Team Gallagher Places 2nd at Hollywood Beach Super Boat Grand Prix

WASHINGTON, Mo., June 20 -- Xtreme Companies, Inc. (BULLETIN BOARD: XTME) today announced that Team Gallagher Offshore Racing, running its Challenger DDC-28, placed 2nd at the Hollywood Beach Super Boat Grand Prix off the coast of Florida during the June 16-18 competition.

Xtreme CEO Laurie Phillips stated, "We are certainly proud to report that Team Gallagher is off to another fine start this season. Last year at the 2005 Chattanooga Grand Prix, they set the course speed record racing the Challenger DDC-28 with its patented hull. The fact that our boats are experiencing success at this level of competition, I believe is a testament to the superior quality and craftsmanship which are inherent in a Challenger boat. We look forward to the sustained success of Team Gallagher as the season progresses, as they will continue to raise our profile and create awareness of the Challenger brand, as we expand within our sector of the marketplace."

About Team Gallagher

Team Gallagher is a military family run team and brings over 55 years of U.S. military experience to the offshore racing circuit. The Team's owner and throttleman, Sean, is currently active duty with over 16 years of service in the U.S Air Force. For further information please visit http://www.tgor.net/seetheboat.html .

About Xtreme Companies, Inc.

Xtreme Companies, Inc., produces high end, commercial semi-custom fiberglass boats which include sport and high performance models under the 'Challenger Offshore' brand. Internationally known boat racer and designer Don Aronow, credited as being the architect of the performance boat industry, along with Harry Schoell, world-renowned marine engineer, designed and created some of the hull technologies today used by Challenger Offshore.

Xtreme holds the exclusive rights to the revolutionary DDC hull for boats up to 40 feet in length. The DDC hull is a patented revolutionary design which incorporates two hulls into one, resulting in a constant planning surface enhancing stability and generating greater transom lift. This enables the hull to run faster in rougher seas while providing a dry, safe and more comfortable ride.

For more information you may visit www.xtremecos.com and www.challengeroffshore.com. Xtreme'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.