SOURCE: Tank Sports, Inc.

October 16, 2007 15:55 ET

Tank Sports CFO Comments on the Second Quarter Results

LOS ANGELES, CA--(Marketwire - October 16, 2007) - CFO of Tank Sports (OTCBB: TNSP), Ms. Jing Jing Long, today comments on the Second Quarter results after releasing the 10QSB ended on August 31, 2007.

She said, "Generally speaking, the Q2 numbers were more or less within the expectation except the growth rate in revenues is less than projected. According to Powersports Business Magazine, while the industry is celebrating its 14th consecutive growth year (Motorcycle Industry Council), new unit sales slumped down 5 percent in comparison to last year, and ATV sales have slid down for 10.4% in first-half 2007. In the meantime, the company views a lack of vigor to boost the market." She added, "I am still confident that the company is positive on achieving goals for FY 2008, and the company is positioning well to operate under guidelines."

Her comment focuses on 5 areas specifically:

--  Increase in net revenue by 16.30% as compared to the six-month period
    ended August 31, 2006 that mainly contributed by increased number of
    dealer and wider product lines achieved through Redcat acquisition.
    Net revenue for the three-month period ended August 31, 2007 was only
    increased by 1% as compared to the same period in 2006. The slower
    growth was also partly due to late delivery of vehicles. Our China
    vendors faced electricity problems in their production and thus
    delayed the delivery date occasionally.

--  General and administrative expenses for the six-month period ended
    August 31, 2007 were increased by 85% as compared to the same period
    in 2006. For the three-month period ended August 31, 2007, general
    and administrative expenses increased by 66% compared to the same
    period last year. The increase is mainly due to severance pay post
    Redcat acquisition, warehouse storage (the number of warehouse
    increased by 4, from 2 to 6 warehouses nationwide), insurance expense,
    rental and professional fees.

--  The increase in total operating expenses for the six-month period
    ended August 31, 2007 has contributed to net loss of $498,355, a sharp
    drop as compared to net income $275,406 achieved for the same period
    last year.

--  Our current ratio had improved from 0.90 last year to 1.04 as of August
    31, 2007. Though we were operating at a loss this quarter, we are still
    maintaining positive net assets as compared to deficit last year. Free
    cash flows for the six-month period ended August 31, 2007 were
    $680,317, an impressive increase from ($1,566,823) for the same period
    ended August 31, 2006.

--  Gross profit margin was improved to 31% for three-month period ended
    August 31, 2007 from 27% for the same period in 2006, reflecting a
    decline in our cost of goods sold to revenue ratio. Gross profit
    margin for the six-month period ended August 31, 2007 was
    slightly decreased by 2% from 28% to 26% as compared to the same
    period ended August 31, 2006. This was mainly due to RMB currency
    fluctuation and increased freight cost.

"Looking forward," Ms Long said, "we are consistently pushing on our proprietorship products line and acquiring other new models to fulfill our product variety. In September, our racing bikes have entered the market in large quantities. At same month, we signed stock acquisition LOI with PMI which owns brand DZ/Dazon, an industry sound brand name in Europe, US and China. With the strong R&D capacity in bigger engine buggies that will be acquired with PMI, there will be more new models joining the Tank product family soon."

About Tank Sports, Inc.

Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, as well as off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annual (data: Motor Industry Council) motorcycle/ATV market. Tank Sports' primary advantage is its efficient distribution network in the U.S. The company's goal is to bring the extraordinary riding experience to its customers. For more information, visit

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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