About Utilicraft

December 2007 Freight Feeder Aircraft Corporation Purchases

Assets, Technology, and Liabilities From Utilicraft Aerospace

This transaction has a potential value to UITA of approximately $400 million in future royalties, plus the future value of Freight Feeder Aircraft Corporation stock received by UITA in this transaction -- subject to the Freight Feeder aircraft program reaching the production phase -- and also relieves the Company of all of its debt and liabilities estimated at $2.75 million (including payroll taxes).

On December 12, 2007, Utilicraft Aerospace Industries, Inc., filed a Form 8K with the Securities and Exchange Commission announcing that with the approval of fifteen (15) UITA shareholders owning approximately 62.53% of UITA’s common stock and its Board of Directors, entered into an Asset Purchase Agreement with Freight Feeder Aircraft Corporation (a newly formed private development company), to sell all of UITA’s technology and assets for the purchase price consisting of the following:

Common stock. Fifteen Million Two Hundred Fifty Thousand (15,250,000) shares of Freight Feeder Aircraft Corporation common stock, representing approximately 25% of Freight Feeder Aircraft Corporation’s initial capitalization,

Warrants. Warrants for 30,500,000 shares of Freight Feeder Aircraft Corporation’s common stock, with a strike price of US$1.00 per share and a term of 5 (five) years from first-flight.

Royalty. Cash payments in the form of a 1% Royalty of the Gross aircraft sales recorded by Freight Feeder Aircraft Corporation in accordance with generally accepted accounting principles, less profit, commissions, royalties and mark-up on Freight Feeder aircraft number 51 to aircraft number 2,051 that are eventually produced and delivered by Freight Feeder Aircraft Corporation.

Assumed liabilities. Freight Feeder Aircraft Corporation has assumed liabilities of UITA in the amount of $2,755,907.

David Bridges, Managing Director of Freight Feeder Aircraft Corporation stated, “In the interest of the UITA shareholders and the continued development of the Freight Feeder aircraft program, and because of the difficulties in providing funding to the program primarily because of undisciplined shareholder selling resulting in a decreasing share price which, in turn, has hindered UITA’s ability to attract capital (including the former PacifiCorp program and the more recent CapNet program), The 1080 Group (who is also the founding investor of Utilicraft Aerospace Industries, Inc.) has recently formed FREIGHT FEEDER AIRCRAFT CORPORATION for the purpose of providing the capability of exploring more attractive funding opportunities for the development of the Utilicraft Freight Feeder aircraft program.”

“We have been and are very pleased with UITA Management’s continued efforts to bring value to their investors and shareholders, and with the quality program that they have developed thus far in their on-going efforts to bring the Freight Feeder aircraft to market,” stated Bridges.

The 1080 Group owners are majority shareholders of UITA’s common stock, and have invested in excess of $5 million into UITA’s business, to date, which represents approximately 98% of the capital investment in UITA since its inception.

John J. Dupont, President-CEO of UITA stated, “We are very excited about this transaction that relieves UITA of debt and the capital requirement efforts to complete the program while still enjoying the potential of enormous profits, for the Company and our shareholders, as the aircraft program goes forward.”

“We are also grateful for the “leadership-role” that the majority shareholders of UITA have taken, and look forward to a successful and long-term prosperous relationship along-side the Freight Feeder Aircraft Corporation,” Dupont added.

For more information on Freight Feeder Aircraft Corporation, please visit: www.freightfeeder.com