TORRANCE, Calif., Sept. 4, 2007 (PRIME NEWSWIRE) -- Execute Sports Inc. ("Execute") (OTCBB:EXCS), a company engaged in the design, manufacturing and sale of water sports products, today announced that it has purchased the Sugar Sand jet boat line from IMAR, Inc., a wholly owned subsidiary of Challenger Powerboats, Inc. (OTCBB:CPWB) for $5 million in cash. In conjunction with the transaction, Execute and Challenger entered into an Agreement for Exclusive Right of Supply, through which Challenger will manufacture and sell (at wholesale) Sugar Sand boats to Execute, and an Exclusive Sales and Marketing Agreement through which Challenger will market Sugar Sand boats on behalf of Execute. These agreements are for periods of ten years each, with similar renewal terms. Sugar Sand generated $7.7 million in revenue on net sales of 381 boats in 2006.
Geno Apicella, CEO of Execute Sports, added, "We have been exploring growth through synergistic acquisitions over the last several months. The Sugar Sand purchase will expand our product offering without the added responsibilities of managing a manufacturing process or marketing effort. The supply and marketing agreements will enable us to benefit from Challenger's operational expertise and existing sales network. This acquisition puts us on pace to approach approximately $10 million in sales for 2008. We will continue to search for other acquisition opportunities that are accretive to our P&L."
Celest Berouty, Execute Sports' president, added, "Entering into the jet boat industry is in line with Execute's marine sports genre. Since our water sports products focus on the wake and ski markets, a direct extension of our involvement in this industry leads our expansion into one of the leading jet boat products available in the marketplace. In addition to the immediate accretion to our financial growth, we have significant cross-selling potential through an large and growing dealer network."
About Execute Sports, Inc.
Based in Torrance, California, Execute Sports, Inc. develops performance products including wetsuits, vests, and rash guards for the action sports industry. The Company's brands include Execute Wetsuits, Vests, Accessories and Wakeskates. For more information, go to http://www.executesports.com. Execute branded products can be found online at retailers such as The Sports Authority, Dick's, Sport Chalet and Amazon.com. For a full listing of on-line retailers, please visit the company website at http://www.executesports.com.
Additional company information, press releases and general commentary can be viewed by visiting http://www.excs.msprofit.com.
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include expectations regarding the ability of the company to continue its growth and the financial performance thereafter. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include the ability to accomplish goals and strategies, anticipated revenue enhancements, general economic conditions and the level of consumer spending, and numerous other factors identified in the Company's Form 10-KSB and other filings with the Securities Exchange Commission.