Aura Reduces the Number of Outstanding Common Shares from 125 Million to 43 Million Through a Reverse Split and the Elimination of Approximately $40 Million of Company’s Debt

STANTON, Calif.–(BUSINESS WIRE)–Aura Systems, Inc. (OTCBB: AUSID) (the “Company”) today announced
that, having received approval by FINRA, on February 14, 2018, it filed
a Certificate of Amendment of its Restated Certificate of Incorporation
(the “Certificate of Amendment”) with the Secretary of State of Delaware
to effect a 1-for-7 reverse stock split of the shares of the Company’s
common stock, par value $0.0001 per share (the “Common Stock”), either
outstanding or held by the Company as treasury stock, effective on
February 21, 2018 (the “Reverse Stock Split”).

As previously reported on Form 8-K, the Company held an annual meeting
of stockholders on January 11, 2017, at which meeting the Company’s
stockholders, by an affirmative vote of the majority of the Company’s
outstanding shares, approved the amendment to the Company’s Restated
Certificate of Incorporation (the “Certificate of Incorporation”) to
effect a reverse split of the Common Stock at a ratio of one-for-seven
shares. The Company’s Board of Directors in turn determined to effect
the Reverse Stock Split and approved the corresponding final form of the
Certificate of Amendment.

As a result of the Reverse Stock Split, every seven shares of issued and
outstanding Common Stock has been automatically combined into one issued
and outstanding share of Common Stock, without any change in the par
value per share. Likewise, all shares of the Company’s Common Stock
subject to outstanding equity awards (including stock options) under
Company’s 2006 Stock Option Plan and 2011 Directors and Executive
Officer Stock Option Plan and the number of shares of common stock which
have been authorized for issuance under those plans but as to which no
equity awards have yet been granted or which have been returned to the
Company upon cancellation or expiration of such equity awards have been
converted at into one-seventh (1/7) of the number of such shares
immediately preceding the Reverse Split (subject to adjustment for
fractional interests). No fractional shares will be issued as a result
of the Reverse Stock Split. Any fractional shares that would otherwise
have resulted from the Reverse Stock Split will be paid in cash in a
proportionate amount based on the closing sales price of the Company’s
common stock as quoted on the OTC Bulletin Board, as of the effective
date.

The Reverse Stock Split has reduced the number of shares of Common Stock
outstanding from approximately 125 million shares to approximately 43
million shares, subject to adjustment for the payment of cash in lieu of
fractional shares. The number of authorized shares of Common Stock under
the Certificate of Incorporation will remain unchanged at 150 million
shares.

As a result of the Reverse Stock Split, the Company has also eliminated
approximately $40 million of debt obligations, representing
approximately 80% of the Company’s total debt exiting prior to January
11, 2018. “This Reserve Split represents a significant milestone for
this Company — eliminating much of our long-term debt and cleaning up
our balance sheet,” said Melvin Gagerman, Chief Executive Officer of
Aura Systems. “Aura is now well positioned to move forward with the
execution of several projects,” Gagerman added, “which will allow for
the Company’s growth and expanding operations.” In the coming months,
“we at Aura are very much looking forward to enhancing the Company’s
asset base and building shareholder value,” said Gagerman.

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and is
subject to the Safe Harbor created by those sections. Forward-looking
statements include statements regarding future events or our future
performance or financial condition; the opportunity for us to
significantly expand our business; statements regarding the demand for
our services; statements regarding our expectations with respect to
growth; statements regarding future value of our company; statements
regarding trends in power industries; and statements regarding estimated
results in 2018 and beyond.

Any statements that are not statements of historical fact, such as the
statements described above, should be considered forward-looking
statements. Some of these statements may be identified by the use of the
words “may,” “will,” “believes,” “plans,” “anticipates,” “expects” and
similar expressions. Aura Systems has based these forward-looking
statements on current expectations and projections about future events
as of the date of this press release. These forward-looking statements
are not guarantees of future performance, conditions or results and
involve a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as result of a
number of factors, including those described from time to time in Aura
Systems’ most recent Annual Report on Form 10-K under the heading “Risk
Factors” and in subsequent filings with the Securities and Exchange
Commission. Aura Systems undertakes no duty to update any
forward-looking statements made herein.

Contacts

Aura Systems, Inc.
Melvin Gagerman
818
516-2943
melvin@aurasystems.com