Theater Xtreme Franchise Coming To Sacramento Market

Theater Xtreme Entertainment Group, Inc. , a nationwide retailer and installer of real movie theaters for the home, has approved a franchise territory for Cinema Works Corp., a California corporation. The franchise will be located in Roseville, CA, an eastern suburb of Sacramento.

Cinema Works Principal Brian Leong said in a recent interview: "Theater Xtreme has everything I'm looking for in a business. It is an original concept in a powerful new market, and the business model is well tested. The company sells a highly desirable product in a category that is really taking off. We're going to be a great alternative to the big box consumer electronics retailers in the Sacramento market." Roseville marks a significant milestone for the company's franchising business. "Brian is our first franchisee in California and he is in a great market," said Theater Xtreme's President and Chief Operating Officer Ken Warren. "He is focused and energized. But most importantly, he's passionate about our product." Leong worked in pharmaceutical sales and management for seven years prior to purchasing a franchise territory.

The Roseville location is expected to open in December 2007.

To be added to Theatre Xtreme's investor contact list, please contact Justin Schakelman at [email protected].

About Theater Xtreme Entertainment Group, Inc.

Theater Xtreme Entertainment Group, Inc is a specialty retailer of real movie theaters for the home. The Company's 80" to 120" front projection systems deliver an authentic movie theater experience, as an increasingly popular alternative to flat panel televisions. Its cinema packages, featuring brand names and factory direct products, are simple to use and cost significantly less than traditional A/V dealer offerings. It operates 5 company owned stores and 9 franchises in 10 states.

Safe Harbor Statement Some of the information presented in this letter constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties, of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, the ability of the Company to sell franchises, success of the franchise stores, the ability to find suitable locations for new corporate and franchise stores, delay or loss of key products from vendors, the ability to maintain margin and sales growth rate, disruption of product delivery from overseas suppliers, changes in regard to significant suppliers, increased competition from companies with more expertise, experience, or financial resources, technological changes in the home theater market which may render the Company's offerings obsolete, less competitive, or too expensive, material reduction in the demand for home theaters, and lack of sufficient capital to allow the Company to achieve its corporate store opening goal. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission available at http://www.sec.gov.

INVESTOR & MEDIA CONTACT: The Investor Relations Group 212-825-3210 Emily Hanan / Susan Morgenbesser Email: [email protected] / [email protected] Website: http://www.investorrelationsgroup.com

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