Dow Jones 10334.73 -75.37 1:11 pm PST, June 14, 2004  NASDAQ 1969.99 -29.88 For info, visit access.smallcapnetwork.com S & P 500 1125.26 -11.21 To be removed, please click here Russell 2000 560.29 -8.83 VOLUME 04: ISSUE 47  Feature: Xtreme - Fire/Rescue Boats now Priority One Over and above the important fact that Xtreme Companies (OTCBB: XTME) sold an FRJ 1250 Fire/rescue Boat to the Jackson County Fire and Rescue Department in Marianna, Florida, (release below) Homeland Security has raised the importance of Xtreme's type of craft to Priority One status from Priority Four last year.  On the heels of that significant development, Xtreme has been busy assisting over 40 fire and rescue departments to polish and submit their applications for funding for fire/rescue craft through the $750 million Assistance to Firefighters Grant Program (AFGP). Xtreme is optimistic that its efforts will shortly yield significant business as the applications are approved and funded. When we first Alerted the readership to Xtreme in February, we felt that a purchase between 55-70 cents was appropriate. As the shares have come down with the rest of the market to the 40-cent range, we would amend that entry point to reflect the pullback. Accumulation of Xtreme shares by risk-oriented investors appears warranted, both on previous and future sales as well as the renewed focus on fire/rescue boats attaining Priority One equipment status for First Responders. The salient points for investors bear repeating: Xtreme trades at around 40 cents with 9.1 million shares outstanding for a market cap of $3.6 million Targeting under-serviced professional and military markets for 12-15 foot, state of the art, patrol and firefighting watercraft Corporate plans to conclude sales, initially, of a minimum of 1 boat a month for projected first year sales of $1 million-plus Highly focused sales effort to Police/Fire/Military and other Homeland Security-related groups High profile recent sale of 2 craft to NY and New Jersey Port Authorities providing both proof of concept and product validation as well as increased visibility. Past purchasers include US Marine Corp, Pales Verdes Police and Cooperstown NY Fire Dept. Growing number of incoming inquiries and interest from potential clients; local, national and international. Lack of any meaningful direct competition: other boats available tend to be too large, too expensive or inappropriate for specialized fire/rescue/patrol duties. Xtremely attractive Business appears to be on track for Xtreme. After a period of laying the groundwork by acting as advisor to--so far--40 fire/rescue departments, it's ships--or more appropriately boats--appear to be coming in. Given the proximity of high value and high risk targets to lakes and oceans, it is becoming apparent that quick deploy patrol and fire craft are a necessary adjunct to both Homeland Security as well as addressing the timely demands of natural disasters. Moving specialized personnel around a disaster site is critical for First Responders. Xtreme's shallow hulls (only 10 inches of water needed) and maneuverability means lives saved and property protected. As well as patrol and fire/rescue duties, the relatively small size and construction of these craft means that they could well be deployed into flood situations anywhere in the country. The boats are even equipped with helicopter lift points should it be necessary to quickly airlift them to a disaster site. The reasonable cost and the ability to customize craft for virtually any duty make Xtreme's boats highly desirable additions to virtually any rescue and/or security effort; be it national or local. It is said that a rising tide lifts all boats. The tide appears to be rising quickly for Xtreme as well as those risk-oriented shareholders who see the both the value and future growth of the company in a world where we require the best equipment to enhance both the safety and response time of the brave folks who protect us.    PRESS RELEASE Xtreme Companies Announces New Fire-Rescue Jet Boat Sale; Updates Homeland Security Priority One Status & FEMA Program Stanton, CA -- June 21/ PR Newswire / Xtreme Companies, Inc. (OTC Bulletin Board: XTME - News) announced today that it has sold a model FRJ-1250 Fire-Rescue Jet Boat to Jackson County Fire and Rescue Department in Marianna, Florida.  The scheduled delivery date is August 2004.  Jackson County's Chief Robby Brown stated, "Xtreme's Fire-Rescue boat is of great quality and design that offers EMS and fire-fighting capabilities in a small package which can maneuver anywhere on the water."  Xtreme CEO Kevin Ryan stated, "The fact that the FRJ-1250 continues to prove its capabilities, was the primary basis for this opportunity with Jackson County Fire and Rescue Department. It is extremely encouraging that we are now beginning to gain traction from our recent extensive marketing efforts."  He added, "Additionally, under the The Assistance to Firefighters Grant Program (AFGP), administered by the Department of Homeland Security's Office for Domestic Preparedness, we assisted over 40 fire and rescue departments nationwide in submitting their applications for funding of fire & rescue boats. We remain optimistic about our chances for success because this year fireboats have been elevated to Priority One Status as compared with last year when fire boats were classified under Priority Four Status. We expect shortly to begin hearing on the results of these applications." The AFPG assists rural, urban and suburban fire departments throughout the United States. Through the Department of Homeland Security Appropriations Act of 2004, Congress provided $750 million for the Assistance to Firefighters Grant Program and transferred administration of the program from FEMA to ODP.  The FRJ-1250 is ideal for shallow water rescues, pier fires, shore fires, or structure fires near the water.  It is remarkably maneuverable, turning quickly in its own footprint, and it operates at higher speeds than other currently available fireboats. Its maneuverability and performance generates highly desirable rapid response time, and it can also be used to fill the water tanks of traditional fire trucks near a shoreline. The boat can hold up to five firefighters at a time.  The boat is small enough that it can be moved easily on a trailer behind an SUV.  One firefighter can easily deploy, operate, and recover the boat.  It can also be equipped with a specialized foam dispensing system for chemical fires.   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. About the Office for Domestic Preparedness On March 1, 2003, the Office for Domestic Preparedness became a part of the Department of Homeland Security. The Homeland Security Act of 2002 (Public Law 107-296) designated ODP as the principal Federal agency responsible for the preparedness of the United States for acts of terrorism, including coordinating preparedness efforts at the Federal level, and working with all State, local, tribal, parish, and private sector emergency response providers on all matters pertaining to combating terrorism, including training, exercises, and equipment support. To support this mission, ODP administers a number of programs that provide a wide-array of support to our nation's emergency preparedness and response community. For more information on ODP, please contact the Website at www.ojp.usdoj.gov/odp. 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.   Contact: Michael Novielli  Chairman ph  (203) 791-3838 mnovielli@xtremecos.com   We Value Your Feedback Got comments, questions or suggestions? 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