WEEKLY MARKET PERFORMANCE Closing Prices As of January 8, 2002 Current Previous Trailing Fwd. Pct. Chg. Company Name Week Week P/E P/E YTD AIRFRAME/PLATFORM BAE Systems 4.62 .... 29.9 .... 3.8 Boeing Co. 40.33 38.10 10.6 12.7 4.0 Bombardier Inc. `B' 16.61 16.85 46.1 .... 0.7

Merrill Lynch's aerospace and defense projections for 2002 show the two sectors heading in different directions.

Of all the small-cap defense contractors that stand to benefit from the U.S.' renewed commitment to military preparedness, Alliant Techsystems would seem to be as well positioned as any.

If there was ever a time when Boeing Co. might want to be perceived as much more than a commercial aircraft maker, that time is now.

The airline industry is overdue for a break, and it seems to be coming in the form of declining fuel prices.

With virtually all airline stocks trading well below book value, last week's crash of American Airlines Flight 587 was the last thing the industry needed as it struggles to regain investor confidence.

On the surface, recent rallies in some airline equities would seem to suggest stability is returning to the sector after being pummeled by the markets since Sept. 11. But some analysts think that would be reading too much into the meager gains.

Since the Defense Dept. announced Lockheed Martin Corp. as the winner of the Joint Strike Fighter (JSF) competition on Oct. 26, the tone of team members' public statements suggests they're feeling pretty good about their fortune.