The main objective of the Phase II program is to build and test two high speed VTOL-UAV prototypes based on the Aircraft with Circular Rotating Wind (ACRW) concept. Prior to assembling the air vehicle Bostan Research, Inc. will conduct a detail design and performance analysis, wind tunnel tests, stability and control analysis, structural analysis and will test extensively Phase I models in free flight. Bostan Research, Inc. will purchase the components, build, assemble and shop test the air vehicles. The air vehicles will be tested on the ground and in free flight by AAI Corp. in conjunction with Bostan Research, Inc. Based on the Phase Ii work Bostan Research, Inc. will produce a detail ACRW UAV design and the theory that will predict its characteristics. The ACRW UAV free flight tests provide the most efficient and cost effective means in evaluating the aircraft characteristics throughout its flight envelope. At the completion of Phase II work Bostan Research, Inc. will integrate the ACRW UAV into an existing, operational, UAV system and propose a complete high speed VTOL UAV system to be built and tested during Phase III program. The proposed Model A is a high speed VTOL with CTOL capabilities. Model C has VTOL capabilities only. They are designed to operate safely and efficiently from available deck space on small surface combatants and from small clearings with little or no surface preparation before use. The ACRW UAV design ensures the safety and protection of operating personnel and nearby equipment, as demonstrated during Phase I free flight tests. Circular rotating wing provides in flight gyroscopic stability and as a result the gimbal stabilization equipment requirements for on board sensors will be minimized. Model A has 370 pounds gross takeoff weight, 100 pound useful payload capability, 152 knots cruise speed and 8.9 hours endurance. Model C is a low cost high speed VTOL UAV and has 210 pounds takeoff weight, 50 pounds useful payload, 160 knots cruise speed and 2 hours enduranc