Xtreme Companies Inc. CFO outlines firm’s new financial strategy

LAS VEGAS, Nev., March 26, 2003 — Richard Scoble, the newly named treasurer and chief financial officer of Xtreme Companies Inc., a municipal solid waste reduction solution provider, announced a new strategic direction to streamline the financing process of the company’s core waste reduction technology.

Scoble announced the development of a new Xtreme Companies Inc. energy bond issue supplying financers of its solid waste reduction technology for municipal governments, adequate collateral and equity protection using collateralized mortgage obligation (CMO) and collateralized debt obligation (CDO) securities.

Subject to acceptance and approval of a lending source, Xtreme Companies Inc., utilizing collateral assets, will create a rated energy CMO market issue domiciled with the trustee and allocated subject to mutual agreement by the parties. If, and when, activated the issue will be listed in the Internal Revenue Service Publication 938 of mortgage and debt backed securities.

During the development of the energy issues, Xtreme Companies Inc. anticipates maintaining a mortgage banking operation with a projected warehouse line of $400 million and potential gross mortgage loans of $500 million per year. Contracts for out-source financing are being negotiated with national production home companies and others at this time.

Recent events in the energy industry have created a shortage of financial institutions capable of delivering structured finance packages to institutional investors. Further, experts believe that the fastest growing segment of the fixed income securities market actually is the demand for collateralized mortgage obligations and collateralized debt obligations. The major financial innovation of the two securities, which may be directly responsible for the rapid growth of this market, is the process of redirecting underlying cash flows to create rated bond classes that more closely satisfy the asset/liability needs of institutional investors. Many institutional investors view these securities as conveniently “custom designed.”

Similarly, substantial annual increases in revenue streams can be expected for higher priced CDOs based on proven and long term energy revenues. Subject to pre-approval, these higher priced securities may provide the lender additional collateral and liquidity in the transaction.

About Xtreme Companies Inc.

Xtreme Companies Inc., through its wholly owned subsidiary Waste Renewal Systems Inc., holds a patented technology to help solve the global municipal solid waste crisis by converting it into a non-toxic by-product and natural gas to both run the system and provide for resale. Its other wholly owned subsidiary, Nuclear Reduction Systems Inc., is developing a technology to remove low-grade nuclear and medical waste.

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