American Utilicraft Corporation's FF-1080, a cargo-plane project that was hampered by the damage done to aviation in the wake of 9/11, may be on the mend. AUC and WSI Hong Kong, Ltd., have jointly announced that the companies have entered into an arrangement for 300 aircraft and exclusivity for the Far East air freight markets.

John J. Dupont, President and CEO of American Utilicraft Corporation, and Ruben O. Caputo, President and CEO of WSI Hong Kong, Ltd., signed a Letter of Intent to facilitate on-going discussions and negotiations for positions on 300 FF-1080 Freight Feeder Aircraft, including exclusive rights for sales and support in the Far East Markets. This represents the Company's efforts to launch "back into the market" post 9/11, and solidifies the Company's dedication and commitment to bring the FF-1080 into production.

American Utilicraft Corporation was formed in 1990, and has announced plans to produce a new air vehicle, the FF-1080 Freight Feeder aircraft, capable of carrying standard industry air containers on short-to-medium range/medium density routes, and an integrated air cargo information system for the freight feeder market.

"We are very pleased to be in negotiations to launch the aircraft into the international freight market with WSI Hong Kong, Ltd. Additionally, the Letter of Intent for 300 FF-1080 aircraft reinforces our belief that the FF-1080 can fulfill the growing need in the global short haul feeder segment which presently is a completely untapped market. This will be a great opportunity to prove the FF-1080's capabilities in the demanding utility markets of the Far East," stated John Dupont.

Under the proposed Distributorship Agreement WSI Hong Kong, Ltd., will have aircraft sales responsibilities for the Far East, working in partnership with American Utilicraft. As part of the arrangement, WSI Hong Kong, Ltd., will also assist in the development of additional contractors for Maintenance and Product Support programs for the FF-1080 in the Far East.

Company officials of both companies expect to finalize terms for the first production lot of 36 aircraft during first quarter 2004. Initial deliveries are anticipated to begin in 2006, if the Company is able to meet its planned commencement of construction of the Pre-Production Prototype aircraft in 2004.

FMI: www.utilicraft.com