ASE Announces First Quarter 2002 Results.

Business Editors

ST. PAUL, Minn.--(BUSINESS WIRE)--May 6, 2002

Aero Systems Engineering, Inc. (Nasdaq:AERS), a worldwide leader in wind tunnel and jet engine testing facilities engineering, announced today the results for the First Quarter 2002. Results for the period were:

(Results in 000's except per share amounts)          3 Months
                                                    Ended 3/31
                                               --------------------
                                                 2002          2001
                                                 ----          ----
Revenues                                       $8,927        $5,739
Earnings (Loss) Before Taxes                      293         (283)
Net Income (Loss)                                 193         (283)
Net Income (Loss) Per Share                       .04         (.06)
Weighted Average Common Shares Outstanding      4,402         4,402

The revenue increase was mostly attributable to the increase in the orders in process and the resumption of normal activities on the Singapore wind tunnel project since the receipt of the export license. The first quarter of last year experienced lower than normal levels on the Singapore project as the U.S. government approval of the export license application was still pending during the quarter. The improvement in net income in the first quarter 2002 as compared to the prior year was due to the increased level of orders during the last six months and due to lower interest expense resulting from both lower interest rates and lower debt levels.

Backlog of orders as of March 31, 2002 was $30,826 as compared with $26,215 as of March 31, 2001. The total orders received during the first quarter was $10.3 million.

Mr. Charles Loux, President and Chief Executive Officer, commented, "We are very pleased with the extraordinary performance for the first quarter of this year and the improved level of order intake experienced during the last several months. The level of the present backlog and the jobs included in this backlog provide us with significant momentum as we proceed into the balance of this year."

Comments regarding the ability of the Company to achieve revenues in the future and other forward-looking statements involve risks and uncertainties, including but not limited to general economic conditions, the condition of the aerospace industry, signing of future contracts, competitive factors and other risks detailed from time to time in the Company's reports to the SEC, including the report on Form 10-K for the year end December 31, 2001. Actual results may vary materially from those anticipated.

About Aero Systems Engineering

Aero Systems Engineering, Inc. (ASE) is a highly skilled and experienced engineering company, which designs and supplies aerospace test facilities. ASE is a leader in design and construction of engine test cells and wind tunnels for testing aerospace vehicles and propulsion systems. ASE is ISO 9001 certified.

ASE, headquartered in St. Paul, Minnesota, is 51% owned by Minnesota ASE, LLC.

Aero Systems Engineering, Inc. common stock is listed on The Nasdaq Stock Market(SM) under the symbol: AERS.

Company Contacts

For further information, contact Steven R. Hedberg, Secretary and Treasurer of Aero Systems Engineering, Inc., tel [phone].