SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    Form 10-Q


                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


For the Quarter Ended November 30, 2002         Commission File Number 000-17249

                               AURA SYSTEMS, INC.
             (Exact name of Registrant as specified in its charter)

            Delaware                                     95-4106894
  (State or other jurisdiction              (I.R.S. Employer Identification No.)
of incorporation or organization)

                                2335 Alaska Ave.
                          El Segundo, California 90245
                    (Address of principal executive offices)

Registrant's telephone number, including area code:           (310) 643-5300

Former name, former address and former fiscal year, if changed since last
report: None

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days:

   YES      X        NO
       ---------------  ---------------

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of Common Stock, as of the latest practicable date.

          Class                             Outstanding at January 8, 2003

 Common Stock, par value                          430,973,150 Shares
    $0.005 per share


<PAGE>
<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                                      INDEX


                                                                                                      Page No.

PART I.       FINANCIAL INFORMATION

<S>      <C>                                                                                       <C>
         ITEM 1.     Financial Statements

                     Statement Regarding Financial Information                                            2

                     Condensed Consolidated Balance Sheets as of November 30, 2002                        3

                     (Unaudited) and February 28, 2002

                     Condensed  Consolidated  Statements  of  Operations  for the Three Months and        4
                     Nine Months Ended November 30, 2002 (Unaudited) and 2001 (Unaudited)

                     Condensed  Consolidated  Statements  of Cash Flows for the Nine Months  Ended        5
                     November 30, 2002 (Unaudited) and 2001 (Unaudited)

                     Notes to Condensed Consolidated Financial Statements (Unaudited)                     6

         ITEM 2.     Management's Discussion and Analysis of Financial Condition and Results of           11
                     Operations

         ITEM 4.     Controls and Procedures                                                              15

PART II. OTHER INFORMATION

         ITEM 1.      Legal Proceedings                                                                   16

         ITEM 2.      Changes in Securities                                                               17

         ITEM 6.      Exhibits and Reports on Form 8-K                                                    17

SIGNATURES AND CERTIFICATIONS                                                                             18
</TABLE>

<PAGE>




                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                         QUARTER ENDED NOVEMBER 30, 2002






PART I.  FINANCIAL INFORMATION

The consolidated financial statements included herein have been prepared by Aura
Systems,  Inc.  (the  "Company"),  without  audit,  pursuant  to the  rules  and
regulations  of  the  Securities  and  Exchange   Commission  (the  "SEC").   As
contemplated  by the SEC under Rule 10-01 of  Regulation  S-X, the  accompanying
consolidated   financial  statements  and  footnotes  have  been  condensed  and
therefore  do  not  contain  all  disclosures  required  by  generally  accepted
accounting  principles.  However,  the Company believes that the disclosures are
adequate to make the information  presented not misleading.  These  consolidated
financial statements should be read in conjunction with the financial statements
and  notes  thereto  included  in the  Company's  Form  10-K for the year  ended
February 28, 2002 as filed with the SEC (file number 000-17249).



<PAGE>


<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                               November 30,
                                                                                   2002                February 28,
Assets                                                                         (Unaudited)                 2002
-------                                                                  ------------------------ -----------------
<S>                                                                          <C>                     <C>
Current assets:
Cash and equivalents                                                         $         76,772           $ 1,143,396
Receivables, net                                                                      357,389                67,491
Inventories, net                                                                    4,664,534             5,006,424
Notes receivable                                                                      206,122               168,792
Other current assets                                                                  430,982               228,758
                                                                                -------------            ----------

       Total current assets                                                         5,735,799            6,614,861

Property and equipment, at cost                                                    16,170,350            16,309,956
Less accumulated depreciation and amortization                                     (8,663,017)           (5,935,475)
                                                                                --------------           -----------

Net property and equipment                                                          7,507,333            10,374,481

Non-current inventories                                                             4,500,000             4,500,000
Long term investments                                                               1,000,000             1,700,000
Long term receivables                                                               2,060,271             2,347,346
Patents and trademarks, net                                                         2,830,686             3,061,932
Other assets                                                                          148,941               163,370
                                                                              ---------------      ----------------
      Total                                                                      $ 23,783,030           $28,761,990
                                                                                 ============           ===========

Liabilities and Stockholder's Equity

Current liabilities:
Accounts payable                                                                $   2,615,642           $ 3,032,134
Notes payable                                                                       4,209,078             3,913,623
Convertible notes                                                                   1,750,000                    --
Accrued expenses                                                                    2,263,273             2,181,657
                                                                                -------------             ---------

Total current liabilities                                                          10,837,993             9,127,414

Notes payable and other liabilities                                                 6,438,956             6,981,843

COMMITMENTS AND CONTINGENCIES
Stockholders' equity

    Common  stock par value  $0.005  per share and  additional  paid in
    capital.  Issued and  outstanding  430,973,150  shares at  November
    30, 2002 and 387,690,068 shares at February 28, 2002.                         306,172,595           300,332,457

    Accumulated deficit                                                          (299,666,514)         (287,679,724)
                                                                                 -------------        --------------

       Total stockholders' equity                                                   6,506,081            12,652,733
                                                                               --------------            ----------
       Total                                                                     $ 23,783,030           $28,761,990
                                                                                 ============           ===========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.


<PAGE>



<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             THREE AND NINE MONTHS ENDED NOVEMBER 30, 2002 AND 2001
                                   (Unaudited)

                                                                  Three Months                            Nine Months
                                                                  ------------                            -----------
                                                              2002               2001               2002              2001
                                                              ----               ----               ----              ----

<S>                                                    <C>                    <C>           <C>                    <C>
Net Revenues                                           $     423,066          $ 306,126     $      879,783         $ 4,043,968

     Cost of goods                                           199,154            168,874            425,259           1,922,671
                                                         -----------         ----------        -----------           ---------

Gross Profit                                                 223,912            137,252            454,524           2,121,297

Expenses
     Engineering expenses                                    782,417          1,727,078          2,676,432            6,280,076
     Selling, general and administrative                   1,542,284          2,113,016          5,830,328            7,675,279
     Research and development                                132,474            168,385            410,433              679,594
     Asset impairment loss                                        --                 --          2,300,000                   --
                                                     ---------------     --------------          ---------     ----------------
     Total costs and expenses                              2,457,175          4,008,479         11,217,194           14,634,949
                                                         -----------       ------------         ----------           ----------

 Loss from operations                                     (2,233,263)        (3,871,227)       (10,762,670)         (12,513,652)

Other (income) and expense
     Asset impairment                                             --                --             700,000                  --
     (Gain) loss on disposition of assets, net                    --             65,823            (12,671)           (333,366)
     Other (income) expense, net                             (61,992)            69,670            (94.472)           (118,832)
     Legal settlements, net                                       --         (2,000,000)                --          (2,750,000)
     Interest expense, net                                   163,273            620,045            631,263           1,455,820
                                                        ------------            -------       -------------     ---------------

Loss before extraordinary item                            (2,334,550)        (2,626,765)       (11,986,790)        (10,767,274)
                                                          -----------        -----------       ------------        ------------

Extraordinary item
     Gain on extinguishment of debt obligations,
     net of income taxes of $0                                     --         1,532,188                 --           1,532,188
                                                     ----------------         ---------    ------------------     ------------
Net loss                                                 $(2,334,550)       $(1,094,577)      $(11,986,790)       $ (9,235,086)
                                                         ============       ============      =============       =============

Net loss per common share-basic                        $       (0.006)   $        (0.003) $          (0.029) $          (0.029)
                                                       ================   ================ ================== ==================
Loss from continuing operations per share
Extraordinary income per share                         $       (0.006)   $        (0.008) $          (0.029)   $        (0.034)
                                                       ================   ================         =========     ================
                                                       $          --      $        0.005              $  --    $           .005
                                                        =============           ==========             =====                ===

Weighted average shares used to
compute net loss per share                               421,086,112          334,634,968        410,794,584        317,626,223
                                                         ============         ===========        ============       ===========
</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>


<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED NOVEMBER 30, 2002 AND 2001
                                   (Unaudited)

                                                                             2002                     2001
                                                                             ----                     ----

<S>                                                                       <C>                       <C>
Net cash used in operations                                               $ (8,567,844)             $ (7,038,896)

Investing activities:

Proceeds from sale of assets                                                    85,000                   399,189
Additions to property and equipment                                             (6,491)                 (228,383)
Note receivable                                                                249,746                   115,720
                                                                       ---------------          ----------------

Net cash provided by investing activities                                      328,254                   286,526

Financing activities:

Issuance of debt                                                             2,628,750                        --
Repayment on line of credit                                                         --                (1,984,000)
Repayment of debt                                                           (1,126,182)               (3,182,655)
Net proceeds from sale of stock                                              5,670,398                10,659,313
Net proceeds from exercise of stock options                                         --                       775
Proceeds from exercise of warrants                                                  --                    27,000
                                                                       ----------------         -----------------

Net cash provided by financing activities:                                   7,172,966                 5,520,433
                                                                       ----------------         -----------------

Net increase (decrease) in cash                                             (1,066,624)               (1,231,937)

Cash and cash equivalents at beginning of period                             1,143,396                 1,265,912
                                                                       ----------------         -----------------

Cash and cash equivalents at end of period                                   $  76,772                 $  33,975
                                                                             ==========                ==========

Supplemental disclosures of cash flow information
        Cash paid during the period for:
              Interest                                                       $ 378,065                $1,422,542
</TABLE>



Supplemental disclosure of noncash investing and financing activities:

Nine months ended November 30, 2002:

     In the nine months ended November 30, 2002, 659,175 shares of the Company's
Common  Stock  were  issued in  satisfaction  of  $169,740  in  liabilities  and
contractual obligations.

Nine months ended November 30, 2001:

     In the nine months ended  November 30, 2001,  $413,009 of notes payable and
accrued  interest was  converted  into 750,927  shares of the  Company's  Common
Stock. The Company also issued  14,868,866 shares of its Common Stock to satisfy
liabilities in the amount of $5,778,786.



     See accompanying notes to condensed consolidated financial statements.


<PAGE>



                               AURA SYSTEMS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                November 30, 2002
                                   (Unaudited)


1)       Basis of Presentation

     The condensed  consolidated  financial  statements  include the accounts of
Aura Systems, Inc. and subsidiaries ("the Company").  All inter-company balances
and  inter-company   transactions  have  been  eliminated.  In  the  opinion  of
management, the accompanying condensed consolidated financial statements reflect
all   adjustments    (which   include   normal   recurring    adjustments)   and
reclassifications  for  comparability  necessary to present fairly the financial
position  of Aura  Systems,  Inc.  at  November  30, 2002 and the results of its
operations  for the three and nine months ended  November 30, 2002 and 2001. The
preparation of financial  statements in conformity  with  accounting  principles
generally  accepted in the United States  requires  management to make estimates
and  assumptions  that affect the reported  amount of assets and liabilities and
disclosure of contingent  assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses during the reported
period. Actual results could differ from those estimates.

2)       Going Concern

     In  connection  with the audit for the year ended  February 28,  2002,  the
Company  received  a report  from its  independent  auditors  that  includes  an
explanatory  paragraph  describing  uncertainty  as to the Company's  ability to
continue as a going concern.  Except as otherwise  disclosed,  the  consolidated
financial  statements  do not include any  adjustments  to reflect the  possible
future effects on the  recoverability and classification of assets or the amount
and classification of liabilities that may result from the possible inability of
the Company to continue as a going  concern.  For the nine months ended November
30, 2002 and the year ended February 28, 2002,  the Company  incurred a net loss
of approximately $12,000,000 and $24,900,000,  respectively,  on net revenues of
approximately  $900,000 and  $3,100,000,  respectively.  The Company had working
capital  deficiencies  at November 30, and  February  28, 2002 of  approximately
$5,300,000 and $2,500,000,  respectively.  These  conditions  raise  substantial
doubt about the Company's  ability to continue as a going  concern.  The Company
requires  additional debt or equity financing to fund ongoing  operations in its
fiscal year ending February 28, 2003 ("Fiscal 2003").  The Company is seeking to
raise additional  capital;  however,  there can be no assurance that the Company
will raise  sufficient  capital to fund ongoing  operations in Fiscal 2003.  The
issuance of additional  shares of equity in connection with such financing could
dilute the interests of existing  stockholders of the Company.  The inability to
secure  additional  funding could have a material adverse effect on the Company,
including the possibility that the Company could have to cease operations.

3)       Capital

     In the nine months  ended  November  30,  2002,  Common  Stock  outstanding
increased by a total of  43,283,082  shares as follows:  42,623,907  shares were
sold for gross  proceeds of $5,694,001 and 659,175 shares were issued to satisfy
liabilities and contractual obligations in the amount of $169,740.

4)       Inventories

     Inventories,  stated at the lower of cost (first in,  first out) or market,
consist of the following:

<TABLE>
<CAPTION>
                                                                       November 30,           February 28,
                                                                           2002                   2002

<S>                                                                       <C>                  <C>
    Raw materials                                                         $4,027,446           $   4,043,697
    Finished goods                                                         6,885,088               7,258,138
    Reserved for potential product obsolescence                           (1,748,000)             (1,795,411)
                                                                      --------------           -------------
                                                                       $   9,164,534           $   9,506,424
                                                                       =============           =============
</TABLE>

     Inventories  consist  primarily of components  and completed  units for the
Company's AuraGen product.  $4,500,000 of net inventories as of November 30, and
February 28, 2002 which are not expected to be realized within a 12 month period
have been classified as long-term.

5)       Significant Customers

     In the nine months  ended  November  30,  2002,  the Company  sold  AuraGen
related  products  to two  significant  customers  for a total of  approximately
$308,000  or 35% of net  revenues.  None of these  customers  are  related to or
affiliated with the Company.

     At November 30,  2002,  held  accounts  receivable  from three  significant
customers for a total of approximately $297,000 or 83% of net receivables.  None
of these customers are related to or affiliated with the Company.

6)       Asset Impairment

     Subsequent  to the  quarter  ended  May 31,  2002,  Aura  became  aware  of
financial  difficulties  relative to its investment in Algo  Technologies,  Inc.
Aura recognized a $700,000  impairment charge as the Company concluded there was
an other  than  temporary  decline  in the  value of the  investment.  It is now
recorded at its estimated fair market value of approximately $500,000.

     In the second  quarter of Fiscal  2003,  the  Company's  Board of Directors
approved  a plan to sell the land and  buildings  which  are  currently  used as
Aura's headquarters and operating  location.  The Company had received bona-fide
offers which indicated  there was a significant  decrease in the market price of
the assets. As a result, the current market value was less than the recorded net
book  value.  As the land and  buildings  are held for sale and the amount to be
realized from the sale was less than the net book value, the Company recorded an
asset impairment  charge of $2,300,000 in the second quarter of Fiscal 2003. The
Company  accounted for this charge in accordance  with FASB No. 144  "Accounting
for the Impairment or Disposal of Long-Lived  Assets";  as such, the expense was
recorded  as part of the  loss  from  operations.  This  sale was  completed  on
December 1, 2002; see Note 9 below.

7)       Contingencies

     The Company is engaged in certain material legal  proceedings (as described
in Item 1 of Part II of this  document).  Refer also to the Company's Form 10-K,
Item 3 Legal  Proceedings for the year ended February 28, 2002 as filed with the
SEC (file number 000-17249) for a further discussion of the legal activities. In
the case of a judgment or settlement,  appropriate  provisions have been made in
the financial statements.

8)       Notes Payable and Other Liabilities

         Notes payable and other liabilities consist of the following:
<TABLE>
<CAPTION>
                                                                   November 30,        February 28,
                                                               -------------------  ------------------
                                                                       2002                2002
<S>                                                               <C>                <C>
         Litigation payable (a)                                   $    1,991,221     $      2,327,300
         Notes payable-equipment (b)                                      15,752               20,371
         Notes payable-buildings (c)                                   5,083,257            5,157,138
         Trade debt (d)                                                2,679,054            3,140,657
         Related party note payable (e)                                       --              250,000
         Real estate sale advances (f)                                   878,750                   --
                                                                 ---------------    -----------------
                                                                      10,648,034           10,895,466

         Less: current portion                                         4,209,078            3,913,623
                                                                 ---------------    -----------------

         Long-term portion                                        $    6,438,956     $      6,981,843
                                                                  ==============     ================
</TABLE>

(a)  The litigation  payable  represents the legal  settlements  entered into by
     Aura with various parties. These settlements call for payment terms with 8%
     interest rate to the plaintiffs through Fiscal 2004.

(b)  Notes  payable-equipment  consists of a note maturing in February 2005 with
     an interest rate of 8.45%.

(c)  Notes  payable-buildings  consists of a 1st Trust Deed on two  buildings in
     California  bearing interest at the rate of 7.625%. A final balloon payment
     is due in Fiscal 2009.

(d)  Trade debt was  restructured  with payment  terms over a three-year  period
     with interest at 8% per annum  commencing in January 2000.  The Company has
     failed to make every  monthly  payment due. As such,  the maturity  date of
     January 2003 will most likely be extended.

(e)  In the fourth quarter of Fiscal 2002, the Company entered into a short-term
     loan  agreement  with a member of the Board of Directors for $250,000.  The
     note accrued interest at a rate of 10% and was repaid in March 2002.

(f)  During the third  quarter  of Fiscal  2003,  the  Purchasers  intending  to
     purchase  the  Company's  interest  in  Aura  Realty  and  lease  back  its
     facilities to the Company  advanced  $878,750  against the purchase  price.
     (See Note 9).

     Convertible  notes  payable  are due at 180 day  maturity  dates in January
through April 2003.  Interest  accrues at 8% simple interest due in arrears.  If
upon equity funding for an amount of at least $2,000,000 prior to maturity date,
the notes will convert  mandatorily into Common Stock at contractual  conversion
rates of $0.07 - $0.11 per share or the  average  of the new  equity  sale rate,
whichever is less.

9)       Subsequent Events

     (a) Sale of Aura Realty

     On December 1, 2002, the Company  consummated  the initial closing under an
Agreement for Sale and Leaseback,  (together  with the  agreements  contemplated
thereby,  the  "Agreement")  with a  group  of  individuals  (the  "Purchasers")
pursuant  to which the  Company  agreed  to sell its Aura  Realty,  Inc.  ("Aura
Realty")  subsidiary  to  Purchasers  and enter into a new 10-year  lease of the
properties owned by Aura Realty (the "Lease"). As a result of the revaluation of
Aura  Realty's  assets in the second  quarter  of Fiscal  2003 (see Note 6), the
Company will not record a material gain or loss from this transaction.

     The  Agreement  provides  for the  $7,350,000  purchase  price for the Aura
Realty stock, arrived at in arm's length negotiations, to be partially funded by
Purchasers'  assumption or refinancing  of the current  mortgage note secured by
the  Properties.  Net  of  the  principal  balance  of  this  mortgage  note  of
approximately  $5,083,000,  certain security  deposits and prepayments  totaling
$564,000,  the  partial  payment  of past due  amounts  owed to  certain  of the
individual  purchasers,  as  described  below,  of  approximately  $135,000  and
Purchasers'  fees of $105,000,  the Company received  approximately  $1,463,000.
$878,750 of this amount was advanced to the Company by the  Purchasers  prior to
the  December  1, 2002  closing  under the  Agreement  and is  reflected  in the
November 30, 2002 balance sheet as Notes Payable - Current.

     The  assets  and  liabilities  of Aura  Realty  included  in the  Condensed
Consolidated Balance Sheets at November 30, 2002 consist of the following:

<TABLE>
<CAPTION>
<S>                                                          <C>
         Current assets                                      $     43,281
         Property and equipment
              Land                                             3,187,997
              Buildings                                        8,706,803
              Accumulated depreciation                        (4,947,288)
                                                             ------------
                  Net property and equipment                   6,947,512
         Other assets                                            139,980
                                                             ------------
              Total assets                                   $ 7,130,774
         Current liabilities
              Notes payable                                  $   104,199
              Accrued expenses                                    24,762
         Notes payable and other liabilities                   4,979,058
                                                             -----------
              Total liabilities                              $ 5,108,019
</TABLE>


     At  the  December  1,  2002  closing  under  the  Agreement,   the  Company
transferred  49.9% of its  stock  in Aura  Realty  to  Purchasers,  delivered  a
$1,000,000 note payable to Purchasers and granted Purchasers a security interest
in one of the  Company's  note  receivables  to secure  certain  aspects  of its
performance under the Agreement and the Lease. A second closing will occur after
the current mortgage note holder consents to transfer of the stock to Purchasers
and execution of the Lease. At that time, the Company will deliver its remaining
Aura Realty stock to Purchasers in exchange for the return and  cancellation  of
the Company's  $1,000,000 note payable. If the current mortgage note holder does
not consent to the  transfer of the stock to  Purchasers  and  execution  of the
Lease,  Purchasers will obtain a substitute mortgage note through a refinancing.
In the event that such a refinancing is required,  the Company would be required
to pay certain  additional  costs. The Company believes that the Purchasers will
be  successful  in  obtaining  the  consent of the  mortgage  holder and has not
accrued any additional costs associated with this transaction.

     The  Purchasers  also received  warrants to purchase  15,000,000  shares of
common stock of the Company  within five years from December 1, 2002 at exercise
prices ranging from $0.15 to $0.25 per share. Further, the Purchasers subscribed
to  purchase  and  paid  for  21,366,347  of the  Company's  common  shares  for
$1,493,000  at an average price of $0.07 per share under the  Agreement.  All of
these shares were purchased during the third quarter of Fiscal 2003. The Company
has agreed to file a  registration  statement  with the  Securities and Exchange
Commission  within 60 days of acceptance of the subscription  agreement and will
be required to issue up to 1,300,000  additional  shares to the Purchasers if it
fails to do so.

     Of the sixteen Purchasers,  five are current consultants to the Company and
members of the Company's former management who separated from the Company at the
end of February 2002 (the  "Consultants").  The Company paid a fee of $50,000 to
the Consultants in connection  with the Agreement.  The Company also paid to the
Consultants  approximately  $135,000  from the  funds  it  received  at  closing
representing  a  portion  of unpaid  consulting  fees  contractually  due to the
Consultants at December 1, 2002.

         (b)      Investor Advance

     On December 30, 2002, the Company received $500,000 from a current investor
in exchange for a demand note, bearing interest at 5% per annum.


<PAGE>


                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

     This Form 10-Q report may contain forward-looking  statements which involve
risks and uncertainties. The Company's actual results may differ materially from
the results  discussed  in such  statements.  Certain  factors  could also cause
actual results to differ materially from those discussed in such forward-looking
statements,  including  factors  discussed  in the  Company's  Form 10-K for the
period ended February 28, 2002, and factors discussed in this report.

Results of Operations


     For the nine month period ended November 30, 2002

     Net revenues for the nine month period ended November 30, 2002 decreased to
$879,783  from  $4,043,968  in the prior  year.  This  represents  a decrease of
$3,164,185  (78%)  from the prior year  comparable  period.  Revenues  are lower
because the Company did not ship  significant  quantities to its distributors as
was done in the prior year.  Revenue of $1,300,000  was  recognized in the prior
year first quarter  relative to shipments made to CRS Emergency which were later
returned and revenues reversed.

     Cost of goods  decreased  $1,497,412  (78%) to  $425,259  in the nine month
period ended  November 30, 2002 from  $1,922,671  in the nine month period ended
November 30, 2001  commensurate  with the  reduction in revenues.  Cost of goods
includes the direct material and labor costs incurred.

     Gross  margins of 52% for the nine month  period were  basically  unchanged
from in the same period in the prior year.  Margins can vary  quarter to quarter
as a result of product mix, options and accessories purchased,  and system sales
as opposed to individual component sales.

     Engineering  expenses  decreased by  $3,603,644  (57%) to $2,676,432 in the
nine month period  ended  November  30, 2002 from  $6,280,076  in the prior year
comparable  period.  The decrease was  primarily due to the  elimination  of the
tooling  depreciation.  Depreciation  and amortization for the nine month period
ended November 30, 2002 totaled approximately $124,000 compared to approximately
$5,000,000 for the nine month period ended November 30, 2001.  Engineering  cost
also decreased due to actions taken in the first quarter of Fiscal 2003 relative
to a reduction in force.

     Selling, general and administrative (SG&A) expenses decreased to $5,809,504
in the nine month period ended  November  30, 2002 from  $7,675,279  in the nine
month period ended  November 30, 2001; a $1,865,775  (24%)  reduction.  The SG&A
expenses were lower due primarily to lower litigation  expenses incurred and due
to the  reduction in force that occurred in the first quarter of Fiscal 2003. In
addition,  sales and marketing costs were lower (or higher). Sales and marketing
costs are  expected  to  increase  in the  future.  The lower  SG&A  costs  were
partially offset by consulting  expenses recognized for the former management of
the Company in the first  quarter,  as well as the  one-time  severance  expense
recognized in the second quarter for the former CEO.

     Research and development  expense  decreased  $269,161 (40%) to $410,433 in
the nine month period ended  November  30,  2002from  $679,594 in the nine month
period ended  November 30, 2001.  In the prior year the Company had expanded its
efforts in developing  variations  of the 5 kW AuraGen`,  such as the 8.5 kW, 10
kW, 12.5 kW, and the inverter option.  In the current year, much of that initial
activity is complete,  and the headcount for the R&D staff has been reduced. The
Company  plans to continue its efforts and expend costs  relative to the AuraGen
and other proprietary intellectual property in the future.

     In the second  quarter of Fiscal  2003,  the  Company's  Board of Directors
approved  a plan to  sell  the  land  and  buildings  which  are  now  the  Aura
headquarters and operating  location.  The Company had received bona-fide offers
which indicated a significant  decrease in the market price of the assets.  As a
result,  the current market value was less than the net book value.  As the land
and  buildings are held for sale and the amount to be realized from the sale was
less than the net book value, the Company recorded an asset impairment charge of
$2,300,000 in the second quarter of Fiscal 2003. The Company  accounted for this
charge in  accordance  with  FASB No.  144  "Accounting  for the  Impairment  or
Disposal of Long-Lived Assets"; as such, the expense was recorded as part of the
loss from operations.

     In the quarter  ended  August 31, 2002,  Aura became  aware of  significant
financial  difficulties  relative to Algo  Technologies,  Inc. Aura recognized a
$700,000  impairment  charge as the  Company  concluded  there is an other  than
temporary decline in the value of Algo Technologies,  Inc. The investment is now
recorded as its estimated fair market value of approximately $500,000.

     The  Company  recorded a net gain of  $333,366  on the sale of assets and a
gain  of  $2,750,000  on the  legal  settlements  with  Excalibur  and  Deutsche
Financial  Services in the previous  year period.  There were asset sales in the
current period ending November 30, 2002 for a net gain of $12,671.

     Other  income,  net for the nine month  period  ended  November 30, 2002 of
$94,472 consists  primarily of the  reimbursement of prior period legal expenses
and lease rental income, net of the recognition of an impaired investment. Other
income and expense for the nine month period ended November 30, 2001 of $118,832
consisted primarily of settlement of accounts payable.

     Net interest  expense for the nine month  period  ended  November 30, 2002,
decreased  $824,557 (57%) to $631,263 from  $1,455,820in the current year due to
the  continuing  reduction  in the debt level of the Company.  Current  interest
income was approximately $145,000 primarily from the long-term note receivable.

     During the nine months  ended  November 30,  2001,  the Company  recognized
extraordinary  income from the extinguishment of debt obligations of $1,532,188.
There was no such extraordinary item in first nine months of Fiscal 2003.

     For the nine month period ended November 30, 2002 Aura's net loss increased
to $11,986,790 as compared to the same nine month period in the prior year which
had a net loss of $9,235,086;  an increase of $2,751,704  (30%).  If not for the
$3,000,000 of asset impairment charges recognized in first nine months of Fiscal
2003 ($2,300,000  pertaining to the valuation of the Company's owned real estate
and  $700,000  related to  investments  held),  the Company  would have posted a
slight  improvement  to its  net  loss,  primarily  due to the  cost  reductions
undertaken at the beginning of Fiscal 2003 and  reductions in  depreciation  and
interest expense.

     For the three month period ended November 30, 2002

     Net revenues for the three month period ended  November 30, 2002  increased
to $423,066 from $306,126 in the prior year quarter. This represents an increase
of $116,940 (38%) from the prior year comparable quarter. Revenues are higher in
Fiscal 2003 because of the positive impact of sales  initiatives into new market
segments  begun  earlier  in Fiscal  2003 and  because  significant  merchandise
returns experienced in the third quarter of Fiscal 2002 did not recur this year.

     Cost of goods  increased  to  $199,154  in the  three  month  period  ended
November 30, 2002 from  $168,874 in the quarter  ended  November 30, 2001 due to
the increase in net revenues noted above. Cost of goods includes only the direct
material and labor costs incurred.

     Gross margins increased to 53% in the third quarter of Fiscal 2003 from 45%
in the prior year quarter as a result of the product and customer  mix.  Margins
can vary quarter to quarter as a result of product mix,  options and accessories
purchased, and system sales.

     Engineering  expenses  decreased by $944,661 (55%) to $782,417 in the three
month period ended November 30, 2002 from  $1,727,078 in the prior year quarter.
The decrease was primarily due to the  elimination of the tooling  depreciation.
Depreciation and amortization for the three month period ended November 30, 2002
totaled approximately $40,000 compared to approximately $1,700,000 for the three
month period ended  November  30, 2001.  The lower costs in the current  quarter
also reflect the benefit of the  reduction  in force that  occurred in the first
quarter of Fiscal 2003.

     SG&A  expenses  decreased  to  $1,540,660  in the three month  period ended
November 30, 2002 from  $2,113,016 in the three month period ended  November 30,
2001; a reduction of $572,356 (27%).  The SG&A expenses were lower due primarily
to lower litigation  expenses  incurred.  The lower costs in the current quarter
also reflect the benefit of the  reduction  in force that  occurred in the first
quarter of Fiscal 2003. In addition, sales and marketing costs were lower in the
current year quarter.  Sales and marketing costs are expected to increase in the
future.

     Research and development expense decreased $35,911 (21%) to $132,474 in the
three month  period  ended  November  30, 2002 from  $168,385 in the three month
period ended  November 30, 2001.  In the prior year the Company had expanded its
efforts in developing variations of the 5 kW AuraGen, such as the 8.5 kW, 10 kW,
12.5 kW, and the  inverter  option.  In the current  year,  much of that initial
activity is complete,  and the headcount for the R&D staff has been reduced. The
Company plans to continue its efforts and expend costs  relative the AuraGen and
other proprietary intellectual property in the future.

     The  Company  recorded  a net loss of  $65,823 on the sale of assets in the
third  quarter  of Fiscal  2002 and had no asset  sales in the third  quarter of
Fiscal 2003.  The Company  recorded a $2,000,000  gain related to the  Excalibur
settlement in the three month period ended  November 30, 2001 while there was no
similar transaction in the three month period ended November 30, 2002.

     Net interest  expense for the three month  period  ended  November 30, 2002
decreased  $456,772  (74%) to $163,273 in the third  quarter of Fiscal 2003 from
$620,045 in the same quarter of the prior year due to the  continuing  reduction
in the debt level of the Company.  Current  interest  income for the quarter was
approximately $42,000 primarily from the long-term note receivable.

     The net loss for the three  months ended  November 30, 2002 was  $2,334,550
compared to a net loss of  $1,094,577  for the same period in the prior year; an
increase of  $1,239,973  (113%).  Excluding the impact of the  $2,000,000  legal
settlement  gain recorded in the third quarter of Fiscal 2002,  the net loss for
the third quarter of Fiscal 2003 would have improved by  approximately  $900,000
primarily due to the cost reductions  undertaken at the beginning of Fiscal 2003
and reductions in depreciation and interest

     Financial Position, Liquidity and Capital Resources

     The Company continues to experience acute liquidity challenges. At November
30,  2002,  the  Company  had cash of  $76,772  as  compared  to a cash level of
$1,143,396 at February 28, 2002. For the nine months ended November 30, 2002 and
the  year  ended  February  28,  2002,  the  Company  incurred  a  net  loss  of
approximately  $12,000,000  and  $24,900,000,  respectively,  on net revenues of
approximately  $900,000 and  $3,100,000,  respectively.  The Company had working
capital  deficiencies  at November 30, and  February  28, 2002 of  approximately
$5,300,000 and $2,500,000,  respectively.  These  conditions  raise  substantial
doubt about the Company's  ability to continue as a going  concern.  The Company
requires  additional debt or equity financing to fund ongoing  operations in its
fiscal year ending February 28, 2003 ("Fiscal 2003").  The Company is seeking to
raise additional  capital;  however,  there can be no assurance that the Company
will raise  sufficient  capital to fund ongoing  operations in Fiscal 2003.  The
issuance of additional  shares of equity in connection with such financing could
dilute the interests of existing  stockholders of the Company.  The inability to
secure  additional  funding could have a material adverse effect on the Company,
including the possibility that the Company could have to cease operations.

     In the nine months  ended  November 30, 2002,  the Company  received  gross
proceeds  of  $5,694,001  from the sale of  42,623,907  shares of the  Company's
Common Stock. The Company also satisfied liabilities and contractual obligations
of  approximately  $169,740  through the  issuance  of 659,175  shares of Common
Stock.

     In the second and third  quarters  of Fiscal  2003,  the  Company  received
$1,750,000 from two significant  shareholders in the form of convertible  notes.
The notes are due 180 days from their  issuance and carry an interest rate of 8%
due at maturity.  Upon equity funding of at least  $2,000,000 prior to maturity,
the notes and  accrued  interest  are  convertible  at  $0.07-$0.11  per  share,
respectively, or the average equity sale rate, whichever is less.

     On December 1, 2002, the Company  consummated  the initial closing under an
Agreement for Sale and Leaseback,  with a group of individuals pursuant to which
the Company  agreed to sell its Aura Realty,  Inc.  subsidiary to Purchasers and
enter into a new 10-year lease of the  properties  owned by Aura Realty.  Net of
the principal  balance of the mortgage  note to be assumed by the  Purchasers of
approximately  $5,083,000,  certain security  deposits and prepayments  totaling
$564,000,  the partial  payment of past due amounts owed to the  Consultants  of
approximately  $135,000 and Purchasers'  fees of $105,000,  the Company received
approximately $1,463,000; $878,750 of this amount was advanced to the Company by
the Purchasers during the third quarter of Fiscal 2003.  Additionally during the
third  quarter  of Fiscal  2003,  the  Purchasers  purchased  21,366,347  of the
Company's  common  shares for  $1,493,000 at an average price of $0.07 per share
under  the  Agreement.  (See  Note 9 to  the  Company's  Condensed  Consolidated
Financial Statements)

     On December 30, 2002, the Company received $500,000 from a current investor
in exchange for a demand note, bearing interest at 5% per annum.

     The cash flow generated from the Company's  operations to date has not been
sufficient to fund its working  capital  needs,  and the Company does not expect
that operating cash flow will be sufficient to fund its working capital needs in
the  remainder of Fiscal 2003 and Fiscal 2004.  The Company  expects to fund the
operating  cash  shortfall  in the  current  fiscal year from a  combination  of
increased  revenues,  monetization  of under  utilized  assets,  and third party
financings  such as the  Convertible  Preferred.  Currently,  the Company has no
commitments from third parties to provide additional financing.  The Company has
no assurances  that third party funding will be available at the times or in the
amounts  required.  If  financings  involve the  issuance of equity  securities,
existing  stockholders  are likely to suffer dilution in net tangible book value
per share. The Company is limited to issuing  500,000,000 shares of Common Stock
and 10,000,000 shares of preferred stock unless and until  shareholders  approve
the  authorization  of  additional  shares.  As of January  8, 2003,  there were
430,973,150  common  shares  outstanding  and common  shares  required for stock
options,  warrants,  and  convertible  notes  outstanding  exceed  the amount of
unissued authorized shares.

     The limited  availability of funds and sources of raising  additional funds
could have a material  adverse  effect on the  Company's  financial  statements,
results of operations and its ability to continue its operations.

     Certain persons to whom Aura has  outstanding  financial  obligations  have
recently taken measures to enforce their claims against Aura, such as seeking or
obtaining judgments against Aura. Although only three such outstanding financial
obligations  are the subject of a material legal  proceeding  (see Note 7 to the
Company's  Condensed   Consolidated  Financial  Statements  appearing  elsewhere
herein), Aura believes that the taking of such measures by such persons may be a
trend that could continue in the future. Aura does not currently have sufficient
liquidity to satisfy all such outstanding  financial  obligations,  and measures
taken by such  persons  could  materially  and  adversely  affect our ability to
operate in the best interests of stockholders.


     Forward Looking Statements

     The Company  wishes to caution  readers  that  important  factors,  in some
cases,  have  affected,  and in the future could affect,  the  Company's  actual
results and could cause the Company's actual consolidated  results for the third
quarter of Fiscal 2003, and beyond, to differ materially from those expressed in
any forward-looking statements made by, or on behalf of the Company.

     Such  factors  include,  but are not  limited to, the  following  risks and
contingencies:  the Company's  on-going  liquidity  concerns;  changed  business
conditions in the  industries  targeted by the Company and the overall  economy;
increased  marketing  and  manufacturing   competition  and  accompanying  price
pressures;  inefficiencies,  delays and increased  costs in connection  with the
start of production and expansions.

     Relating  to  the  above  are  potential  difficulties  or  delays  in  the
development,  production,  testing and marketing of products, including, but not
limited to, a failure to ship new products and  technologies  when  anticipated.
Manufacturing  economies  may fail to  develop  when  planned,  products  may be
defective and/or customers may fail to accept them in the marketplace.

     In  addition  to the  above,  risks and  contingencies  may exist as to the
amount and rate of growth in the Company's  selling,  general and administrative
expenses,  and the impact of unusual items resulting from the Company's on-going
evaluation  of its business  strategies,  asset  valuations  and  organizational
structures.  The possibility of a single large system order to the Company could
entail fluctuating results from quarter to quarter.

     The effects of, and changes in, trade,  monetary and fiscal policies,  laws
and  regulations,   other  activities  of  governments,   agencies  and  similar
organizations,  and social and economic  conditions,  such as trade restrictions
impose yet other constraints on any company statements.  The events of September
11,  2001 and advent of a war on  terrorism  may or may not impact  sales in the
mobile power  business.  The cost and other effects of legal and  administrative
cases  and  proceedings  present  another  factor  which  may or may not have an
impact.


ITEM 4        Controls and Procedures

     (a) The Company's chief executive officer and its chief financial  officer,
after  evaluating the  effectiveness  of the Company's  disclosure  controls and
procedures (as defined in Exchange Act Rules  13a-14(c) and  15-d-14(c)) as of a
date within 90 days of the filing date of this quarterly report (the "Evaluation
Date") have concluded that as of the Evaluation  Date, the Company's  disclosure
controls and  procedures  were  adequate and  effective to ensure that  material
information  relating to the Company and its consolidated  subsidiaries would be
made known to them timely by others within those entities.

     (b) There were no significant changes in the Company's internal controls or
in other  factors  that  could  significantly  affect the  Company's  disclosure
controls and procedures  subsequent to the  Evaluation  Date, nor were there any
significant  deficiencies or material weaknesses in such disclosure controls and
procedures requiring corrective actions. As a result, no corrective actions were
taken.



PART II - OTHER INFORMATION


ITEM 1    Legal Proceedings

          Creditor Litigation

          Barovich/Chiau  et. al. v. Aura  Systems,  Inc.  et. al.  (Case No. CV
     -95-3295).  As  previously  reported in its Fiscal 2000 report on Form 10K,
     the Company  settled  shareholder  litigation in the  referenced  matter in
     January,  1999. On November 20, 1999,  the parties  entered into an Amended
     Stipulation  of  Settlement,  providing  that the Company  make  payment of
     $2,260,000  (plus  interest) in thirty-six  equal monthly  installments  of
     $70,350.  On October 22, 2002, after the Company had failed to make certain
     monthly  payments,  Plaintiffs  applied for and obtained a judgment against
     the Company for $935,350,  representing the balance due with respect to the
     original principal amount of $2,260,000.  The Company has subsequently made
     two monthly payments of $70,350 each,  reducing the amount owed to $794,650
     (plus  interest).  The  Company  has  made  appropriate  provisions  in its
     financial statements to fully reflect this liability.

          Frankston v. Aura  Systems,  Inc.,  et. al. (CV 91-6232 LGB). In 1991,
     Michael  Frankston brought the referenced civil action in the United States
     District Court for the Central District of California  against the Company,
     its founding management members who are no longer employees of the Company,
     and two of its former  subsidiaries.  The  substance of the suit  concerned
     approximately 40,000 shares of Aura Common Stock and Mr. Frankston's claims
     of  intentional  and  negligent  conduct  in  connection  with the  shares.
     Following a trial in 1997,  a jury awarded  damages  against the Company of
     $61,000,  and  against  its  former  subsidiaries   Innovative  Information
     Systems,  Inc. ($7,833) and Cypher Master,  Inc.  ($156,200).  The Company,
     following an appeal,  paid to Mr.  Frankston its portion of the judgment in
     full.  Mr.  Frankston in March of 2000 moved to amend the judgments to make
     the Company liable for the damages awarded against the former subsidiaries.
     Mr.  Frankston's  motion and other related motions were denied by the trial
     court.  The Ninth Circuit reversed and remanded the matter in May, 2002 and
     on September  27, 2002 the trial court issued an order  holding the Company
     liable for the judgments  against its former  subsidiaries.  Plaintiff then
     moved on December  2, 2002 for an order  Assigning  Rights and  Authorizing
     Levy in Aid of Execution.  The trial court granted on December 20, 2002 the
     order on the  assignment  of rights but not the levy.  The Company has made
     appropriate  provisions in its  financial  statements to fully reflect this
     liability.

          Waltco Engineering Co. v. Aura Systems,  Inc. et. al.  (YC045396).  On
     December 11, 2002,  Plaintiff,  Walto Engineering Co.  ("Waltco"),  filed a
     suit in California  Superior Court for Breach of Written  Agreement against
     the Company and related  common  counts.  Waltco  asserted that the Company
     breached  the  terms  of  a  payment  plan.   Waltco  claimed   damages  of
     $283,296.41.  On December 20, 2002,  Waltco made an offer of settlement for
     $182,000.  The Company has made  appropriate  provisions  in its  financial
     statements to fully reflect its estimated liability in this case.

          Other Legal Action

          The Company is also engaged in other legal actions.  In the opinion of
     management,  the  ultimate  resolution  of  these  matters  will not have a
     material adverse effect on its financial statements.






ITEM 2    Changes in Securities

          During the three months ended November 30, 2002, the Company conducted
     a  private  offering  to a group of  accredited  investors  for the sale of
     21,366,347 shares of Common Stock for total gross proceeds of approximately
     $1,493,000.  The Company also issued $1,000,000 of convertible notes. These
     convertible  notes payable are due at six month maturity dates in March and
     April 2003.  Interest accrues at 8% simple interest due in arrears. If Aura
     receives  equity  funding  for an  amount of at least  $2,000,000  prior to
     maturity  date,  the notes will  convert  mandatorily  into Common Stock at
     contractual conversion rates of $0.07 - $0.11 per share,  respectively,  or
     the average of the new equity sale rate, whichever is less.

          All  of the  foregoing  transactions  were  exempt  from  registration
     pursuant to Section 4(2) of the Securities  Act of 1933 as these  offerings
     were a private placement to a limited number of accredited investors.


ITEM 6   Exhibits and Reports on Form 8-K

         a)    Exhibits:

          10.34   Convertible Notes Term Sheets

          10.34.1 Convertible Note Term Sheet dated July 10, 2002

          10.34.2 Convertible Note Term Sheet dated August 7, 2002

          10.34.3 Convertible Note Term Sheet dated September 6, 2002

          10.34.4 Convertible Note Term Sheet dated September 17, 2002

          10.34.5 Convertible Note Term Sheet dated October 8, 2002

          10.34.6 Convertible Note Term Sheet dated October 17, 2002

          99.1 -  Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

          99.2 -  Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


         b)    Reports on Form 8-K:

               Form 8-K dated December 1, 2002,  reporting sale and leaseback of
               the Company's facilities



<PAGE>




                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                                 AURA SYSTEMS, INC.
                                  ----------------------------------------------
                                                    (Registrant)



Date:  January 14, 2003   By:    /s/David A. Rescino
      -------------------        -----------------------------------------------
                                             David A. Rescino
                                          Senior Vice President
                                         Chief Financial Officer
                                 (Principal Financial and Accounting Officer
                                        and Duly Authorized Officer)



<PAGE>





                                  CERTIFICATION

I, Neal F. Meehan,  Chairman and Chief Executive Officer of Aura Systems,  Inc.,
certify that:

1.   I have reviewed this  quarterly  report on Form 10-Q of Aura Systems,  Inc.
     and,

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities, particularly during the period in which this report is being
          prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of the registrant's board of directors (or persons performing the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

                               /s/ Neal F. Meehan
                               -------------------
                                 Neal F. Meehan
                       Chairman & Chief Executive Officer
                                January 14, 2003
<PAGE>
                                  CERTIFICATION

I, David A. Rescino,  Chief  Financial  Officer of Aura Systems,  Inc.,  certify
that:

1.   I have reviewed this  quarterly  report on Form 10-Q of Aura Systems,  Inc.
     and,

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities, particularly during the period in which this report is being
          prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of the registrant's board of directors (or persons performing the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     report whether or not there were significant  changes in internal  controls
     or in other  factors  that could  significantly  affect  internal  controls
     subsequent  to the  date  of our  most  recent  evaluation,  including  any
     corrective  actions with regard to  significant  deficiencies  and material
     weaknesses.

                              /s/ David A. Rescino
                              ---------------------
                                David A. Rescino
                             Chief Financial Officer
                                January 14, 2003



<PAGE>


EXHIBIT 99.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aura Systems, Inc. (the "Company") on
Form 10-Q for the period ending  November 30, 2002 as filed with the  Securities
and Exchange  Commission on the date hereof (the  "Report"),  I, Neal F. Meehan,
Chairman and Chief  Executive  Officer of the Company,  certify,  pursuant to 18
U.S.C.  Section 1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley
Act of 2002, to my knowledge:

1.   The Report fully complies with the  requirements  of section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

2.   The information  contained in the Report fairly  presents,  in all material
     respects,  the financial condition and results of operations of the Company
     for the periods indicated.

                               /s/ Neal F. Meehan
                               -------------------
                                 Neal F. Meehan
                       Chairman & Chief Executive Officer
                                January 14, 2003



EXHIBIT 99.2

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Aura Systems, Inc. (the "Company") on
Form 10-Q for the period ending  November 30, 2002 as filed with the  Securities
and Exchange Commission on the date hereof (the "Report"),  I, David A. Rescino,
Chief Financial Officer of the Company,  certify,  pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley  Act of 2002, to
my knowledge:

1.   The Report fully complies with the  requirements  of section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

2.   The information  contained in the Report fairly  presents,  in all material
     respects,  the financial condition and results of operations of the Company
     for the periods indicated.

                              /s/ David A. Rescino
                              ---------------------
                                David A. Rescino
                             Chief Financial Officer
                                January 14, 2003