CLEARWATER, Fla. – July 1, 2009 -- Avantair, Inc. (OTCBB: AAIR), the only publicly traded stand-alone private aircraft operator and the sole North American provider of fractional shares and flight hour time cards in the Piaggio Avanti aircraft, today announced that it closed an initial tranche of a PIPE (Private Investment in a Public Entity) financing on Tuesday, June 30th for gross proceeds of approximately $1.4 million. Avantair intends to use the net proceeds from this financing transaction for working capital and general corporate purposes.

Under the terms of the offering, Avantair sold 567,200 Units at $2.50 per Unit to investors. Each Unit consists of two common shares of stock and one warrant to purchase one common share. The warrants have an exercise price of $4.00 per share and are exercisable until June 30, 2012. The initial tranche was consummated under the terms of a securities purchase agreement between Avantair and each of the investors. Avantair has agreed to register the shares issued to the investors and the shares underlying the warrants issued to the investors for resale under the Securities Act of 1933, as amended. The Company expects to close any additional sales of Units in the offering by July 31, 2009.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.

About Avantair
Avantair, the only publicly traded stand-alone private aircraft operator and the sole North American provider of fractional shares and flight hour time cards in the Piaggio Avanti aircraft, is headquartered in Clearwater, FL, with over 400 employees. The Company offers private travel solutions for individuals and businesses traveling within its service area, which includes the continental United States, Canada, the Caribbean and Mexico, at a fraction of the cost of whole aircraft ownership. The Company currently manages a fleet of 53 aircraft, with another 56 Piaggio Avanti aircraft on order through 2013. For more information about Avantair, please visit: http://www.avantair.com .