Adam Aircraft Announces $150 Million Order For Its New Breed Of Personal Jets

Englewood, CO-May 24, 2004 óAdam Aircraft is pleased to announce that a pioneering air taxi company led by aviation industry legends Donald Burr and Robert Crandall, has placed a 75 aircraft order for the A700 AdamJet. The company, yet to be named, is creating a new class of on-demand, point-to-point air transportation bringing the benefits of private jet travel to a much broader group of frequent travelers. Both Adam Aircraft and the new venture will be first to market in this closely-followed aviation segment, with FAA certification and first delivery of the A700 in the first quarter of 2005.

As seasoned veterans of the airline industry, Burr and Crandall understand the importance of selecting the right equipment for their short-haul, private jet transportation business. "We have followed Adam Aircraft for a number of years, and we are convinced the A700 is the best aircraft for our mission," said Donald Burr CEO of the new air taxi service.

"The A700 is approximately half the price of current generation small jets and costs roughly a third less to operate per hour," stated Joe Walker, President of Adam Aircraft. Don Burr and Bob Crandall are the first to apply this major breakthrough in efficiencies to a new form of private jet air transportation service. Says Burr: "Our business model is dependent on innovative designers and manufacturers like Adam making the promise of next-generation, highly efficient personal jets a reality, and we are well on our way to delivering on this promise with a fleet of A700s."

The A700 AdamJet made its inaugural flight in July 2003 and is to date the only flying aircraft in the next-generation jet category. The A700 has accumulated over 150 hours of flight time and made numerous trips throughout the United States. It has proven to be a reliable and efficient platform and will be well suited for both short and long-haul operators.

At close to 300 employees and over 100,000 square feet of engineering and manufacturing space, Adam Aircraft is building a strong platform to support its products and customers. Further expansion plans are in the works to address the rising demand for its A700 AdamJet. Company founder and CEO Rick Adam speaks about the company's growth: "I experienced the challenges of building a business before starting Adam Aircraft, and understand the importance of a strong foundation. We have a very talented team, professional financial backing, and wonderful customers. This impressive new company will be a great addition to this family."

Adam Aircraft Industries: Adam Aircraft is a designer and manufacturer of advanced aircraft for civil and government markets. The company uses computer-aided design, rapid prototyping, advanced manufacturing techniques, and carbon composite materials to produce very high-performance aircraft at attractive prices. The A500 twin-piston aircraft is approaching FAA certification and the new A700 AdamJet is currently undergoing initial flight test. The company's largest outside investor is Goldman Sachs. Adam Aircraft's headquarters are based on Centennial Airport (APA) in Englewood, Colorado. To learn more about the company, visit www.adamaircraft.com.

The Burr/Crandall Air Taxi Company (official name in development) represents an entirely new class of travel that makes the dramatic quality of life and productivity benefits of private jet travel accessible to a much broader group of people. The company will be the first to take advantage of a new generation of highly cost-effective and reliable personal jets. By using the existing network of regional airports, the company will provide private truly on-demand, point-to-point air travel for about half the price of the least expensive current private aircraft alternatives. Its pioneering management team is comprised of aviation industry innovators including Donald Burr (founder of People Express and a pioneer of the low-fare airline industry) as CEO and Robert Crandall (formerly CEO of American Airlines and a pioneer of the Sabre reservation system and the modern frequent flyer program) as Chairman, and key talent from JetBlue, NetJets, and other aviation ventures.

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Contacts:

Adam Aircraft Industries, Inc.
John Hamilton
john.hamilton@adamaircraft.com
303-406-5905 For Donald Burr/Robert Crandall
Janet Swaysland
jsways@comcast.net
617-549-9366

Visit the Adam Aircraft web site at www.adamaircraft.com