AASI Aircraft to Activate Enterprise Resources Planning System on January 2, 2001; MAPICS Point.Man Streamlines Manufacturing Process.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Dec. 28, 2000

Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) today announced that after three months of intensive training and testing it will activate an enterprise resources planning (ERP) system on January 2, 2001, to support critical activities related to the company's JETCRUZER 500(TM) manufacturing program.

As previously announced, AASI licensed the software-based system from MAPICS Inc. on October 5, 2000. The ERP system is designed to automate AASI's manufacturing process, improve the coordination of its organizational resources, and enhance the interaction of various manufacturing and operational functions.

The first phase in the activation process scheduled for next week is focused on enhancing systems related to purchasing, accounting, production planning, quality assurance, production control, inventory monitoring and manufacturing.

Dr. Carl Chen, chairman and chief executive officer of AASI, said, "The first phase of the installation process is critical to achieving the maximum benefits from the ERP system, and we are delighted by the speed at which our team has implemented the program since our licensing of the software in October. These functions are key to organizing the production flow, which will establish a very efficient foundation."

Chen noted that the ERP system is expected to significantly streamline the company's mass production operation and drastically reduce the manufacturing labor hours and purchasing lead times. He added that the company planned the activation to coincide with the beginning of the new year in order to realize the benefits over a complete accounting cycle.

Chen also noted that the second ERP system phase includes functions related to marketing, engineering, bar codes, cost accounting and e-business information sharing with suppliers and customers through Internet applications. The company expects to complete the second phase implementation by the end of June 2001.

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 the JETCRUZER 500 aircraft 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 December 31, 1999, assumptions relating to the foregoing involve judgments with respect to, among other things, the ability of the company to integrate the enterprise resources planning system. 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.