SOURCE: Utilicraft Aerospace Industries, Inc.

January 31, 2008 10:00 ET

/ CORRECTION - Utilicraft Aerospace Industries, Inc.

ALBUQUERQUE, NM--(Marketwire - January 31, 2008) - In the news release, "$260 Million CapNet Securities Engagement Agreement for FF5000 Aircraft Development," issued Wednesday, January 30, 2008 by Utilicraft Aerospace Industries, Inc. (OTCBB: UITA), we are advised by the company that the URL address in the 11th paragraph should read "www.utilicraft.com" rather than "www.freightfeeder.com" as originally issued. Also, contact information for Mercantile Ascendency and Utilicraft Aerospace Industries, Inc. has been added to the release. Complete corrected text follows.

$260 Million CapNet Securities Engagement Agreement for FF5000 Aircraft Development

ALBUQUERQUE, NM--(January 30, 2008) - 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 $260 million investment banking engagement agreement for a two year period with CapNet Securities Corporation ("CapNet") as its exclusive financial consultant, placement Agent and finder in connection with various financing strategies.

"CapNet Securities Corporation is pleased with the steps that the majority shareholders of Utilicraft Aerospace Industries, Inc. and Freight Feeder Aircraft Corporation have taken to put the Company in a better position to seek the institutional financing needed to complete the development and certification of the FF5000 aircraft." (Bo Ritz, CEO - CapNet Securities Corporation)

The initial (Stage 1) contemplated equity financing is planned at Ten Million Dollars ($10 million) which will be used to continue the development of the Freight Feeder Prototype aircraft now under construction by Metalcraft Technologies.

The secondary (Stage 2) contemplated equity financing is planned at Two-Hundred and Fifty Million Dollars ($250,000,000) which will be used to complete FAA Certification and commence initial production of the Freight Feeder aircraft.

About CapNet Securities Corporation:

CapNet Securities Corporation is a FINRA member broker/dealer, registered in 35 states, specializing in investment banking services. CapNet Securities provides a custom approach to investment banking, adding significant value to entrepreneur and investor alike, while also operating as a traditional full service brokerage firm. CapNet provides a wide range of financial solutions to meet specific client needs, be it an institution which needs expertise in the fixed income market, or a small to medium enterprise requiring investment banking services.

We act as placement agent for a broad range of industries. From high-tech manufacturing to molecular science to energy, CapNet places equal importance on sector growth and individual prospects for success. Our relationships with institutional financing sources and other capital resources enable us to offer our clients access to a wide range of potential investors, including commercial lenders, venture firms, private equity funds, buyout funds, mezzanine and subordinated debt funds, individuals, angel investors, and non-financial institutions seeking strategic investment or merger partners. As an NASD member firm, CapNet can arrange private and public placements of equities and document those transactions in-house or through a partner firm.

Once funding has occurred, CapNet concentrates on building shareholder value through finding appropriate merger and acquisition targets, partnering with management to grow the company organically, and arranging second and mezzanine stages of investment. Finally, whether the company and investors ultimately seeks an initial public offering, buyout, or other exit strategy, CapNet will be there to help deliver the value.

For more information on CapNet Securities Corporations visit their website at: www.capnetsecurities.com.

About Utilicraft Aerospace Industries, Inc. (OTCBB: UITA)

Utilicraft Aerospace Industries, Inc. is a 25% owner of Freight Feeder Aircraft Corporation. 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.

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)

For more on Utilicraft Aerospace Industries, Inc, go to 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.

For more information on Freight Feeder Aircraft Corporation, please visit: www.freightfeeder.com.

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