SOURCE: Franchise Capital Corporation

October 19, 2007 12:47 ET

Franchise Capital Corporation Announces Expected Filing of Form 8-K With Details of Aero Exhaust Acquisition Later Today

MURRIETA, CA--(Marketwire - October 19, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN) today announced that the company expects to file the Current Report on Form 8-K that includes details of its acquisition of Aero Exhaust, Inc., a world leader in performance exhaust airflow technology and NASCAR Performance Partner, before the end of business today.

Bryan Hunsaker, chief executive officer of Franchise Capital and Aero Exhaust, commented, "We apologize for the protracted delay in filing the Form 8-K. We have received assurances that the necessary information will be included in the document and all the appropriate reviews will have been completed, so the Form 8-K can be filed by 5:30 Eastern time today.

"We are anxious to file the Form 8-K, so we can move forward with the business of Aero and articulate its strategy as a public company. There is a great deal to discuss regarding the current operations of the company and its future expectations. It is in the best interests of Aero and our shareholders that we have the Form 8-K filed as soon as possible, so we can begin these discussions.

"Again, we regret the delay and look forward to the Form 8-K filing later today," he added.

The definitive agreement regarding the acquisition of Aero Exhaust by Franchise Capital was executed in January 2007, and at that time, Franchise Capital announced that it expected to exchange up to 95% of its total issued and outstanding capital stock in exchange for all of Aero Exhaust's issued and outstanding shares. Franchise Capital provided approximately $1.9 million in financing in the form of a commercial loan to Aero as part of the transaction. The value of the loan and any accrued interest were converted into Aero Exhaust common stock as part of the share exchange, which increased the percentage of the public company's issued and outstanding common stock retained by Franchise Capital shareholders. The final number of shares exchanged, including the additional percentage retained by Franchise Capital shareholders, will be included in the 8-K filing.

The 8-K will also include the audited financials of Aero Exhaust and additional detailed information on the company.

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About Aero Exhaust:

Aero Exhaust is a world leader in performance exhaust airflow technology, manufacturing and distributing the most technologically advanced muffler on the market. Its product lines are built to the highest industry standards and offer the consumer a lifetime warranty. Aero Exhaust has been issued U.S. and Australian patents on its innovations and development in the exhaust industry, and its mufflers are available worldwide through major retailers, mass merchant centers, automotive aftermarket supply stores and wholesalers. Aero Exhaust mufflers are an exclusive National Association for Stock Car Auto Racing (NASCAR) Performance product and carry the prestigious NASCAR brand on product, packaging and related media. NASCAR legend Rusty Wallace is the official spokesperson for Aero Exhaust products. Additional information on Aero Exhaust's products, race team, and motorsports ventures can be found on its corporate website, www.aeroexhaust.com.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including the lack of funding, inability to complete required SEC filings, and others set forth in the Company's report on Form 10-K/A for fiscal year 2006 filed with the Securities and Exchange Commission.

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