SOURCE: Franchise Capital Corporation

October 31, 2007 09:17 ET

Franchise Capital Corporation Announces Initiation of Integration Strategy for Aero Exhaust and Dr. Gas, Inc.

Preparation for Manufacturing of Aero's Diesel Kits Through Dr. Gas, Inc. and Combined Marketing Efforts Have Been Initiated

MURRIETA, CA--(Marketwire - October 31, 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 initiation of an integration strategy that will allow Aero Exhaust to immediately begin combining specified aspects of its operations with Dr. Gas, Inc. Franchise Capital has entered into an initial agreement to acquire 100% of the common stock of Dr. Gas, Inc., in part to make use of Dr. Gas' manufacturing, design and engineering capabilities to increase the availability of Aero's product lines.

A preliminary 23-item integration strategy has been drafted, which includes both production and marketing elements. Several of Aero's diesel exhaust systems have already been delivered to the Dr. Gas manufacturing facility in Sandy, Utah, and tooling for the fabrication of Aero's diesel kits is underway.

In addition to the manufacturing integration, Aero Exhaust and Dr. Gas, Inc. have begun combined marketing and promotion efforts, beginning with the 2007 SEMA Show, which begins this week in Las Vegas, Nevada. Aero Exhaust will exhibit with Dr. Gas, Inc., at the SEMA Show from Tuesday, October 30 through Friday, November 2, 2007 at the Las Vegas Convention Center. The SEMA Show (http://www.semashow.com) is the premier automotive specialty performance products trade event in the world featuring performance, accessories, restoration and motorsports products. Aero's booth number for the show is 21036.

"Even as we move forward to reach a definitive agreement to acquire Dr. Gas, Inc., we are concurrently initiating an integration strategy that makes the most effective use of the synergies between Aero Exhaust and Dr. Gas," Bryan Hunsaker, chief executive officer of Franchise Capital. "With the demand for Aero's products, particularly the diesel exhaust kits, currently outpacing the available supply, ramping up production is an immediate priority. This process has begun, and we will continue to expand the tooling and fabrication efforts through Dr. Gas, Inc.

"We also recognize the need to begin marketing the combined capabilities of Aero and Dr. Gas under the banner of a single public company to the automotive performance automotive supply market. The exhaust market is a very cyclical market, and we are using this opportunity ramp up for the 2008 season, and the SEMA Show is just the beginning of these efforts," Mr. Hunsaker added.

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About Dr. Gas, Inc.

Dr. Gas, Inc. is a producer of the finest racing performance exhaust systems for street and pro-race performance exhaust applications. Dr. Gas produces 90% of all exhaust systems used in NASCAR, Nextel Cup Series, Busch Grand Nationals, Craftsman Truck Series, and many more. Dr. Gas Exhaust Systems produces performance exhaust Xscream® crossover, y-pipe, oval tubing performance exhaust, and h-pipe systems that have changed the performance exhaust sound of NASCAR, IROC, drag racing, and pro-street. Dr. Gas designed and patented the revolutionary Spin Tech racing mufflers. Many standard and custom sizes of mandrel bends and oval tubing are the absolute best for high performance exhaust and ground clearance applications. The company has performance exhaust parts for car, truck, RV, motorcycle, marine, aircraft and industrial applications.

At its first NASCAR race, Dr. Gas shocked the sport with its new performance exhaust sound and added power on Sterling Marlin's winning 1995 Daytona 500 racecar. Many of its patented NASCAR performance exhaust systems can be used in street rod performance exhaust applications. For more information on Dr. Gas, Inc., please visit http://www.drgas.com.

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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