Aura Systems Expands RV Industry Engagement Through National Recreational Vehicle Industry Association Show

AuraGen(R) Receives High Level of Interest From Major RV Industry Companies

EL SEGUNDO, Calif., Dec. 18 -- Aura Systems, Inc. (BULLETIN BOARD: AURA) today announced the successful completion of its participation at the 41st Annual National Recreational Vehicle (RV) Trade Show recently held in Louisville, Kentucky. The show was sponsored by the Recreational Vehicle Industry Association (RVIA) and is the industry's annual showcase for new products and technology trends. The show was supported by Aura executives who met with major chassis manufacturers, OEMs and other major suppliers to the RV industry. Aura's theme for the show was the AuraGen(R) Mobile Power Systems ability to provide an "All Electric Recreational Vehicle with a Residential Feel." The AuraGen, and the value proposition it offers to both OEMs and end-users, was presented in meetings with major industry players such as Winnebago, Fleetwood, Country Coach, and Spartan Motors. Based on their continued interest, Aura will be following up with discussions targeted at reviewing specific program options.

"The AuraGen's recent UL and CSA approval has allowed us to expand our business into important market segments such as RVs where the approval is an industry requirement," said Neal Meehan, Aura chairman and CEO. "We're excited about the AuraGen's reception at the RVIA show and believe that it offers significant benefits to both RV industry OEMs and end-users. The AuraGen's ability to provide both the substantial total AC power for "residential" appliances and the "clean" AC power demanded by today's consumer electronics, offers a compelling advantage over existing solutions such as gensets."

In a RV application, the AuraGen is installed in the RVs engine compartment and is driven by the vehicles engine. The AuraGen provides 8,000 watts of "clean" AC power while the engine is running with the vehicle either mobile or parked. In addition, it provides 4,000 watts of "clean" AC power with the engine off. The AuraGen Mobile Power System can either complement, or completely replace, existing RV power sources such as gensets. The AuraGen system has received UL and CSA approval.

Scott Brady, an industry consultant working with Spartan Motors, has successfully logged over 75,000 miles of testing with an AuraGen installed on his Class "A" diesel RV coach. Spartan Motors is a major RV chassis manufacturer.

"The AuraGen is definitely the wave of the future," said Scott Brady, an RV industry consultant. "The convenience and transparency associated with using electrical features when the AuraGen is added to the coach is something all RV users will desire."

The AuraGen solution offers significant benefits to both RV OEMs and end-users.

    - Supplies 8,000 watts of AC power while driving or parked and provides
      full power without having to run a genset.
    - Supplies 4,000 watts of AC power with the engine off without requiring
      either a genset or shore power.
    - Allows the use of standard 120V AC "residential" appliances and other
      equipment, rather than 12V DC equipment currently in use.  This
      simplifies vehicle design, reduces costs, and provides a "residential"
      feel to the end-users RV experience.
    - Provides the "clean" power required by the computer and entertainment
      equipment that is increasingly part of the end-users RV experience.
    - Noise-free operation while parked or underway.
    - Small solution footprint opens up RV storage space.
    - Maintenance-free operation lowers operating costs.

According to a 2001 University of Michigan Study, U.S. ownership of RVs has reached record levels. The study shows there are approximately 9.3 million RVs in the U.S. -- representing one in every 10 U.S. vehicle-owning households. In addition, demographic trends favor substantial RV market growth in the future. As baby boomers enter their prime RV buying years over the next decade, the number of RV-owning households is projected to rise to nearly 8 million in 2010 -- a gain of 15 percent, outpacing overall U.S. household growth of 10 percent. Shipments of RVs totaled 311,000 units in 2002 representing a 21.1 percent increase over the previous year and the second-highest shipment level in nearly a quarter century. For additional information on the RV market and the RVIA, go to www.rvia.org .

"Class 'A' RVs are only one of Aura's target markets and represents roughly 39,000 units annually," said Jacob Mail, Aura COO. "After our positive meetings at the RVIA show, it's our hope to gain substantial market share with OEMs over the next 12 to 18 months. In addition, we expect to get increasing penetration in both the RV aftermarket and vehicle retrofit market as our promotional programs take hold."

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 Neal Meehan, Chairman and CEO of Aura Systems, Inc., +1-310-643-5300, nmeehan@aurasystems.com .