SOURCE: Xtreme Motorsports of California, Inc.

February 28, 2007 17:40 ET

Xtreme Motorsports Provides Update Regarding Cash and Stock Dividend

BAKERSFIELD, CA -- (MARKET WIRE) -- February 28, 2007 -- Xtreme Motorsports of California, Inc. (PINKSHEETS: XTMS) ("Xtreme" or the "Company") today provided an update regarding the cash and stock dividend announced on February 16, 2007. Shareholders of record as of February 12, 2007 will receive a 1% stock dividend, or 1 share of restricted common stock for every 100 held as of the record date, and a cash dividend of $0.0001 per share. The Company anticipates completing the distribution on or before June 1, 2007.

As previously announced, the cash and stock dividend is intended to protect shareholders and address the recent drop in share price during the week of February 5, 2007, which the Company believes is the result of reputable brokerages engaging in the illegal practice of naked short selling. The Company will consider taking further action if this activity continues.

"While we understand that the dividend is relatively small, our intent was to cause any short sellers to cover their positions," commented Alan McCaa, President & CEO of Xtreme Motorsports. "On an annual basis, Xtreme will evaluate the distribution of a dividend to shareholders and hope to increase the amount in the future."

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

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.

Contact Information

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