SOURCE: Xtreme Motorsports of California, Inc.

July 11, 2007 08:30 ET

Extreme Motorsports' SOVS Division Launches National Financing Program Through GE Money

Program Offers Small Business Retailers Branded Consumer Credit Cards

BAKERSFIELD, CA--(Marketwire - July 11, 2007) - Extreme Motorsports of California, Inc. (PINKSHEETS: ETMO) ("Extreme" or the "Company") is pleased to announce that its Southern Off-Road Vehicle Services ("SOVS") division has launched a national campaign to provide consumer financing to a wide variety of retailers, including customers of Extreme, through GE Money, the consumer and small-business financial services unit of General Electric.

This unique program provides small businesses with the ability to offer branded charge cards to its customers at reasonable interest rates with credit standards fixed at levels to ensure an 80% approval rate. The financing is available to Extreme's current customers, with SOVS now processing applications for several small-business retail participants. Extreme anticipates signing 1,000 retailers through the remainder of 2007 and 10,000 through 2009. Extreme estimates potential revenue generated by retailer sign-ups of $3.5 million through the end of 2007.

SOVS selected GE Money as its partner given the financial services firm's reputation, its expansive base of more than 118 million customers and nearly unlimited capabilities in extending consumer credit. Currently, there is no limit to the financing GE Money will provide under this program.

Extreme had previously reported a maximum of $14 million in financing to its customers only, but has expanded the program to target one-of-a-kind retailers offering furniture, clothing, signage, and SCUBA equipment, among others, as part of the financing program roll-out.

"The development this program through GE Money, a globally-recognized financial services firm, allows Extreme to amalgamate its manufacturing, marketing and sales capabilities with effective consumer financing. Now, we're able to bridge the gap between a customer's access to capital and a company's cash management," commented Alan McCaa, President and CEO of Extreme Motorsports. "Securing the relationship with GE Money and launching the national campaign underscores Extreme's commitment to rapid growth and increasing shareholder value.

"For the participants in the program, not only does it offer competitive interest rate options for consumers, but it also provides retailers with the ability to more effectively manage cash and inventory as a result of the 48-hour funding of the full customer purchase. Anyone who has managed a small business can appreciate the impact a 48-hour receivable turnover has on the company's use of assets," McCaa continued.

For many businesses offering high dollar value products and services, there is often a difficult balance between offering credit to "ensure the sale" and risky credit policies that ultimately result in non-payment by customers who become over-extended. Through the SOVS program, businesses now have the ability to evaluate credit risk, as well as benefit from greater throughput and profit margins by shifting the financing costs of the product or service to the customer.

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 US. For more information, visit the corporate web site

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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