Advanced Aerodynamics & Structures, Inc.
Ticker:AASI 3060 Airport Way
Exchange:NASDAQ-Small Cap Market Long Beach, California 90806
Industry:Manufacturing (310) 988-2088

Type of Shares:Class A Common Shares Filing Date:9/19/96
U.S. Shares:6,000,000 Offer Date:12/3/96
Non-U.S. Shares:0 Filing Range:$5.00 - $6.50
Primary Shares:6,000,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.30
Offering Amount: $34,500,000 Selling:$0.12
Expenses:$1,452,077 Reallowance:$0.06
Shares Out After:7,000,000

ManagerTierPhone
D.H. Blair & Co Inc.Lead Manager (212) 495-4000

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$0.03$0.01$0.03Assets:$2.07
Net Income:-$1.69-$1.35-$0.85Liabilities:$3.11
EPS:-$0.50-$0.40-$0.25Equity:-$1.04

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a development stage company organized to design, develop, manufacture and market project and jet aircraft intended primarily for business use. The company has obtained a type of certificate from the United States Federal Aviation Administration (FAA) with respect to a non-pressurized, single-engine propjet aircraft powered by a Pratt & Whitney engine. The company intends to modify the JETCRUZER-TM-450 to develop a six-seat, pressurized version of such aircraft for commercial sale which, the company anticipates, will takeoff and land in less than 1,000 feet, be able to fly at approximately 30,000 feet above sea level, and have a high cruise speed of approximately 350 mph and a range of approximately 1,600 miles. The company believes that it will need to amend its current Type Certificate to develop the JETCRUZER 500 for commercial sale as a result of certain design changes and modifications required to be made to the aircraft to improve its performance and capabilities and to remove a number of limitations imposed on the Type Certificate by the FAA as a result of the aircraft's early stage of development.

Use of Proceeds
The proceeds from the proposed offering will be used to repay the notes issued in the Bridge Financing, to amend its FAA Type Certificate, to acquire and produce equipment and tooling, to establish an appropriate manufacturing facility, to market and sell its proposed aircraft, and for working capital and general corporate purposes.

Last updated: 12/29/96

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