Orlando, FL 6/26/12 (StreetBeat) -- Aura Systems, Inc. (OTCBB:AUSI) announced today that its AuraGen/VIPER was selected for a South Korean military program that would require up to 7,000 systems valued at $63,000,000 to be delivered over a seven-year period. The program provides for near-term delivery of 50 systems, thereafter followed by annual releases and deliveries of 1,000 systems for each of the next 7 years. The AuraGen/VIPER mobile power solution required for this program is a 10 kW solution and will require some redesign of our standard configuration. The Non Recurring Engineering (“NRE”) efforts for this program are estimated at approximately $300,000 and would require 4-5 months to complete. The customer will pay the NRE separately. Like all major government programs this program is subject to cancellation or renegotiation at the convenience of the South Korean government.
With this new program and the additional programs previously announced, the total VIPER systems for South Korea could exceed 9,100 systems to be delivered over the next 7 years. In addition, there are approximately 5,000 additional units under consideration for several additional South Korean military programs. While a favorable decision to use Aura’s VIPER on the additional programs is expected over the next 6 months no assurances can be given as to when or if such other contracts will materialize. To date Aura delivered approximately 500 systems to the South Korean military.
Mr. Melvin Gagerman, Aura’s CEO, said, “The VIPER mobile power solution is now integrated into numerous South Korean military programs and we anticipate additional programs to adopt our VIPER mobile power solution. It is now clear that our VIPER solution is finally getting full acceptance as equipment in the South Korean military. In addition to the significant progress with the South Korean military we are now also seeing accelerated military activities from Israel.”
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