Challenger Ships Record 38 Boats for the Month of January

Challenger Powerboats CEO Laurie Phillips stated, "Despite the current slower pace of growth within the industry, we are experiencing record demand, production, and shipments for all three lines, Sugar Sand, Gekko and Challenger. We believe this is a testament to the quality of our product offering as well as our aggressive marketing and sales strategy. This all comes without any penetration whatsoever yet into Florida, the number one recreational boating market in the U.S. We have recently embarked on a strategy to establish premier distribution channels within the Florida marketplace, and which we believe should add significantly to our current growth."

About Challenger Powerboats, Inc.

Challenger Powerboats, Inc. designs and manufactures high performance 'go fast' offshore racing boats, family sport cruisers, jet boats and water ski tow boats under the brands 'Challenger Powerboats', 'Sugar Sand' and 'Gekko', which target the recreational boating market. Proven world-class technology is incorporated into the manufacturing of our award winning boats at the Company's 65,000 sq. ft. facility located on our 12 acre complex in Washington, Missouri and 80,000 sq. ft facility in Fargo, North Dakota. The Company's boats are sold through our dealer network in theUnited States, Canada,Mexico,Europe,Australia, theMiddle East andJapan. In 2006, Gekko was selected as an official tow boat for the World Barefooting Championships, and the European Barefooting Championships in 2005.

To find out more about Challenger Powerboats, Inc. (OTC Bulletin Board: CPWB) please visit http://www.challengerpowerboats.com, http://www.sugarsand.com, http://www.gekkosports.com or http://www.sec.gov to view the Company's public financial information and filings.

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
     845-575-6770
     for Challenger Powerboats, Inc.

SOURCE Challenger Powerboats, Inc.

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