Extreme Motorsports Receives Large Manufacturing Contract & Updates on Progress
01 Juli 2008 - 3:00PM
PR Newswire (US)
BAKERSFIELD, Calif., July 1 /PRNewswire-FirstCall/ -- Extreme
Motorsports of California, Inc. (Pink Sheets: EMOC) ("Xtreme" or
the "Company"), has received a large manufacturing contract from
Senatore Trailers LLC. At the beginning of this 2008 year, Extreme
Motorsports of California, Inc. began negotiating an agreement for
use of the patent rights with Senatore Trailers from New York
State. 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 the following points: 1) 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. 2) 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. 3) 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. 4) To assist in
the retail cost structure of the trailers to meet the needs of the
clients and the consumers. 5) To create additional dealerships in
selected states on the West Coast and overseas. The Company is
excited to announce the tremendous progress of this agreement!
Around July 8th, manufacturing of the first unit(s) to allow for
the final filming of the website videos will begin. Around the
middle of July our website is expected to be operational to allow
the existing registered distributors and dealers to begin ordering
and pre-paying by a selection of online payment options. The
trailers will be competitively priced at a retail price of $4,995
each for the base model and options such as a trailer dump bed, a
variety of powder-coated finished and dual-axle, heavy-duty models
are being considered that would generate additional revenues. Since
all orders are pre-paid we are planning that the first week in
August, with the distributors and dealers that are already in place
(in excess of 45 dealers across the US), our first month should
generate approximately $250,000 in revenues and grow steadily to a
conservative estimate of $829,000 per month through the rest of the
year. These revenues do not include consumers being able to order
the trailer directly online and pre-pay with a selection of online
payment options and also do not include additional dealers that the
Company is lining up now. Our conservative estimate plans on sales
to reach 3,000 trailer units per year within 18 months, generating
revenues of almost $15,000,000 per year. In order to properly
manage the manufacturing of the trailers, Extreme Fabrication LLC,
was formed with Extreme Motorsports of California, Inc. as one of
the owners. This entity will handle the management of the website,
sales, shipping and delivery to the customers for a smooth flow of
products without interfering with Xtreme Motorsports' existing
projects. The agreement also accommodates approximately $1.8
million in new, state-of-the-art equipment, which will allow for
lights out operation and robotic welding, as well as additional
factory space to facilitate the production numbers. Watch for the
new website being uploaded soon so the public can get its first
look at this magnificent product. Forward-Looking Statements
Statements in this news release relating to plans, strategies,
economic performance and trends, projections of results of specific
activities or investments, and other statements that are not
descriptions of historical facts may be forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1993 and Section 21E
of the Securities Exchange Act of 1934. Certain statements in this
release, and other written or oral statements made by the Company,
including the use of the words "expect," "anticipate," "estimate,"
"project," "forecast," "outlook," "target," "objective," "plan,"
"goal," "pursue," "on track," and similar expressions, are
"forward-looking statements" and are subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, performance, or achievements of the Company to be
different from those expressed or implied. The Company assumes no
obligation and does not intend to update these forward-looking
statements and takes no obligation to update or correct information
prepared by third parties that are not paid for by the Company.
Investor Relations http://www.xmssandcars.com/ or email at
DATASOURCE: Extreme Motorsports of California, Inc. CONTACT: Alan
McCaa, +1-661-343-4545, or Investor Relations, , both of Extreme
Motorsports of California, Inc. Web site:
http://www.xmssandcars.com/
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