Mooney Airplane Company Sells First New Production Airplane; First New Owner Announced at EAA's AirVenture 2002

Business Wire, July 25, 2002

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--July 25, 2002

Mooney Aerospace Group, Ltd. (OTCBB: MASG) announced today that the first new production airplane from its wholly owned subsidiary, Mooney Airplane Company, has been sold.

"All of the employees and managers of the Mooney organization are particularly pleased with the sale of the first new production Mooney airplane," said Roy Norris, Chairman and Chief Executive Officer of Mooney Aerospace Group, Ltd. He added: "The team at the Mooney Airplane Company has done a remarkable job. Only four months ago, we acquired the Mooney assets. In that period of time, the employment has grown from under 20 to over 130. The facility has received its production certificate and now three new Mooneys are flying."

The first sale is of a Mooney M20M Bravo to Da Kine Hawaii, Inc. In addition to the standard IFR avionics, the aircraft will be equipped with Goodrich WX-500 Stormscope(R), TKS known ice protection system, and the EDM 700 engine/fuel flow system.

Based in Hood River, Oregon, Da Kine was founded in Maui, Hawaii, in 1979 as a surfing company. The name Da Kine comes from a Hawaiian term used for "The Best" which is the underlying principle in the company's product line. Since its inception the business expanded rapidly and now encompasses a variety of action sports that include snowboarding, surfing, and skate related products. Da Kine products can be found in sports specialty stores worldwide.

Commenting on his new airplane, Mr. William Bottomley, CEO of Da Kine, said: "I am very pleased to be the first to purchase a Bravo from Mooney Aerospace Group, Ltd. Da Kine has numerous clients based in North America and required a fast, efficient, all weather capable aircraft to meet the logistical demands presented by the dynamic growth of the business. The Bravo was selected primarily because it is the best quality, fastest and most capable four place piston aircraft in the world. This determination was made after we performed extensive due diligence including head to head comparisons with all other high-performance single engine aircraft available today."

Mr. Bottomley will be the primary pilot for the aircraft. He stated: "I have been flying for about a decade and have compiled approximately 1,000 hours of flight time and hold several ratings. With the Bravo we have a valuable asset that will allow our business to achieve substantially more in less time than using commercial airline service. The purchasing experience with Mooney Aerospace has been extremely professional and we have found the sales professionals highly knowledgeable and helpful, particularly Darlene Hedlund in the Long Beach office."

Mooney Aerospace Group, Ltd. is a general aviation holding company that owns Mooney Airplane Company in Kerrville, Texas. Mooney Airplane Company currently markets three Mooney models: Bravo, Ovation2 and Eagle2. Mooney production began 53 years ago and over 10,000 airplanes have been delivered worldwide. Complete information on the Mooney Airplane Company and its products is available at www.mooney.com.

Certain statements contained in this news release regarding matters that are not historical fact, are forward-looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties. Actual results could differ materially because of factors such as: an inability to complete the acquisition of the assets or stock of other targeted general aviation companies; an inability to successfully or timely restore manufacturing at Mooney; an inability to obtain timely regulatory approval of the Mooney factory; an inability to successfully integrate MASG's operations with those of acquired companies or assets; an inability to obtain sufficient financing to pursue MASG's strategy; an inability to meet estimated production schedules; 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.