SOURCE: Xtreme Motorsports of California

September 20, 2006 17:55 ET

Xtreme Motorsports Enters Negotiation Phase With Transmission Facility; Purchase and New Transmission Project Headline Discussions

BAKERSFIELD, CA -- (MARKET WIRE) -- September 20, 2006 -- Xtreme Motorsports of California, Inc. (PINKSHEETS: XTMS), a specialty sandcar developer and manufacturer, has entered into negotiations with a transmission assembler located in Bakersfield, California to assist in development of 'off the shelf' transmissions for the sandcar industry, and to discuss a potential future acquisition of the company.

"With the development of two possible transmission manufacturers, we're going to need a highly qualified, domestic transmission shop on board for technical assistance and assembly of the transmission kits," said Alan McCaa, CEO of Xtreme Motorsports. "We've entered into negotiations with a centrally located company 4 miles from our current manufacturing facility. The transmission company has over 30 years in assembling off-road transaxles specifically related to the sandcar industry. The ongoing discussions involve not only the technical assistance side and assembly side of our planned transmission project but also the possible acquisition of the company which would be a subsidiary of Xtreme Motorsports of California, Inc."

The sandcar business needs an increase in manufacturing output to keep pace with increased consumer interest. Whether it's an individual assembling his own personal car at home, or one of Xtreme Motorsports' production based sandcars stocked in house, or with one of our dealers around the country, the lag time between order and delivery of transmissions (often up to one year) must be addressed for this industry to keep growing at its current rate.

Xtreme Motorsports' entry into transmission manufacturing is an important step to expedite the arrival of critical transmissions, thereby allowing cars and transmissions to be readily available at an affordable price, while also further verticalizing the company and its revenue streams.

About Xtreme Motorsports of California, Inc.

Xtreme Motorsports is part of the multi-billion dollar off-road recreational and professional racing market. Off-road vehicle ("ORV") racing is one of the fastest growing sports in the U.S. According to industry estimates, 49.6 million people have ridden or driven off-road vehicles at least once during the fall 2003/spring 2004 season. This represents almost 23% of the entire U.S. population. For more information, visit the corporate web site www.xmssandcars.com or view our corporate profile on www.uptick.com.

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Contact Information

  • Contact:
    Alan McCaa
    661-323-8664