A prototype of a low cost Adaptive Optics (AO) system has been developed at the Instituto de Astrofisica de Andalucia (CSIC) and tested at the 2.2m telescope of the Calar Alto observatory. We present here the status of the project, which includes the image stabilization system and compensation of high order wavefront aberrations with a membrane deformable mirror. The image stabilization system consists of magnet driven tip-tilt mirror. The higher order compensation system comprises of a Shack-Hartmann sensor, a membrane deformable mirror with 39 actuators and the control computer that allows operations up to 420Hz in closed loop mode. We have successfully closed the high order AO loop on natural guide stars. An improvement of 4 times in terms of FWHM was achieved. The description and the results obtained on the sky are presented in this paper.