Execute Sports (fka EXCS)

[SD1527]

Newsletter via MicroStockProfit.com -

Dear Investor,

While not every company we cover immediately takes
off like wildfire, fortunately we have had some
significant progress with some of our "slow burners"
or as we sometimes lovingly call them - the
hatchlings. A few such incubations, may not have
been the most riveting of stories or quickly fueled by
the flame but nonetheless rose an average of
300% over the course of a few months.

In early January, Nighthawk Systems, Inc. (OTCBB:
NIHK) was trading at just $0.07 and in early
February, Seawright Holdings, Inc. (OTCBB:
SWRI) only $0.50 when we first reported to
subscribers. NIHK subsequently reached a
high price of $0.24 and SWRI hit $1.48 just
yesterday. Both were up about 300%, and both
within a few shorts months. While the fun
gains are those that spike, the real gains are realized
by having more than one brewing in your account.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

EXCS Restructuring Complete
True to form, Execute Sports Inc. (OTCBB:
EXCS) is giving weary investors something to
get excited about. After a "clean up" 10K filing that
reflects the company's recent restructuring,
EXCS announced today that Original
Equipment Manufacturer (OEM) sales for the 2007
season are quickly coming up on the $1 million
mark!

Although it is impossible to ignore the 57% increase
in net loss (approx $5.6 mil) logged by Execute in '06;
corporate developments provide hope that 2007 will
be a turnaround year for the company and a great
entry point for many of our investors. Despite a recent
general slowdown in the market, EXCS
continues to grow revenues year-over-year. In
addition, the new focus of the company on its water
sports business, is growing on all fronts (OEM, brick &
mortar, even e-commerce) like a gangbuster.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Read Between the Lines

EXCS's most recent 10K filing indicates that 2006 revenues were just over $2 million (up 45% over '05). By '06 standards, today's announcement would provide a boost of nearly 50% to the top line. Not too shabby for a company that has just emerged
from a beneficial, yet intensive corporate reorg that included selling back what had been hoped to be a solid complementary, long-term revenue stream.

Moreover, the EXCS 10K states that the Execute's now sold-off Academy Snowboard business generated more than $600,000 in '06
revenues, playing a key role in the company's 45% net sales increase. This makes today's news even more interesting. Cut out the $600K in Academy revenues for '06 and EXCS logged about
$1.4 million in 2006; approximately $400K off of total '07 OEM sales according to today's news release.

Thus far in 2007 (ONLY 3 MONTHS INTO THE YEAR), OEM sales, which make up only a percentage of overall EXCS revenues, are
now accounting for more than one-half of '06 revenues. Unless the rest of the business falls apart at the seams, which is highly unlikely with one of the industry's finest management teams at the helm, it looks like top line growth will continue in '07 for another consecutive year.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Primed For Another Run?

Aside from the Sport's Authorities and e-commerce websites of the world, EXCS's ability to provide industry leading water sport products through a very consumer friendly and affordable pricing structure is attracting increased attention from all
angles, including tier-one OEM partners such as Kawasaki Motor Group. With a deal already in place to produce the '07 line of Jet Ski (R) gear and former Body Glove Sales manager Celeste
Berouty on board, record sales are not only anticipated but expected.

Commenting on today's news, CEO Geno Apicella stated "This is the first time that we have ever received reorders this late in the season. This is unexpected good news and has confirmed that our products continue to receive excellent sell throughs". In addition to developing its own line of Execute branded watersports hard and soft goods, EXCS has made a strong effort to support the OEM market. Apicella further commented, "It is
our goal to provide the same quality and style with our OEM business that we put into our Execute line. Our designers, sales team and production staff put the same effort into producing OEM products as they do with our own."

The last time we noted EXCS's stock price was bottoming (in the current range) and was coupled with very positive news (like today's news), the share price rocketed nearly 1000% over a ten day period.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

EXCS promises to be a company worth buying at this low price and letting brew in your account. We see a strong entry point here. That aside, the fundamentals are there, the management is strong, income is up and industry connections just keep
growing. With positive news like today's, we will likely
see a lot more of EXCS in future coverage.

As always, do your due diligence and happy trading!

Sincerely,

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Micro Stock Profit
email: [e-mail]
phone: [phone]web:http://www.microstockprofit.com