Aura Systems, Inc (AURA)

[jmhollen]

Aura Settles with SEC

EL SEGUNDO, Calif., Jun 11, 2002 (BUSINESS WIRE) -- AURA SYSTEMS, INC. (OTC BB: AURA) announced today that it has reached a settlement with the Securities and Exchange Commission.

The events giving rise to the settlement involved alleged actions of former officers and directors of Aura Systems during fiscal years 1997 and 1998. No person who is now an employee, officer or director of Aura Systems is alleged to have engaged in any wrongdoing. The settlement was without any penalty or fine imposed on Aura Systems and will not require that Aura restate its financials. Additionally, the settlement did not include any admission of wrongdoing.

As part of the settlement, a complaint was filed in the United States District Court, Central District of California. The court papers, which include a consent and undertaking and final judgment, reflect the Company's agreement to be enjoined from committing securities violations of the anti-fraud and books and records provisions, thus ending the matter. The administrative release information on the settlement and court filings can be found at the SEC's website, http://www.sec.gov. The Company first reported the existence and nature of the SEC investigation publicly in a press release dated January, 1999.

The Board of Directors concluded that it was in the best interest of Aura Systems and its shareholders to reach this settlement with the SEC and bring this matter to a close.

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, INC. Steve Burdick, 310/643-5300 [e-mail] www.aurasystems.com