AASI Aircraft Moves to New State-of-the-Art Factory/Headquarters Building; Plant is Largest General Aviation Facility in Western United States.

LONG BEACH, Calif.--(BUSINESS WIRE)--Dec. 7, 1998--Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) (AASI) Monday said that the company has moved its operations to a newly completed 200,000-square-foot factory and headquarters building at the Long Beach Municipal Airport, and now is positioned to complete the final phase of the development program for the JETCRUZER 500 aircraft.

Based on a new design, the JETCRUZER 500 is a high-speed (360 mph) 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 can fly from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.

AASI said the new facility, which spreads across 10 acres of the Long Beach airport near the 18-hole Skylinks Golf Course, is the largest general aviation aircraft factory in the western United States, containing 200,000 square feet of office and manufacturing space.

"With the move to the new building behind us, we can focus on preparing for full-scale production under one roof," said Dr. Carl Chen, president and chief executive officer. "The new building represents the latest in aircraft manufacturing technology, with full computer control and advanced bar code tracking capabilities that will facilitate the production of up to 280 aircraft per year."

"We plan to test and assemble virtually everything in-house, including wings, fuselage and components," Chen said. "The facility features an advanced environmentally controlled and filtered clean room that will be used to prepare graphite composite materials for production.

"Our computer controlled autoclave, which has been certified by the FAA, NASA and the military for the production of advanced aerospace components and materials, will produce an entire JETCRUZER aircraft fuselage in one eight-hour cycle."

AASI currently has 150 JETCRUZER 500s on order, representing a sales backlog of more than $180 million. The company anticipates that deliveries will begin in the second half of 1999.

Chen said, "AASI currently has more than 100 employees, but we will require approximately 150 more workers over the next eight months as the company gets closer to beginning full-scale production."

The company also plans to utilize the factory for the construction of the STRATOCRUZER 1250, a twinjet aircraft currently under development, as well as for other projects.

AASI completed construction of the factory through a $8.5 million state of California Industrial Development Bond.

Advanced Aerodynamics & Structures is a publicly traded, development-stage company organized to design, develop, have certified by the Federal Aviation Administration (FAA), manufacture and market propjet and jet aircraft for the world business, commercial and government markets.

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.