August 06, 2007 at 09:15 AM EDT
Mid America Aero Signs Purchase Agreement for 10 Utilicraft FF-1080-200 Aircraft
Utilicraft Aerospace Industries, Inc. (OTCBB:UITA). Today, a $115,000,000 Aircraft Purchase Agreement for 10 (ten) FF-1080-200 aircraft, including a training and support package, was executed by officials of Utilicraft Aerospace Industries, Inc., and Mid America Aero, LLC.
The decision to go forward on the order has been part of a Mid America Aero program to purchase FF-1080 aircraft that began earlier this year with two Letters of Intent to eventually acquire 35 (thirty-five) aircraft (see press releases dated January 10, 2007 and August 2, 2007).
Randy Moseley, VP Chief Financial Officer for Utilicraft Aerospace stated, “The definitive Agreement that was executed today for ten FF-1080-200 Aircraft, calls for a series of progress payments by Mid America Aero to begin upon 'First Flight' of the FF-1080 prototype aircraft, with subsequent progress payments to follow based upon the completion of production milestones that are called out in the Agreement”.
In addition to this order, Mid America Aero, LLC, also retains a Letter of Intent in-place with Utilicraft for 10 (ten) of the larger FF-1080-300ER aircraft, with an option for an additional 15 (fifteen) -300ER aircraft.
David Bridges, President of Mid America Aero stated, “We were very excited earlier this year when we signed the Letter of Intent with Utilicraft Aerospace Industries to purchase ten of the FF-1080-300ER aircraft and option fifteen, and today we are equally excited about reaching an agreement to purchase ten of the FF-1080-200 series aircraft. The purchase of $115 Million worth of FF-1080-200 aircraft is a significant and exciting event for us. The -200 series freight feeder, which is designed to transport 8 LD3 shipping containers carrying 16,000 lbs. of freight up to 500 miles, will help fill a significant void in the demand for freight transfer within our region. We feel the potential of the FF-1080-200’s use at a future freight hub at Mid America Airport in Mascoutah, Illinois, is significant.”
Mr. Bridges went on to say that, “We are also very pleased with the Management Team of Utilicraft as they continue to work diligently to ensure that the rest of the development program, engineering software, tooling design and integration-engineering on the aircraft are the latest available - with the intention to deliver the FF-1080 to 'First Flight' later this year.”
See more details on the FF-1080-200 at: http://www.utilicraft.com/1080_200/index.html.
About Mid America Aero, LLC:
Mid America Aero, LLC is a newly formed, wholly owned subsidiary of R&D Development, with whom Utilicraft recently entered into a letter of intent for the construction and lease of a final assembly facility at Double Eagle II Airport, Albuquerque, New Mexico. R&D has been operating for approximately 8 years, and the principals have engaged in R&D's primary business of purchase/leaseback of commercial real estate and equipment for over 25 years; this is the company's first venture in aircraft leasing. R&D's principals are shareholders in Utilicraft and have identified cargo aircraft leasing as a long-term strategic business prospect to expand its current fixed asset lease lines.
Mid America Aero, LLC Contact: Carda Construction at (618) 234-1004.
About Utilicraft Aerospace Industries, Inc.:
Utilicraft Aerospace Industries, Inc. was formed to implement a system solution to the current problem of declining capacity in the short haul (or feeder) route segments of the air cargo and overnight express companies.
The FF-1080 Freight Feeder aircraft is a new fuel-efficient cost-effective, air vehicle which is the result of Utilicraft’s extensive research and development. The FF-1080 is revolutionary because of it's capability to carry standard industry air containers on short-to-medium range/medium density routes combined with the aircraft's integrated air cargo information system for the freight feed market. The FF-1080 an all aluminum twin-engine, high-wing, un-pressurized, fixed gear, single pilot capable, turboprop aircraft, specifically designed as a utility air freight transport system. The aircraft satisfies an industry recognized need to cost effectively feed containerized air cargo to the major hubs of the scheduled passenger carriers and the overnight express airlines.
The aircraft is also designed for short take-off and landing (STOL) capability. This feature makes the FF-1080 the only short-haul, heavy-lift containerized feeder aircraft capable of cost-effectively transporting ten revenue tons over two thousand nautical miles from airfields with less than 3,500 feet of runway, expanding air cargo capacity to many smaller cities and airports worldwide.
The Company has also developed the Automatic Flat Rate System (AFRS) Patent, a company owned system that will allow the FF-1080 aircraft to operate with substantially more fuel efficiency than any other freight feeder aircraft in the world, saving the operator substantial fuel operating cost, and consequently reducing pollution as the aircraft operates in the freight feed system - making it environmentally friendly. See more on the FF-1080 aircraft and the Company’s patents at www.utilicraft.com and on Utilicraft Green Technology at http://www.utilicraft.com/green_tech/index.html.
Forward Looking Statements
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release involve risks and uncertainties and reflect the company’s current views with respect to possible future events. Readers are cautioned that no forward-looking statement can be guaranteed and actual results or events may materially differ from those projected or anticipated. In particular, the following factors, among others, could cause actual results or events to differ materially from those described in the forward-looking statements: the company’s ability to obtain and fulfill contracts for the sale of products, protect intellectual property rights and manage future growth; market acceptance of future products; product supplier delays; design and engineering certification delays or denials; and the introduction of similar products by competitors. Any forward-looking statement made in this press release is made as of the date of this press release, and the company assumes no obligation to update any such forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect the company’s business.
For more information on Utilicraft Aerospace Industries, Inc., please visit www.utilicraft.com.
Scott Jacox – VP Marketing, 866-843-1348
Tom Collins, 214-461-3500
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