Xtreme Companies Announces Multi-Million Dollar Distribution Agreement With Challenger Offshore

STANTON, Calif., March 9 -- Xtreme Companies, Inc. (BULLETIN BOARD: XTME) announced that it has acquired the exclusive marketing and distribution rights from Marine Holdings, Inc. (MHI) d/b/a Challenger Offshore, for their semi-custom "CHALLENGER" line of fiberglass boats. MHI offers a model range of 19' to 97' in length, which includes leisure, performance and fishing boats as well as motor yachts. In exchange for the exclusive rights, Xtreme paid MHI shareholders 557,275 restricted shares of Xtreme common stock. Furthermore, Xtreme retains the right to acquire 100% of the outstanding shares of MHI in 12 months in exchange for an additional 20% of the outstanding shares of Xtreme at that time. MHI generated un-audited revenue in 2004 of approximately $2 million. Together with MHI's primary bank lender, Xtreme will assist in financing the production of Challenger boat sales and MHI's operations.

Xtreme Chairman Michael Novielli stated, "This agreement with MHI is a tremendous milestone for Xtreme. With the "CHALLENGER" line, we have added a potent and diverse product offering to our current lines of Fire Rescue and Patrol marine vehicles. We believe that this transaction dramatically changes the scope of our Company."

Xtreme CEO Kevin Ryan stated, "The "CHALLENGER" line of boats enjoys a stellar reputation within the industry. We are genuinely excited about the opportunities now available to Xtreme as a result of this deal. We have acquired the marketing and distribution rights to a valuable franchise which I believe will yield a significant return to our shareholders and investors."

MHI President Ron DiBartolo commented, "I am truly delighted about this partnership. Our plan is to continue with our core competencies in our vertical markets, but we also plan a horizontal push to develop other considerable opportunities. We are aggressively pursuing the establishment of a significant dealer network domestically as well as internationally." He added, "I believe we are a perfect complement to Xtreme and look forward to marked achievements resulting from the convergence of resources from both our organizations."

Xtreme Companies also announced the relocation of its operations from Stanton, CA to MHI's 65,000 square foot, 12 acre manufacturing facility located in Washington, MO approximately 50 miles west of St. Louis.

About Marine Holdings, Inc.

Marine Holdings, Inc. d/b/a Challenger Offshore manufactures semi-custom fiberglass boats of 19' to 97' in length, which include family, performance, fishing and motor yachts. Buyers of the "CHALLENGER" product line are generally 3rd, 4th and 5th time buyers who are knowledgeable purchasers of quality marine products. The Company is best known for their products that compete directly with the industry's largest boat producers. Internationally known race driver and designer Don Aronow, credited as being the architect of the performance boat industry, designed and created some of the hull technologies today used by Challenger Offshore. Mr. Aronow has also been credited with creating companies such as Cigarette, Donzi, Formula, Apache and Magnum. For more information you may visit www.challengeroffshore.com

About Xtreme Companies, Inc.

Xtreme Companies, Inc. is engaged in manufacturing and marketing of mission-specific fire and rescue boats used in emergency, surveillance and defense deployments. The boats have been marketed and sold directly to fire and police departments, the U.S. Military and coastal port authorities throughout the United States. For additional information about Xtreme Companies, Inc. please visit www.xtremecos.com. The Company's public financial information and filings can be viewed at www.sec.gov.

Forward Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.