AASI JETCRUZER Announces Progress Report on Development of Aircraft; Additional Aircraft for FAA Flight Testing Targeted for Assembly.

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--Dec. 5, 2000

Advanced Aerodynamics & Structures, Inc. (Nasdaq:AASI) today provided a progress report on the development of its JETCRUZER 500(TM) aircraft achieving several testing milestones.

The company has successfully passed a critical structure limit load test related to the aircraft's forward wing -- a distinctive feature of the JETCRUZER 500 that offers additional safety through spin-resistant aerodynamic qualities. The company also announced that the JETCRUZER 500 windshield has successfully completed its FAA ultimate structure load test.

Engineers and mechanics moved the aircraft's main wing from its wing jig station to the static test fixture for its structure limit load testing. A fuselage is under preparation with systems and avionics for mating the forward and main wings. An engine from Pratt & Whitney has been shipped to AASI and will be installed shortly on aircraft (S/N003) to be utilized for FAA flight-testing.

The company announced last week that it has entered into an Agreement of Intent with Tiwenz Group to acquire Tiwenz's subsidiaries Tainan Group (USA), Minbao Group, USA and AMTV Network in a stock transaction, with a corresponding infusion of net assets or equity into AASI expected to be approximately US$245 million after the closing of the acquisition.

"We are clearly delighted as we approach the final assembly of another aircraft for FAA flight testing -- which brings us much closer to the realization of our dream of receiving certification and commencing full-scale production. We are also equally excited about our agreement with the Tiwenz Group, which will not only provide sufficient equity to meet Nasdaq National Market listing requirements at this critical juncture in the development of the JETCRUZER 500, but will also allow management to focus totally on completing the certification progress and to deliver the airplane," said Dr. Carl Chen, chairman and chief executive officer of AASI Aircraft.

Dr. Chen emphasized that the agreement of intent stipulates that AASI's current management shall have total control of the JETCRUZER 500 program, as well as other related aircraft business activities.

He noted that all supervisors are currently engaged in a very intensive training program for the MAPIC Point.Man Enterprises Resource Planning (ERP) system. This new manufacturing software system, after its implementation, shall drastically reduce the manufacturing cost of JETCRUZER 500. The ERP system shall be on line January 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 JETCRUZER 500 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 AASI's 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 AASI's to successfully form a definitive agreement with Tiwenz Group and to complete due diligence relative to the acquisition. Although AASI 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 AASI or any person that AASI's objectives or plans will be achieved. AASI 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.