SOURCE: Franchise Capital Corporation

December 21, 2007 08:45 ET

Franchise Capital Corporation Announces Initial Sales of Aero Exhaust Products From New UK Distributor as Part of Expansion Into European Markets

First Shipment to UK Distributor Sold Out; Immediate Re-Order Is Expected

MURRIETA, CA--(Marketwire - December 21, 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 the initial sales of Aero products through its new distributor in the United Kingdom, Dynoflow Exhaust (http://www.dynoflow.co.uk/index.html). The relationship with Dynoflow is one component of Aero's broader European distribution strategy, which has been launched with Dynoflow and its first order of Aero's products.

In early November, Aero supplied Dynoflow with its first shipment of direct fit muffler products in the Turbine and Stealth lines, as well as the recently released STX muffler product. The STX product line combines the technology of the Turbine muffler with the sound reduction and quality of the Stealth line. Dynoflow has experienced good success with the Aero products from the first shipment, and an additional order from Dynoflow is anticipated in the coming days.

Beyond this first European distributor relationship, Aero expects to establish distribution of its products in additional European countries in the first calendar quarter of 2008.

"There continues to be a high level of interest for Aero mufflers and exhaust systems, and the initial demand in Britain affirms that Aero has significant potential in international markets -- as well as domestically," commented Bryan Hunsaker, chief executive officer of Franchise Capital and Aero Exhaust. "We are pleased to have a great working relationship with Dynoflow and look forward to a steady supply of re-orders for this market. As the Euro has increased in value against the U.S. dollar, so has the European interest in American products, and we hope to capitalize on that interest. Our EU patent-pending confirms our interest in the European market. In addition to the Dynoflow relationship, we expect to announce distribution in other European countries as soon possible."

"I would also like to use this opportunity to let shareholders know that Aero management is firmly focused on building revenues and value as quickly as possible, and we will announce additional milestones in the execution of our business strategy as they occur. 2008 is projected to be an exciting year for Aero, and we look forward to continued progress in the marketing of the company's products, as well as in expanded distribution and sales," 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 for fiscal year 2007 filed with the Securities and Exchange Commission.

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