SOURCE: Franchise Capital Corporation

October 09, 2007 09:15 ET

Franchise Capital Corporation Announces Identification of Additional Synergistic Acquisition Candidate

MURRIETA, CA--(Marketwire - October 9, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN), which recently closed its acquisition of Aero Exhaust, Inc., a world leader in performance exhaust airflow technology and NASCAR Performance Partner, today announced that the company has identified a new acquisition candidate that presents significant synergies with the operations of Aero Exhaust. The acquisition candidate operates in the automotive supply market.

The company expects to enter into an initial agreement in the form of a letter of intent with the acquisition candidate in the near term and progress to a definitive agreement after all due diligence and negotiation of final terms is completed.

"While the growth of Aero Exhaust is expected to be the core focus of management, we will continue to seek out opportunities to build shareholder value through the acquisition of additional synergistic operations in the automotive supply and performance products market segments," stated Bryan Hunsaker, chief executive officer of Franchise Capital and Aero Exhaust.

"We believe that this type of roll-up strategy will have the potential for a dual benefit for the company and its shareholders. First, the additional revenues and assets that can be acquired through this process will potentially improve the company's valuation in the public markets. Second, but possibly even more significant for the future growth of Aero, is that certain synergistic acquisitions may also contribute to the growth of Aero Exhaust itself. These opportunities may be in the supply of parts for the mufflers and exhaust systems that Aero distributes.

"We expect to have this acquisition candidate signed to a letter of intent very shortly, and we look forward to providing additional information regarding the potential of this acquisition as soon as the appropriate agreements are in place," Mr. Hunsaker added.

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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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