AeroGroup International Corporation Announces It Has Received Acceptance of Offer to Purchase F-16 Falcon Aircraft from the Royal Netherlands Air Force.

Business Editors

MELBOURNE, Fla.--(BUSINESS WIRE)--Dec. 17, 2002

AeroGroup International Corporation (Pink Sheets:DRGR) announces that it has received an acceptance of offer from the Netherlands Government for the purchase of F-16 Falcon fighter aircraft that were in service with the Royal Netherlands Air Force (RNLAF). AeroGroup's purchase consists of the acquisition of (7) two-seat training version F-16 "B" models, spares and support equipment and the option to exercise the First Right of Refusal on an additional package of (12) single-seat F-16 "A" version models.

AeroGroup CEO, Mark Daniels states, "The details of the final contract are being worked through with the attorneys on both sides and all looks great. We have been working on this project for quite some time, going through the process of getting clearance and approval with the U.S. State Department, U.S. Air Force and the Netherlands Government. We "AeroGroup" will be the first civilian company to own and operate the F-16. In my opinion, it is an historical event and a huge successful step in AeroGroup's future. Our customer, the U.S. Military agencies that we support, want a fourth generation type aircraft with current up-to-date technology that can provide advanced presentations of threats to meet their training requirements and this is the ultimate aircraft to perform the mission. This expands AeroGroup's capabilities in its first and primary business case of supporting the United States Military in Electronic Warfare (EW) training. However, with the operation of two-seat F-16 aircraft, AeroGroup will also focus on a completely untapped and desperately needed service in providing required flight training in the F-16 to U.S. approved NATO countries. The opportunities in this area of training are incredible, as the F-16 is operated by 22 countries currently and is expected to expand."

About the F-16 Falcon Aircraft

Originally designed and built by General Dynamics (now Lockheed Martin), the F-16A, a single-seat model, first flew in December 1976. The first operational F-16A was delivered in January 1979 to the 388th Tactical Fighter Wing at Hill Air Force Base, Utah. The F-16B, a two-seat model, has tandem cockpits that are about the same size as the one in the A model. Its bubble canopy extends to cover the second cockpit. To make room for the second cockpit, the forward fuselage fuel tank and avionics growth space were reduced. During training, the forward cockpit is used by a student pilot with an instructor pilot in the rear cockpit. The F-16 is capable of speeds of Mach 2 and an operational altitude of over 50,000 ft. More than 4,000 F-16s have been produced, in over 110 different versions. Highly versatile and exceptionally maneuverable, the F-16 is the world's most popular, most sought-after multirole fighter. Nations are attracted to the proven affordability, performance, and supportability of this aircraft.

When first introduced, the F-16 was a revolutionary fighter and has continuously evolved to meet global needs. Twenty-two nations have chosen the world's first fourth-generation fighter; 14 of those nations have made subsequent purchases of new aircraft; and six have acquired U.S. Air Force inventory aircraft through purchase or lease. Deliveries have been made from five production lines.

The F-16 was built under an unusual agreement creating a consortium between the United States and four NATO countries: Belgium, Denmark, the Netherlands and Norway. These countries jointly produced with the United States an initial 348 F-16s for their air forces. Final airframe assembly lines were located in Belgium and the Netherlands. The consortium's F-16s are assembled from components manufactured in all five countries. Belgium also provides final assembly of the F100 engine used in the European F-16s. Recently, Portugal joined the consortium. The long-term benefits of this program will be technology transfer among the nations producing the F-16, and a common-use aircraft for NATO nations. This program increases the supply and availability of repair parts in Europe and improves the F-16's combat readiness.

USAF F-16 multi-mission fighters were deployed to the Persian Gulf in 1991 in support of Operation Desert Storm, where more sorties were flown than with any other aircraft. These fighters were used to attack airfields, military production facilities, Scud missiles sites and a variety of other targets.

About AeroGroup International Corporation

AeroGroup International Corporation is a Florida-based tactical aviation company created in 2001 to capitalize on the shortfalls in aviation support assets within the U.S. Military. AeroGroup has a staff of aviation professionals and an available inventory of tactical aircraft capable of subsonic and supersonic flight. The Company is well positioned to fly combat fighter support missions each year that go unmet by military training personnel.

Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein. Factors that might cause such a difference include, among others, competitive pressures, the company's ability to successfully implement traffic, constantly changing technology, associated with recently formed entities. As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC.

For additional information or to receive an AeroGroup International Corporation Investor's Information Package, please contact: Michael Lewis, 321/254-1501 or email at: [e-mail]