Aura Audit Completed; SEC Filings to Be Brought Current

31 January 2000

Aura Audit Completed; SEC Filings to Be Brought Current

    EL SEGUNDO, Calif.--Jan. 31, 2000--Aura Systems, Inc. (OTC:AURA) today announced that its independent auditors have completed the audit for its fiscal year ended Feb. 28, 1999.
    The Company expects to file its year-end Form 10-K for Fiscal 1999 during the week ending February 4 as well as the required quarterly Form 10-Q reports for the first, second and third quarters of Fiscal 2000. When the above reports are filed, the Company will be current on all required SEC filings.
    The Company also expects during the week ending February 4 to file its preliminary proxy materials for the upcoming Annual Meeting of Shareholders.
    The Company will report losses on a consolidated basis of approximately $146 million for Fiscal 1999. The Fiscal 1999 losses reflect losses correlating to its NewCom investment; losses from the Company's discontinued operations, discontinued joint ventures, settlements of securities litigation and other litigation; general operations; and other restructuring activities related to focusing the Company narrowly on its AuraGen products.
    The Company retains its licensing agreement with Daewoo Electronics for the AMA display technology.
    On a going-forward basis, the Company is in the business of the manufacture and sale of its AuraGen Mobile Generator System, which is a commercial under-the-hood, engine belt-driven generator system capable of providing 5,000 Watts of continuous, pure sine wave 120/240 Volt AC power.
    The Company is pursuing, among others, aftermarket customers such as utility companies; communications companies; and state, local and federal agencies, on a variety of vehicles. A military version of the AuraGen (VIPER) is continuing its evaluation by the U.S. Army. The Company is also working closely with automotive OEMs with a view toward incorporating the AuraGen as an option in future trucks and sport utility vehicles.
    To date, the Company does not have any long-term arrangements with any automotive OEMs.

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical facts are forward-looking statements subject to risks and uncertainties which 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.