Business Description

Butler National Corporation (“Butler National”, the “Company”, “we”, “us”, or “our”) was incorporated in 1960. Our companies design, engineer, manufacture, sell, integrate, install, repair, modify, overhaul, service and distribute a broad portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies and systems (“Aerospace Products”). We serve a broad, worldwide spectrum of the aviation industry, including owners of aircraft and contractors involved with private, commercial, business, and government aircraft operations. We also serve commercial weapon manufacturers and suppliers to governments and their agencies. In addition, our companies provide management services in the gaming industry, which includes owning the land and building for the Boot Hill Casino and Resort in Dodge City, Kansas (“Professional Services”). Products and Services The Company has two operating segments for financial reporting purposes: (a) Aerospace Products, whose companies’ revenues are derived from system design, engineering, manufacturing, sale, distribution, integration, installation, repairing, modifying, overhauling and servicing of aerostructures, avionics, aircraft components, accessories, subassemblies and systems; and (b) Professional Services, whose companies provide professional management services in the traditional gaming industry and in sports wagering. Aerospace Products. The Aerospace Products segment includes the design, manufacture, sale and service of structural modifications, design, integration and installation of electronic equipment, systems and technologies that enhance aircraft operations, and the design, manufacture and sale of commercial controls, cabling and defense related articles. Additionally, we operate Federal Aviation Administration (the “FAA”) Repair Stations. Companies in Aerospace Products concentrate on products and services for Learjet, Textron Beechcraft King Air, and Textron Cessna turboprop aircraft. Products . The aviation-related products that the companies within this group design, engineer, manufacture, integrate, install, repair and/or service include: • Aerial surveillance products • Navigation / flight display installations • Aerodynamic enhancement products • Crew work stations • Airplane range extension products • Electrical power systems and switching equipment • Avcon stability enhancing fins • Enlarged aircraft doors • Airplane nose extension products • Powered airplane sensor lifts • Cargo/sensor carrying pods and radomes • Provisions to allow carrying of external stores • Fuel system protection devices • Specialized cabling and harnesses 5 Table of Contents Modifications . The companies in Aerospace Products have authority, pursuant to Federal Aviation Administration Supplemental Type Certificates (“STCs”) and Parts Manufacturer Approval (“PMA”), to build required parts and subassemblies and to make applicable installations. Companies in Aerospace Products perform modifications in the aviation industry including: • Aerial photograph capabilities • Extended range fuel tanks • Aerodynamic improvements • Radar systems • Avionics systems • ISR – Intelligence Surveillance Reconnaissance • Cargo or expanded-sized doors • Special mission modifications • Search and rescue • Target towing capability • Airborne research capability • Electrical systems integration Special Mission Electronics. We supply defense-related, commercial off-the-shelf products to various commercial entities and government agencies and subcontractors in order to update or extend the useful life of systems. These products include: • Cabling • HangFire Override Modules • Electronic control systems • Test equipment • Gun Control Units for Apache and Blackhawk helicopters • Gun Control Units for land and sea based military vehicles Professional Services. The Professional Services segment includes the management of a gaming and related dining and entertainment facility in Dodge City, Kansas. Boot Hill Casino and Resort features approximately 500 slot machines, 15 table games, a restaurant and a sportsbook. Boot Hill . Butler National Service Corporation (“BNSC”), and BHCMC, LLC (“BHCMC”), companies in Professional Services, manage The Boot Hill Casino and Resort in Dodge City, Kansas (“Boot Hill”) pursuant to the Lottery Gaming Facility Management Contract, by and among BNSC, BHCMC and the Kansas Lottery, as subsequently amended (“Boot Hill Agreement”).…