Navajo Nation President Joe Shirley, Jr., Utilicraft Aerospace Industries, Inc., To Bring Aircraft Industry to Navajo Nation

Business Wire, Dec 13, 2004

WINDOW ROCK, Ariz. -- Navajo Nation President Joe Shirley, Jr., announced Sunday the Navajo Nation's intention to partner with Utilicraft Aerospace Industries, Inc., to produce a newly-designed, specialized feeder freight aircraft called the FF-1080-300.

The arrangement calls for establishing three aircraft sub-assembly plants on the Navajo Nation that will create hundreds of high-paying Navajo jobs and provide millions of dollars to the Navajo economy.

Utilicraft Aerospace has already agreed to establish its final assembly facility at the Double Eagle II Airport in Albuquerque, N.M.

On Dec. 8, 2004, while in Lawrenceville, Ga., President Shirley and Utilicraft Aerospace CEO John J. Dupont signed a memorandum of understanding that would have the Navajo Nation invest $34 million in the project to become a 25 percent equity partner in Utilicraft Aerospace. Financial analysis of the company project it to become a $4.9 billion company within eight years.

"I feel very good, very confident about this," President Shirley said. "This is an awesome opportunity and industry to bring to the Navajo Nation."

Utilicraft Aerospace has an agreement with Global Air Group of Brisbane, Australia, for the purchase of 100 FF-1080 Freight Feeder aircraft for $1.2 billion. The company also has an agreement with WSI Hong Kong, Ltd., for 300 FF-1080 aircraft.

"We're looking at about 1,000 jobs in the state of New Mexico to build the airplane and to do final assembly in Albuquerque at a production rate of 96 a year," Mr. Dupont said. "This represents jobs, economic development and a great business opportunity for the Navajo Nation."

New Mexico Governor Bill Richardson has been personally involved for the last year in recruiting the aviation company to New Mexico. "I am gratified to see our efforts are paying off with these significant announcements in both Albuquerque and the Navajo Nation," Governor Richardson said. "This project represents our commitment to bring jobs and economic vitality to all parts of New Mexico, especially our rural and Native American communities.

He continued, "I applaud President Shirley's commitment to economic development, and we are proud to be part of this unique partnership between the Navajo Nation, the State of New Mexico, the City of Albuquerque and the private sector."

Jerry Sandoval, a representative of the New Mexico Economic Development Department, accompanied President Shirley and Navajo Division of Economic Development Director Allan Begay to Georgia last week to convey the governor's commitment regarding the state's incentives that would be available for the project. These include job training funds and other tax credits tied to new job creation.

Utilicraft Aerospace Industries' primary mission is to address the problem of the overnight express, supply chain, e-commerce, and global third party logistics entities' inability to provide effective containerized fulfillment and distribution in the short haul (or feeder) route segments of air cargo.

The company's solution is a new, un-pressurized, square-bodied aircraft capable of carrying standard industry air containers on short-to-medium range routes. Improving the operating economics of the FF-1080 is its patented integrated air cargo information system and patented power-management system.

The FF-1080 aircraft is an all-aluminum, twin-engine, high-wing, fixed-landing gear, single pilot-capable turboprop aircraft specifically designed as a utility air freight transport system. The FF-1080 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 10 revenue tons over 1,000 miles from airfields with 3,000 feet of runway, expanding air cargo capacity to many smaller cities and airports worldwide.

The plane has a gross weight of 70,000 lbs. and can transport 20,000 lbs. up to 1,000 nautical miles.

Utilicraft Aerospace Industries business plan contemplates a two-year final development program, leading to FAA certification and initial production of the FF-1080, with a total cost of $75 million. The plane has been in development for 13 years.

About Utilicraft Aerospace Industries, Inc.,

Utilicraft Aerospace Industries, Inc., primary mission is to target the significant problem of the overnight express, supply chain, e-commerce, and global third party logistics entities inability to provide effective "containerized" fulfillment and distribution in the short haul (or feeder) route segments of air cargo. The Company's solution is the FF-1080 Freight Feeder aircraft - a mission specific design, 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.