Aviation General Inc. Reports Results for Fiscal Year 1998.

BETHANY, Okla.--(BUSINESS WIRE)--March 5, 1999--Aviation General Inc. (NASDAQ:AVGE) announced revenues for fiscal year 1998 of $10,711,827 and a net loss of $1,849,400, or $.25 per share, compared to fiscal year 1997 revenues of $8,062,369 and a net loss of $2,140,637, or $.31 per share.

Since commencement of aircraft production in 1992, annual revenues have increased significantly and annual losses have substantially declined, concurrent with ongoing investment in the company's future. The company continues to broaden its general aviation capabilities by increasing its business in the pre-owned piston and jet aircraft markets.

These markets are much larger than the market for new high performance, single engine aircraft, which remains at a relatively low level. Furthermore, this diversifies the company's business and revenue base and is synergistic with the manufacturing, marketing, and support services of our high performance, single engine Commander aircraft.

To date, approximately $40 million has been invested to build Aviation General Inc. In an industry where a $40 million investment is often insufficient to achieve the development and type certification of a prototype aircraft, our achievements are considerable.

Commander Aircraft company, a wholly owned subsidiary incorporated in 1988, acquired the Rockwell Commander single engine product line.

The company modified and enhanced the value of the existing fleet of Commander aircraft built from 1972 through 1979 by Rockwell International Corp., and extensively enhanced the aerodynamics, avionics, systems, interior and powerplant of the original Rockwell Commander design.

Manufacturing capability was established and the company was awarded a Type Certificate for its new Commander 114B by the Federal Aviation Administration after an extensive development and certification program. Aircraft production and deliveries began in 1992, and the company was subsequently awarded a Production Certificate for its manufacturing facilities by the FAA.

An initial public offering of the company's common stock was completed in 1993.

The company has developed and manufactured derivative aircraft models, the Commander 114AT All-Purpose Trainer and the Commander 114TC turbocharged aircraft, and has established a domestic and international network of authorized service centers.

We have continued modifications and enhancements for all models of our single engine Commander aircraft, including a long range wing, expanded avionics offerings and FAA certified TKS de-icing systems. Recently the company began its expansion into general aviation pre-owned piston and jet aircraft markets through Commander's Aviation Services division and the establishment of Strategic Jet Services Inc.

Aviation General Inc. enters 1999 as a publicly traded holding company with two wholly-owned subsidiaries, Commander Aircraft Company and Strategic Jet Services Inc. Commander Aircraft Company manufactures, markets and provides support services for its line of single engine, high performance, Commander aircraft and consulting, brokerage and refurbishment services for piston aircraft.

Strategic Jet Services Inc. provides consulting, brokerage and refurbishment services for jet aircraft.

The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties. 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. The Company 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. Readers are encouraged to refer to the risk disclosures described in the Company's reports on forms 10-K, 10-Q and 8K, as applicable. -0-

                    AVIATION GENERAL, INCORPORATED

                       STATEMENT OF OPERATIONS
                             (unaudited)

                    Three Months Ended          Fiscal Year Ended
                        December 31,               December 31,
                   1998           1997         1998           1997
                ----------     ----------   ----------     ----------
Net sales       $1,479,506     $2,032,988  $10,711,827     $8,062,369
Cost of sales   $1,756,138     $1,892,839   $9,846,011     $7,775,892
                ----------     ----------   ----------     ----------
Gross margin
 (deficit)       ($276,632)      $140,149     $865,816       $286,477
Other operating
 expenses         $851,703       $656,365   $3,101,598     $2,649,831
                ----------     ----------   ----------     ----------
Operating
 income (loss) ($1,128,335)     ($516,216) ($2,235,782)   ($2,363,354)
Other income
 (expense)         $50,972       $118,505     $386,382       $222,717
                ----------     ----------   ----------     ----------
Net loss       ($1,077,363)     ($397,711) ($1,849,400)   ($2,140,637)
                ==========     ==========   ==========     ==========
Weighted average
 shares
 outstanding     7,280,548      7,225,765    7,280,548      6,980,494
                ----------     ----------   ----------     ----------
Net loss
 per share          ($0.15)        ($0.06)      ($0.25)        ($0.31)
                ==========     ==========   ==========     ==========