Aura Systems, Inc. and GSA Awards, Inc. Enter Into a Marketing Agreement on AuraGen.

Business Editors

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Jan. 13, 2003

Aura Systems, Inc. (OTCBB:AURA) today announced that GSA Awards, Inc. and Aura Systems, Inc. have entered into a joint marketing agreement to increase the penetration of the AuraGen(R) Under-hood Mobile Power System into the Government Services Administration (GSA) market. GSA Awards, Inc. (GSAA) will seek to broaden the GSA contract base for the AuraGen product and develop a marketing strategy with Aura Systems, targeted specifically at mobile power users. GSAA will also seek to develop means for best utilizing the on-line and schedule tools established by GSA for government purchaser product searches and capturing the attention of mobile power users. Further, teaming opportunities with other GSA Contract vendors who need mobile power solutions will be sought out where the mutual interests are compelling.

The Government Services Administration (GSA) is responsible for supplies, space and other services to all Federal Government branches, agencies and designated State and other entities. GSA has an annual budget of $16 billion and influences almost $66 billion in government financial transactions, including a GSA standing fleet in excess of 500,000 vehicles and over 50,000 new vehicle purchases per year. To efficiently supply GSA product purchasers worldwide and facilitate their purchases, GSA qualifies vendors for multi-year Federal Supply Schedule Contracts for five-year increments; Aura has been awarded a GSA Schedule contract.

"The AuraGen is an incredible product. We believe that the increased product exposure and product information delivered to the key decision-makers will lead to significantly increased sales in the GSA market," said Michael Daddario, GSA Awards president. "GSAA eagerly looks forward to seeing that the targeted marketing of the AuraGen to the large GSA user base is fully exploited to increase sales."

"This agreement complements and furthers our commitment to fully and effectively assure that the market potential of the AuraGen is met," said Neal Meehan, Aura Chairman and CEO. "The GSA market is very large, and government mobile power users can greatly benefit from the AuraGen. The agreement with GSAA, Inc. will help us ensure that all government agencies know of the compelling AuraGen benefits and advantages over generator sets, and buy accordingly."

The AuraGen Mobile Induction Power Source provides 5,000 to 8,000 watts of continuous power even at low engine speed, and up to 9,000 watts of peak short-term surge power, depending on the model. The various AuraGen models, including the AuraGen VIPER military version, provide high quality AC (alternating current) power, and/or DC (direct current) power, and/or Engine-off Silent Watch power. This can be accomplished whether the vehicle is parked or moving, and with high quality power output at all engine speeds. The superior combination of performance quality, responsiveness and continuity, together with compactness, lightweight, versatility, no scheduled maintenance and cost-effectiveness, makes the AuraGen unique in comparison with gensets; in addition, the AuraGen can augment the vehicle alternator.

Thousands of AuraGens are in commercial service with industry, municipalities and State and Federal agencies across the nation. The AuraGen VIPER is in service with U.S. Military Forces in both the United States and overseas, including support of Operation Enduring Freedom against terrorism.

About Aura Systems

Aura Systems Inc., a technology leader in mobile power, develops and sells AuraGen(R) mobile induction power systems to the industrial, commercial and defense mobile power generation markets. The Company's unique and patented energy solution is the only proven, commercially available pure sine wave power system that can continuously provide thousands of watts of power at low engine speed, and is fully integrated under the vehicle hood. The AuraGen(R) is capable of generating full power up to 8500 watts at all engine speeds including enhanced engine idle speed for gasoline engines and at idle speed for bigger diesel engines. The AuraGen(R) combines sophisticated mechanical and electronics design, advanced engineering and break-through electromagnetic technology to produce a highly reliable and flexible mobile power generating system that creates alternating current (AC) and direct current (DC) electricity, both with and without the engine on. For more information about the Company's AuraGen(R) product, visit the company's website at http://www.aurasystems.com.

This press release contains certain forward-looking statements and information based on the beliefs of Aura's management as well as assumptions made by, and information currently available to Aura's management. Such statements reflect the current views of Aura with respect to future events and are subject to certain risks, uncertainties, and assumptions, including risk factors identified in Aura's 10-K and other SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Aura undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.