractors in the defense/aerospace industry including; Sikorsky, Lockheed Martin, Boeing and Northrop Grumman. The Company’s strategy is to execute its consolidation principally amongst lower tier aerospace/defense subcontractors with revenues of less than $100 million annually.

To accomplish it strategy, Taglich Brothers provided Gales with the capital necessary to facilitate its first add-on acquisition—Sigma Metals, a distributor of specialty aircraft-quality metals and alloys. Taglich Brothers tapped strong investor demand in this oversubscribed offering. With this financing in place, Gales is now better positioned to move into its next phase of consolidation and internally generated growth.

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