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 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 "Releasors") and AURA SYSTEMS,  INC., a Delaware  corporation (the "Company"
or "Releasee").  Capitalized terms used in this Release without  definition have
the respective meanings given to them in the Agreement.

                                   WITNESSETH:

                  WHEREAS, Releasors acknowledge that the execution and delivery
of this Release is a condition to the Company's  obligation to make the Exchange
on the Closing Date pursuant to the Agreement and that the Company is relying on
this Release in consummating such Exchange.

                  NOW,  THEREFORE,  in  consideration  of the Purchase Price and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the Releasors agree as follows:

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

                  Section 2. Release.  Effective upon the execution and delivery
of this Release,  each of the Releasors does hereby forever  discharge and fully
release  the  Releasee  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;  provided,  however, that such Release shall not (a) preclude the Funds
from  asserting  any and all matters in  connection  with the  appointment  of a
bankruptcy trustee, examiner,  receiver or responsible person for the Company in
any bankruptcy,  insolvency or other  proceeding  involving the Company,  or (b)
include  any and all  claims  or  causes  of  action  of the  Funds of  whatever
character  or  nature,  at law or in equity,  arising  from,  related  to, or in
connection with any payments,  conveyances or transfers of assets or property by
the  Company  to  any  Person,  including,  without  limitation,  to  any of its
officers, directors, subsidiaries, Affiliates or Insiders.

     Section 3. Representations and Warranties.  Each of the Releasors represent
and warrants to the Releasee 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 Funds and to
obligate  the Funds as provided  herein.  He has duly  authorized,  executed and
delivered  this  Release  voluntarily,  on behalf of the Funds and this  Release
constitutes  the legal,  valid and binding  agreement of the Funds,  enforceable
against the Funds 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.  He 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. Releasors have provided a copy of the Release to its attorneys and have
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
Funds  have  not  relied  upon  any  statements,  representations,  conduct,  or
information in any form, made or given by the Releasee or its 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
Releasors  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
Releasors and consented to by the
Releasee.

     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  Releasors  and the  Releasee  with respect to the subject
matter hereof. This Release supersedes all prior oral and written agreements and
understandings among the Releasors and the Releasee with respect to such subject
matter.



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                                [SIGNATURE PAGE]

                                [SIGNATURE PAGE]



                  IN  WITNESS   WHEREOF,   the  undersigned  have  executed  and
delivered  this  Release  by their  duly  authorized  agent as of the date first
indicated above.


                           INFINITY INVESTORS LIMITED

                                               HW Partners, LP
                                                Its Agent
                                                     By:    HW Finance, LLC
                              Its Managing Partner

                                                     By:
                            Name: Stuart J. Chasanoff
                                                 Title:    Senior Vice President


                                                     GLACIER CAPITAL LIMITED

                                                     HW Partners, LP
                                                            Its Agent

                                                     By:    HW Finance, LLC
                              Its Managing Partner

                                                     By:
                            Name: Stuart J. Chasanoff
                                                Title:    Senior Vice President


                                                     GLOBAL GROWTH LIMITED

                                                     HW Partners, LP
                                                            Its Agent

                                                     By:    HW Finance, LLC
                              Its Managing Partner

                                                     By:
                            Name: Stuart J. Chasanoff
                                              Title:    Senior Vice President



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                                                     SUMMIT CAPITAL LIMITED

                                                     HW Partners, LP
                                                            Its Agent

                                                     By:    HW Finance, LLC
                              Its Managing Partner

                                                     By:
                            Name: Stuart J. Chasanoff
                                               Title:    Senior Vice President