Similar in many respects, construction of the AM-DSII was started in February 1986, it first flew in July 1986 and was subsequently exhibited at Oshkosh 1986 to test the market for production in kit form. Construction of the pilot's module of the AM-DSII was made of Kevlar for resistance to ground fire and crash damage, as well as for low radar signature, and was fully enclosed by a large one-piece transparent canopy. The seat was molded integrally with the shell of this module. It had a non-retractable tail wheel landing gear, and a single fuel tank with a capacity of 25 gal (95 l).
Power plant was a 54 hp Rotax 503 two-cylinder two-stroke engine, driving a unique Competition Aircraft plastic six-blade fixed-pitch SCAT (system for compact axial thrust) pusher propeller which turns around the tail boom via a 3:1 reduction gearing. In the prototype, this was of large diameter slow-turning type; but blades of different form could be fitted as required. The standard plug-in wings with auxiliary airfoil flaperons could be replaced with longer span wings for soaring. A more powerful engine could be used with the standard wings for aerobatics.
Construction of two pre-production AM-DSIIs was started in January 1987."