AuraGen to be Included in Two General Motors Programs 2002 Fit for Profit 2002 Commercial Customer's Choice

    EL SEGUNDO, Calif.--July 12, 2001--AURA SYSTEMS, INC. (OTC BB: AURA) announced today that it was informed by General Motors Corp. that the AuraGen will be included in GM's "2002 Fit For Profit Program" and its "2002 Commercial Customer's Choice Program."
    According to General Motors, "both of these programs are designed to assist bona fide commercial customers with the costs of preparing commercial/work type vehicles for use in the daily operations of their businesses."
    General Motors states that these programs allow "for partial cash reimbursement to assist commercial customers who purchase eligible models with the expense of various commercial upfits." As applied to the AuraGen, the 2002 Chevrolet Silverado and GMC Sierra pickup truck models are eligible under the programs for cash reimbursements from General Motors of $600. The 2002 Savana and Express vans are eligible under the programs for $900 cash reimbursements. These programs commence with the introduction of the 2002 models and will last through December of 2002.
    Harry Kurtzman, Aura's CEO, said "General Motors has now gone the extra mile to help its commercial customers with costs associated in up-fitting their new vehicles for their daily jobs. Having the AuraGen as an eligible device under these programs will enable GM commercial users to have clean AC power on their vehicles whenever and wherever power is needed." Harry Kurtzman added, "According to the J.D. Power and Associates October 2000 Sales Report, General Motors produced in excess of 835,000 of the above models in the first 10 months of 2000, a percentage of which were sold to commercial customers. Of the 2002 production of Silverado, Sierra, Savana and Express models, some percentage will be sold to commercial users who can take advantage of these programs to realize savings on the purchase of AuraGens for their "underhood vehicle-integrated AC power source" needs. We look forward to working closely with General Motors to make these programs a success for Aura, General Motors and GM commercial customers. At this time, we are prepared if needed to ramp up production to meet any potential demand that could be generated from these efforts."
    The AuraGen G5000 and G8500 are currently available for these programs and the inverter option will become available for these programs later in the year.

    For more information about the AuraGen see the company's website, http://www.aurasystems.com/. Aura Systems, Inc., a leader in electromagnetic systems, is located in El Segundo, CA.

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks are described in the Company's Securities and Exchange Commission filings.