AAER'S CCAA Restructuring Process Update

AAER Inc. (TSX VENTURE:AAE) ("AAER" or the "Corporation") announced today that
pursuant to an order of the Quebec Superior Court issued on July 7, 2010 (the
"July 7 Order"), the initial order granted under the Companies' Creditors
Arrangement Act (Canada) ("CCAA") in favour of AAER on April 8, 2010, as
subsequently extended from time to time by the court, has now been further
extended until August 11, 2010 to allow for the filing of a plan of arrangement
and for the holding of a creditors' meeting pursuant to the CCAA.


Subject to certain conditions, 7549032 Canada Inc. ("Pioneer"), a wholly-owned
subsidiary of Pioneer Power Solutions Inc., has agreed to sponsor a plan of
arrangement for the continuation of AAER (the "Plan"). Upon approval of the Plan
by AAER's creditors, Pioneer will contribute an amount of $450,000 to be used to
fund the Plan and the filing of articles of reorganization. Under the Plan,
Pioneer will subscribe to the new AAER equity and will become the Corporation's
sole shareholder. 


Pursuant to the July 7 Order, Samson Belair / Deloitte Touche, in its capacity
as monitor for AAER, will send to each creditor of the Corporation a notice of
the creditors' meeting, a copy of the Plan and a proxy form for the creditors'
meeting to be held on August 9, 2010 in Bromont, Quebec, for the purposes of
considering and, if deemed advisable, approving the Plan.


The documentation and information on AAER's restructuring process are available
on the monitor dedicated website at www.deloitte.com/ca/aaer.


About AAER Inc.

AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures
and maintains high capacity 1 MW or more wind turbines principally for the North
American market. Its strategy is to progressively build its products' components
to provide a high level of reliability and competitive pricing to its customers.
AAER uses a portfolio of proven European technologies to ensure the performance
of its turbines in various wind conditions and terrains. Its stock is listed on
the TSX Venture Exchange (TSX VENTURE:AAE). Additional information is available
on AAER's website at www.aaer.ca.


Forward-Looking Statements

This news release contains certain forward-looking statements or forward
looking-information. These forward looking statements are subject to a variety
of risks and uncertainties beyond AAER's ability to control or predict which
could cause actual events or results to differ materially from those anticipated
in such forward looking statements. Such risks and uncertainties are disclosed
under the heading "Risk Factors" in AAER's amended and restated preliminary
prospectus dated February 25, 2010 and the annual information form for the year
ended December 31, 2008 and dated March 26, 2009. Further, forward-looking
information is in addition based on various assumptions, including, without
limitation, assumptions about: (i) general business and economic conditions;
(ii) selection of AAER's client bids in different requests for proposals; (iii)
the availability of financing on reasonable terms; (iv) the availability of key
components for the assembly of wind turbines, (v) the costs of raw materials and
parts; (vi) AAER's ability to attract and retain skilled staff; (vii) market
competition; (viii) the technology offered by AAER's competitors; (ix) AAER's
ability to meet contractual obligations and delivery dates; and (x) AAER's
ongoing relations with employees and with clients. Should one or more of these
risks and uncertainties materialize, or should the underlying assumption prove
incorrect or different, actual results may vary materially from those described
in the forward-looking statements. All forward looking statements speak only as
of the date of this news release. Accordingly, readers should not place undue
reliance on forward-looking statements.