Utilicraft Aerospace Press

December 18, 2007

Freight Feeder Technology Sale Good Move for UITA

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Utilicraft Aerospace Industries, Inc. (OTC BB: UITA).

“We are very excited about the new prospects that this joining of UITA and Freight Feeder Aircraft Corporation contemplates, as well as the promise of success it brings to all of us as UITA shareholders.”

.“This is a very positive move for Utilicraft and its shareholders. The joining with Freight Feeder Aircraft Corporation will help to accommodate the major financing required to complete the program and gives the Company and its stockholders a much better chance of success. We are looking for a bright future for Utilicraft Aerospace as the program goes forward under Freight Feeder Aircraft Corporation,” stated John J. Dupont, President-CEO of Utilicraft Aerospace.

“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 alongside the Freight Feeder Aircraft Corporation,” Dupont added.

David Bridges, Managing Director of Freight Feeder Aircraft Corporation stated, “We are very excited about the new prospects that this joining of UITA and Freight Feeder Aircraft Corporation contemplates, as well as the promise of success it brings to all of us as UITA shareholders.”

“We have been and are very pleased with UITA’s Management Team continued efforts to bring value to their investors and shareholders, and with the quality program that they have developed thus,” 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.

Current management will continue to develop and manage the aircraft design and engineering, the prototype development, and eventual certification and production programs for Freight Feeder Aircraft Corporation under employment agreements with that company.

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.

The transaction has a potential value to UITA of approximately $400 million in future royalties and future Freight Feeder Aircraft Corporation stock value received by UITA in this transaction -- subject to the Freight Feeder aircraft program reaching the production phase.