LAS VEGAS, April 3, 2007 (PRIME NEWSWIRE) -- AirScooter Corporation (Pink Sheets:ASCO), an innovator of new air vehicle technology, announced today that a new AeroTwin(r) four-stroke aircraft engine, produced with advanced tooling designed for high volume production, has been assembled and successfully tested. Production and assembly of the previously announced contract order of 200 engines is underway. The Company expects to accept delivery of the first tranche of these engines later in April.
The Company also reported financial moves to position the company for future growth. The holders of 96% or $1.925 million of its 6% subordinated convertible notes have converted the debt and accrued interest into common stock at $1.00 per common share effective March 31, 2007. Also $1.58 million of working capital demand notes and related accrued interest has also been converted into common shares at $1.00 per share effective March 31, 2007. The Company issued 3.7 million restricted common shares in connection with these two transactions. Officers and directors participated on the same terms and received 1.6 million shares for cash previously invested by them. The Company's quarterly financial statements for the second fiscal quarter ended March 31, 2007 will reflect these changes including an improved current ratio and a significant reduction in debt. These statements should be available by May 15. This move will also accelerate periodic non-cash interest charges connected with the convertible debt, reducing future cash and non-cash interest expense. At March 31, 2007 the Company had 14.1 million shares issued and outstanding.
"As we commence receiving engines and making sales the financial changes just completed will allow us to reinvest working capital advanced for engine production and to report improved results in future periods," said Dwaine Barnes, president of AirScooter Corporation. "We will be releasing a new AeroTwin Motors web site this month as we launch a modern highly web centric engine sales and support program for our worldwide customers."
About AirScooter Corporation
AirScooter Corporation is engaged in the development and commercialization of advanced manned and unmanned air vehicles and power systems for the recreational, commercial and government markets. The Company has applied coaxial counter-rotating dual rotor systems to the AirScooter(r) personal air vehicle (PAV) and AirScooter(r) Unmanned Aerial Vehicles (UAVs). The Company's wholly owned subsidiary, AeroTwin Motors Corporation, is engaged in the manufacture and distribution of the patented AeroTwin(r) 65 HP lightweight sport aircraft engines. For more information on the company, its technologies and products please visit www.airscooter.com. For information on the AeroTwin engine visit www.aerotwinmotors.com.
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The AeroTwin Motors Corporation is available at http://www.primezone.com/newsroom/prs/?pkgid=2589
Safe Harbor Statement: This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, particularly those risks and uncertainties inherent in the process of developing and distributing aeronautical products and engines. Factors that may cause such a difference include risks related to our limited operating history, risks associated with completing development and production of products, the risk that our products will not meet with market acceptance, the risk of future warranty and product liability claims, the uncertainty of access to capital to sustain or grow operations, achieve profitability or continue as a going concern, the failure to secure and maintain relationships with suppliers, manufacturers and other third parties, reliance on key employees and consultants, and dependence on intellectual property. Further information on the factors and risks that could affect our business, financial condition and results of operations, are contained in our public corporate documents. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from our current expectations. AirScooter Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.