AASI to Unveil JETCRUZER 500 Aircraft at Annual NBAA Convention.

LONG BEACH, Calif.--(BUSINESS WIRE)--Oct. 19, 1998--Advanced Aerodynamics & Structures Inc. (Nasdaq:AASI) announced that it will unveil its JETCRUZER 500 aircraft to the worldwide aviation industry Monday at 10 a.m., at the 51st Annual Meeting and Convention of the National Business Aviation Association (NBAA) in Las Vegas.

The NBAA convention will follow its traditional three-day format, starting Monday and ending Wednesday, Oct. 21. AASI will occupy Booth No. 6428, showcasing a full-size JETCRUZER 500 aircraft along with a display of a fuselage of the JETCRUZER 500. The fuselage will feature an interior that has been designed exclusively by Designworks/USA, a subsidiary of BMW.

In addition to its exhibits at the convention center, AASI will have an operational aircraft flown in and on display at the NBAA's aircraft-viewing area at Las Vegas' McCarran International Airport.

To date, AASI has orders for 150 JETCRUZER 500 aircraft, representing a sales backlog of more than $180 million. The company anticipates that fabrication will begin in the first quarter of 1999, with deliveries in the second half of the year.

The JETCRUZER 500 is a high-speed single-engine, corporate propjet aircraft that can accommodate first-class seating for six people, including the pilot.

With its Pratt & Whitney turboprop engine, the JETCRUZER 500 has one of the most powerful lift and power ratios in the world. The aircraft can fly at an estimated top speed of 360 miles per hour from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.

Carl Chen, Ph.D., chairman and chief executive officer, said: "Our participation at NBAA will mark our first official unveiling of the JETCRUZER 500 to the worldwide aviation community. With its dynamic flight characteristics, at less than half the cost of other aircraft in its class, we anticipate a very favorable industry response."

Construction on the company's state-of-the-art 200,000-square- foot manufacturing facility, located at the Long Beach Airport, is scheduled to be completed this month. The factory will accommodate the production of more than 120 JETCRUZER aircraft per year.

Advanced Aerodynamics & Structures is a development-stage company organized to design, develop have certified by the Federal Aviation Administration (FAA), manufacture and market propjet and jet aircraft for the world business, commercial and government markets.

The information contained in this news release contains certain forward-looking statements that involve risk and uncertainties, such as the statements of the company's plan, objectives, expectations and intentions, including but not limited to the time of receiving its TIA certificate and the commencement of full-scale production. The company's actual results could differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's Form 10-KSB and Form 10-QSB on file with the Securities and Exchange Commission.