ALBUQUERQUE, N.M., Jan. 10, 2007 (PRIME NEWSWIRE) -- Utilicraft Aerospace Industries, Inc. (OTCBB:UITA) announced today that the company had signed a Letter of Intent with the Swansea, IL based Mid America Aero LLC to purchase ten FF-1080-300 Freight Feeder-Commercial Freight Aircrafts from Utilicraft, with an option to purchase an additional fifteen aircraft.
As part of the terms and conditions of the LOI, Utilicraft agrees to build and certify the Extended Range (ER) version of the FF-1080-300 Aircraft, which will provide an operating range payload of 20,000 lb / 2,000 nm, plus IFR reserves.
The purchase terms and conditions will be negotiated by Mid America Aero and Utilicraft Aerospace Industries Inc. Utilicraft will sell the Aircraft to Mid America Aero for a purchase price of $13,250,000 per Aircraft, for 10 Aircraft totaling $130,250,000 plus tax, shipping and transportation costs, and all other costs associated with U.S. and international law and requirements. The purchase price may be adjusted downward, in the event that Mid America Aero makes direct purchase agreements with Utilicraft approved suppliers of certain components of the Aircraft, including but not limited to engines and avionics, by Utilicraft's actual cost for such components.
Mid America Aero intends to lease the aircraft to qualified U.S. and/or Canadian licensed freight aircraft operators.
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. Contact: Carda Construction at (618) 234-1004.
About Utilicraft Aerospace Industries:
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-1080-300ER Freight Feeder aircraft is a new air vehicle which is the result of Utilicraft's extensive research and development. The FF-1080-300ER is revolutionary because of its 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-1080-300ER, 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-1080-300ER 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.
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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 about the company, please visit http://www.utilicraft.com.