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AMERICAN AIRCRAFT CEO SEES NO JUSTIFICATION FOR STOCK BEHAVIOR

AMERICAN AIRCRAFT CEO SEES NO JUSTIFICATION FOR STOCK BEHAVIOR
 LONDON, Feb. 18 /PRNewswire/ -- Bill Moody, CEO of American Aircraft Corporation (NASDAQ: AARC), announced today that he can see no justification whatsoever for the recent behavior of the publicly traded NASDAQ stock. "I wish to strongly assure shareholders that the company has never been more poised for growth," Moody stated.
 Moody noted that American Aircraft Corporation has successfully completed its two-year Research and Development program for the remanufacture of the Huey UH-1 Helicopters into the advanced, composite-body, reconfigured Penetrator. Its initial test flight occurred in November of 1991. The Penetrator is the only known assault lift troop-carrying gunship in the Western world. The company has also received Federal Aviation Agency Certification for this new reconfigured helicopter. Due to the reconfiguration process, the Penetrator's low cost will greatly enhance its attractiveness to the marketplace. Worldwide budget constraints are leading potential helicopter customers away from more expensive helicopters towards retrofitted composite reconfiguration.
 Moody further stated that AAC is fortunate in that the State Department's Foreign Military Sales (FMS) Program provides for a line item allocation for Huey Helicopter remanufacture/retrofit.
 The FMS program provides funding for this remanufacture for 34 specified countries, all of which are potential markets for AAC. These funds are grants governed by the State Department, Munitions Board and the Foreign Military Sales desk.
 AAC is currently negotiating sales of the Penetrator with 23 different countries. The company projects that its marketing program will be successful if it reaches only 27 percent of the potential customers for its Penetrator product.
 Negotiations to build a 500,000 square foot facility dedicated to production of the Penetrator are underway with Sheldon Pollack Corporation, the national industrial facilities builder with offices in Los Angeles and Houston.
 Moody has been informed by Stan Berman, director of the Los Angeles office, that the Pollack Corporation can complete the construction, following site and governmental approvals, within 120 to 150 days and provide a turnkey aircraft manufacturing facility. Several sites are currently under consideration.
 AAC is currently tooling for the production version of the Penetrator. Separately, the company is negotiating with subcontractors and/or strategic partners for its production. Lycoming, DuPont, NORJEN and Banner Industries are typical of the strategic partners currently in negotiation. Moody stated that as much as 50 percent of the work will be performed by others. The final assembly will be in AAC's new facility.
 AAC is also restructuring and augmenting its production and marketing divisions to reflect its maturity from a Stage 1 technical start-up company to a Stage 2, production-based, revenue-generating aircraft manufacturer. Various personnel additions are being planned.
 -0- 2/18/92
 /CONTACT: Robert A. St. John of American Aircraft, 310-595-0701/
 (AARC) CO: American Aircraft Corporation ST: IN: ARO SU:


DD -- NE003 -- 9836 02/18/92 10:28 EST
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Date:Feb 18, 1992
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