Butler National Corp. - Avcon Appoints Bombardier Aerospace Business Aviation Services as Distribution and Installation Centers for Avcon R/X Modification Package.

OLATHE, Kan.--(BUSINESS WIRE)--Oct. 16, 1998--Avcon Industries, Inc., a wholly owned subsidiary of Butler National Corporation (NASDAQ "BUKS"), announces the appointment of Bombardier Aerospace Business Aviation Services (BAS) Service Center network as an Authorized Distributor and Installation Centers for certain Avcon Products.

The worldwide BAS Service Center network will sell and install Avcon Fins, the Avcon Range Extension (R/X) Modification which includes Fins and Tip Tank Extensions, and related Takeoff and Landing weight increases.

"Learjet 35 and 36 owners can now enjoy improved handling and stability, while optimizing the outstanding range and performance of their aircraft," said Mr. Daniel Lafrance, Vice President of Sales and Marketing for BAS. "Offering these products through our service center network fits our commitment to continue expanding our portfolio of services for our Learjet 35 and 36 operators," Mr. Lafrance also commented.

The extension in range is accomplished with the addition of a tip-tank stretch modification designed to increase the aircraft fuel supply and flight range without giving up valuable cabin space. The modification was developed by Avcon Industries, a noted modification specialty company. The Tip Tank R/X modification extension boosts the range of 35 and 36 series aircraft by approximately 250 to 300 nautical miles with full fuel plus available payload.

As an integral part of the R/X modification package, dual Delta or Avcon ventral stabilizing fins are added to the tail. These fins, which are also available as a stand alone modification, improve stability. When flying with the Avcon Fins, flight crews report noticing the smoothness and positive control response even at low airspeeds. The fins interact with the vertical stabilizer to create positive stability in all three axes, channeling and smoothing the airflow around the tailcone area. Avcon Fins perform so well that the FAA requirement for operable yaw dampers is eliminated.

Management Comments:

"We are proud to announce the appointment of BAS as a distributor. Avcon has enjoyed a very good working relationship with Learjet for over 25 years. Avcon has provided many specialty modification packages to Learjet and today we are pleased to be able to provide our performance enhancement products through the worldwide BAS Service Center network to the many Learjet owners. I am pleased with the cooperation shown by BAS Learjet during the development of these products and happy to have BAS selling our products. BAS joins Flight International of Newport News, Virginia, as the only currently contracted distributors and installation centers of Avcon Learjet modifications," commented Clark D. Stewart, President.

Forward-Looking Information:

The information set forth above may include "forward-looking" information as outlined in the Private Securities Litigation Reform Act of 1995. The Cautionary Statements, filed by the Company as Exhibit 99 to the Company's Annual Report on Form 10-K, are incorporated herein by reference and investors are specifically referred to such Cautionary Statements for a discussion of factors which could affect the Company's operations and forward-looking statements contained herein.

Our Business:

Butler National Corporation operates in the Aerospace and Services business segments. The Services segment includes electronic monitoring of water pumping stations, temporary employee services and management services for Indian gaming enterprises. Aerospace includes the manufacture of switching equipment for Boeing and structural modification of business aircraft.