ALBUQUERQUE, N.M., Jul 07, 2008 (BUSINESS WIRE) ----Freight Feeder Aircraft Corporation (a U.S. private corporation 25% owned by Utilicraft Aerospace Industries, Inc. (OTCBB:UITA)) announced today that the company has entered into a Letter of Intent with MK Airlines, the British-based all-cargo carrier, for the purchase of 10 (ten) FF5000 Freight Feeder Aircraft, with an option to purchase an additional 5 (Five).
Mike Kruger, CEO of MK Airlines stated, "The Freight Feeder Aircraft could play an important role in the future development of an air cargo industry that is already short of competitive and cost-effective airframe capacity. Its use of state-of-art technology makes the FF5000 regional container aircraft an innovative option for us to select and MK Airlines is delighted to sign this agreement as the first European airline to commit to this project and to help launch the aircraft into the global market."
John J. Dupont, President and CEO of Freight Feeder Aircraft Corporation stated, "We are very pleased with MK Airlines' decision to enter into an LOI for FF5000 aircraft for its UK cargo airline operations, and for its commitment in helping the FF5000 come to market in the European, and global marketplace. We are looking forward to a long-term mutually beneficial relationship with MK Airlines as one of our valuable launch customers, as we continue to develop the FF5000 and bring it into production."
Officials of both Freight Feeder Aircraft Corporation and MK Airlines plan to meet within the year to complete the final negotiations. The purchase order will become finalized upon "first flight" of the FF5000 Prototype currently under construction. The planned completion of the FF5000 Prototype Aircraft is in the spring of 2009.
About MK Airlines:
MK Airlines was originally established in 1990 in Ghana and served a number of African routes, is now a UK based airline operating a fleet of Boeing 747 freighter aircraft. It is the largest dedicated cargo airline in the UK and the 21st largest cargo airline in the world as measured by freight carried. MK has developed niche routes into Europe from the emerging markets of Africa, China, India and South America establishing key long term relationships with its customer base. In many cases MK is integral to the supply logistics chain given that the cargoes it carries are perishable or high value.
The airline is headquartered in Sussex, near Gatwick, with 49,000 sq ft of office and engine maintenance facilities and ample room for expansion. In August 2006 the airline was granted its Aircraft Operating Certificate and Operating and Route licenses by the CAA. This was a major watershed in the history of MK and is of huge significance in a highly regulated market place.
The business has generated significant revenues in recent years with annual growth of approximately 15% driven by the efforts of the Company's strong management team lead by founder and CEO, Mike Kruger. The development of long-term relationships, understanding client needs and planning niche routes and schedules to meet client requirements are the hallmark of MK Airlines.
About Freight Feeder Aircraft Corporation
Freight Feeder Aircraft Corporation is a U.S. private corporation registered in the State of Wyoming. In December 2007, Freight Feeder Aircraft Corporation acquired the Freight Feeder aircraft technology and development program form Utilicraft Aerospace Industries, Inc., (OTCBB: UITA) which included the aircraft design, related intellectual property, patents, and developed hardware and software including a mockup aircraft, and fuselage tooling - with the intention of completing the development of the aircraft project, and to bring the Freight Feeder aircraft into commercial production for global sales into the freight aircraft market.
The Freight Feeder aircraft - now designated the FF5000 by the Company - is specifically designed to address a niche segment of the global air freight market, specifically the need for a new and updated state-of-the-art effective containerized freight feed air transportation system requiring the development and implementation of a new regional-sized-container-capable turboprop-aircraft, specifically designed to economically transport containerized/palletized air shipments to and from regional manufacturing and freight distribution facilities (located in smaller communities) to and from the major international hub airports - world-wide. On December 12, 2007, Utilicraft Aerospace Industries, Inc., filed a Form 8K with the Securities and Exchange Commission; (See details of the transaction in the UITA 8K filed on December 12, 2007)
For more information on Freight Feeder Aircraft Corporation and the FF5000 Aircraft, please visit:
Freight Feeder Aircraft
About Utilicraft Aerospace Industries, Inc (OTCBB:UITA)
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 to sell all of UITA's technology and assets to Freight Feeder Aircraft Corporation for a 25% equity position in Freight Feeder Aircraft and warrants for shares of Freight Feeder Aircraft Corporation's common stock, and a 1% Royalty of aircraft sales that are eventually produced and delivered by Freight Feeder Aircraft Corporation. 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. (See details of the transaction in the UITA 8K filed on December 12, 2007)
Since the strategic sale of its Freight Feeder aircraft technology in December of 2007 to Freight Feeder Aircraft Corporation, the Company is now focusing its 2008 business-plan development efforts to actively seeking new strategic aerospace products for development, particularly related to the enhancement of the Freight Feeder aircraft in the air-cargo markets worldwide - to continue to build the asset base, to develop cash-flow, and to continue to build shareholder value.
For more on Utilicraft Aerospace Industries, Inc, please visit:
www.utilicraft.com
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.
SOURCE: Utilicraft Aerospace Industries, Inc.