SOURCE: Xtreme Motorsports of California, Inc.

February 08, 2007 08:30 ET

Xtreme Launches "24 Dealers in 24 Months" Initiative -- Program to Kick Off National Expansion via Existing Off-Road Vehicle Sales Channels

BAKERSFIELD, CA -- (MARKET WIRE) -- February 8, 2007 -- Xtreme Motorsports of California, Inc. (PINKSHEETS: XTMS) ("Xtreme"), the world's only publically traded sandrail and dual sport racecar manufacturer, announced today a key component of its recent growth initiatives: a plan to on-ramp 24 dealerships of its one-of-a-kind sandcars in 24 months. Extreme Motorcar Marketing of Utah is the first distributor signed up under the program and has committed to purchase 24 sandcars from Xtreme for resale over the next year for a total retail value of approximately $1.6 million.

"With nearly 20 years in the motorsports industry, it has been exciting [for Extreme Motorcar Marketing] to see the explosive growth in the sandcar market... and Xtreme makes the best machines available for incredible value. We have signed on as a dealer representative for Xtreme Motorsports of California and will launch a branding campaign in the West. Our company will set up sandcar dealers across the southwestern states initially with a goal of 25 new dealers in 2007. We are also currently developing dealer and customer financing programs to make the buying decision a little easier," Michael Southworth, Managing Member of Extreme Motorcar Marketing, LLC.

The "24 in 24" program is set to change the way in which sandcars are marketed and sold throughout the world. Historically, the sandcar industry has been driven primarily by custom, contract manufacturing, with some buyers waiting up to 12 months for delivery of a fully loaded sandcar. Xtreme will now be able to manage customer demand much like a traditional car manufacturer, with stock sandcars available for immediate purchase.

"I'm thrilled to have Extreme Motorcar Marketing as our anchor distributor in the '24 in 24' program," commented Alan McCaa, Chief Executive Officer of Xtreme Motorsports. "We've worked with Mike Southworth, President of EMM, for three years and are looking forward to growing our mutual business for years to come."

"2006 was about taking the company public, securing additional growth capital from investors and completely retooling our internal operations. Once these steps were completed, we knew the next step in the process was to streamline and professionalize our sales and distribution channels to accommodate rapid growth. We're focused on delivering volume to drive brand value; high-quality sandcars to the masses with a custom feel at a not-so-custom price," continued McCaa.

Under the terms of the agreements with dealers and distributors, each must commit to purchasing 12 and 24 sandcars over a 12-month period, respectively. In addition, both dealers and distributors are required to grant exclusivity to Xtreme for sandcar sales, where sales of sandcars by competitor manufacturers, other than aftermarket parts support, are prohibited. Once qualified through a rigorous evaluation process, the new dealers and distributors benefit from tiered reseller pricing discounts, signage and marketing tools, state-specific legal sales templates and an initial stock of sandcars available for sale.

About Xtreme Motorsports of California, Inc.

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 www.xmssandcars.com.

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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