AASI Aircraft Receives Initial Funding of $650,000 From $20 Million Equity Line of Credit.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Oct. 25, 2000

Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) today announced that it has received initial funding of $650,000 from an equity line agreement with private investors, who have committed to purchase up to $20 million of common shares over two years.

According to the terms of the private placement agreement, AASI, at its discretion, may request that the investors purchase certain amounts of AASI's shares every 30 days at a price equal to 92 percent of the market price. Each request by the company will be for a minimum of $200,000 and subject to a maximum of $1.5 million.

Dr. Carl L. Chen, chairman, president and chief executive officer of AASI, said, "The proceeds of this line of credit will help AASI achieve its goal of completing the FAA certification process and ramping up for mass production of the JETCUZER 500(TM)."

David Turner, vice president and chief financial officer, said, "We will draw on this credit line judiciously to minimize any dilutive effects."

The company currently has 188 JETCRUZER 500 aircraft orders, representing a backlog of $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 ft.

Advanced Aerodynamics & Structures Inc. 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.

Certain statements contained in this news release, including statements concerning AASI's ("company") future cash and financing requirements, the company's ability to obtain proceeds from the equity line, 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.