Aura Systems, Inc (AURA)

[jmhollen]

Aura Secures Round Of Equity Financing

EL SEGUNDO, Calif., May 23, 2002 (BUSINESS WIRE) -- AURA SYSTEMS, INC. (OTC BB:AURA) announced today that during the first quarter of fiscal 2003 it raised $4.16 million through equity financing from current shareholders and members of the Board of Directors, including the Chairman of the Board.

The Company issued 20.8 million shares of common stock in the exchange. One of these shareholders has the option to invest additional funds under the same terms and conditions through May 31, 2002. The funds raised continue to be used for operating purposes as well as the sales and marketing activities the company has undertaken in order to ramp up the revenues from the AuraGen(R). The Company will require additional financing to fund its operations until it is able to achieve positive cash flows from product sales.

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.

CONTACT: Aura Systems Steve Burdick, 310/643-5300 E-mail: [e-mail] Web site: www.aurasystems.com