Extreme Motorsports of California Inc. has received a large manufacturing contract from Senatore Trailers LLC. Senatore Trailers approached the Company about building a patented utility trailer that they owned and manufactured. An agreement was negotiated to allow their patent rights to be re-engineered and trailers manufactured to meet the needs of the existing dealer base started by Senatore Trailers. The agreement consists of: To re-engineer the trailer to provide for a hydraulic load-unload capability from a full-size pick-up truck bed, expanding from 4'x6' to 6'x10' once unloaded. Construction is to be all-aluminum and it is to be mass-produced through advanced manufacturing methods, similar to the sandcars, already built through Xtreme Motorsports. To create and control a worldwide website to conduct the sales, tracking, shipping and payment of the product for consumers and dealers. This new website will have video demonstrations of how the trailer operates and how it is manufactured. To start manufacturing immediately upon completion of engineering to provide trailers to the existing dealer base. Manufacturing to begin early in July and will be limited to 50 units per month for the first three months to allow the Company to tool up to meet the planned 2000--2500 trailers per year requirement within the first 12 months.

Extreme Motorsports of California Inc. announced it has completed the engineering & manufacturing plans for its SECOND all-electric zero emissions sandcar. This electric technology is now offered in the Sportster model as announced on April 24th, and is available for immediate order. Unlike the Dune Racer model, there is no wait time for the Sportster electric sandcar model. Orders can be placed immediately. Next, at less than half the cost of the Dune Racer, this model will make zero emissions sandcars available to those who have less extravagant budgets. This model still eliminates the transaxle typically common in sandcars and replaces it with a gearbox provided by Azure Dynamics. Although the system is less powerful than the Dune Racer system, it still equals the power of the gas engine that comes standard in the Sportster so there is no loss in performance. Range is about 100 miles +and can be recharged for approximately $3 because it still utilizes the AEV Lithium Ion Batteries. A street legal package is under development for the Dune Racer model as well. This will be available in December 2008 and can be implemented in all the 2009 orders.

Extreme Motorsports of California Inc. announced that it has received a dealership/purchase letter of intent from Toyshare Inc. The letter of intent consists as Toyshare will purchase a designated number of sandcars for each office it opens based on membership sales. Toyshare will make Xtreme Motorsports vehicles part of its offering to new and existing members. Toyshare will become a dealer for Xtreme Motorsports in each market that it operates in throughout the U.S. Upon receipt of these details, Xtreme will draw up contracts for each vehicle to finalize the paperwork and begin moving forward.