Advanced Aerodynamics & Structures, Inc..

[jmhollen]

Mooney Airplane Company Reduces Prices an Unprecedented 20 Percent; Largest Price Reduction in General Aviation History

LONG BEACH, Calif.--(BUSINESS WIRE)--June 20, 2002--Mooney Airplane Company, Inc., a wholly owned subsidiary of Mooney Aerospace Group, Ltd. (OTCBB: AASI), announced today that it has reduced the price of the three Mooney products, the Eagle2, Ovation2 and Bravo, by an average of $90,000. These new prices represent an average 20 percent price decline for the three Mooney models. The company also announced the complete equipment lists and options pricing, the customer support program and details of the manufacturing re-start at the Mooney facility in Kerrville, Texas.

"We are very pleased to announce what we believe are the largest across-the-board price reductions in general aviation history," commented Roy Norris, Chairman and CEO of Mooney Aerospace Group, Ltd. He added: "When we first began working to acquire the Mooney assets, we believed that there was potential for significant cost reductions throughout the operation. Through the work of our operations, engineering and finance teams, we are realizing significant savings and are passing those savings to our customers. These are new, long-term prices for fully loaded aircraft with IFR avionics and autopilot. No smoke. No mirrors."

"Since we began operating the company in January, we have done an exhaustive review of the total production process with two objectives in mind. First, maintaining and enhancing the long-established Mooney quality. Second, reversing the previous cycle of cost increases. We are very pleased with the results - price reductions averaging $90,000 per airplane," said Dale Ruhmel, Executive Vice President of Operations and Engineering.

Mooney Aerospace Group, Ltd. was formerly known as Advanced Aerodynamics and Structures, Inc. (AASI). AASI acquired the assets of Mooney Aircraft in a bankruptcy sale on March 18, 2002. The Company is in the process of restarting the production line. The first new Mooney airplane is scheduled to roll out in July 2002. By the second quarter of 2003, the production rate is forecasted at eight airplanes per month.

"The entire organization has been involved in achieving the cost savings needed to make these price reductions. We have examined our make/buy decisions and brought composite parts fabrication back in-house at a considerable savings. Taking advantage of the hands-on experience of our management team, we have substantially reduced the complexity and cost of the automated work-tracking system to generate only the data needed to run an aircraft manufacturing operation. We have simplified administrative processes resulting in a substantial improvement in the ratio of direct workers to indirect headcount. We have revised our production ordering and scheduling processes to improve workflow and efficiencies. Plus, we've streamlined our distribution with a direct selling approach," explained Pete Larson, the Company's chief financial officer. He added, "I am delighted with the way our people are attacking and solving each of these cost problems with a bit of direction and encouragement. The spirit and work ethic of the people at Mooney are exceptional."

The Mooney line will include three high-performance, four-place single-engine models. The Mooney Eagle2 has a cruise speed of 180 knots and is priced at $299,950. The Ovation2 has a maximum cruise speed of 190 knots and sells for $349,950. The turbocharged Bravo has a maximum cruise speed of 220 knots and is priced at $399,950. All three models offer a complete IFR (instrument flight rules) avionics package, plus autopilot, as standard equipment.

"In the near term, we anticipate manufacturing roughly 100 airplanes per year," commented the recently appointed Mooney Airplane Company President and COO, Jack Jansen. He added, "Our team is in a position to focus extraordinary attention on these 100 key customers."

The company announced its new comprehensive sales program -- the Mooney Alliance. This program includes Mooney showroom sales facilities at the Long Beach Airport in Long Beach, California and at the Louis Schreiner Airport in Kerrville, Texas, plus regional sales representatives. Mooney's Alliance Support program includes over 40 approved Mooney service centers, a 2-year, 600-hour spinner-to-tail warranty and initial training for owners.

The company announced pricing for the three models and the available option packages. The standard equipment on the three models is unchanged from the prior Mooney models.


Aircraft Model Previous Price New Price
----------------------------------------------
Eagle2 $360,000 $299,950
Ovation2 $445,000 $349,950
Bravo $505,000 $399,950

Standard Equipment for the three models:
----------------------------------------
-- GARMIN audio panel/intercom
-- GARMIN transponder with encoder
-- GARMIN 530 GPS/Nav/Com (Ovation2, Bravo)
-- GARMIN 430 GPS/Nav/Com (Eagle)
-- Two-axis autopilot
-- Slaved HIS systems

Ovation2 and Bravo Additional Standard Equipment:
-------------------------------------------------
-- Second GNS 430 with GI106A indicator
-- Polished spinner
-- Precise Flight Speed Brakes
-- Oxygen system (standard on Bravo only)

Selected Options for the three models include:
----------------------------------------------
-- Oxygen System (115.7 cubic foot with four masks)
-- Air Conditioning (25,000 BTU High capacity)
-- TKS Known Ice Protection System
-- Goodrich WX-500 Stormscope(R)
-- Goodrich SkyWatch(R)

See http://www.mooney.com for complete pricing details.

Mooney Aerospace Group, Ltd. is a general aviation holding company that owns Mooney Airplane Company in Kerrville, TX. Mooney Airplane Company currently markets three Mooney models: Bravo, Ovation2 and Eagle2. Mooney production began 53 years ago and over 10,000 airplanes have been delivered worldwide. Complete information on the Mooney Airplane Company and its products is available at www.mooney.com.

For further information, please contact:

The Mooney Aerospace Group, Ltd., formerly known as Advanced Aerodynamics & Structures Inc., Long Beach, Investor Relations Manager, 562/938-8618, [e-mail]. For product or corporate information: J. Nelson Happy, Executive Vice President, 562/938-8618, [e-mail]. Additional information is available at the Company's website: http://www.mooney.com

CONTACT: For Mooney Airplane Company
Roy Norris, 562/938-8618
Al Eidson, 816/474-0747