New Symbol - Same Growing Company

For those of you that haven't heard already, Challenger Powerboat Inc. now trades under the ticker OTCBB:CPBI, following a 1 for 20 reverse spit announced on October 30. Although the split was definitely a shocking and painful blow to some long-term investors, it may in fact be the most effective instrument the company had to chose from in order to turn this boat around. Oh the shameless pun!

On the brighter side of things, Challenger has:

- Reduced their outstanding share count drastically;

- Executed the recent sale of Sugar Sand Boats, which brings them close to profitability;

- Held an in inaugural dealer meeting which yielded orders worth $5.5 million - or nearly 5% more than the company's trailing twelve month revenues;

- Logged $5.2 million in revenues for the first half of 2007 versus $238K for all of ’06;

- Exhibited a strict dedication to building a rock solid management team and advisory board; and

- Been favorably reviewed in leading industry periodicals.

CPBI Logged Significant Pre-orders for 2008

Challenger's recent $5.5 million order log generated at it's first-ever dealer meeting is quite impressive given the current boating market slowdown. Exhibiting this downturn, RBC Capital Markets analyst Edward Aaron recently stated that Third-quarter boat sales were down 12 percent to 15 percent, and several manufacturers have cut production and laid off workers in recent months. In a declining market, I'd say it's a pretty bullish sign when an emerging supplier can trump its 2006 revenues by 2200% in 2008 with its inaugural dealer meeting, months before the new-year even begins.

At a current price of $.55, a move upwards into the $1.00 range would be a very bullish sign that both individual and smaller institutional investors are literally back on board. However, be forewarned that the historical September to January boating industry slowdown is upon us.

It may take some time, but Challenger Powerboats has the people and the product in place to make the company a winner. With the dollar lagging against many international currencies, it could be money from overseas that makes a difference here in the months not typically associated with high volume boat sales.

Check back soon for updated coverage on CPBI's push towards profitability and progress in the global boating industry.