Z Yachts Inks Distribution Deal with Challenger Offshore Manufacturer.

ALPHARETTA, Ga. -- New Partnership Allows Z Yachts to Significantly Expand Product Offerings

Z Yachts, Inc., a nationwide brokerage company for recreational boats, has partnered with Xtreme Companies, the exclusive distributor manufacturer of the Challenger line of boats, to serve as a direct sales and distribution arm for Challenger and Extreme's first responder line of boats. Z Yachts has traditionally focused on selling pre-owned boats, but the new partnership will allow the company to sell new boats directly from the manufacturer to its retail customers.

"This contract allows us to expand into new boat sales in multiple markets, thus increasing the presence of the Z Yachts brand," said James Weller, president of Z Yachts. "In return, the partnership allows Z Yachts to act as a ready-made sales network for Challenger Offshore boats, giving the manufacturer an active, national sales force that is dealing with consumers shopping for boats every single day. As we continue to grow, we are constantly looking for companies to complement our brand and we feel that Challenger Offshore brings the same dedication to quality and customer satisfaction that we strive to achieve for our customers and our shareholders."

As part of the new agreement, Z Yachts has appointed a manufacturer representative to work with Challenger Offshore. This representative is responsible for working directly with the manufacturer to ensure correct listing specifications, warranty and other relevant information about each boat, while acting as a singular point of contact with the manufacturer. Each broker in Z Yachts' national network is able to market and represent the brand in a local market, but each sale will be coordinated through the manufacturer representative to ensure customer satisfaction in every aspect of the sale. Z Yachts' agreement with Xtreme Companies became effective on July 1, 2005.

Currently a privately held company, Z Yachts is preparing the necessary paperwork for a public offering. The company expects shares to be trading by the first quarter of 2006.

About Challenger Offshore

The Challenger Offshore brand (www.challengeroffshore.com) is produced by Xtreme Companies, based in Washington, Mo. For more than two decades, Challenger has worked to produce the best high-performance boats in the industry. Challenger boats, which have received worldwide recognition, include high-performance boats and a variety of sport boats and family cruisers - open bows, cuddies, deck boats, cabin cruisers, fishing yachts.

About Xtreme Companies, Inc.

Xtreme Companies, Inc. is engaged in manufacturing and marketing of mission-specific Fire-Rescue and Patrol 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.

About Z Yachts, Inc.

Founded in 2002, Z Yachts is a full service marine brokerage currently operating in 17 states with pre-owned boats under listing contract totaling more than $60 million. The company maintains one of the largest levels of listing inventory in the pre-owned marine industry today and also sells related products including several brands of new boats and trailers, and charter services for yachts in the Caribbean. Additionally, the company arranges related boat financing, insurance, extended service contracts and USCG documentation services. With a network of almost 50 brokers tasked with penetrating local marine basins in their respective areas, Z Yachts acquires new listings every day and closes boat sales daily during boating season. For additional information, please visit www.zyachts.com.

Safe Harbor 

This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.