Diamond Powersports Announces 2nd Quarter Financial Results

$306,000 in Revenue Shows Increase of 221% in Gross Profits

FORT LAUDERDALE, Fla., Aug. 31 /Xinhua-PRNewswire/ -- Diamond Powersports Inc. (BULLETIN BOARD: DPWS) today announced its financial results for the quarter ending June 30, 2004.

Revenues increased $202,347 or 71% to $488,310 for the three months ended June 30, 2004 as compared with $286,963 for the three months ended June 30, 2003.

Revenues increased $290,466 or 63% to $752,289 for the six months ended June 30, 2004 as compared with $461,823 for the six months ended June 30, 2003.

Diamond Powsersports CEO said, ''These increases were primarily attributable to market penetration for our newer parts, as well as a growing awareness of our products in the first two quarters of 2004,'' explained Mr. Elliott. ''Additionally, at the beginning of last year, we began focusing on distributing more of our own line of products and less from other manufacturers.''

The average selling prices remained fairly constant with gross margins decreasing over the comparable periods in 2003 due to an increase in overhead allocations offset by several new product offerings.

''Gross profits through July were $558,719.86 compared to $252,349.95 for the same period of 2003,'' continued Mr. Elliott. ''The increase in sales is directly attributable to an aggressive marketing plan for many of our new and innovative sport bike accessories. Aside from some one-time charges we took in the quarter, we're very pleased with our sales progress. We continue to grow from month to month,'' concluded Elliott.

About Diamond Powersports

Diamond Powersports is the leading supplier of innovative motorcycle parts and accessories to the motorcycle aftermarket. Founded in 1992, it manufactures and distributes custom parts such as its Flame/frame sliders, lowering links, foot pegs, chain guards, kickstands and other miscellaneous sportbike accessories. The Diamond Powersports product line now includes nearly 400 innovative aftermarket motorcycle parts for the sportbike enthusiast.

Safe Harbor Act Notice

This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, acceptance of the company's products, increased levels of competition, product and technological changes, the company's dependence upon financing and third-party suppliers, and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus. Specifications are subject to change without notice.

  For more information, please contact:

   Mr. John D. Roskelley, President,
   First Global Media
   Tel: +1-480-902-3110