AASI Names Dr. Richard Tracy, Leading Aerospace Expert, Program Manager for Final Development, Manufacturing of JETCRUZER 500 Aircraft.

LONG BEACH, Calif.--(BUSINESS WIRE)--Dec. 15, 1998--Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) (AASI) Tuesday announced that Dr. Richard Tracy, a leading authority in the design and development of high-performance aircraft, has been named program manager for the JETCRUZER 500 program, with the responsibility for overseeing all aspects of engineering, manufacturing, FAA certification and flight operations of the general aviation industry's newest propjet aircraft.

Based on a new design, 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 be able to fly from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.

AASI currently has orders for 150 JETCRUZER 500s, representing a backlog of more than $180 million. The company anticipates deliveries will begin in the second half of 1999.

Tracy has a patent for developing a method to reduce wing drag in supersonic aircraft. He also has received a Von Karman Prize in Aerodynamics from the Von Karman Institute in Brussels, Belgium. Tracy holds a doctorate degree in fluid mechanics and hypersonics, a master's degree in aeronautical engineering and a bachelor of science degree in mechanical engineering, all from the California Institute of Technology in Pasadena, Calif.

"Dr. Tracy is recognized as one of nation's leading aerospace experts," said Dr. Carl Chen, chairman, president and chief executive officer of AASI. "With more than 40 years of experience in the aviation industry, and having directed similar development programs in the past, he will play a valuable role in our efforts to complete the JETCRUZER 500 program and begin deliveries in late 1999.

"We believe Dr. Tracy's expertise in areas such as airflow dynamics, wing design and other aerodynamic sciences will ensure that we meet our goal of producing one of the general aviation industry's top-performing aircraft in its class, operating at optimal airspeeds and altitudes," Chen said.

Previously, Tracy headed a design team for the development of the all composite-built "Learfan" corporate propjet. He was also chief engineer for Lear Avia for the design of the Learstar 600, which later became the Lear Challenger aircraft. He also was a FAA airframe structure Designated Engineering Representative (DER).

In other projects, Tracy has worked with companies such as Lockheed Martin Corp., McDonnell Douglas and North American Aircraft in programs involving advanced aerospace projects, including the government's "Tier II Plus" high-altitude unmanned spy aircraft program, and an aerospace industry effort to design the X-30 hypersonic SCRAM-jet engine.

Tracy's background in supersonic flight design and reports are numerous, with recent areas of interest in flow dynamics to improve the economy of SST flight. He also is involved in studies to improve the performance of supersonic aircraft capable of reaching speeds of Mach 1.5 and above.

Advanced Aerodynamics & Structures is a development-stage company formed to design, develop and certify by the Federal Aviation Administration, 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 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.