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FirstFlight Divests Airborne Unit, Names Ricciardi As CEO

March 9, 2009 (FinancialWire) -- FirstFlight, Inc. (OTCBB: FFLT) (Current Market Cap: US$1.28 Mil.) said that it has divested its Airborne subsidiary through a share exchange agreement with Airborne's former owners, John and Daphne Dow. Ronald Ricciardi, who is vice chairman of FirstFlight, will assume the position of president and chief executive officer, offices he had previously held.

Airborne, FirstFlight's former charter segment, will now operate independently. FirstFlight will maintain the company's fixed base and heliport operations.

Dow, the former president and CEO and a director of FirstFlight, has resigned from all positions he held at FirstFlight in order to focus his attention on Airborne.

For the three months ended September 30, 2008, Airborne's operations represented $7,214,776 or 71% of FirstFlight's total revenue and generated an operating loss of $602,123 for the same period, according to the company.

Under the share exchange agreement, FirstFlight exchanged the shares it owned in Airborne for 3,418,534 shares in FirstFlight and options and warrants to purchase 1.1 million shares of FirstFlight owned by either of the Dows, representing all of FirstFlight's shares, options and warrants owned by the Dows.

Also in connection with the divestiture of Airborne, FirstFlight agreed to loan Airborne $750,000 and Airborne issued a promissory note in favor of FirstFlight in the amount of $750,000. Principal payments on the note will begin on September 1.

EuroAmerican Investment has agreed to loan FirstFlight up to $750,000 for the purpose of meeting the loan commitment obligations to Airborne under the Airborne loan agreement.

FirstFlight, Airborne and Five Star Bank also entered into a loan agreement whereby Five Star agreed to loan FirstFlight and Airborne an aggregate of up to $1 million on a demand line of credit basis. The loan replaces the existing credit facility that FirstFlight has with Five Star and provides that FirstFlight and Airborne are jointly and severally responsible for the indebtedness.

Elmira/Corning, New York-based FirstFlight operates in the fixed base operation segment of the general aviation industry. An FBO provides ground-based services such as fueling and hangaring for general aviation, commercial, and military aircraft, aircraft maintenance and other miscellaneous services.

FirstFlight also provides consulting services for a non-owned FBO facility and serves as the operator of a heliport located in New York City.

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