SOURCE: Tank Sports, Inc.

January 18, 2007 08:30 ET

CEO of Tank Sports Comments on 2006 Third Quarter Results

LOS ANGELES, CA -- (MARKET WIRE) -- January 18, 2007 -- Jingjing Long, CEO of Tank Sports, Inc. (OTCBB: TNSP), today reviewed the company's quarterly results of fiscal year 2006. "According to our recent report, we have achieved 36% growth in revenue and 49% growth in gross profit for the 9 months ended on Nov. 30, 2006, compared to the same period of 2005," states Jingjing Long. "Although we experienced quarterly revenue decline in the 3rd quarter compared to the same quarter last year, we still reached the company's adjusted sales goal of $1,900,000, which was planned by the management team in August. We have also accomplished the following: 1) didn't have to lower product price for competition, 2) properly managed inventory amount, 3) controlled operational expenses, and 4) prepared ourselves for acquiring peer companies."

"We have filed 10Q and 8K forms according to the requirements and deadline of the SEC. According to the reports, we have reached our predetermined goal in the first two quarters in 2006 (for more details please refer to the 10Q form). However, sales experienced a relatively large decrease in the third quarter of 2006 in comparison with the same period in 2005. Sales in the third quarter of 2005 were much higher because at the time, gas prices increased rapidly, and Hurricane Katrina hit America. Tank predicted that motorcycle sales will exceed normal amounts by a large margin, and therefore has made early preparation and increased the product importing amount. As a result, motorcycle sales were by far better than the normal predicted amount," said Jingjing Long.

"In the third quarter of 2006, we did not reach the sales goal of $2,700,000," Jingjing Long stated. "It was affected by the fact that our EAP and CARB applications for small ATVs encountered obstacles. Moreover, according to our predictions, there would be severe over-importing for the second half of 2006 due to the unusually high demand in 2005. At the same time, we predicted that gas prices will decrease instead of increase. As a result, we concluded that there would be negative competition in a nature that companies would lose money, which wears down their capitals and competitiveness, even driving a number of them out of the market. As a result, we have changed our strategy to be conservative in order to reserve capital and build up potential for the next year. Our predictions were proven to be correct. Some peers are seeking a way out, and that provided us with a chance to acquire Redcat Motors."

She added, "Despite the rapidly changing market and the condition of the competition, we have reached our predetermined goals with persistence. This is a preparation for the company's faster growth in the year 2007."

Tank's achievements in 2006:

- Dealer network expansion: increase 27%, reached 252.

- Reached sales goal, with a 36% increase.

- Successfully went public, with a healthy stock market status; successful on stock split.

- Successful new product development. New products include Vision 250E, 150T-12 scooter, and new ATV models.

- Successfully acquired Redcat Motors, through which Tank has obtained an outstanding staff group, business model, EPR system, small ATV product line (which Tank originally lacked), and 300 additional dealers nationwide. Moreover, Redcat had annual revenue of $19,700,000, gross profit of $1,600,000, and a net profit of $300,000 (audited) in 2005; and annual revenue of $15,700,000 (unaudited) in 2006. (For obtaining the actual market worth of Redcat Motors, please refer to the third party evaluation report that will be available in the near future.)

About Tank Sports, Inc.

Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles & scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.

Safe Harbor Statement

The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor'' for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.

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