RELEASE


     This Release is being  executed and  delivered in  accordance  with Section
3.15 of the Exchange  Agreement  dated  February 14, 2000  ("Agreement")  by and
among AURA SYSTEMS,  INC., a Delaware corporation (the "Company" or "Releasor"),
and INFINITY INVESTORS  LIMITED, a corporation  organized and existing under the
laws of Nevis, West Indies ("Infinity"),  GLACIER CAPITAL LIMITED, a corporation
organized and existing under the laws of Nevis, West Indies ("Glacier"),  GLOBAL
GROWTH  LIMITED,  a corporation  organized and existing under the laws of Nevis,
West Indies  ("Global"),  SUMMIT CAPITAL  LIMITED,  a corporation  organized and
existing  under the laws of Nevis,  West Indies  ("Summit"  and,  together  with
Infinity,  Glacier and Global,  each a "Fund", and collectively,  the "Funds" or
the "Releasees"). Capitalized terms used in this Release without definition have
the respective meanings given to them in the Agreement.

                                   WITNESSETH:

     WHEREAS,  Releasor  acknowledges  that the  execution  and delivery of this
Release is a condition  to each Fund's  obligation  to make the  Exchange on the
Closing Date  pursuant to the Agreement and that each of the Funds is relying on
this Release in consummating such Exchange.

     NOW,  THEREFORE,  in  consideration of the Secured Notes and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the Releasor agrees as follows:

     Section 1. Recitals. The foregoing recital is true and correct.

     Section 2.  Release.  Effective  upon the  execution  and  delivery of this
Release,  the Releasor does hereby  forever  discharge and fully release each of
the  Releasees,  and  its or  their  present  or  former  agents,  shareholders,
officers,   directors,   principals,   advisors,   employees,   representatives,
attorneys, agents, heirs, predecessors, successors and assigns, from any and all
actions, causes of action, claims,  contracts,  obligations,  demands,  damages,
costs,  expenses,  attorneys' fees,  compensation,  debts and liabilities of any
nature  whatsoever,  whether  arising  at law or in  equity,  known or  unknown,
arising out of or relating to any matters,  transactions or events which existed
or have occurred prior to the date of this Release.

     Section 3.  Representations  and  Warranties.  The Releasor  represents and
warrants to each of the Releasees as of the date hereof that:

     3.1.  Authority  and  Enforceability.  He has full power and  authority  to
execute and deliver this  Release,  on behalf of the Company and to obligate the
Company as provided herein. He has duly authorized,  executed and delivered this
Release  voluntarily,  on behalf of the Company and this Release constitutes the
legal,  valid and binding  agreement  of the  Company,  enforceable  against the
Company in accordance with its terms,  except as such enforcement may be limited
by general principles of equity or by bankruptcy,  insolvency,  or other similar
laws affecting creditors' rights generally.

     3.2. No  Assignment.  The Company has not  assigned or  transferred  to any
other  person  or  entity  any  rights or  claims  which if not so  assigned  or
transferred would be relinquished by this Release.

     3.3.  Review of  Documentation  and  Release;  Consultation  with  Counsel.
Releasor  has  provided a copy of the  Release to its  attorneys  and has had an
adequate  opportunity  to consult with them and to take whatever  actions it has
deemed necessary in order to adequately evaluate the terms and provisions hereof
and to determine to execute and deliver this Release.

     3.4. No Reliance or Inducements.  Except for the consideration reflected in
the recitals hereto,  in executing and delivering this Release,  the Company has
not relied upon any statements, representations,  conduct, or information in any
form,  made  or  given  by any of the  Releasees  or  their  representatives  or
professional advisors.

     Section 4. Miscellaneous.

     4.1.  Governing Law. The  interpretation  and construction of this Release,
and all matters relating  hereto,  shall be governed by the laws of the State of
New York, without regard to principles of conflicts of law.

     4.2.  Severability.  The rights,  benefits and  obligations of the Releasor
pursuant to this  Release  shall be separate and apart and  irrespective  of any
other  rights,  benefits,  obligations  or  conditions  in any other  agreement,
document or instrument,  and if any other agreement,  document or instrument, or
any  provision  thereof,  shall be held to be  invalid  or  unenforceable,  this
Release and all provisions  herein shall remain in full force and effect. If any
provision of this Release shall be held to be unenforceable, then the invalidity
of such specific  provision  shall not be held to invalidate any other provision
herein and such other provision shall remain in force and effect.

     4.3.  No Waiver.  The waiver by any party of a breach or  violation  of any
provision of this Release  shall not operate as, or be construed to be, a waiver
of any subsequent  breach of the same or other  provision  hereof.  No single or
partial exercise of any right, power or privilege  hereunder precludes any other
or  further  exercise  thereof  or the  exercise  of any other  right,  power or
privilege hereunder.

     4.4. Amendments.  This Release may be amended only in writing signed by the
Releasor and consented to by the Releasees.

     4.5. Construction.  This Release shall be interpreted without regard to any
presumption  or rule  requiring  construction  against the Person  causing  this
Release to be drafted.

     4.6. Entire Agreement.  This Release sets forth the entire understanding of
the Releasor and the Releasees with respect to the subject  matter hereof.  This
Release  supersedes  all prior oral and written  agreements  and  understandings
among the Releasor and the Releasees with respect to such subject matter.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Release
as of the 14th day of February, 2000.


                                                     AURA SYSTEMS, INC.



                                                     By:
                                                     Name:
                                                     Title: