UITA Utilicraft Aerospace Industries Inc (CE)

Freight Feeder Aircraft Corporation announced today that it has purchased the Freight Feeder aircraft technology and related assets from Utilicraft Aerospace Industries, Inc. (OTC BB: UITA). The transaction has a potential value to UITA of approximately $400 million in future royalties and future Freight Feeder Aircraft Corporation stock value received by UITA in this transaction -- subject to the Freight Feeder aircraft program reaching the production phase. On December 12, 2007, Utilicraft Aerospace Industries, Inc., filed a Form 8K with the Securities and Exchange Commission announcing that with the approval of fifteen (15) UITA shareholders owning approximately 62.53% of UITA�s common stock and its Board of Directors, entered into an Asset Purchase Agreement with Freight Feeder Aircraft Corporation (a newly formed private development company), to sell all of UITA�s technology and assets for the purchase price consisting of the following: Common stock. Fifteen Million Two Hundred Fifty Thousand (15,250,000) shares of Freight Feeder Aircraft Corporation common stock, representing approximately 25% of Freight Feeder Aircraft Corporation�s initial capitalization, Warrants. Warrants for 30,500,000 shares of Freight Feeder Aircraft Corporation�s common stock, with a strike price of US$1.00 per share and a term of 5 (five) years from first-flight. Royalty. Cash payments in the form of a 1% Royalty of the Gross aircraft sales recorded by Freight Feeder Aircraft Corporation in accordance with generally accepted accounting principles, less profit, commissions, royalties and mark-up on Freight Feeder aircraft number 51 to aircraft number 2,051 that are eventually produced and delivered by Freight Feeder Aircraft Corporation. Assumed liabilities. Freight Feeder Aircraft Corporation has assumed liabilities of UITA in the amount of $2,755,907. David Bridges, Managing Director of Freight Feeder Aircraft Corporation stated, �In the interest of the UITA shareholders and the continued development of the Freight Feeder aircraft program, and because of the difficulties in providing funding to the program primarily because of undisciplined shareholder selling resulting in a decreasing share price which, in turn, has hindered UITA�s ability to attract capital (including the former PacifiCorp program and the more recent CapNet program), The 1080 Group (who is also the founding investor of Utilicraft Aerospace Industries, Inc.) has recently formed FREIGHT FEEDER AIRCRAFT CORPORATION for the purpose of providing the capability of exploring more attractive funding opportunities for the development of the Utilicraft Freight Feeder aircraft program.� �We have been and are very pleased with UITA Management�s continued efforts to bring value to their investors and shareholders, and with the quality program that they have developed thus far in their on-going efforts to bring the Freight Feeder aircraft to market,� stated Bridges. The 1080 Group owners are majority shareholders of UITA�s common stock, and have invested in excess of $5 million into UITA�s business, to date, which represents approximately 98% of the capital investment in UITA since its inception. John J. Dupont, President-CEO of UITA stated, �Along with its continued growth in conjunction with Freight Feeder Aircraft Corporation�s development of the aircraft program, UITA will continue business operations, and expects to continue to add to its asset base with the strategic development of other aerospace related technologies. We are very excited about this transaction that relieves UITA of debt and the capital requirement efforts to complete the program while still enjoying the potential of enormous profits, for the Company and our shareholders, as the aircraft program goes forward.� �We are also grateful for the 'leadership-role' that the majority shareholders of UITA have taken, and look forward to a successful and long-term prosperous relationship along-side the Freight Feeder Aircraft Corporation,� Dupont added. Current management will continue to develop and manage the aircraft design and engineering, the prototype development, and eventual certification and production programs for Freight Feeder Aircraft Corporation under employment agreements with that company. Forward Looking Statements This press release contains �forward-looking� statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release involve risks and uncertainties and reflect the company�s current views with respect to possible future events. Readers are cautioned that no forward-looking statement can be guaranteed and actual results or events may materially differ from those projected or anticipated. In particular, the following factors, among others, could cause actual results or events to differ materially from those described in the forward-looking statements: the company�s ability to obtain and fulfill contracts for the sale of products, protect intellectual property rights and manage future growth; market acceptance of future products; product supplier delays; design and engineering certification delays or denials; and the introduction of similar products by competitors. Any forward-looking statement made in this press release is made as of the date of this press release, and the company assumes no obligation to update any such forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect the company�s business. For more information on Freight Feeder Aircraft Corporation, please visit: www.freightfeeder.com.