Xtreme Green Products Announces Execution of Master Distribution Agreement for Puerto Rico

Xtreme Green Products, Inc. (OTCBB: XTRG), a manufacturer of 100% electric off-road and DOT highway-approved vehicles, announced today the closing of a two-year master distribution agreement with ISP, Inc., a Bayamon, Puerto Rico-based distributor of industrial security products to public and private entities ("ISP”). Effective immediately, the agreement provides ISP the exclusive rights to distribute all five of the Xtreme Green’s 100% electric off-road and highway-approved vehicles to private and public consumers, police, security, and commercial users in Puerto Rico with a minimum sales target of ten vehicles per month.

ISP will maintain its exclusivity in Puerto Rico based on achieving sales of ten vehicles per month through the end of 2012. The agreed upon target number of monthly vehicle sales outlined in the Agreement represents approximately 12% of Xtreme Green’s projected 2012 production capacity.

Commenting on the Xtreme Green’s closing of its second master distribution agreement in two weeks, Mr. Neil Roth, Xtreme Green Product’s President and Chief Operating Officer, stated, "This master distribution agreement with ISP of Puerto Rico is further indication of market acceptance for our 100% electric off-road and highway-approved vehicles in the US and abroad. Whether we demonstrate our products during sales meetings or at trade shows, our prospective customers are impressed by our vehicles’ power, range, looks, durability, ease of use and competitive pricing versus internal combustion-powered vehicles. Between the distribution agreement for Mexico announced in early September and this distribution agreement for Puerto Rico, 28% of our planned production of 1,000 vehicles for 2012 is spoken for by the targeted terms of the agreements. Between these agreements and others that we are negotiating, we expect over fifty percent of our planned 2012 production to be covered by a distribution agreement prior to being manufactured.”

Regarding ISP’s distribution agreement with Xtreme Green, Mr. Benjamin Nieves, Owner and President of ISP, Inc. stated, "When we first saw Xtreme Green’s vehicles, we thought that we had come across something truly unique in the industry. Though ISP has on occasion in the past considered including electric vehicles in its distribution to the State and municipalities or Puerto Rico as well as to commercial and private customers in Puerto Rico, we always found them lacking in some way. Having had the opportunity to further assess the capabilities of the Xtreme Green vehicles, we can find nothing lacking about Xtreme Green’s electric vehicles. They are a large step beyond anything else in the marketplace today. We anticipate that Xtreme Green’s products will be very well received by our customers, and, as the exclusive distributor to Puerto Rico, will be a substantial value-add to ISP’s business.”

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for Xtreme Green Products and its business and other statements containing the words "believes”, "anticipates”, "plans”, "expects”, "will” and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. Xtreme Green Products undertakes no obligation to update these forward-looking statements in the future.

Xtreme Green Products (XGP), Inc. (”Company”) is a Las Vegas, Nevada-based company which has developed revolutionary, environmentally sound, "green,” 100% electric-powered vehicles. The line of vehicles manufactured by Xtreme Green is by far the most extensive grouping of 100% electric vehicles in the marketplace today. These green-powered products include police mobility vehicles, motor scooters, motorcycles, ATVs, UTVs, utility trucks and EMS vehicles. XGP products are being sold in three distinct business platforms; police/military and security, consumer and commercial. Designed with the Company’s proprietary energy management and electric propulsion systems using state of the art Lithium Ion Iron Phosphate battery cells, these products possess the power and ability of gas-powered engines, but without particulate or noise pollution. To date, XGP has sold its vehicles exclusively in the United States but is in the process of receiving approval to sell in the European Union. The company will also be expanding into Australia, Central and South America and the Mideast in 2011and 2012.