SOURCE: Franchise Capital Corporation

October 25, 2007 09:16 ET

Franchise Capital Corporation Announces New Distributors for Aero Exhaust Product Lines

Franks Supply Co. and Wynne Exhaust Join Allied Exhaust and Full Line as Distributors of Aero Exhaust Products

MURRIETA, CA--(Marketwire - October 25, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN), which recently acquired Aero Exhaust, Inc., a world leader in performance exhaust airflow technology and NASCAR Performance Partner, today announced that Aero has recently established relationship with two additional regional distributors for its products. The new distributors, Franks Supply Co. of Houston, Texas and Wynne Exhaust of Wynne, Arkansas are now stocking Aero products and join Allied Exhaust and Full Line Exhaust as regional distributors of Aero Exhaust products.

The major regional distributors make periodic purchases of Aero products, usually on a monthly basis, and distribute to performance muffler retail outlets in their respective areas. The outlets these distributors service include a variety of retail locations, including independent and franchised automotive repair and supply shops. These four major distributors cover territories that range from California to the west, the Canadian border to the north, the Mexican border and Gulf of Mexico to the south and the Atlantic Ocean to the east, and include approximately 30 states.

Frank Supply Co. (www.franksupplyco.com) has been in business for nearly 30 years, providing performance exhaust components and automotive accessories to thousands of installation and accessory shops. With a five state delivery area and five warehouse locations servicing Texas, Louisiana, Southern Mississippi, Southern Oklahoma, and New Mexico, Frank Supply Co. is "the performance/exhaust specialist." Aero mufflers have recently been added to the performance muffler products on the Franks Supply Co. website.

Wynne Exhaust, based in Wynne, Arkansas distributes in all or portions of six states, including Oklahoma, Arkansas, Missouri, Mississippi, Illinois, and Tennessee.

Allied Exhaust (www.alliedexhaust.com), founded in the 1960s, is the largest independent warehouse distributor of automotive exhaust in the country with 16 distribution centers spanning 18 western states. Allied Exhaust began stocking the Aero product in a limited number of warehouses early in 2007 and has continued to roll the product out to the remainder of its warehouses throughout the year. Allied is now stocking the Aero products throughout its entire system, and links to Aero's website are included in on the Allied Exhaust website.

Full Line Exhaust (www.fulllineexhaust.com), which has also carried Aero products since the beginning of 2007, services nearly 3,100 independent and franchised under car repair shops in Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Mississippi, Missouri, North Carolina, South Carolina, and Tennessee. Full Line Exhaust carrying an impressive line of 8,000 to 9,000 exhaust parts. Aero Turbine XL Muffler Series are listed as featured products on the Full Line Exhaust website at http://www.fulllineexhaust.com/features.asp.

"Through agreements with our distribution partners, Aero mufflers and exhaust systems are sold as core products to shops covering most of the United States," commented Bryan Hunsaker, chief executive officer of Franchise Capital and Aero Exhaust. "We will continue to seek to expand distribution of Aero products, especially as a greater inventory is secured through our developing relationship with Dr. Gas, Inc. As has been stated several times recently, we believe that the manufacturing capabilities of Dr. Gas, Inc. represents an effective solution to Aero's supply challenges and will allow us to meet both the current and future demand for our product lines.

"Aero's business is selling our performance exhaust products, and our major focus at this time is increasing the sales of those products, thereby increasing the revenues and value of the company. The distribution partnerships we have developed are the vehicle to sell to a large segment of the performance exhaust market, and we look forward to increasing the number of products we supply to our distributors," Mr. Hunsaker added.

Franchise Capital recently entered into a preliminary agreement with Dr. Gas, Inc. to acquire 100% of the common stock of Dr. Gas, Inc., 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. In addition to its racing applications, Dr. Gas, Inc. also manufactures for Original Equipment Manufacturers (OEMs) such as Freightliner.

Franchise Capital also recently announced that Aero Exhaust will exhibit with Dr. Gas, Inc., at the 2007 SEMA Show scheduled for Tuesday, October 30 - 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.

Dr. Gas, Inc.'s fabricating capabilities are expected to increase the availability of Aero's new line of full turbo and cat-back systems diesel exhaust systems, referred to in marketing documents as "kits," which include all parts from the catalytic converter, turbo charger or muffler back to the tailpipe. Improved supply will help Aero to meet the demand for its products in the automotive supply market.

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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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