Challenger Power Boats (fka CPBI)

[Screamer]

Not at all as bad as I expected:



Challenger Announces Record Second Quarter Revenue

WASHINGTON, Mo., Aug. 21 /PRNewswire-FirstCall/ -- Challenger Powerboats, Inc. (OTC Bulletin Board: CPWB) today announced its financial results for the second quarter ended June 30, 2007. Revenue for the quarter was a record $3,568,332, which included $395,000 related to business completed during the first quarter. The Company's net loss for the current second quarter decreased to ($0.02) per basic share which compares to a net loss of ($0.30) per basic share for the same period in 2006.

Complete financial results can be viewed on the Company's Form 10-QSB filing for the period ending June 30, 2007 at http://www.sec.gov.

'Our marketing and sales strategy is having a positive effect on our distribution channels. We are encouraged by our second consecutive quarter of record revenue, stated Laurie Phillips, Challengers president and CEO. 'We have also focused on improving the company's efficiencies, which have had a positive impact of gross margins. We intend to further operational efficiencies with the objective of achieving profitability in the near future.'

Ms. Phillips added, 'Additionally, we are currently taking aggressive steps toward restructuring our balance sheet, which should substantially improve our financial condition. These changes are expected to be competed in the current quarter and will go along way toward significantly strengthening the Challenger organization.'