SOURCE: Franchise Capital Corporation

October 01, 2007 09:17 ET

Franchise Capital Corporation Issues Statement on Status of Annual Report

Filing Delay Does Not Impact Closing Timeline for Aero Exhaust Acquisition

MURRIETA, CA--(Marketwire - October 1, 2007) - Franchise Capital Corporation (PINKSHEETS: FCCN) chief executive officer, Steven R. Peacock, has issued a statement regarding the status of the company's annual report for fiscal year 2007, which covers the fiscal year ended June 30, 2007.

"As stated in a previously issued press release, Franchise Capital management expected that the 10-KSB would be completed and filed by Friday, September 28," stated Mr. Peacock. "Although this was our expectation at the time of that previous announcement, the annual report was not filed within the anticipated timeframe. We would like to assure shareholders that despite the fact that the report is not yet filed, there are no issues out of the ordinary that are delaying this report, and we do expect to have it filed as soon as possible. Annual reports, even for a 'shell' company, are comprehensive documents that require audited financials and detailed review by the company's independent auditing firm. In addition, this is the first annual report undertaken by the company's new auditors. We have every confidence that all of parties involved in the completion and filing of the annual report are working as quickly as possible while maintaining all of the proper procedures related to public company financial reporting," Mr. Peacock said.

"Furthermore, because the annual report is not a step in the process of closing our acquisition of Aero Exhaust, we do not expect the delay in the filing to in any way affect the closing timeline. The acquisition is still expected to close this week as previously announced. We understand that there is significant interest in our pending acquisition of Aero, and we remain committed to completing all of the necessary steps to bring the acquisition to completion," added Mr. Peacock.

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.

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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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