AuraGen VIPER to Be Used for U.S. Coast Guard New Response Boat Production Award

EL SEGUNDO, Calif.--June 30, 2006--Aura Systems, Inc. (Pink Sheets:AUSI) announced today that the U.S. Coast Guard has awarded the production contract for its new Response Boat-Medium (RB-M) Fleet to the Marinette Marine - Kvichak Marine Team, which uses a Dual AuraGen(R) VIPER to provide all electrical power for the boats. The baseline contract awarded to Aura will be worth over $3.6 million. Production procurement is expected to start this calendar year and extend through 2012. The RB-M will replace the 41' Utility Boat (UTB) fleet, the Coast Guard's day-to-day workhorse of the coastal stations for the past 25 plus years that are in operation throughout the United States.

Aura will supply a Dual Viper configuration consisting of two G8500XM VIPERs per boat providing all AC and DC power including alternator replacement. The system will provide 16,000 watts of continuous power/18,000 watts of peak power at engine idle. The continuous power can be up to 16,000 watts of 120/240 VAC, or a combination of up to 250 amps at 28VDC in addition to 9,000 watts AC.

Mr. Craig Miller, Senior Program Manager, Kvichak Marine Corporation, said, "The Dual AuraGen VIPER configuration provided our team with major technological advantages in AC and DC power production in all operational conditions. The AuraGen VIPER compactness, low weight and high output power flexibility even at low engine speed is just what the Coast Guard needs."

Mr. Melvin Gagerman, Aura's CEO, said, "Aura is extremely pleased to be part of the Marinette Marine - Kvichak Marine Team that won this award. The selection of the Dual VIPER system to power the advanced Response Boat-Medium fleet again demonstrates the superior size, weight, power output and flexibility of the AuraGen technology."

The AuraGen VIPER has been supporting our troops in both Afghanistan and Iraq since shortly after 9/11. More information is available on the Company's website: http://www.aurasystems.com/.