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AEROCENTURY CORP. REPORTS RESULTS FOR THE FOURTH QUARTER

(BURLINGAME, CA), January 27, 2004 — AeroCentury Corp. (ASE:ACY), an independent aircraft leasing company, today reported results for fourth quarter 2003.

For the quarter ended December 31, 2003, the Company reported revenues of $2.1 million as compared to revenues of $2.4 million for the same period a year ago. For the year ended December 31, 2003, AeroCentury reported revenues of $8.9 million compared with revenues of $8.8 million in 2002. The changes in revenue reflect the combined effect of lower lease rates for aircraft re-leased during 2003, aircraft off lease during 2003, increased operating lease revenue from aircraft purchased in late 2002, and the re-lease during 2003 of several aircraft which previously had been off lease.

The Company reported net income of $25,640 or $0.02 per share for the fourth quarter of 2003 versus net income of $158,450 or $0.10 per share in the same quarter a year ago. The Company had a net loss for the year of 2003 of ($1,340,000) or ($0.87) per share compared with net income of $1,009,490 or $0.65 per share for 2002. The 2003 results include a second quarter pre-tax loss of $2,326,710 related to the return of aircraft from a Haitian lessee. This amount included $150,000 related to a guarantee under a spare parts lease between the lessee and a third-party maintenance vendor. During the fourth quarter of 2003, the vendor waived the amount due and the Company reversed the $150,000. Results for the year also include a $250,000 allowance for doubtful accounts which was previously reported in connection with the end-of-lease return of an aircraft from a Brazilian regional air carrier.

Although operating lease revenue was higher in both the three-month and twelve-month periods of 2003 compared to the prior year, these increases were more than offset by increases in operating expenses. Depreciation was $57,610 and $508,740 higher in the three months and twelve months ended December 31, 2003, respectively, as a result of aircraft purchases in the second half of 2002.

Maintenance expense in the three-month period of 2003 was $33,550 lower than the same period in 2002 as a result of accruals in 2002 to prepare aircraft for delivery to new lessees. Maintenance expense in the twelve-month period of 2003 was $1,849,140 higher than 2002, primarily due to the expense associated with the defaulted Haitian lessee, discussed above, and because, during third quarter 2002, the Company reversed $213,690 of a $609,000 estimate, which had been accrued in the fourth quarter of 2001.

The effect of aircraft purchases in 2002 on management fees was offset by normal portfolio depreciation, resulting in no difference between management fees for the three-month period of 2003 versus 2002. Management fees were $184,520 higher in the twelve-month period of 2003 versus 2002 as a result of the 2002 purchases.

Professional fees and general and administrative expenses were $122,820 and $299,790 higher in the three-month and twelve-month periods of 2003, respectively, compared to 2002, primarily due to higher legal fees incurred in connection with aircraft re-leased in 2003. Audit fees and insurance premiums were also higher in 2003.

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.

(See tables below.)