AASI Aircraft JETCRUZER 500 Passes FAA Pressurization Tests; Company Preparing for Mass Production of Propjet.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--May 10, 2000

Advanced Aerodynamics & Structures, Inc. (Nasdaq:AASI) today announced that its new high performance propjet aircraft JETCRUZER 500(TM) has passed the complex composite fuselage structure pressurization tests to the satisfaction of the Federal Aviation Administration. The JETCRUZER 500 is now certified to FAA standards up to 30,000 feet, representing an altitude of over five miles.

"We are very excited to achieve this major milestone for AASI Aircraft and for the development of the JETCRUZER 500. Pressurization is a key feature that distinguishes this aircraft from our originally FAA certified JETCRUZER 450(TM)," said Dr. Carl Chen, chairman and chief executive officer of AASI.

"By successfully passing this test, our organization now has experience in all phases of the FAA certification process. We are prepared to accelerate final structure, systems and flight testing of the JETCRUZER 500 propjet for the amended certification and delivery this year."

Chen noted that the pressurization provides a very comfortable cabin, similar to airliners, while cruising at 30,000 feet -- a more efficient altitude for fuel economy.

"We are very proud of our tiger team of employees, ranging from engineers, quality assurance specialists and manufacturing experts who have worked day and night for the last several weeks to achieve this goal. We also appreciate the excellent support we received from the FAA Aircraft Certification Office and Manufacturing Inspection District Office of the FAA Los Angeles Office," Chen added.

Commenting on the positive outcome of the pressurization tests, Mike Lai, vice president of engineering and an FAA Designated Engineering Representative, stated, "We took every precaution and time element into consideration to assure the successful outcome of the FAA pressure test results. With a team of top-notch professionals with extensive experience working on such projects as the MD series airliners, the C-17, and B-2 bombers, we were able to pass this critical test on our first attempt."

The in-house FAA fuselage pressurization test was conducted at incremental stages, increasing to significant levels over normal maximum operating pressure of 6.0 psi at an altitude of 30,000 feet. Throughout the process, engineers carefully monitored the results from over 78 strain gauges attached to the fuselage. The company increased pressurization up to the limit load of 8.1 psi, with full computer results displayed in real time. By comparing the test data with the Finite Element Model Analysis and in consultation with Assistant Engineering Manager, Tina Castillo, Vice President, Lai, and Chen, the company proceeded to the final testing.

With all Quality Assurance paperwork prepared by Terry Jett, QA Manager, and approved by Jack Vance, AASI's QA Director and the FAA Designated Manufacturing Inspection Representative, FAA representatives were invited to witness the final levels of the pressurization testing process, with pressurization ramping up to the 8.1 psi limit load level and successfully reaching an ultimate load of 12.2 psi.

The company recently increased its aircraft backlog to 188, representing $226 million.

The JETCRUZER 500 is a high-speed single engine, corporate propjet aircraft that accommodates first class seating for six people, including the pilot. Powered by a Pratt & Whitney PT6A-66A (1,572 ESHP) propjet engine, the JETCRUZER 500 will cruise at near light jet speed of 345 miles per hour from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.

Advanced Aerodynamics & Structures, Inc. (AASI Aircraft) is a development-stage company organized to design, develop, have certified by the FAA, manufacture and market propjet and jet aircraft for the world business, commercial and government markets. Information on the company and the aircraft, including 72 press photos, are available on the Internet at www.AASIaircraft.com.

Certain statements contained in this news release, including statements concerning the company's future cash and financing requirements, the company's ability to continue to obtain market acceptance of the JETCRUZER 500 aircraft, the company's ability to obtain regulatory approval of the JETCRUZER 500, and the competitive market for sales of small business aircraft and other statements contained herein regarding matters that are not historical facts, are forward-looking statements. Actual results may differ materially from those set forth in the forward-looking statements, which statements involve risks and uncertainties, including without limitation those risks and uncertainties set forth in the company's Registration Statement on Form SB-2 under the heading "Risk Factors," and the company's Form 10-KSB and Form 10-QSB on file with the SEC.