AASI Aircraft JETCRUZER 500 Passes FAA Window Tests and Prepares for Main Wing Tests; Main Wing Passes Company's Structure Test; Ready for FAA Witness Test.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Dec. 21, 2000

Advanced Aerodynamics & Structures, Inc. (Nasdaq:AASI) today announced that the crew and cabin windows of the JETCRUZER 500(TM) have passed all FAA limit, ultimate load and fail-safe tests at a PPG Industries facility, one of the world's foremost providers of aircraft windshields and windows.

The main wing structure of the JETCRUZER 500 passed initial company testing, and it is now prepared for testing to be witnessed by an FAA representative.

Dr. Carl Chen, chairman and chief executive officer of AASI, said, "We are very pleased with the passing of window tests and the results of the initial main wing structure tests that we recently concluded, and we expect to complete the FAA witness limit load test within the next few weeks."

The company noted it had recently purchased the MGCplus Data Logger System, a state-of-the-art data acquisition system, from HBM Mess-und Systemtechnik GmbH of Germany for the wing structure testing and plans to use the system for fuselage structure testing in February 2001.

"This new data acquisition system will shorten test preparation and improve the speed and quality of all structure and system testing moving forward," Chen added.

In recent months, the company has successfully passed several critical structure tests including composite fuselage pressurization test, limit load test of the aircraft's forward wing and the windshield FAA ultimate structure load test. A fuselage is under preparation with systems and avionics for mating the forward and main wings.

Chen indicated that the company recently received an engine from Pratt & Whitney, and it is being installed on aircraft (S/N 003) to be utilized in the near future for FAA flight-testing.

The company recently announced a definitive agreement with Tiwenz Group whereby AASI will acquire Tiwenz' subsidiaries Minbao Group (USA), Tainan Group (USA) and AMTV Network in a stock transaction. The transaction will infuse AASI with approximately US$245 million in equity, producing a very strong balance sheet for AASI. Finalization of this transaction is dependent on the results of final due diligence and regulatory approval.

AASI Aircraft currently has 188 JETCRUZER 500 aircraft orders, representing a backlog of US$226 million. The JETCRUZER 500 is a high-speed single engine, corporate propjet aircraft that can accommodate first class seating for six people, including the pilot. Powered by a Pratt & Whitney propjet engine, the JETCRUZER 500 will cruise near jet speeds of 345 miles per hour at altitudes of up to 30,000 feet. The first delivery of JETCRUZER 500 is expected to be around the third quarter of 2001.

The statements in this press release, including the statements made by Dr. Carl Chen, are forward-looking statements that involve a number of risks and uncertainties. As discussed in Advanced Aerodynamics & Structures Inc.'s ("the company") Annual Report on Form 10-K for the year ended Dec. 31, 1999, assumptions relating to the foregoing involve judgments with respect to, among other things, the ability of the company to complete the due diligence relative to the acquisition and obtain the necessary shareholder and regulatory approval. Although the company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the company or any person that the company's objectives or plans will be achieved. The company undertakes no obligation to revise the forward-looking statements contained herein to reflect such events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.