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EX TREME MOTORSPORTS
Sym: ETMO.PK
Current $0.0004
5 Day $0.03
Just secured $14 million in financing for future customers!

E XTREME Motorsports of California, Inc. Completes Acquisition of Southern Offroad Vehicle Services
June 27, 2:00 pm ET

BAKERSFIELD, CA--(MARKET WIRE)--Jun 27, 2007 -- EXT REME Motorsports of California, Inc. (Other OTC:ETMO.PK - News) ("EXTR EME" or the "Company"), has completed the acquisition of Southern Offroad Vehicle Services, LLC ("SOVS"), a company dedicated to providing financing for customers purchasing off-road vehicles. Through this acquisition, EX TREME will not only be able to offer its customers direct financing of sandcar purchases, but will also be the first sandcar manufacturer

As previously announced, in exchange for all of the capital stock of SOVS, E XTREME has paid $10,000 in cash and 15 million shares of EXT REME common stock. Of the 15 million share of common stock, 10 million will be restricted shares of common stock and 5 million will be free-trading shares.

In the past, EXTREM E required customer down-payments at contract signing and final payment upon acceptance of the final vehicle, which required EXTR EME to finance the 12-month or more build-out process through the operating cash flow of the company. Now, EX TREME will be able to achieve both greater throughput and profit margins by shifting its financing costs to the customer. SOVS has currently secured $14 million in financing for future customers of E XTREME, both for direct purchases and for leased vehicles. This will provide EXT REME with immediate funding for the build-out of custom sandcars for private customers and "spec" vehicles for its dealers.

"The acquisition of SOVS provides EXTREM E with the capability to deliver direct financing to our customers at rates comparable to dealers of standard over-the-road vehicles," commented Alan McCaa, President and CEO of EXTR EME Motorsports. "Through this acquisition, we provide what no other sandcar manufacturer in the world is able to claim: in-house financing to all customers. This not only ensures consistent operating cash flows to EXTRE ME, but incentivizes buyers who might otherwise defer a purchase to a later date to complete a purchase immediately through consumer financing."

About EXTREM E Motorsports of California, Inc.

EX TREME 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, E 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

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