Aerosonic Announces Filing of Form 10-Q and Financial Results for its Second Quarter ended July 30, 2004.

CLEARWATER, Fla. -- Aerosonic Corporation (AMEX:AIM), a leading supplier of precision flight products for commercial, business and military aircraft, announced today that yesterday it filed its quarterly report on Form 10-Q for its second fiscal quarter ended July 30, 2004, with the U.S. Securities and Exchange Commission.

The Company's revenues for its July 30, 2004 quarter increased by $191,000 to $7,937,000, compared to revenues of $7,746,000 for the quarter ended July 31, 2003. The revenue increase is primarily due to increases in core product deliveries, which were partially offset by expected reduced development program activity on the Lockheed Martin Corporation F-35 (Joint Strike Fighter) contract. The increase in core product deliveries continues the trend that began in the first quarter of the current fiscal year.

Net income for the quarter was $903,000, or $0.23 per share, compared with a net loss of $342,000, or $0.09 per share, for the quarter ended July 31, 2004. The income for the quarter included the Company's one-time after-tax gain of approximately $617,000, or $0.16 per share, resulting from an insurance settlement realized in May 2004, that the Company discussed in its Quarterly Report on Form 10-Q for the first quarter ended April 30, 2004. Without regard to the insurance settlement, the Company's operations yielded net income for the quarter of $286,000, or $0.07 per share. The operating difference of $628,000, or $0.16 per share, between the prior year's second quarter loss and the current year's second quarter gain (not including the May 2004 insurance settlement) was due in part to increased sales and deliveries of core products, which generate higher gross margins, resulting from improvements in manufacturing efficiency, and was also due to significant reductions in audit and legal fees.

For the six months ended July 30, 2004, the Company's revenues decreased $1,457,000 to $15,033,000, compared to revenues of $16,490,000 for the six months ended July 31, 2003. The revenue decrease is primarily attributable to expected reduced development program activity on the Lockheed Martin Corporation F-35 (Joint Strike Fighter) contract. The Company has sustained the sales level in its core products that had increased significantly in the prior year.

Notwithstanding the reduction in revenue, the Company's net income for the six months ended July 30, 2004 was $1,112,000, or $0.28 per share, compared with net earnings of $161,000, or $0.04 per share, for the six months ended July 31, 2003. The earnings increase of $951,000 or $0.24 per share from the prior year was primarily due to the above-mentioned after-tax insurance settlement of $617,000, or $0.16 per share. Other contributing factors included lower legal and audit fees and the Company's sale of its engine vibration monitoring system inventory in February 2004, which were partially offset by increases in engineering costs for product development.

The Company further announced that it will issue another press release today with respect to its planned amendments to its Annual Report on Form 10-K for the year ended January 31, 2004 and its Quarterly Report on Form 10-Q for the quarter ended April 30, 2004 to reflect the balance sheet changes discussed in the Company's July 30, 2004 Form 10-Q.

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; the Aerosonic Wichita, Kansas Division; Avionics Specialties, Inc., a Virginia corporation wholly owned by the Company; and the Clearwater, Florida Precision Components Division. 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.