SOURCE: Franchise Capital Corporation

November 13, 2007 09:06 ET

Franchise Capital Corporation Releases November 2007 Edition of Investor Newsletter With Detailed CEO Statement

CEO Addresses Operational Synergies Between Aero Exhaust and Dr. Gas, Inc. and Specifics of the Automotive Aftermarket Supply Industry

MURRIETA, CA--(Marketwire - November 13, 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 release of its October 2007 investor newsletter, which includes a detailed statement by Chief Executive Officer Bryan Hunsaker. In Mr. Hunsaker's "CEO Greeting," he discusses various aspects of the automotive aftermarket supply industry and the expected advantages afforded by the planned acquisition of Dr. Gas, Inc. through its operational synergies with Aero Exhaust.

A PDF version of the newsletter is posted in the media archive of the company's website, http://www.franchisecapitalcorp.net, under the "Newsletters" tab, and a notice has been distributed through Franchise Capital's website-based mailing list.

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. Dr. Gas, Inc. is a producer of racing performance exhaust systems for street and pro-race performance exhaust applications and produces 90% of all exhaust systems used in NASCAR, Nextel Cup Series, Busch Grand Nationals, and Craftsman Truck Series.

In his greeting to shareholders, Mr. Hunsaker states, "The recent announcement of a merger between Dr. Gas and Franchise Capital Corporation is a key step of our roll-up strategy. By merging Dr. Gas with Aero Exhaust, we accomplish several important goals, including: 1) Dr. Gas can immediately start producing Aero Exhaust product allowing us to ramp up our sales and become more competitive in the marketplace; 2) we can immediately start applying our sales and marketing skills to the Dr. Gas Product line; 3) we can apply our operational background to Dr. Gas to help them achieve manufacturing efficiencies; and 4) through our access to public capital, Dr. Gas will have the ability to invest in more capacity and infrastructure to better serve our growing client base."

Mr. Hunsaker also addresses specific aspects of the automotive aftermarket supply industry, "We have charted a course and are committed to building a company that will be a long-term, significant player in the automotive aftermarket supply industry. The automotive aftermarket is a fragmented market, with numerous automotive enthusiasts that have innovative products and ideas but lack the size to effectively market and distribute products. The major distribution channels within the automotive aftermarket prefer vendors who can supply a wide array of products to leverage buying power and simplify the supply chain. Since these two dynamics are divergent, our strategy is to establish our company as a recognizable brand that can supply our distribution partners with a comprehensive line of innovative products. Our approach is to leverage our existing strengths and assets and to combine our strengths with others in the market through a roll-up of companies in the early to mid stages of growth that provide varying assets to the company. Much like the manufacturing, product and R&D assets of Dr. Gas, we are looking for others with varying distribution channels, complimentary products and effective sales assets.

"From a revenue perspective, it is important to realize that the exhaust market is a cyclical market with the more robust sales numbers in early to mid spring and early summer. This plays very well into our plans to facilitate increased manufacturing of Aero's products so we can supply our distribution partners. We are working to capture as much of the early 2008 growth as possible and carry that momentum throughout the year. We look forward to showing the initial results of our ongoing efforts in the first and second calendar quarters of 2008."

Mr. Hunsaker concludes his greeting by stating, "We have not taken a short-term view, and we believe that we are building a company that will be a long-term, significant player in the automotive supply industry. We are optimistic about the growth that is ahead for the company and are excited to see the benefit of that growth come to those shareholders that are genuinely interested in the future of Aero Exhaust, Dr. Gas and other companies that are included in our roll-up strategy."

In addition to Mr. Hunsaker's comments, the newsletter reviews the events that were issued as press releases by Franchise Capital during the previous month, including the initial agreement for Franchise Capital to acquire Dr. Gas, Inc.

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 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/A for fiscal year 2006 filed with the Securities and Exchange Commission.

Contact Information

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