$3.5M AuraGen(R) VIPER Line Item Approved in FY04 Defense Budget

U.S. Army to Direct VIPER Research & Development Effort

EL SEGUNDO, Calif., Oct. 13 -- Aura Systems, Inc. (BULLETIN BOARD: AURA) today announced that an AuraGen(R) VIPER line item has been established with the approval of the FY04 Defense Budget. The U.S. Army Tank-automotive and Armaments Command (TACOM) Research, Development and Engineering Center (TARDEC) will direct the $3,500,000 AuraGen VIPER R&D effort. The AuraGen VIPER is the ruggedized Military version of the AuraGen Underhood Mobile Power Source.

The work will examine possible items ranging from extended configuration testing and field operational research evaluation of groups of systems and applications, to advanced system design for higher output and more compact and lighter VIPER systems. The exact scope of the VIPER work to be undertaken by Aura Systems will be defined over the next several weeks.

"Aura is pleased that funds have been provided in the DoD budget for the AuraGen VIPER," said Neal Meehan, Aura chairman and CEO. "Aura believes that this is an important step in advancing the VIPER program that is already supporting our troops in both Operation Enduring Freedom and Operation Iraqi Freedom. The import of this budget action is reinforced by the recent VIPER acquisitions by the 3/2 Stryker Brigade Combat Team, elements of the II Marine Expeditionary Force, and the Marine Corps Systems Command and the Special Operations Command. The VIPER is transforming the concept of mobile electric power generation on the battlefield -- today. We are also appreciative of the support and assistance we received from our Congressional Representative, the Honorable Jane Harmon."

Congresswoman Harmon, representative of the 36th Congressional District, said, "I am delighted to assist American companies who are developing cutting edge technology -- especially technology that adds to the growth of our economy and the security of the nation."

The VIPER is with Special Operations, Airborne, Stryker Brigade, Corps Support and Joint commands, among others, in the United States and overseas. The VIPER has been supporting troops in Operation Enduring Freedom in Afghanistan since shortly after 9/11. In addition, the VIPER is supporting combat and combat support units that have been operating throughout Iraq as part of Operation Iraqi Freedom. This has included the first combat airdrops of the VIPER.

The superior combination of performance quality, responsiveness and continuity, together with compactness, lightweight, versatility, no scheduled maintenance and cost-effectiveness, makes the AuraGen unique in comparison with gensets; and, in addition, the AuraGen systems can augment the vehicle alternator.

The AuraGen/VIPER is also supporting Homeland Security and is in use with the FBI, BATF, DHHS, State and local first responders in law enforcement, emergency response and fire departments. In addition, the AuraGen is serving telecommunications, cable companies and municipalities, among others, across the nation.

About Aura Systems

Aura Systems Inc., an ISO 9001 certified company, is a technology leader in mobile power. The company 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: Ron Goldstein of Aura Systems, Inc., +1-310-643-5300, rgoldstein@aurasystems.com