Redline Performance Products Raises $750,000 in Private Placement

SAN DIEGO & MINNEAPOLIS--May 1, 20047, 2004--Redline Performance Products, Inc. ("Redline(TM)" or "the Company") (AMEX:RED) today announced that it has raised $750,000 in a private placement of shares of common stock and warrants to purchase shares of common stock to several individual investors. The investors received a discount to the current market price in exchange for purchasing shares of restricted stock.

"We have received proceeds from the private placement over the last three weeks and have already put $500,000 to use in production and for operating expenses," said Mark Payne, president and chief financial officer. "We expect that the remaining $250,000 will enable us to continue limited shipments of snowmobiles during this off-season while we evaluate near-term and longer-term financing strategies. We intend to use such financing to fulfill approximately 400 orders we have in hand for the upcoming 2005 season," he said.

Under SEC Rule 144, restricted shares may not be resold until one year from the date the shares are sold, unless registered prior to that date. GunnAllen Financial, Inc. acted as placement agent in the transaction.

About the 800 Revolt

Redline's 800 Revolt is a high-performance, 800cc snowmobile designed for trail riding. The 800 Revolt 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 provides better handling, a smoother ride, 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. To learn more, please visit 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 "intends," "expects," "plans," "anticipates," "believes," "estimates," "should," "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 our ability to develop and execute a plan to operate in the future, our ability to raise additional capital in the immediate and near term to fund our production and other operations, our ability to enter into arrangements with our creditors and vendors to delay making payments to these groups and to operate as a going concern, our ability to obtain high-quality parts and subassemblies in a timely and cost-effective manner, the timely and successful assembly of snowmobiles by our contract assembler and the assembler's ability to produce our snowmobiles, having sufficient capital available to us to fund our production and other operations, compliance with the terms of our loan and related agreements, the overall quality and performance of Redline snowmobiles and the level of any warranty expenses, timely compliance with applicable snowmobile and other regulations, the number of dealers engaged by us, the number of purchase orders received from dealers, the demand for our snowmobiles from potential purchasers, 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.