"Our fiscal 2010 is developing in a manner that is consistent with our plans, reinforcing our view of 18% to 22% revenue growth for the year with 12% to 14% operating income margin. First quarter results reflect the anticipated deferral of Raven UAS deliveries as customers await the second half availability of new digital Raven systems and upgrade kits for the thousands of aircraft in the field. Low first quarter revenue, combined with maintaining our R&D and otherspending to support our full year plan, resulted in a first quarter loss, but this was generally consistent with our FY 2010 plan," said Tim Conver, AV chairman and chief executive officer. "We expect the availability of digital Raven systems to drive increased revenue in the second half of the year as our Raven customers seek to catch up on their deferred deliveries. In addition to moving digital Raven systems toward production, we made great progress during the quarter on other development programs to position us for continued long term growth."

FISCAL 2010 FIRST QUARTER RESULTS

Revenue for the first quarter of fiscal 2010 was $37.9million, down 29% over first quarter fiscal 2009 revenue of $53.6million. The decrease in revenue resulted from decreased sales in our Unmanned Aircraft Systems (UAS)segment of $12.8million and Efficient Energy Systems (EES) segment of $2.9 million.

Loss from operations for the first quarter of fiscal 2010 was $5.5million, compared to first quarter fiscal 2009 income fromoperations of $7.2million. The decrease in income from operations was caused by lower gross margin of $9.9 million, higher selling, general and administrative (SG&A) expense of $2.4 million and higher research and development (R&D) expense of $0.4 million.

Net loss for the first quarter of fiscal 2010 was $3.6million, compared to first quarter fiscal 2009 net income of $4.8million.

Loss per share for the first quarter of fiscal 2010 was $0.17, compared to first quarter fiscal 2009 earnings per diluted share of $0.22.

BACKLOG

As of August 1, 2009, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $108.7million compared to $114.8million as of April30, 2009.

CONFERENCE CALL

In conjunction with this release, AeroVironment,Inc. will host a conference call today, Tuesday, September 8, 2009, at 1:30 pm Pacific Time that will be broadcast live over the Internet. Timothy E. Conver, chairman and chief executive officer, Stephen C. Wright, chief financial officer, and Steven A. Gitlin, director of investor relations, will host the call.

4:30 PM ET 3:30 PM CT 2:30 PM MT 1:30 PM PT

Investors may dial into the call at (877) 440-5786 (U.S.) or (719) 325-4855 (international) five to ten minutes prior to the start time to allow for registration.

Investors with access to the Internet may access the conference call live over the Internet at the Investor Relations section of the AeroVironment,Inc. website, http://investor.avinc.com. Please allow fifteen minutes prior to the call to download and install any necessary audio software. An audio replay of the event will be archived on the Investor Relations pageof the company's web site, at http://investor.avinc.com.

A digital replay of the call will be available on Tuesday, September 8 at approximately 4:30p.m. Pacific Time through Tuesday, September 15 at 9:00p.m. Pacific Time. Dial (888) 203-1112 and enter the passcode 8574995. International callers should dial (719) 457-0820 and enter the same passcode number to access the digital replay.

ABOUT AEROVIRONMENT,INC. (AV)

Building on a history of technological innovation, AV designs, develops, produces, and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient electric energy systems. Agencies of the U.S.