AASI Aircraft to Appeal Potential Delisting of Warrants.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Feb. 21, 2001

Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) today announced that it has requested an appeal from Nasdaq for a written hearing regarding the pending delisting of the company's class B warrants, trading under the symbol AASIZ.

The initial notification from Nasdaq and the pending delisting is based upon Marketplace Rule 4310(c)(1) which stipulates that a minimum of two active market makers must be maintained for continued listing. Pursuant to the rules of the appeal process, the company's class B warrants will not be delisted pending the hearing's outcome. A hearing date has not been scheduled.

The warrants, which entitle the holder to purchase the company's common stock at a price of $8.75, expire on Dec. 2, 2001. The company's class B warrants are currently only traded by an Electronic Communications Network (ECN), which is not considered an active market maker under the Nasdaq rule. The company's class A warrants currently comply with Marketplace Rule 4310(c)(1) and continue to be listed.

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 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.