FBO Air, Inc. Closes Funding.

SCOTTSDALE, Ariz. -- FBO Air, Inc. announced today that the Company closed a private placement financing for the Company that enabled it to consummate two acquisitions and provide working capital for the company.

The funding raised approximately $4.5 million in gross proceeds for the Company and, in connection therewith, the Company issued about $1 million of its 10% Senior Secured Notes and about $3.5 million of its Series A Convertible Preferred Stock, as well as warrants to purchase about 2.75 million shares of its common stock. In addition, the offering was structured with the possibility for an additional $1.25 million to be raised in a second closing within the near term.

"We are extremely pleased to close this financing," said Ron Ricciardi, president of FBO Air, Inc. "This allowed the company to move forward with its initial acquisitions with a solid working capital position." Approximately $2.7 million of the financing was dedicated to closing FBO Air's initial acquisitions - Tech Aviation Service, Inc. in Wilkes-Barre/Scranton, Pennsylvania and Central Plains Aviation, Inc. in Garden City, Kansas.

"Our team is excited about the prospects for FBO Air and we were pleased to be able to assist the company with this financing," stated Ted Fowler of Laidlaw & Company (UK) Ltd., which acted as the company's placement agent for the financing. "We believe in the management team and the business model of FBO Air and look forward to further assisting the Company as it moves ahead with its business."

FBO Air, Inc. (OTCBB:FBOR) acquires and operates fixed base operations (FBO's). Fixed base operations are the primary providers of services to private and general aviation aircraft operators. An FBO, at a minimum, fuels and hangars aircraft and may additionally service, recondition, and otherwise maintain aircraft. Some FBO's also manage aircraft, operate flight schools and/or sell charter time. All prospective acquisitions that the company considers in the FBO industry have functionality in some or most of these areas.

This release includes projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although the management of FBO Air believes that the expectations reflected in these forward-looking statements are reasonable, there are no assurance that such expectations will prove to have been correct.