| Major engine parts are being produced at a modern 85,000 square foot contract facility in Fort Worth, Texas. AeroTwin has been assigned approximately 4,000 feet for engine assembly, testing and storage. “Based on satisfactory engine test performance and a quality review of major parts, we are preparing engine s for delivery to OEMs,” said Dwaine Barnes, president. “While we experienced some delay during the move of our assembly and testing operations to the new site, we are pleased with the new space, modern equipment and commitment to producing reliable engines made by our contract manufacturer. We are assembling 30 engines from produced parts and are preparing for higher quantity production in 2006.” AeroTwin has two models of its patented two-cylinder 972cc four-stroke aircraft engine. The AT972T is a turbo-charged engine producing 65 hp at 4500 rpm and the AT972 is a standard engine producing about 55 hp at 5000 rpm. Both models illustrate exceptional flat torque at 3000 to 5000 rpm, a key competitive feature for OEMs of prop and rotor sport aircraft. AeroTwin has also developed reduction gear boxes and cooling shrouds flexible to meet a variety of sport aircraft requirements. “We started a new fiscal year on October 1, 2005,” added Barnes. “We are generating fiscal 2006 first quarter revenues from a government subcontract for a defense contractor. AeroTwin and G-70 UAV products should contribute revenues in the second quarter. We are currently installing AeroTwin engines on both our Red and Yellow prototype AirScooter for testing in preparation for future production.” About AirScooter Corporation: AirScooter Corporation is engaged in the development and commercialization of advanced manned and unmanned air vehicles and power systems for the recreational, commercial and government markets. The Company has applied coaxial counter-rotating dual rotor systems to the AirScooter personal air vehicle (PAV) and the AirScout Unmanned Aerial Vehicle (UAV). The Company’s wholly owned subsidiary, AeroTwin Motors Corporation, is engaged in the manufacture and distribution of the AeroTwin 65 HP lightweight sport aircraft engine. For more information on the company, its technologies and products please visit www.airscooter.com. For information on the AeroTwin engine visit www.aerotwinmotors.com. | 
