SOURCE: Franchise Capital Corporation

October 01, 2007 17:47 ET

Franchise Capital Corporation Files Annual Report for the 2007 Fiscal Year

MURRIETA, CA--(Marketwire - October 1, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN) today filed its annual report for fiscal year 2007, which ended on June 30, 2007. The 10-KSB filing maintains Franchise Capital's fully reporting status as it prepares to close its acquisition of Aero Exhaust, Inc.

The annual report can be viewed through a link on the home page of the company's website, www.franchisecapitalcorp.net.

Aero Exhaust (www.aeroexhaust.com) is a leader in performance exhaust airflow technology and NASCAR Performance Partner. Franchise Capital 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.

Included in the annual report is the status of the escrow account set up as part of the settlement of a Franchise Capital debt obligation that dated back to June 25, 2004. The settlement included the pay down of a convertible debenture through the issuance of restricted common stock. The balance remaining on the debenture as of the September 25, 2007 record date of the annual report was $35,694 and 443,531,005 shares of common stock remained in escrow as of that date.

As of October 1, 2007, the balance remaining on the debenture is $27,539 and 430,871,055 shares of common stock remained in escrow.

Once the entire debenture has been redeemed, any shares remaining in the escrow will be returned to the company's treasury and cancelled.

"We are pleased to have the annual report completed and filed in advance of the close of our acquisition of Aero Exhaust," stated chief executive officer Steven R. Peacock. "As previously announced, we expect to close the acquisition this week and to file the required Form 8-K detailing the transaction four business days after the close. The 8-K will be a comprehensive document that requires legal review, so we anticipate making use of the entire four-day period to complete and file the required documents.

"Under terms of the close of Franchise Capital's acquisition of Aero Exhaust, any remaining amount on the convertible debenture to Golden Gate Investors will be settled before the acquisition is consummated, and the escrow account will be closed. The details of the final settlement of the amount remaining on the convertible debenture will be included in the Form 8-K filed subsequent to the close of the acquisition," Mr. Peacock said.

"We very much look forward to the events of the next several weeks, and we believe that through the final terms of the acquisition of Aero Exhaust, we will deliver long-term value to Franchise Capital shareholders," Mr. Peacock added.

To sign up to receive information by email directly from Franchise Capital Corporation, including notices when the company issues future investor newsletters, please visit http://www.franchisecapitalcorp.net.

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.

Contact Information

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    A. Beyer
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