Aura Releases Message to Shareholders

EL SEGUNDO, Calif., June 30 -- Aura Systems, Inc. (BULLETIN BOARD: AURAE) has made available a message to the shareholders from Neal Meehan, Chairman and CEO.

Dear Shareholders:

As you may know, the Company filed a Form 12b-25 - Notification of late filing of Form 10-K for fiscal year ending February 28, 2003 on May 29, 2003. Aura's stock symbol has subsequently added an "E" to reflect the late filing status. This occurred because the company was unable to pay its auditors for the continuation of the audit and completion of the Form 10-K. As of today, the audit has recommenced and a Form 10-K should be filed within four weeks.

There have been some recent developments since my last Shareholders letter of January 2003 that I want to share with you.

   1. The Company has been further downsized in an effort to conserve cash
      while maintaining operations and customer/product support.
   2. The following management changes have been implemented:
      -- Jacob Mail, formerly Sr. Vice-President, Operations and Engineering
         has been appointed Chief Operating Officer.  Jacob now has Sales
         reporting to him as well as engineering and operations.  This
         change has greatly improved our Sales and Product Support
         coordination while expanding some of our support personnel into the
         Sales function.
      -- David Rescino, formerly CFO, is now Acting CFO and providing
         part-time assistance to the Company while we search for a
         replacement.
      -- Michael Froch, General Counsel and Secretary, has left the Company
         and has not been replaced.
   3. The Company experienced poor sales volumes in the fourth quarter
      FY '03 and the first quarter of FY '04.  However, we have seen a
      recent increase in sales in the current quarter.  The Company received
      an order of 300 units to be delivered over three years with shipment
      of the first 100 units this month.  The company receiving these units
      is a major government contractor.
   4. We are currently working with Stewart and Stevenson's Tactical Vehicle
      division to finalize quantities and pricing for the new U.S. Army FMTV
      re-buy program for the years 2003 - 2008.
   5. We have VIPERs installed on two HMMWV's undergoing Type Classification
      testing at the Aberdeen Proving Grounds and MGA-Proving Grounds and
      Crash Test Center in Burlington, WI.  This testing should be completed
      within four months.
   6. We continue to work towards the inclusion of the VIPER in the DOD
      FY '04 budget.
   7. We have focused marketing efforts on the Homeland Security market and
      have made some recent gains in the First Responder market, Cargo
      Vehicle Inspection Systems, the FBI and the U.S. Coast Guard.
   8. The AuraGen has passed all requirements for UL Recognition/Listing and
      we expect to have final approval next week.

The Company continues to experience cash shortages and is in the process of raising additional capital in a Private Placement that should close shortly although there is no assurance that this transaction will be completed successfully.

Given our late filing status and the time required to file a Proxy, the Annual Shareholders Meeting will not be able to be held until near the end of 2003. The exact date will be determined after SEC review of our filings.

I realize that there has been a drought of information regarding the company due to our late filing and I want to assure you that we will do all possible to respond to your inquiries as best we can within the parameters of full disclosure requirements.

Very truly yours,

Neal F. Meehan Chairman and Chief Executive Officer

About Aura Systems

Aura Systems, Inc., a technology leader in mobile power, develops and sells AuraGen(R) mobile induction power systems to the industrial, commercial and defense mobile power generation markets. The Company's unique and patented energy solution is the only proven, commercially available pure sine wave power system that can continuously provide thousands of watts of power at low engine speed, and is fully integrated under the vehicle hood. The AuraGen(R) is capable of generating full power up to 8500 watts at all engine speeds including enhanced engine idle speed for gasoline engines and at idle speed for bigger diesel engines. The AuraGen(R) combines sophisticated mechanical and electronics design, advanced engineering and break-through electromagnetic technology to produce a highly reliable and flexible mobile power generating system that creates alternating current (AC) and direct current (DC) electricity, both with and without the engine on. For more information about the Company's AuraGen(R) product visit the company's website at http://www.aurasystems.com/ .

This press release contains certain forward-looking statements and information based on the beliefs of Aura's management as well as assumptions made by, and information currently available to Aura's management. Such statements reflect the current views of Aura with respect to future events and are subject to certain risks, uncertainties, and assumptions, including risk factors identified in Aura's 10-K and other SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Aura undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

AURA and AuraGen are registered trademarks of Aura Systems, Inc. Other marks and brands may be claimed as the property of others.

For further information, please contact Dave Rescino of Aura Systems, Inc., +1-310-643-5300, drescino@aurasystems.com .