FOR IMMEDIATE RELEASE

7-3-2000

Being up to our elbows in tail rotors and gearboxes makes us pretty happy. It means that we don't have a whole lot left to do to complete the tooling package for the HELICYCLE©

We estimated this process would take about 3 years and that looks just about right at 2 years and 3 months into the program.

The importance of a Detroit style tooling package for our HELICYCLE may not be readily apparent. However, anyone can surely understand if made aware, the price of the HELICYCLE would double without it. We are very encouraged to have met our price projections up to this point. With the most difficult components now behind us, we feel confident that our cost containment program will be successful.

The sport helicopter market has always confirmed that if the price is not right, few if any sales will result. Our market has steadfastly voted against paying much over $20-25,000 for a single seat helicopter airframe, even if it is first quality. A quick look at last years commercial helicopter sales statistics also helps substantiate this conclusion . The R-22 which is 1/2 to 2/3's the price of it's competitors outsold the rest of the field by a factor of close to 7/1.

Most of the kit helicopter manufacturers are doing their best to improve their equipment to a certified quality level. An equal if not more ambitious effort must be made in the arena of price reduction, if any significant progress is to be made in Sport Helicopter sales numbers. (Sports Helicopter sales have never been more than 3 - 5% Of the total sport flying market, primarily due to high cost.)

Eagle R & D, is fully committed to producing the highest quality, lowest cost Sport Utility Helicopter (S. U. H.) on the market.