AeroVironment to Offer Tier II Vertical Takeoff and Landing Unmanned Aircraft System with Strategic Investment in CybAero AB

  AeroVironment to Offer Tier II Vertical Takeoff and Landing Unmanned
  Aircraft System with Strategic Investment in CybAero AB

  *AeroVironment™ secures exclusive rights to distribute larger, higher
    flying, longer endurance vertical takeoff and landing (VTOL) unmanned
    aircraft system (UAS) in United States, NATO and other countries
  *AeroVironment will invest up to $3 million in CybAero convertible notes
  *Agreement expands AeroVironment family of unmanned aircraft systems
    capabilities beyond hand-launched category to address market requirements

Business Wire

MONROVIA, Calif. -- December 03, 2012

AeroVironment, Inc. (NASDAQ: AVAV) today announced it has entered into a
strategic relationship with Sweden-based CybAero AB (NASDAQOMXS: CBA) to
develop and distribute a Tier II vertical takeoff and landing (VTOL) unmanned
aircraft system in response to unmet requirements from multiple customers. The
relationship gives AeroVironment exclusive rights to provide CybAero AB
systems to United States customers and to government customers in NATO and
other countries. AeroVironment has agreed to purchase up to $3 million in
convertible notes from CybAero to facilitate the company’s growth.

United States military customers typically segment the numerous types of
unmanned aircraft systems they employ by size, weight, endurance and range
into different tiers. Man-portable, hand-launched systems such as
AeroVironment’s RQ-11B Raven^®, RQ-20A Puma^® AE and Wasp^® AE that weight
less than 20 pounds comprise the Tier I segment. Tier II UAS include heavier,
larger and longer endurance systems with longer range, such as CybAero’s VTOL
offering. Tiers III and IV include air vehicles of increasing size, capable of
even longer endurance and range and requiring larger support teams and
infrastructure requirements.

“CybAero is a pioneer and leader in the Tier II VTOL market. Our joint team
has demonstrated this reliable, cost-effective Tier II UAS solution that will
build on AeroVironment’s family of small UAS, expanding our customer
offering,” said Roy Minson, AeroVironment senior vice president and Unmanned
Aircraft Systems general manager. “With its significantly greater endurance
and payload capacity, small footprint and ease of use, this new system will
join our family of UAS and deliver a robust vertical takeoff and landing
capability to current and new customers seeking that Tier II solution.”

“We are working with CybAero to integrate their product into our system
solution and will invest to add critical capabilities required to bring the
most competitive offering to market,” Minson added.

AeroVironment and CybAero have been working together very effectively to
incorporate capabilities required to meet the requirements of United States
government and other customers.

“AeroVironment is the clear leader in the man-portable, hand-launched UAS
market, with an intimate understanding of customer operational requirements,”
said Leif Erlandsson, CybAero’s chief executive officer. “We believe that
AeroVironment possesses the experience, relationships and systems integration
skills to bring all the benefits of our VTOL system to customers in the United
States and beyond. We look forward to continuing our work together to increase
the safety and operating effectiveness of AeroVironment’s customers.”

About AeroVironment

AeroVironment is a technology solutions provider that designs, develops,
produces, supports and operates an advanced portfolio of Unmanned Aircraft
Systems (UAS) and electric transportation solutions. Agencies of the U.S.
Department of Defense and allied military services use the company’s
electric-powered, hand-launched unmanned aircraft systems extensively to
provide situational awareness to tactical operating units through real-time,
airborne reconnaissance, surveillance and communication. Multiple government
agencies have helped to fund the development and demonstration of Global
Observer®, a hybrid-electric, stratospheric UAS designed to provide
affordable, persistent reconnaissance and communication over any location on
the globe. Switchblade™ is a loitering munition designed to provide a rapid,
lethal, pinpoint precision strike capability with minimal collateral damage.
AeroVironment’s electric transportation solutions include a comprehensive
suite of electric vehicle (EV) charging systems, installation and network
services for consumers, automakers, utilities and government agencies, power
cycling and test systems for EV developers and industrial electric vehicle
charging systems for commercial fleets. More information about AeroVironment
is available at www.avinc.com.

About CybAero

CybAero AB develops and manufactures autonomous, unmanned helicopter (called
VTOL UAVs) and related sensor systems that can be adapted for both defense and
civilian missions. CybAero formed in 2003 on the foundations laid in 1992
through a research collaboration between Linköping University and the FOI
(Swedish Defence Research Agency). CybAero is now established as a leading
global player in the VTOL UAV field. CybAero is headquartered at Mjärdevi
Science Park in Linköping. The company is listed on NASDAQ OMX First North.
Thenberg & Kinde Fondkommission, phone 08-545 84 500, is Certified Adviser.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking
statements" as that term is defined in the Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of current
expectations, forecasts and assumptions that involve risks and uncertainties,
including, but not limited to, economic, competitive, governmental and
technological factors outside of our control, that may cause our business,
strategy or actual results to differ materially from those expressed or
implied. Factors that could cause actual results to differ materially from the
forward-looking statements include, but are not limited to, our ability to
perform under existing contracts and obtain additional contracts; changes in
the regulatory environment; the activities of competitors; failure of the
markets in which we operate to grow; failure to expand into new markets;
failure to develop new products or integrate new technology with current
products; and general economic and business conditions in the United States
and elsewhere in the world. For a further list and description of such risks
and uncertainties, see the reports we file with the Securities and Exchange
Commission. We do not intend, and undertake no obligation, to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.

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Contact:

AeroVironment, Inc.
Steven Gitlin, +1-626-357-9983
pr@avinc.com
or
For AeroVironment, Inc.
Mark Boyer, +1-310-229-5956
mark@boyersyndicate.com
 
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