AASI Aircraft Signs Agreement With IBM for CATIA CACAM System; Design Process To Optimize Engineering and Production of AASI Aircraft.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Jan. 3, 2001

Advanced Aerodynamics and Structures, Inc. (Nasdaq:AASI) today announced it has signed a licensing agreement with IBM for utilization and maintenance of its CATIA CACAM software systems.

AASI also has engaged INCAT System, the exclusive distributor in Southern California for IBM's CATIA CACAM system to provide training and installation.

AASI will utilize IBM's engineering design system to further enhance its engineering and manufacturing capabilities as it approaches full-scale production of the JETCRUZER 500 corporate aircraft. The company also expects to utilize the IBM CATIA system to reduce the design cycle for its STRATOCRUZER 1250 twin jet program in the future.

The software-based CATIA technology is a sophisticated engineering, design and AutoCAD system used worldwide by most major aerospace companies, including Boeing Corporation, Airbus Industries and other leading aircraft parts suppliers.

The licensing and maintenance contract provides AASI with 20 design stations and 20 read-only floor stations to support aircraft manufacturing. It also includes five electrical seats and various software packages for kinematic simulation, shape design, structural analysis, composite design, sheet metal design, and other fabrication processes. Each of the basic design packages includes functions for mechanical design, part design, assembly design, drafting, real-time rendering, IGES interface, wireframe and surface, and CADAM drafting.

Dr. Carl L. Chen, chairman and chief executive officer of AASI, said, "After careful analysis, we selected the IBM CATIA system, which we believe is well-suited to support our future engineering growth and production requirements. Equally important, the IBM system can be easily linked to our recently launched Point.Man Enterprise Resources Planning (ERP) system to dramatically enhance our manufacturing process. At the same time, we will continue to be able to maximize the usage of our current CADAM software systems, including Unigraphics, Solidwork, Helix, AutoCAD and others."

Chen noted the IBM system is a very powerful Windows NT-based, three-dimensional engineering and manufacturing tool. He said the company expects it will add another 60 read-only stations over the year to support AASI's future manufacturing requirements.

AASI 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 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, the competitive market for sales of small business aircraft and the Company's ability to successfully implement the IBMCATIA CACAM system with the Point.Man Enterprise Resource Planning system 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.