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Sat, Nov 20, 2004

It's A Deal! 100 FF-1080 Freight Feeder Aircraft Sold

American Utilicraft Corporation and Global Air Group, Execute $1.2 Billion Aircraft Purchase Agreement

After 5 months of negotiations, American Utilicraft Corporation and Global Air Group, of Brisbane Australia, have reached final agreements for the purchase of 100 FF-1080 Freight Feeder Aircraft and executed an Aircraft Purchase Agreement earlier this week.

The Aircraft Purchase Agreement’s estimated value is approximately $1.2 Billion including the support, spares, and training packages, and calls for progress payments for the construction of the production aircraft to begin upon “First Flight” of the FF-1080 Prototype Aircraft, slated for mid November 2005.

The production FF-1080 settled upon by both Companies, will be the -300 version, which will accommodate the growing international freight feed market, and Global Air Group’s Europe and Africa B-747 freight operations. The FF-1080-300 is a slightly larger version of AMUC’s -200 developmental design.

“Because of the -200 development delays caused by 9/11, and the continued growth of the international air cargo market, it became apparent to the Company in early 2003, that the -200 would require design changes to meet current and future market demands” stated John J. Dupont, Chairman of AMUC.

“After extensive analysis of specific market segments, and discussions and meetings with global freight forwarders, it was clear that the shipping demands of the containerized feed segment would require a slightly larger production version of the 1080 to accommodate the A-1, A-2, A-3 and like containers, as well as the LD3” stated Dupont.

The FF-1080-300 that is being acquired by Global under this agreement, is the same basic airframe as the -200 but is 10 ft. longer, has a gross weight of 70,000 lbs., and can transport 20,000 lbs. up to 1,000 nautical miles, with reserves, in five A-1, A-2, or A-3 containers, or ten LD3 containers, or a combination of containers and pallets measuring 88 in. x 125 in. each.

FMI: www.globalairgroup.com, www.utilicraft.com

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