For those of you that have joined our mailing list since our last update in November 2006, you can view previous newsletters online at www.terrafugia.com/news.

This newsletter is sent out periodically to keep you updated on our progress toward delivery of the Transition personal air vehicle, or roadable aircraft, with both technical and non-technical news and events.

If you have any questions about Terrafugia or the Transition, please feel free to send us an email at info@terrafugia.com.

To reserve your airframe number today, visit www.terrafugia.com/deposit.html or contact us at sales@terrafugia.com.

Thank you for your continued interest,

- The Terrafugia Team

A survey for both pilots and non-pilots is now available through the Terrafugia homepage: http://www.terrafugia.com (look for the image on the bottom right).  Your answers will help ensure that were providing the aviation community with the solution you need.  Thank you!

On December 21, 2006, Terrafugia officially closed its first round of external financing, an angel round, that will be used for further development of the Transition design and prototype. This event marked a significant milestone for the Terrafugia Team and the future of general aviation.  CEO Carl Dietrich made a few remarks at the document signing ceremony and closing celebration:

"The Transition is the first truly practical roadable-aircraft. [...] Evidence for the successful targeting of our product is rapidly emerging as our order book grows and the buzz surrounding the Transitions development builds. This is a clear recipe for a general aviation revolution, and Terrafugia will be at the center of it. The next few years will be marked with milestones like this as Terrafugia continues to lay new ground in the aviation industry. I look forward to working with all of you as we literally and figuratively 'make the Transition.' "

Terrafugia wishes to thank Goodwin Procter LLP (http://www.goodwinprocter.com/) and the MIT Entrepreneurship Center (http://entrepreneurship.mit.edu/) for their involvement and support with this process.

2009 Production Sold Out

We are pleased to announce that all of our anticipated delivery capability for 2009 has been reserved, and projected 2010 deliveries are beginning to be filled.  You can reserve your Transition airframe number today by emailing sales@terrafugia.com or simply following the deposit reservation instructions at http://www.terrafugia.com/deposit.html.  You get the advantage of securing your place in line while your refundable deposit is held in an interest-bearing escrow account.  The line will only get longer, so act now!

Terrafugia recently represented entrepreneurship in the United States at the Powerful Ideas Summit, held at the end of last month in Valencia, Spain.  It was a high-energy event with speakers from around the US and Europe.  Upcoming events include the FAA Airports Division, Southwest Region in Texas in March and Northwest Mountain Region Annual Conferences in Seattle in April, and, of course, EAA AirVenture the last week of July 2007 in Oshkosh, WI.  We're also participating in the SAE AeroTech Congress and Exhibition this September in Los Angeles, CA.  More information and links to the conference websites can be found on our events page: http://www.terrafugia.com/events.html. Also be sure to check there periodically as we add engagements to the calendar.

If you would like to arrange for someone from Terrafugia to speak at your meeting or event, please let us know by emailing info@terrafugia.com.