PowerSki International Corp. Kicks into Phase 300!


SAN CLEMENTE, CA. March 31, 2006

PowerSki International Corp. announces their next step of production called Phase 300. The goal is to produce and ship a minimum of 300 PowerSki Jetboards™ before Labor Day weekend.

Over the past two years, PowerSki has manufactured and delivered approximately 150 PowerSki Jetboards™ at a total cost of $12,000 to $15,000 per Jetboard. These first Jetboards were produced using low volume (soft) tooling that resulted in higher cost of goods. This was never a cost effective way to manufacture, but was a necessary and unavoidable step in the production of the PowerSki Jetboard™.

Now PowerSki has the ability to produce most of the essential components of the PowerSki Jetboard™ using die-cast tooling, injected molded plastics, and other highly cost-efficient manufacturing methods including the computer design capabilities supplied by PTC’s ProE Wildfire software. This step up from sand casting to die casting required expensive new hard tooling, but resulted in significantly lower costs including improved production parts. Adapting these technologies to PowerSki’s production capability has significantly lowered the PowerSki Jetboard™’s overall cost to make the goal of Phase 300 profitable with every new patented die-cast SuperTorqueXT™ engine and PowerSki Jetboard™ that’s delivered.

PowerSki would like to thank all of our investors, distributors, dealers, vendors, and sponsors who have supported PowerSki during this period of growth from the beta to the low rate production phase to the advent of Phase 300 high volume, lower cost production. We also would like to thank all of the investors, dealers, and distributors who through the beta disclosures agreements they all signed who tested and promoted the PowerSki Jetboard™ and helped us reach Phase 300.

The following picture is 2 patented SuperTorqueXT™ Marine Drive Systems being crated for shipping that were sold to a miniature boat builder, OEM, who will incorporate them into new prototype boats they are developing.

In the past two weeks, PowerSki received 40 of our new patented die-cast SuperTorqueXT™ engines from a Korean engine manufacturer. bringing PowerSki’s in-house total to 50 with the remaining 250 engines ready to be shipped.

PowerSki received the following pictures taken in February, 2006 at their manufacturing facility in Korea. These pictures show some of the 250 SuperTorqueXT™ engines being prepared for shipping.

New Production Hull Delivered to PowerSki International Corp.

PowerSki just reached an agreement with a new hull manufacturer who has guaranteed delivery of 300 plus hulls within the Phase 300 time frame. PowerSki recently inspected and approved the first production hull. It met all of their requirements and is significantly less costly, stronger, and lighter than those supplied by their previous hull contactor.

The previous hull manufacturer was increasingly unable to meet PowerSki's quality standards. Not only was the price excessive, but the quality was so substandard that PowerSki had to complete a lot of prep work on each hull at their facility in order to ship PowerSki Jetboards™ that were up to the quality their customers expected. Consequently, this extra labor added even more to the overall cost.

PowerSki had to shut down their assembly line for over 6 weeks in order to prepare the hull production molds to accomodate the SuperTorqueXT™ engines coming from Dae Sung Fine Tec, Ltd. The hull's floor had to be modifiied and the motor mount inserts were relocated to match the new SuperTorqueXT™ engine mounts.

Once the mold was ready, PowerSki selected a well known fiberglass manufacturer with over 30 years in the business as our new hull contactor. With over 200 experienced employees this company is very capable of delivering a consistent flow of high quality hulls, and at a significantly reduced price.

PowerSki received the first production hull sample on March 24th. As can be seen in the following pictures, it is visibly a superior quality product with a fantastic finish plus it is 10% lighter than its predecessor.

Along with these two major components, PowerSki has and continues to stock up a sufficient inventory of the other essential parts necessary to complete a PowerSki Jetboard™ for delivery.

PowerSki’s founder and CEO, Bob Montgomery states, “Phase 300 is an monumental first step on the road to future profitablility. For the first time in PowerSki International Corp.'s history we have a die-cast SuperTorqueXT™ engine from Korea and the new high quality, less expensive hull produce in Mexico. By lowering the overall per unit cost of goods, every new patented die-cast SuperTorqueXT™ engine and PowerSki Jetboard™ shipped represents a per unit profit."