Toni Perazzo
Chief Financial Officer
(650) 340-1888

FOR IMMEDIATE RELEASE

AEROCENTURY CORP. REPORTS RECORD RESULTS FOR THE YEAR

(BURLINGAME, CA), January 23, 2001 — AeroCentury Corp., (ASE: ACY), an independent aircraft leasing company, today reported results for the year and the quarter ended December 31, 2000.

For the year ended December 31, 2000, AeroCentury reported revenues of $12,107,760 compared with revenues of $7,380,140 for the year ended December 31, 1999. Net income for the year ended December 31, 2000 was $1,671,340 or $1.08 per diluted share, compared with net income of $1,405,420, or $0.90 per diluted share, for the year ended December 31, 1999. For the quarter ended December 31, 2000, the Company reported revenues of $3,737,880, as compared to revenues of $2,475,460 for the same period a year ago. Net income was $224,460 or $0.14 per diluted share, versus net income of $304,510 or $0.20 per diluted share, for the fourth quarter a year ago.

The decrease of $0.06 in net income per share from the fourth quarter of 1999 is attributable to a combination of unusual and non-recurring events. First, the Company recorded approximately $480,000 for estimated additional maintenance expense as a result of the early return of two aircraft in connection with the bankruptcy of one lessee and the quasi-reorganization of another. Secondly, the carrying values of two other aircraft were written down by approximately $450,000 to reflect management’s assessment of their reduced market value. These decreases in earnings were partially offset by a total gain of approximately $750,000 in connection with the sale of three other aircraft during the quarter.

"We are pleased that we have achieved both record revenues and income for the year," said Neal D. Crispin, chairman and president of AeroCentury. "The Company purchased three Dash-8 aircraft during the year, our first purchases of this aircraft type," he continued, “bringing our total portfolio to 20 aircraft and 26 aircraft engines. Three years ago AeroCentury had a portfolio of 10 aircraft comprising three different types of aircraft on lease to customers in three countries. At the end of 2000, the Company’s aircraft portfolio was made up of seven different types of aircraft on lease to customers in twelve countries worldwide. We continue to actively manage our portfolio and seek acquisition opportunities with a continued emphasis on further diversification.”

AeroCentury is an operating lessor and finance company which specializes in leasing regional aircraft and engines. The Company’s aircraft and engines are on lease to regional airlines and commercial users in the U.S., the U.K., Europe and South America.

This release includes forward-looking statements, such as the Company continuing to actively manage its portfolio and seeking acquisition opportunities with a continued emphasis on further diversification. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks include, but are not limited to, the availability of appropriate acquisition and lease transactions on terms acceptable to the Company, the Company’s ability to maintain its collateral base at such a level to permit the Company to make additional drawdowns under its revolving credit facility, the Company’s ability to obtain debt and/or equity financing for such acquisitions, and the effect of changing economic conditions, particularly as they affect the airline industry. The forward-looking statements and reasons why results may differ reflect management’s point of view only as of the date hereof. The Company undertakes no obligation to publicly revise these statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in documents the Company files from time to time with the Securities and Exchange Commission.

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