AeroVironment, Inc.

Investor Overview

December 2008
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 Safe Harbor Statement

This presentation contains "forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are based on current
expectations, forecasts and assumptions that involve risks and uncertainties, including, but not
limited to, economic, competitive, governmental and technological factors outside of our control,
that may cause our business, strategy or actual results to differ materially from the forward-
looking statements. Factors that could cause actual results to differ materially from the forward-
looking statements include, but are not limited to, reliance on sales to the U.S. government;
changes in the supply and/or demand and/or prices for our products; the activities of
competitors; failure of the markets in which we operate to grow; failure to expand into new
markets; changes in significant operating expenses, including components and raw materials;
failure to develop new products; changes in the regulatory environment; product liability,
infringement and other claims; and general economic and business conditions in the United
States and elsewhere in the world. For a further list and description of such risks and
uncertainties, see the reports we file with the Securities and Exchange Commission, including
our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We do not
intend, and undertake no obligation, to update any forward-looking statements, whether as a
result of new information, future events or otherwise.

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 Investment Thesis

ƒ High Growth Through Technology-based Innovation

ƒ Leading Positions In Growing Markets

ƒ Strong Product Portfolio And Deep Customer

Relationships

ƒ Robust, Market-driven Development Pipeline

ƒ Proven, Experienced Management

ƒ Attractive Financial Performance

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 Consistent Annual Revenue Growth

Revenue ($MM)
$250
$216

$200
$174
CAGR = 46%

$150
$139

$105
$100

$48
$50
EES

UAS
$0
FY04 FY05 FY06 FY07 FY08

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 What We Do
Innovative Solutions with Compelling New Value

Unmanned Aircraft Efficient Energy

Systems Systems

Technology

$216 Million FY 2008 Revenue

46% CAGR FY 04 – FY 08
Leader in Market-Driven Innovation
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 Small, Hand-Launched
Unmanned Aircraft Systems (UAS)

ƒ FY ’08: 86% Of Total

Revenue
ƒ FY ’04 – ’08 UAS Revenue
CAGR: 57%
ƒ Sole Supplier to All U.S. DoD
Programs of Record for small
UAS

Embedded into U.S. Military

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 Different Platforms for Remote Imagery

Stratos- Dwell Altitude

pheric Global
Observer

High
Global
Hawk

Predator
Close-in
Shadow

Small
UAS

Shorter Longer
Flight Duration

Small UAS Respond to the Immediate Need for RSTA

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 A Robust System…
Easy to Use and Reliable

Raven

Puma AE
Wasp

GCU

Maintenance Training
Common Interface
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 Small UAS Video

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 UAS Revenue Drivers

Existing Spares, Expanding

System New
markets and repairs and markets and
upgrades systems
applications training applications

• US DoD • Existing • Digital data • Allied military • Global

• Raven customers link • Border Observer
• Wasp and systems • Raven PIP security • Switchblade
• Puma AE • New • Law
customers enforcement
and systems

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 Small UAS Markets and Applications

Existing Future Adoption Potential

Individual
U.S. Special Individual U.S.
National Guard International
Forces Warfighters
Warfighters

U.S. Army, International

Border Infrastructure
Marines, Air Infrastructure
Security Security
Force Security

U.S. Other
Homeland International
Government First Response
Security First Response
Agencies

International
International Law
SWAT Teams Law
Military Forces Enforcement
Enforcement

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 UAS Development Pipeline Examples

Switchblade Global Observer

ƒ Man-Portable, Lethal Small UAS ƒ High Altitude, Long-Endurance UAS

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 Development Pipeline Examples
Global Observer

Center Wing Section

Propulsion System
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 Efficient Energy Systems

ƒ Consolidates former
PosiCharge and Energy
Technology Center segments
ƒ Products: PosiCharge, EV
Test Systems
ƒ R&D supporting existing
businesses and potential new
businesses
ƒ FY ’08: 14% Of Total
Revenue

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 Efficient Electric Energy Technology

A leader in:
ƒ EV fast charge systems
ƒ EV test systems
ƒ Alternative energy
solutions

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 Fast Charge Systems for Industrial Vehicles

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 EES Development Pipeline Examples

EV Fast Charge Architectural Wind

ƒ Fast charge system for on-road EVs ƒ Clean energy generation for buildings

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 Financial Highlights

ƒ Strong Organic Revenue Growth

ƒ Track Record of Profitability
ƒ Diverse Revenue Mix
ƒ Products, R&D, Services
ƒ Government, Commercial

ƒ Strong Balance Sheet with No Debt

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 Consistent Annual Revenue Growth

Revenue ($MM)
$250
$216

$200
$174
CAGR = 46%

$150
$139

$105
$100

$48
$50
EES

UAS
$0
FY04 FY05 FY06 FY07 FY08

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 Consistently Profitable

FY Ended April 30, 2004 - 2008

In $ Millions 2004 2005 2006 2007 2008 CAGR

Revenue $48 $105 $139 $174 $216 46%

Gross Profit $15 $47 $57 $68 $79

52%
Margin 31% 44% 41% 39% 36%

Operating Income $3 $20 $16 $31 $28

74%
Margin 6% 19% 11% 18% 13%

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 FY09 Quarterly Performance

Qtr 1 Qtr 2 Total

In $ Millions

Revenue $53.6 $65.8 $119.4

Gross Profit $20.6 $25.0 $45.6

Margin 38% 38% 38%

Operating Income $7.2 $12.2 $19.5

Margin 13% 19% 16%

Net Income $4.8 $9.1 $13.9

Margin 9% 14% 12%

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 Diverse Revenue Mix

FY2009 YTD Revenue by Function FY2009 YTD Contract Mix

Services Cost Plus

23% 42%

Products
53%
R&D
Fixed
24%
Price
57%
Time and
Materials
1%

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 Strong Balance Sheet

AeroVironment
Fiscal Year Ended 11/01/08
(in Millions)

Cash & Investments $125 Payables $14

Receivables 56 Other Liabilities 13
Inventories 19
Property and Equipment 14 Capital 106
Other Assets 7 Retained Earnings 88

Total Assets $221 Total Liabilities & Equity $221

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 Investment Thesis

ƒ High Growth Through Technology-based Innovation

ƒ Leading Positions In Growing Markets

ƒ Strong Product Portfolio And Deep Customer

Relationships

ƒ Robust, Market-driven Development Pipeline

ƒ Proven, Experienced Management

ƒ Attractive Financial Performance

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 www.avinc.com
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