FirstFlight Announces Closing of Acquisition to Acquire New World Jet Corporation

Aug 11, 2008 3:52 PM

FirstFlight, Inc. (OTC BB: FFLT) announced that it has completed its acquisition of privately held charter operator, New World Jet Corporation, based in the greater New York City area. FirstFlight had previously announced the execution of a definitive agreement in connection with the acquisition.

The combined aircraft fleet will place FirstFlight among the top jet aircraft charter management companies in the United States and extend FirstFlight’s geographic footprint with predominantly large- and mid-cabin jets.

"FirstFlight and New World Jet share the same values and both companies have excellent reputations in the industry”, said John Dow, Chief Executive Officer of FirstFlight. “As a combined team, we intend to continue to provide our clients with the same high level of service while offering the benefits we expect to derive from economies of scale."

Dow also said that although FirstFlight would be making a number of internal organizational changes as the companies are combined, the goal was to make certain that the only changes the customers experiences were positive. He said they also intended to maintain the working relationship New World Jet had established with Jet Aviation and other industry contacts.

As part of the transaction, FirstFlight made a cash payment of $120,000, assumed a working capital deficit of up to $250,000 and agreed to future cash payments tied to the performance of acquired and referred aircraft. FirstFlight also issued a five-year warrant to purchase up to 2,000,000 shares of the Company’s common stock at an exercise price of $0.50 per share. The vesting of the warrant is contingent on the total number of aircraft that are retained on New World’s or FirstFlight’s charter air carrier certificate.

“Over the next six to 12 months, we will work closely with New World Jet personnel to transition aircraft and identify the best and most efficient allocation of resources," said Keith Bleier, Chief Financial Officer of FirstFlight. "The closing of our acquisition of New World Jet is a major step in FirstFlight’s recent growth initiatives and increases our presence in strategic markets. We expect the New World transaction to be accretive to earnings within the next few quarters.”

About FirstFlight, Inc.
FirstFlight is an aviation services company. FirstFlight’s operations are conducted in three core segments: aircraft charter management activities; fixed based operations; and aircraft maintenance. FirstFlight’s charter management segment provides on-call passenger air transportation. FirstFlight’s fixed base operation segment is the primary provider of services such as fueling and hangaring of private/general aviation aircraft operators. FirstFlight’s aircraft maintenance business is conducted at FirstFlight’s FAA-certificated facilities. FirstFlight maintains a website located at www.FFLT.com.

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