Xtreme Companies (fka XTME)

[wallymac]

XTME -- Xtreme Companies, Inc.
Com ($0.001)

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Xtreme Companies Posts Record First Quarter Results

WASHINGTON, Mo., June 6, 2006 /PRNewswire-FirstCall via COMTEX/ -- Xtreme Companies, Inc. (OTC Bulletin Board: XTME) (OTC Bulletin Board: XTMEE) today announced its financials results for the first quarter of 2006. Revenue for the quarter ended March 31, 2006 was $758,590 vs. $68,000 for the quarter ended March 31, 2005, an increase of more than 1,000%. The increase in revenue was due in part to the Company's acquisition of Marine Holdings, Inc. d/b/a Challenger Offshore. Net loss for the quarter ended March 31, 2006 decreased to (.06) from (.0 for the quarter ended March 31, 2005. The Company's complete results can be viewed on its Form 10-QSB by visiting www.sec.gov.
Xtreme CEO Laurie Phillips stated, "While we are pleased with the significant increase in our top line vs. last year, we are by no means satisfied. We have begun to implement initiatives which we believe are critical for us to achieve accelerated revenue growth and transition to positive cash flow and profitability. The two primary areas we've targeted are; lowering our product costs by identifying and improving on the inefficiencies in our production process as well as increasing our ability to generate scale with a national footprint by aggressively expanding our dealer network."

She added, "The initial reaction from dealers so far has been extremely positive as they await production of our 2007 models. We look forward to improving upon our performance during the remainder of this year and are very excited about our opportunities as we progress into 2007."

As a result of the Company's filing of its Form-10QSB, it is expected that the trading symbol will revert back to "XTME" from 'XTMEE" within several days.

About Xtreme Companies, Inc.

Xtreme Companies, Inc., produces commercial semi-custom fiberglass boats which include leisure, high performance, and fishing models under the 'Challenger Offshore' brand. Internationally known boat racer and designer Don Aronow, credited as being the architect of the performance boat industry, along with Harry Schoell, world-renowned marine engineer, designed and created some of the hull technologies today used by Challenger Offshore.

Xtreme holds the exclusive rights to the revolutionary DDC hull for boats up to 40 feet in length. The DDC hull is a patented revolutionary design which incorporates two hulls into one, resulting in a constant planning surface enhancing stability and generating greater transom lift. This enables the hull to run faster in rougher seas while providing a dry, safe and more comfortable ride.

For more information you may visit http://www.xtremecos.com and http://www.challengeroffshore.com. Xtreme's public financial information and filings can be viewed at http://www.sec.gov.

Forward-Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.




Contact: Michael Novielli
Chairman, Xtreme Companies, Inc.
ph [phone]
[e-mail]

SOURCE Xtreme Companies, Inc.

CONTACT: Michael Novielli, Chairman, Xtreme Companies, Inc., [phone],
[e-mail]

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http://www.xtremecos.com
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