Aura Receives First Purchase Order in Excess of $225,000 under the Coast Guard Production Award for the New Medium Response Boat Fleet.

EL SEGUNDO, Calif. -- Aura Systems Inc., (AUSI) announced today that it received the first PO under the USCG contract award announced on June 30, 2006. The purchase order is for the electric power systems for the first 12 boats of the approximately 190-boat production award for the U.S. Coast Guard new Response Boat-Medium (RB-M) Fleet. The RB-M will replace the 41' Utility Boat (UTB) fleet, the Coast Guard's day-to-day workhorse for the past 25 years that is in operation throughout the United States.

As previously announced last June 30, the Coast Guard awarded the production contract to Marinette Marine Kvichak Marine team. Aura Systems Inc. is the electric power supplier with its patented dual AuraGen/VIPERS.

The Dual VIPER configuration will provide all of the AC and DC power as well as replace the alternator. The VIPER system will provide 16,000 watts of continuous power/18,000 watts of peak power at engine idle. The high efficiency of the VIPER units will allow the boat to produce electricity with a far lower cost in fuel usage than the traditional alternator based approaches.

Mr. Melvin Gagerman, Aura's CEO, said, "Aura is very pleased to be the supplier of the electrical power for each and every one of the new USCG medium response boats. The AuraGen/VIPER system will provide 16,000 continuous watts at engine idle -- a true application of the superior Aura technology. This power in a 28 VDC only mode is equivalent to over 570 amps at engine idle. The system for the USCG consists of a combination of both AC and DC that allows for optimal partitioning of the required power and furthermore result in reducing the required wire harness for very large amperage."

The AuraGen VIPER has been supporting our troops in both Afghanistan and Iraq since shortly after 9/11. More information is available on the Company's website: http://www.aurasystems.com/.