Franchise Services of North America Inc. Announces New Franchisees to Operate Under the U-Save Brand

- System expansion continues with new locations - TSX-V Trading Symbol: FSN CALGARY, Aug. 1 /PRNewswire-FirstCall/ - Franchise Services of NorthAmerica Inc. ("FSNA" or the "Company") announced today that it has closedon the sale of three new franchises in the Caribbean, and has begun tooperate in Newark, New Jersey, servicing Liberty International Airport. In addition to the Newark, New Jersey location, the Company has sold afranchise for the Island of St. Maarten and a combined franchise for theIslands of Aruba and Bonaire. "We are very excited about the opening of our Newark location and thecontinued development of the Caribbean region in addition to our NorthAmerican efforts. All three of these franchises will operate airport andlocal/neighborhood locations," said Robert M. Barton, Chief OperatingOfficer of the company. About FSNA ---------- FSNA is a publicly traded company on the TSX Venture Exchange. Thecompany and its subsidiaries own the following brands: U-Save Car & TruckRental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental ResourceCenter ("ARRC"), Xpress Rent A Car and Peakstone Insurance. U-Save, with its subsidiary ARRC, has over 1,100 locations throughoutthe United States and is one of North America's largest franchise carrental companies. Having primarily serviced the local market for the past25 years, current expansion plans call for the opening of airport locationsin the top 125 markets in the United States and the major airports inCanada. U-Save currently services 31 airport markets in 14 different statesand the Caribbean. U-Save Car Sales is a recent expansion of the U-Savebrand into the car sales market. Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns therights to the Rent-A-Wreck(R) trademark for all of Canada. TheRent-A-Wreck(R) system operates a network of 50 franchises fromcoast-to-coast in Canada, providing a range of vehicle rental, leasing andsales options to its customers. The Rent-A-Wreck(R) system has been incontinuous operation in Canada since 1976. Forward-Looking Information --------------------------- Certain information included in this press release is of aforward-looking nature. Forward-looking information is subject to known andunknown risks, as well as uncertainties and other factors. Accordingly,actual results may differ materially from those expressed or implied inforward-looking information. Some of the risks, uncertainties and otherfactors affecting FSNA are discussed in our public filings with thesecurities regulatory authorities in Canada. Copies of FSNA's Canadianfilings, including our most recent management information circular, annualinformation form, interim financial statements, material change reports andnews releases, are available online at http://www.sedar.com. Information in thisdocument is presented as of August 1, 2007 and is subject to change afterthis date. However, FSNA disclaims any intention or obligation to update orrevise any forward-looking statements, whether as a result of newinformation, future events or otherwise. The TSX Venture Exchange has in no way passed upon the merits of this transaction and has neither approved or disapproved the contents of this press release.