SOURCE: Franchise Capital Corporation

October 02, 2007 10:03 ET

Franchise Capital Corporation Announces Resignation of Directors in Advance of Aero Exhaust Acquisition

MURRIETA, CA--(Marketwire - October 2, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN) today announced that two of the company's directors have submitted their resignations to the Board as part of the management transition in advance of the close of Franchise Capital's pending acquisition of Aero Exhaust.

The resignations will be included in an upcoming Current Report on Form 8-K filed with the Securities and Exchange Commission.

Directors Jim Bickel and Gary Nerison have tendered their resignations, which have been accepted by Robert McCoy, the chairman and sole remaining member of the Board. New directors are expected to be named within the next several days.

Mr. Bickel and Mr. Nerison have served Franchise Capital as independent directors since January 2, 2007, when they were appointed to assist with the management and oversight of the company as it executed its acquisition of Aero Exhaust. In addition to serving as directors, Mr. Bickel served as chairman of the investment committee and as a member of the audit committee, and Mr. Nerison served as chairman of the audit committee and as a member of the investment committee.

"Mr. Bickel and Mr. Nerison served the company and its shareholders very well during the transition period from 'shell' company up to the point that we are preparing for the close of our acquisition of Aero Exhaust," stated chief executive officer Steven R. Peacock. "Their experience and understanding of the public company arena has made the management of this process much easier, and we would like to thank them for their service to Franchise Capital."

"We look forward to the appointment of new directors to serve Aero Exhaust as it moves forward as the operating entity within the public company. We are confident that the new Board members will serve the company as well as Mr. Bickel and Mr. Nersion have," Mr. Peacock added.

Aero Exhaust (www.aeroexhaust.com) is a leader in performance exhaust airflow technology and NASCAR Performance Partner. Franchise Capital, a fully reporting "shell" company, has been positioned to serve as the public vehicle for Aero Exhaust and has provided $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 are convertible into Aero Exhaust common stock at the time the share exchange closes.

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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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