SOURCE: Extreme Motorsports of California, Inc.

May 31, 2007 14:11 ET

Extreme Motorsports of California Receives Master Distributor Agreement for Extreme Security Vehicles, Provides Share Structure Update

BAKERSFIELD, CA--(Marketwire - May 31, 2007) - Extreme Motorsports of California, Inc. (PINKSHEETS: ETMO) ("Extreme" or the "Company") has signed a master distributor agreement with Made in USA Industries, Inc. ("MITUSA"). Extreme selected MITUSA to develop its government sales channel for extreme vehicles to be used in a variety of applications. The first such opportunity in development is an Extreme Security Vehicle ("ESV") for use in U.S. and foreign desert law enforcement, military and private security applications. Extreme has received a commitment for 400 or more of the ESVs pending receipt of a manufacturing work order from Made in USA later this summer. At a minimum, the contract is valued at $39 million to Extreme.

Made in USA Industries, Inc., a minority/woman-owned small business, was founded to raise awareness of American-made products through its "Made in USA Magazine." The magazine, which was distributed to 20,000 subscribers in its first issue in 2005, now has a current base of over 46,000 paid subscribers and is dedicated to educating consumers on the impact of American-made goods on our national economy, providing brand analysis and evaluation to assist consumers with their purchasing decisions, and featuring products that support U.S. manufacturers and U.S. jobs. Recently, Made in USA expanded operations to target select opportunities its management has developed through its expansive business network, including the ESV project with Extreme.

"We made the decision to work with Extreme to develop its government sales channel based on a number of factors, not the least of which is the fact that the company has been building sandcars in the U.S. for the last 24 years, supporting the principles of entrepreneurship, a cornerstone of our national economy," commented Julie Reiser, Founder of Made in USA Industries. "First and foremost, however, is the fact that Extreme manufacturers the most rugged and technologically advanced sandcars in the industry, which are key factors for the extreme environments in which we anticipate the ESVs will operate and important work their users, both law enforcement and military, will perform."

The proposed ESV model is based on Extreme's Dune Racer frame and chassis, and is available both in four- and two-seat configurations, with a 5.7L V8 engine generating up to 400 horsepower, a "street-legal" accessory package, law enforcement LED lights and sirens, and a fully integrated global positioning system. The vehicles will be capable reaching speeds in excess of 140 mph. Detailed specifications for the EEV are provided below.

"We're looking forward to working with Made in USA and its customers to manufacture what will be the most advanced and robust security vehicles for desert applications ever built," stated Alan McCaa, President and CEO of Extreme Motorsports. "Conforming to military specifications, the ESV will expand our reach beyond recreational users to provide security forces with a new weapon in the defense of public and private assets."

In addition to the agreement with Made in USA Industries, Extreme today provided an update to its share structure as of May 31, 2007. The current share structure is as follows:

--  Common Stock
    --  Restricted: 10,685,069
    --  Free-trade Certificated: 498,631,207
    --  Free-trade Electronic or "Street Name": 913,109,515
    --  Total Issued and Outstanding: 1,422,425,791
--  Preferred Stock
    --  Total Issued and Outstanding: 5,000,000
Commenting on the updated share structure, Mr. McCaa stated:

"The increase in the number of outstanding shares of the Company was to compensate service providers, sales agents, consultants and our legal team over the last several months. We anticipated paying most of these professional fees in cash, but many of the individuals asked to receive shares to have some 'skin in the game' and benefit in the future from the increased shareholder value they are bringing to the table.

Today's announcement is one such example, where individuals who are making introductions to contract awards that management believes can significantly increase our revenues have requested stock-based compensation in lieu of cash.

As stated in our previous release, we were able to acquire Southern Offroad Vehicle Services for both cash and stock. The legal and due diligence fees associated with this acquisition, although not significant, were also paid with shares.

Finally, the legal fees incurred for our extensive branding, copyright and intellectual property protection problem to combat the naked short selling problem were also paid with shares.

While we realize the increase in our issued and outstanding shares is significant, and a departure from our previous plan to secure the cancellation of certain blocks of outstanding shares, management believes the issuance of this stock is the best interests of the Company to provide a solid foundation for growth of our revenues, as well as to address certain shareholder concerns related to naked short selling.

Within the next few days, we will also provide a status update regarding the previously announced dividends, which the Company is currently working to finalize through its attorneys, transfer agent and DTC."

Extreme Security Vehicle 2008 Model Specifications

2008 Dune Racer 4130 Chromoly Chassis
Upper & Lower 4130 Chromoly A Arms - Powdercoated
4130 Combo spindle assemblies - Powdercoated
4130 Chromoly Trailing Arms - Powdercoated
HOWE 2.5" Power Rack & Pinion
Swedged CNC tie rods w/ 4130 Rod Ends
Steering Assembly, joints & shaft carrier
Grant steering wheel with quick disconnect
Xtreme 930 Microstub assemblies with disk brakes & 4 piston calipers
Front disk brakes with 2 piston racing calipers
930 high angle drive axles
2.5" Front Xtreme coil over shocks with externally adjustable bypass
3" rear Xtreme coil over shocks with externally adjustable bypass control
Solid aluminum floor with sprayliner finish
CNC pedal assembly
steel braided brake & clutch lines
dual odyssey batteries with boxes and solenoid
35 gallon custom fuel cell with fuel sender
HD aluminum wheels with front & rear beadlocks
33" Dirt Tire Package (includes spare tire & wheel)
Four (4) extra wide suspension seats with stationary headrest (includes
seat packets)
Driver & Co-pilot seat slider brackets
Four (4) 3" 5 point safety belts with shoulder padding
Two (2) ACRO HID lights and LED brake/tail/running lights
Roof Rack with four HID lights, spare tire carrier & fuel/water canister
Fiberglass body (includes front enclosure, dash, hood, windshield,
firewalls, side panels, roof)
Street legal package (includes parking lock brake, front & rear turn
license plate holder & light, Horn & windshield wiper
Powdercoated chassis, suspension & springs
CBM 5.7L V8 with fuel injection & Xtreme Air Filters (Approx. 400HP)
Semi Automatic H Pattern 4 or 5 Speed Transmission with Trans Cooler,
Reservoir & Shifter
Passenger grab handles and side steps
Digital gauges system
LED dome lights
Passenger footrest with built in ice chest holder
Rear & side view mirrors
PCI radio system with four headsets
Lowrance 8.4" Color GPS
Dual Fresh Air Systems
Top Mount Police/ Security LED Light bar with Siren Package
Fire Extinguisher, First Aid Kit, Arm Restraints
Lexan divider between front & rear passengers for detainee restraint
Infrared Lighting Options, Garmin GPS, Mobile Laptop Communication Systems,
Diesel Engines & more available
About Extreme Motorsports of California, Inc.

Extreme Motorsports of California, Inc., operating under the trade name "Xtreme Motorsports," is a manufacturer of custom and production-line sandrails, desert and dual sport racecars. Founded in 1983, Xtreme's sandcars have been sold to customers in England, the United Arab Emirates, Australia, South America and the U.S. For more information, visit the corporate web site

About Made in USA Industries, Inc.

Made in USA Industries, Inc. is an outsourced sales and business development company dedicated to the promotion of American-made products. Founded in 2005, Made in USA is also the publisher of Made in USA Magazine, the American consumers' one-stop source for products manufactured in the United States of America. Each issue covers a wide variety of products which meet the Federal Trade Commission's Made in USA criteria. Readers will learn about products manufactured in the United States, both by American- and foreign-owned corporations.

Forward-Looking Statements

Certain statements in this release, and other written or oral statements made by the Company, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

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