LONG BEACH, Calif. May 25, 1999 (PRIMEZONE) -- Advanced Aerodynamics & Structures, Inc. (Nasdaq: AASI) today said it has completed the sale/lease back of its 200,000 square-foot manufacturing facility to The Abbey Company, a real estate investment company based in Garden Grove, CA., for $9.8 million. Terms of the lease back of the facility are for 18 years, with an option for a 10-year renewal. The company intends to utilize the proceeds to complete the final phase in the development of the JETCRUZER 500 aircraft and begin full-scale manufacturing.
The manufacturing facility is the largest general aviation aircraft factory in the western United States, containing more than 200,000 square feet of office and manufacturing space on ten acres at the Long Beach airport.
In a separate transaction, AASI said it will redeem on June 1, 1999, $8.5 million of California Industrial Development Bonds using designated funds set aside in 1997 for that purpose. Proceeds from the sale/lease back transaction will not be used for this redemption. The bond proceeds were used to build the company's state-of-the-art facility in 1998.
The JETCRUZER 500 is a high-speed single engine, corporate propjet aircraft that can accommodate first class seating for six people, including the pilot. Powered by a Pratt & Whitney propjet engine, the JETCRUZER 500 will fly at 360 miles per hour from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.
To date, AASI has orders for 172 of the corporate aviation industry's newest executive propjet aircraft, representing a backlog that exceeds $200 million.
Advanced Aerodynamics & Structures, Inc. is a development-stage company organized to design, develop, have certified by the Federal Aviation Administration (FAA), manufacture and market propjet and jet aircraft for the world business, commercial and government markets.
Certain statements contained in this news release, including statements concerning the Company's future cash and financing requirements, the Company's ability to continue to obtain market acceptance of the JETCRUZER 500 aircraft, the Company's ability to obtain regulatory approval of the JETCRUZER 500, and the competitive market for sales of small business aircraft and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation those risks and uncertainties set forth in the Company's Registration Statement on Form SB-2 under the heading "Risk Factors", and the Company's Form 10-KSB and Form 10-QSB on file with the SEC.
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