Metalcraft Technologies, Inc. FF5000 prototype development cost reduction Joint-Venture Agreement

Freight Feeder Aircraft Corporation (FFAC) and Metalcraft Technologies, Inc. (MTI) have entered into a Joint-Venture Agreement to reduce development costs and re-start construction of the FF5000 prototype aircraft.

Under the FFAC/MTI Joint-Venture, MTI will contribute assistance (in-kind) to help FFAC reduce the prototype development cost in the form of reduced labor, support engineering, program management, and other general assistance, with the ultimate goal of reducing FFAC's prototype airframe construction development costs by approximately 33%. In exchange for this contribution, MTI will receive a "Life of Program" contract to manufacture and assemble the FF5000 fuselage.

"We are very pleased to enter into this cost-reduction Joint-Venture Agreement with our long-time primary sub-contractor. This is a major milestone in the FF5000 development process, and with the assistance of MTI, FFAC expects to get back on track with its development program and complete the first prototype by the fall of 2010," stated John J. Dupont, President and CEO of FFAC.

Chuck Taylor, Vice President of MTI, stated, "MTI is pleased with the prospect of supporting FFAC in the development of this unique and versatile aircraft. MTI's aerospace professionals stand ready to assist Mr. Dupont to bring his vision of this exciting product to market."

MTI intends to commence work on the FF5000 Prototype Aircraft in August of this year.