Power Sports Factory, Inc. Modifies Andretti Agreement

PENNSAUKEN, N.J. January 29, 2009: Power Sports Factory, Inc., (OTCBB:PSPF) announced today that it has reached an agreement with Andretti IV, LLC., to restructure its licensing arrangement for 2008.

On January 20, 2009, the Company entered into a modification of its licensing agreement with Andretti IV, LLC, for payments due for the year 2008. As of December 31, 2008, PSF had a balance of $540,000 due to Andretti IV, LLC. Under the restructuring agreement, PSF made a commitment to pay $250,000 by February 6, 2009, executed a note for $87,000 due March 30, 2009, and converted $58,000 into 1,000,000 shares of common stock. Upon receipt of the payments, and payment in full of the note, Andretti IV, LLC, agreed to forgive the remaining balance due for 2008.

Further details of the agreement can be found in the Company’s Current Report on Form 8-K filed at www.sec.gov.