American Utilicraft Announces Proposed Initial Public Offering; Company Files SB-2 Registration Statement with the Securities and Exchange Commission.

Business Editors

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Oct. 9, 2000

American Utilicraft Corporation, an innovative solution provider for short haul air cargo segments and e-commerce providers, today announced that it has recently entered into an Investment Agreement with Swartz Private Equity, LLC of Roswell, Georgia and has today filed a Registration Statement on Form SB-2 with the Securities and Exchange Commission. Pursuant to the Investment Agreement with Swartz the Company has the right to sell to Swartz up to $50,000,000 of its common stock, subject to effective registration, limitations based upon our trading volume, and certain other terms and conditions, over for a three-year period.

The Form SB-2 has been filed to register for resale to the public shares of American Utilicraft's common stock which will be sold to Swartz pursuant to the Investment Agreement and shares owned by another selling shareholder, together with shares to be initially offered to the public directly by the Company. The Registration Statement covers the resale of up to 9,200,000 shares to be sold by Swartz and another selling shareholder and 2,000,000 shares to be offered by the Company. No shares will be sold until the Registration Statement clears comments and is declared effective by the SEC.

About American Utilicraft

American Utilicraft Corporation was founded to target the significant problem of addressing short haul (or feeder) route segments of air cargo, overnight express and e-commerce entities unable to fulfill effective fulfillment and distribution. The result of the Company's research and development is 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 the aircraft's integrated air cargo information system for the freight feeder market.