form of press release

Toni Perazzo

Chief Financial Officer

(650) 340-1888 FOR IMMEDIATE RELEASE

AEROCENTURY CORP. REPORTS SECOND QUARTER RESULTS

(BURLINGAME, CA), August 8, 2007 — AeroCentury Corp. (ASE:ACY), an independent aircraft leasing company, today reported its operating results for the second quarter ended June 30, 2007. As discussed and shown in the tables below, comparative information for the second quarter of 2006 and first six months of 2006 has been restated in connection with the Company’s adoption of Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”) and Financial Accounting Standard Board Staff Position AUG AIR-1, Accounting for Planned Major Maintenance Activities (“FSP AUG AIR-1”).

For the quarter ended June 30, 2007, the Company reported total revenues of $5.0 million compared with revenues of $4.6 million for the same period a year ago. For the six months ended June 30, 2007, the Company reported total revenues of $10.0 million compared with revenues of $9.1 million for the same period a year ago.

The Company reported net income of $463,000 or $0.30 per basic share and $0.29 per diluted share for the second quarter of 2007 compared to a net loss of $(207,000) or $(0.13) per basic and diluted share for the second quarter of 2006. The Company reported net income of $1,437,000 or $0.93 per basic share and $0.91 per diluted share for the six months ended June 30, 2007 compared to a net loss of $(155,000) or $(0.10) per basic and diluted share for the same period a year ago.

Operating lease revenue was approximately $318,000 and $824,000 higher in the three months and six months ended June 30, 2007, respectively, versus the same periods in 2006, primarily because of increased operating lease revenue from aircraft purchased in the fourth quarter of 2006, rent increases for several of the Company’s aircraft, and revenue from several aircraft which had been off lease for part of the 2006 periods. The effect of these increases was partially offset by a decrease in revenue related to aircraft which were off lease for part of the 2007 periods.

Total expenses were approximately $613,000 and $1,438,000 less in the three months and six months ended June 30, 2007, respectively, versus the same periods in 2006, primarily because of the change in maintenance expense from year to year. The Company’s maintenance expense is dependent on the aggregate maintenance claims submitted by lessees and expenses incurred in connection with off-lease aircraft. As a result of lower total lessee claims and less expense incurred for off-lease aircraft in 2007, the Company incurred approximately $944,000 and $1,811,000 less in maintenance expense in the three months and six months ended June 30, 2007, respectively, versus the same periods in 2006.

Due to the recent adoption of FSP AUG AIR-1, the Company was required to discontinue the accrue-in-advance method of accounting for planned major maintenance for financial reporting periods beginning on January 1, 2007. The Company has adopted the direct expensing method, under which actual costs incurred are expensed directly when maintenance is performed and the accrual of non-refundable maintenance reserves from the Company’s lessees for planned major maintenance is reflected as income. Because the net effect of recognizing income when maintenance reserves are received and accruing maintenance expense as incurred within any given period will vary, it is likely that the new accounting method will result in uneven effects on the Company’s results of operations.

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 following.)

AeroCentury Corp.

Selected Financial Information

(Unaudited)

		For the Quarter Ended June 30, 2007		For the Quarter Ended June 30, 2006 (as restated)			For the Six Months Ended June 30, 2007		For the Six Months Ended June 30, 2006 (as restated)
Summary of Operations:
Operating lease revenue	$	4,151,770	$	3,833,940		$	8,358,610	$	7,534,940
Maintenance reserves income		846,940		756,480			1,674,310		1,548,230
Gain on sale of aircraft		-		33,690			-		33,690
Other		1,110		3,810			8,480		( 5,320	)
Total revenues		4,999,820		4,627,920			10,041,400		9,111,540

Depreciation		1,258,260		1,160,170			2,493,070		2,315,180
Interest		1,424,080		1,251,370			2,645,780		2,415,630
Management fees		683,770		683,300			1,367,170		1,379,640
Maintenance		700,550		1,644,060			925,890		2,736,540
Professional fees and general and administrative		184,000		122,690			352,520		288,770
Insurance expense		48,720		51,210			75,440		129,250
Bad debt expense		-		-			15,690		48,820
Total expenses		4,299,380		4,912,800			7,875,560		9,313,830

Income/(loss) before taxes		700,440		(284,880	)		2,165,840		(202,290	)
Tax provision		237,180		(78,030	)		728,820		(46,940	)
Net income/(loss)	$	463,260	$	(206,850	)	$	1,437,020	$	(155,350	)
Weighted average common shares outstanding		1,543,257		1,543,257			1,543,257		1,543,257
Weighted average diluted common shares outstanding		1,601,423		1,543,257			1,572,502	$	1,543,257
Basic earnings per share	$	0.30	$	( 0.13	)	$	0.93	$	( 0.10	)
Diluted earnings per share	$	0.29	$	( 0.13	)	$	0.91	$	( 0.10	)

Summary Balance Sheet:				June 30, 2007			June 30, 2006 (as restated)

Total assets			$	108,314,090		$	95,258,150
Total liabilities			$	78,920,280		$	69,828,020
Shareholders’ equity			$	29,393,810		$	25,430,130

Effect of SAB 108 on

Statement of Operations

For the three month and six months ended June 30, 2006

	For the Three Months Ended June 30, 2006								For the Six Months Ended June 30, 2006
			As reported previously		As adjusted under SAB 108		Increase/ (decrease) effect of change			As reported previously		As adjusted under SAB 108		Increase/ (decrease) effect of change
Operating lease revenue		$	3,833,940	$	3,833,940	$	-		$	7,534,940	$	7,534,940	$	-
Maintenance reserves income			-		-		-			-		-		-
Gain on sale of aircraft			408,840		408,840		-			408,840		408,840
Other			3,810		3,810		-			2,391,190		2,391,190		-
			4,246,590		4,246,590		-			10,334,970		10,334,970		-

Depreciation			1,230,770		1,224,770		(6,000	)		2,460,960		2,448,970		(11,990	)
Interest			1,251,370		1,251,370		-			2,415,630		2,415,630		-
Management fees			685,100		683,300		(1,800	)		1,383,250		1,379,640		(3,610	)
Maintenance			779,490		779,490		-			3,333,320		3,333,320		-
Professional fees and other			173,900		173,900		-			466,840		466,840		-
			4,120,630		4,112,830		(7,800	)		10,060,000		10,044,400		(15,600	)

Income before taxes			125,960		133,760		7,800			274,970		290,570		15,600
Tax provision			40,360		51,560		11,200			84,380		106,790		22,410
Net income		$	85,600	$	82,200	$	(3,400	)	$	190,590	$	183,780	$	(6,810	)
Earnings per share:
Basic		$	0.06	$	0.05	$	(0.01	)	$	0.12	$	0.12	$	-
Diluted		$	0.06	$	0.05	$	(0.01	)	$	0.12	$	0.12	$	-

Effect of FSP AUG AIR-1 on

Statement of Operations

For the three month and six months ended June 30, 2006

	For the Three Months Ended June 30, 2006								For the Six Months Ended June 30, 2006
		As adjusted under SAB 108		As reported under FSP AUG AIR-1			Increase/ (decrease) effect of change			As adjusted under SAB 108		As reported under FSP AUG AIR-1			Increase/ (decrease) effect of change
Operating lease revenue	$	3,833,940	$	3,833,940		$	-		$	7,534,940	$	7,534,940		$	-
Maintenance reserves income		-		756,480			756,480			-		1,548,230			1,548,230
Gain on sale of aircraft		408,840		33,690			(375,150	)		408,840		33,690			(375,150	)
Other		3,810		3,810			-			2,391,190		(5,320	)		(2,396,510	)
		4,246,590		4,627,920			381,330			10,334,970		9,111,540			(1,223,430	)

Depreciation		1,224,770		1,160,170			(64,600	)		2,448,970		2,315,180			(133,790	)
Interest		1,251,370		1,251,370			-			2,415,630		2,415,630			-
Management fees		683,300		683,300			-			1,379,640		1,379,640			-
Maintenance		779,490		1,644,060			864,570			3,333,320		2,736,540			(596,780	)
Professional fees and other		173,900		173,900			-			466,840		466,840			-
		4,112,830		4,912,800			799,970			10,044,400		9,313,830			(730,570	)

Income before taxes		133,760		(284,880	)		(418,640	)		290,570		(202,290	)		(492,860	)
Tax provision		51,560		(78,030	)		(129,590	)		106,790		(46,940	)		(153,730	)
Net income	$	82,200	$	(206,850	)	$	(289,050	)	$	183,780	$	(155,350	)	$	(339,130	)
Earnings per share
Basic	$	0.05	$	(0.13	)	$	(0.19	)	$	0.12	$	(0.10	)	$	(0.22	)
Diluted	$	0.05	$	(0.13	)	$	(0.19	)	$	0.12	$	(0.10	)	$	(0.22	)

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