Aerosonic Announces Amendments to its Financial Statements.

CLEARWATER, Fla. -- Aerosonic Corporation (AMEX:AIM), a leading supplier of precision flight products for commercial, business and military aircraft, today announced that it plans to amend its Annual Report on Form 10-K for the fiscal year ended January 31, 2004 and its Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2004.

The Company announced that it will be amending its Annual Report on Form 10-K for the fiscal year ended January 31, 2004 and its Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2004 to correct an error in its balance sheet. In its Annual Report on Form 10-K for the fiscal year ended January 31, 2003, the Company recorded income taxes receivable that included approximately $873,000 arising from an anticipated carryback of net operating losses resulting from the restatement of its financial statements included in that 2003 report. The carrybacks were the subject of amended tax returns filed for the tax years ended January 31, 1998 and 1999. In June 2004, the Internal Revenue Service ("IRS") notified the Company that its refund claims of $873,000 for 1998 and 1999 were disallowed for statutory reasons related to the timing requirements of the filings. Since that time, the Company has been working with its tax advisors to determine if the position taken by the IRS was appropriate and if additional information could be provided to the IRS to support the Company's refund claim. The Company and its advisors have since concluded that an error had been made and that the Company would need to amend its financial statements accordingly.

The amendments to the Company's financial statements in its January 31, 2004 Form 10-K and April 30, 2004 Form 10-Q will include adjustments to the balance sheet to reduce both income taxes receivable and stockholders' equity by $873,000. The Company continues to work with its tax advisors to identify and pursue all appropriate uses of the net operating losses that resulted from the 2003 restatement of its financial statements, including those contained in the amended 1998 and 1999 filings.

Aerosonic Corporation, headquartered in Clearwater, Florida, is principally engaged in the manufacture of aviation products. Locations and divisions of the Company include: the Clearwater, Florida Instrument Division (Clearwater Instruments), the Aerosonic Wichita, Kansas Division (Kansas Instruments), Avionics Specialties, Inc., a Virginia corporation wholly owned by the Company, and the Precision Components Division (Precision Components). For additional information, visit http://www.aerosonic.com.

This document contains statements that constitute "forward-looking" statements within the meaning of the Securities Act of 1933 and the Securities Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. "Forward-looking" statements contained in this document include the intent, belief or current expectations of the Company and its senior management team with respect to future actions by officers and directors of the Company, prospects of the Company's operations, the amount of any anticipated restatements, profits from future operations, and the Company's overall future business prospects, as well as the assumptions upon which such statements are based.

Investors are cautioned that any such forward-looking statements are not guarantees of future performance, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this document include, but are not limited to, adverse developments with respect to the resolution of management issues, operations of the Company's business units, failure to meet operating objectives or to execute the business plan, and the failure to reach revenue or profit projections. The Company undertakes no obligation to update or revise the forward-looking statements contained in this document to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results over time.