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AuraGen VIPERs to be Deployed by U.S. Army Europe Command

    EL SEGUNDO, Calif.--July 17, 2001--AURA SYSTEMS, INC. (OTC BB: AURA) announced today that it received an order for 24 AuraGen(R) VIPER systems from the U.S. Army 3rd Corps Support Command (3D COSCOM). The 3D COSCOM is stationed in Germany as part of deployed forces of the US Army Europe (USAEUR). Under the contract, in addition to the VIPERs, Aura will also provide training on installation and operation of the VIPER system to U.S Army Military personnel in Europe starting July 23, 2001. The 24 VIPERs are all 5,000 Watt, AC only systems, and are considerably lighter and smaller (by several times) than the towed Army generators they would replace.
    Ron Goldstein, Aura's Senior V.P for Government Systems, said "This Army purchase follows command level evaluation of the effectiveness of the VIPER last spring in Germany during war game field exercises. The AuraGen VIPER systems, installed in standard HMMWVs, are part of a new tactical concept for rapid maneuver and support. We believe that the VIPER will provide significant improvements in mission effectiveness in terms of transportability (shipping), mobility, quietness for survivability and better effective fuel usage for a modern mobile Army. The AuraGen VIPERs are driven by the existing vehicle's engine which eliminates otherwise required preventive maintenance on separate generator engines. The VIPER's ease of use by our troops is unsurpassed. The combination of all these factors make the VIPER an ideal solution for the `Army Transformation' initiated by the Army Chief of Staff."
    Harry Kurtzman Aura's CEO said, "This is a very important milestone for the AuraGen VIPER. The deployment in Europe is one more step toward a wider use for the VIPER in the Army. In addition to this important contract we are pursuing other activities with the U.S Army, Navy, Marine Corps and the Air Force. Recently the Department of the Air Force completed a highly favorable evaluation of and report on the AuraGen VIPER system, which included a strong recommendation for its applications."
    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.