Redline Performance Products Commences Snowmobile Production

SAN DIEGO & MINNEAPOLIS--Jan. 2, 20049, 2004--Redline Performance Products, Inc. ("Redline(TM)" or "the Company") (AMEX:RED) today announced that they have begun production of the 800 Revolt(R) snowmobile. Redline expects shipments to dealers to start in February 2004. Redline plans to significantly ramp up production levels during February and March 2004, and expects to deliver a total of 600-700 snowmobiles during this 2003-2004 snowmobile season.

"This is an exciting culmination of years of planning and hard work," says Kent Harle, Chief Executive Officer of Redline. "We really appreciate the support and patience of our dealer network, investors, employees and everyone else who has 'kept the faith' while waiting for this dream to become a reality."

In November, Redline announced an agreement with McLaren Performance Technologies for engine assembly and final testing of the 800cc twin engine that will power the 800 Revolt snowmobile. The final integration and assembly of snowmobiles will be performed at Interstate Companies' facility in West Fargo, N.D., and Redline will ship snowmobiles to its dealers from that location.

ABOUT THE 800 REVOLT

Redline's 800 Revolt is a high-performance, 800cc snowmobile designed for trail riding. It incorporates patented and patent-pending technology - including a T-15 rear suspension system and clutch isolation drivetrain system - to produce a snowmobile that Redline believes will provide better handling, a smoother ride, more power, greater durability and more attractive styling. For downloadable images of the 800 Revolt, please visit www.1redline.com/pages/press2.html.

ABOUT REDLINE PERFORMANCE PRODUCTS, INC.

Redline Performance Products, Inc. designs, engineers, markets, manufactures and sells snowmobiles under the Redline(TM) brand name. The Company maintains its principal executive offices in San Diego and also has an office in Minneapolis. Learn more at www.1redline.com.

FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 as set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "expects," "plans," "anticipates," "believes," "estimates," "intends," "proposed," "scheduled," "continue," or the negative of these terms or other comparable terminology. Forward-looking statements are estimates and projections reflecting the Company's judgment and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Although the Company believes the forward-looking statements made in this news release are reasonable, the Company's expectations may prove to be incorrect.

The Company cautions you to not place undue reliance on these forward-looking statements, which reflect management's view only as of the date of this news release. Important factors that could cause the Company's actual results to differ materially from estimates or projections contained in the forward-looking statements include the Company's ability to obtain high-quality parts and subassemblies in a timely and cost-effective manner, the timely and successful assembly of snowmobiles by the Company's contract assembler and the assembler's ability to quickly ramp up production, having sufficient capital on hand to fund the Company's production and other operations, compliance with the terms of the Company's line of credit agreements, the overall quality and performance of Redline snowmobiles and the level of any warranty expenses, compliance with applicable regulations, the number of dealers engaged by the Company, the number of purchase orders received from dealers, and other factors described in the Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2003, and other documents, filed with the Securities and Exchange Commission.