Aura Systems, Inc. Emerges from Chapter 11 and Will Begin Trading under the Symbol AUSI.PK.EL SEGUNDO, Calif. -- Aura Systems, Inc. (Pinks Sheets:AUSI AUSI Autonomous Undersea Systems Institute AUSI Associated Underwater Scuba Instructors (Queenscliff, Victoria, Australia) ) announced today that the Company has emerged from Chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. . The Company's new cusip number CUSIP Number An identification number assigned to all stocks and registered bonds. The Committee on Uniform Securities Identification Procedures (CUSIP) oversees the entire CUSIP system. Notes: This system is used in the U.S. and Canada. is 051526 20 0 and its new trading symbol Trading symbol See: Ticker symbol is AUSI.PK. The recapitalized Company will have approximately 22,600,000 common shares outstanding and no preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . In accordance with the reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. that has been confirmed by the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. and became effective on January 31, 2006, each stockholder of old Aura common stock will receive one new share for every 338 old shares. No fractional shares will be issued and the new shares issued will be rounded down to the nearest whole share. Therefore, stockholders will have to own a minimum of 338 old common shares in order to receive one new share, and a minimum of 676 old common shares in order to receive two shares. Aura Systems designs, assembles and sells the AuraGen(R), its patented integrated mobile power generator that installs in any motor vehicle and delivers on-location, plug-in electricity for any end use, including industrial, commercial, recreational and military applications. Compared to the traditional solutions addressing the $8.0 billion on-site power market, the AuraGen(R) uniquely and conveniently provides cleaner electricity with more reliability and more flexibility at a lower cost. The traditional mobile power solution has not changed in over 50 years and is a very mature technology where the economics are based on the cost of copper, steel, aluminum, and the cost of a small gasoline or diesel engine. The Company's approach uses a fraction of the same materials, with simple manufacturing techniques, to provide clean electrical power suitable for brute force applications such as compressors and tools, and simultaneously is also suitable for digital devices and instruments such as computers and modern communication devices and sensors. More information about the AuraGen(R) is available on the Company's website http://www.aurasystems.com/. Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve various risks and uncertainties. The forward-looking statements contained in this press release are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements. Such risks and uncertainties include, among others, the Company's ability to obtain future financing, to generate positive cash flow to cover its operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and the Company's ability to service its debt obligations, as well as other factors discussed in the Company's filings made with the Securities and Exchange Commission. The Company is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. |
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