AASI Signs License for MAPICS Point.Man ERP System; Company Expects System to Optimize Production of JETCRUZER 500 Aircraft.

Business Editors

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

Advanced Aerodynamics and Structures Inc. (Nasdaq:AASI) today announced the signing of a contract with MAPICS Inc. for the licensing and implementation of the Point.Man Enterprise Resource Planning (ERP) system.

The software-based system is designed to automate a company's manufacturing process to improve the coordination of organizational resources by enhancing interaction within a variety of manufacturing and operational functions.

Dr. Carl L. Chen, chairman and chief executive officer of AASI, said: "After several months of due diligence in an extensive selection process involving many of the ERP systems available in the market, we selected the MAPICS system, which we believe is well-suited to support our future growth and production requirements. The licensing and implementation of the Point.Man ERP system coincides with our plans to begin production of the JETCRUZER 500(TM)."

Steven Kroeze, AASI's manager of manufacturing, said, "We anticipate that the investment in this ERP system will offer tremendous benefits by streamlining our production process and drastically reducing our production costs."

AASI commenced training and implementation of the system on Oct. 3, 2000, and expects it to be operative by Jan. 1, 2001.

The company currently has 186 JETCRUZER 500 aircraft orders, representing a backlog of $230 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.

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 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.