Toni Perazzo
Chief Financial Officer
(650) 340-1888

FOR IMMEDIATE RELEASE

(BURLINGAME, CA), January 20, 2003 — AeroCentury Corp., (ASE:ACY), an independent aircraft leasing company, today reported results for fourth quarter 2002.

For the quarter ended December 31, 2002, the Company reported revenues of $2.36 million, compared to revenues of $2.78 million for the same period a year ago. Net income for the quarter was $158,000, or $0.10 per diluted share, versus net income of $155,000, or $0.10 per diluted share for the fourth quarter a year ago. Results for the fourth quarter of 2001 included a pre-tax loss of ($391,000), reflecting the combined net negative effect of a gain on sale of an aircraft and additional maintenance expense on several aircraft. The after-tax effect of these items for that quarter was ($0.16) per diluted share.

For the year ended December 31, 2002, the Company reported revenues of $8.81 million compared with revenues of $11.23 million for 2001. Net income for the year ended December 31, 2002 was $1,009,000, or $0.65 per diluted share, compared with net income of $1,699,000, or $1.10 per diluted share, for the year ended December 31, 2001. Results for the year of 2001 included ($0.02) per diluted share as the combined net negative after-tax effect of previously disclosed items, including those for the fourth quarter 2001 discussed above. Results for the year 2002 include $0.09 per diluted share as the after-tax effect of the reversal of a portion of the additional maintenance expense recognized in 2001 and discussed above.

"Despite the continued worldwide economic downturn and overcapacity in the airline industry, we are pleased to be in a market segment which has allowed us to remain profitable,” said Neal Crispin, President of AeroCentury. “During the fourth quarter, we completed the purchase and leaseback of a second Dash-8-300 to our customer in Taiwan. In addition, we re-leased three aircraft to existing customers and remarketed one aircraft to a new lessee. While we are very focused on maximizing utilization of the existing portfolio, we continue to seek opportunities to acquire additional aircraft, particularly those owned by and leased to foreign regional carriers.”

AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net leases. The Company’s aircraft and engines are on lease to regional airlines and commercial users worldwide.

This release includes forward-looking statements such as the Company being very focused on maximizing utilization of the existing portfolio and continuing to seek opportunities to acquire additional aircraft, particularly those owned by and leased to foreign regional carriers. This statement is 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, availability of acquisition financing, the effect of worsening economic conditions or other events or circumstances that may negatively affect the demand for domestic and/or international air travel. The forward-looking statements and reasons why results may differ reflect the 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 including the Company’s Form 10-KSB for the year ended December 31, 2001 and Form 10-QSB for the quarter ended September 30, 2002.