SOURCE: Xtreme Motorsports of California, Inc.

February 09, 2007 08:15 ET

Xtreme Motorsports Completes Move Into New Engineering and Manufacturing Facility

BAKERSFIELD, CA -- (MARKET WIRE) -- February 9, 2007 -- Xtreme Motorsports of California, Inc. (PINKSHEETS: XTMS), a manufacturer of extreme long travel sandrails, desert and dual sport racecars, has completed the move into its new facility, which will provide a two-fold increase in the size of the manufacturing space to 6,000 sq. ft. and as much as a 500% increase in annual sandcar production. The new facility features a Service Department, a Parts Department and 6 dedicated bays for assembly. In addition, parts storage has increased three-fold, providing Xtreme with the ability to ensure timelier throughput for vehicle builds.

The refit and expansion of Xtreme's facilities represents one facet of the company's overall strategic initiative to increase sales and production significantly over the next several years. Ultimately, management plans to compress sales cycles from a full year, in some cases, to a matter of weeks where pre-manufactured sandcars are available for immediate purchase in the dealer pipeline.

"Xtreme is currently working on 9 custom cars for private buyers and we have 15 on order, as announced yesterday, with Extreme Motorcar Marketing, representing a 15% increase in year-over-year backlog," commented Alan McCaa, CEO of Xtreme Motorsports. "In addition, we've entered into a letter of intent with a new dealer to purchase 10 sandrails and are in discussions with five other dealers for several dozen new orders. We're pleased with the demand for our unique products and, with the new facility, are now in a better position to deliver than ever before.

"We've made a commitment to reduce delivery times for custom sandcars from up to 12 months and more, down to 90 days. Presently, we're down to a 6-month backorder time, just with the new facility. Over the next few quarters, we're going to focus on a redevelopment of our raw material and parts procurement and will update shareholders accordingly as we reach critical milestones under that process," McCaa continued.

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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