EXHIBIT 1.1
AASI AIRCRAFT
FOR IMMEDIATE RELEASE
AASI ANNOUNCES NEW MANAGEMENT TEAM
AND ACQUISITION STRATEGY
LONG BEACH, California - January 9, 2002 - The Board of Directors of Advanced
Aerodynamics & Structures, Inc. (OTCBB: AASI) announced today that it has
elected a totally new top management team of highly experienced aviation
industry executives, all experienced pilots, in support of its strategy to
acquire other manufacturers of general aviation aircraft to supplement AASI's
current developmental product, the JETCRUZER 500.
The new top management team is led by Roy H. Norris, Chairman, President, and
CEO. Norris was the former President of Raytheon Aircraft Company and Raytheon
Corporate Jets and has held positions as Senior Vice President of Sales and
Marketing for both Gulfstream Aerospace and Cessna Aircraft Company. He has been
responsible for the introduction of over 10 general aviation aircraft and
dramatic business turnarounds during his tenure at both Cessna and Raytheon.
Dr. Carl Chen resigned as Chairman, President and Chief Executive Officer of
AASI. Dr. Chen stated to employees, "I welcome the new management team to AASI,
and I am optimistic about the prospects of the company under their leadership.
The last 12 years at AASI were very exciting and challenging, but it is now time
to put in place a management team which can take the company to new levels of
success," Dr. Chen will become a consultant to the company.
Roy H. Norris is one of the best-known leaders in creating profits in general
aviation manufacturing. He served as President of Raytheon Aircraft (formerly
Beech Aircraft) from 1994 - 1997. During his tenure, Raytheon Aircraft saw a 30
percent increase in sales and earnings, and the development and launching of two
major new business jet aircraft product lines. Prior to joining Raytheon, Norris
was Vice President of Sales and Marketing at Gulfstream Aerospace, and before
that he was Senior Vice President for Marketing and Sales for Cessna Aircraft
Company. While at Cessna, Norris introduced five new business jets and, under
his leadership, Cessna's market share increased from 41 to 60 percent making
Cessna the largest manufacturer of general aviation aircraft in the world.
At an employee meeting, Norris stated, "With the appointment of this outstanding
team of aviation professionals, AASI embarks on an expanded mission to maximize
growth and shareholder value. By supplementing the JETCRUZER 500 aircraft
presently under development by AASI with strategic acquisitions of other general
aviation aircraft product lines, we intend to build the strongest and most
successful supplier of general aviation aircraft from entry-level trainers
through small jets. I am particularly pleased to bring with me the best
management team available in aviation manufacturing today."
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Advanced Aerodynamics & Structures, Inc.
Page Two
Also joining the team as Chief Financial Officer is L. Peter Larson, former
Chief Financial Officer of Cessna Aircraft Company and presently CEO of
Telkonet, a telecommunications startup company located in Annapolis, Maryland.
Larson was a key player in the financial turnaround of Cessna Aircraft Company.
He has 20 years of experience with General Dynamics in a variety of senior
financial management roles, including the position of Vice President of Finance
and Controller for General Dynamics Services Company. At Cessna, Larson directed
the turnaround of Cessna's financial performance from over a $100 million annual
loss to an in excess of $100 million annual profit. Larson told employees, "I
find the opportunities at AASI to be outstanding, and I believe that the company
can become a leader in general aviation manufacturing through good financial
planning and control. I am especially pleased to be working with some of the
best managers in aviation today."
Dale Ruhmel joins the Company as Vice President of Engineering. Ruhmel is the
former head of Technical Services and Advanced Design for Cessna Aircraft
Company and is an FAA Designated Engineering Representative in the three areas
of Flight Test, Structures, and Aerodynamics. He has been a senior consultant to
Boeing and has been responsible for the certification of 30 general aviation
aircraft. Prior to joining Cessna, Ruhmel was with the McDonnell Douglas
Aircraft Corporation where he served as Chief of the DC-10 Stability and Control
Section, which was responsible for aircraft flying qualities from initial
configuration determination through detail design, flight testing and
establishing of operational procedures. Ruhmel has also been Vice President for
Engineering for Rohr Industries, Inc., an FAA Designated Engineering
Representative for Boeing in the areas of performance, stability, and control
and structures involved in the civil certification of the MD 17, Vice President
of Engineering and Flight Test for Falcon Jet Corporation, Director of
Engineering for Tracor Aviation, and has been an independent consultant for many
aerospace organizations. Ruhmel stated, "I look forward to the opportunity to
take charge of the design and certification of the JETCRUZER 500 and to oversee
the commercial manufacture of this airplane. AASI has a wonderful base of design
and engineering knowledge. It will be a pleasure helping bring this aircraft
into profitable production."
J. Nelson Happy, who was named Executive Vice President and General Counsel, is
a well-known specialist in aviation-related legal matters. He is a 1967 graduate
of Columbia University School of Law, and practiced aviation law with the Kansas
City, Missouri law firm of Happy, Cooling & Herbers. He also served as Chairman
and CEO of Flight International Group, Newport News, Virginia; and was Vice
Chairman and General Counsel of Capital Air, Inc., Smyrna, Tennessee. Happy
said, "I am pleased to be able to assist AASI in becoming a leading general
aviation manufacturer, and I look forward to working with our outstanding
management team to create value for our shareholders."
Certain statements contained in this news release, regarding matters that are
not historical facts, are forward looking statements; actual results may differ
materially from those set forth in the forward looking statements, which
statements involve risks and uncertainties, including without limitation,
regulatory approval of the JETCRUZER 500, the competitive market for sales of
small business aircraft, and those risks and uncertainties set forth in the
Company's most recent Form 10-KSB and Form 10-QSB on file with the SEC.
For further information, please contact Advanced Aerodynamics & Structures Inc.,
Long Beach, Susanne Heimbuch, Investor Relations Manager, 562/938-8618,
IR@aasiaircraft.com. For product or corporate information: Gene Comfort,
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Executive Vice President, 562/938-8618, gcomfort@aasiaircraft.com. Additional
information is available at the Company's website: www.aasiaircraft.com.
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