"We acknowledge the exemplary performance of the management team and the entire staff in helping to
deliver our third consecutive quarter of record-breaking revenue," states Jack Gin, president and CEO of Extreme " We have focused on the continued development of our sales channels in the various geographic and vertical markets that we serve. We are seeing positive results for our efforts"

Extreme's organic sales growth of 28.3 percent in the second quarter, exclusive of Forward Vision sales, propelled second quarter organic sales to USD 8.1 million. Forward Vision, acquired July 31, 2006, achieved sales of USD 4.1 million for the second quarter, a 31.8 percent increase over the same period last year. The Company achieved consolidated quarterly revenues of USD 12.2 million for the quarter, a 93.4percent increase over the same period last year. On a year to date basis, the Company reported revenues of USD 22.3 million, 80.6 percent higher than last year.

Gross margin at USD 5.3 million is a record for a quarter and 66.5percent above the same period last year. Gross margin percentage for the second quarter, of 43.6 percent, is a 1.9percent improvement from the first quarter of 2007 and a decrease of 7.0 percent from the same quarter last year. The decrease in the gross margin percentage, when compared to the prior year's second quarter and the prior year to date, is due primarily to sales mix, competitive pricing and increased cost of sales. Strategies to improve overall gross margin continue to be implemented.

Net income for the second quarter was a record USD 920,000 or USD 0.06 per share basic and USD 0.05 diluted, as compared to USD 417,000 or USD 0.03 per share basic and USD 0.02 per share diluted last year. Net income for the sixmonth period ended March 31, 2007 was USD 1,271,000 or USD 0.08 per share basic and diluted compared to net income of USD 979,000 and USD 0.06 basic and diluted for the same period last year.

Sales and marketing expenses increased to USD 1.2 million and USD 2.3 million for the three and six month periods ended March 31, 2007, compared to USD 0.8 million and USD 1.6 million in the comparable periods last year. The increases were due primarily to the expansion of the sales force and the acquisition of Forward Vision.

For the quarter ended March 31, 2007, general and administrative expenses increased from USD 1.3 million to
USD 1.8 million. On a year to date basis, general and administrative expenses at USD 3.7 million increased USD 1.3
million. The increases on a quarter and year to date basis were due primarily to the addition of Forward Vision and increased personnel and compensation costs, bad debt expense, integration costs including travel and termination and legal and public reporting costs.

Research and development expense increased USD 301,000 to USD 652,000 for the quarter and USD 473,000 to USD 1.2 million for the six months ended March 31, 2007. The increases were due primarily to the acquisition of Forward Vision and increased research and development personnel.

Equity losses recorded on the Company's 31 percent investment in Obzerv decreased to USD 105,000 in the current quarter. Obzerv's results reflect increased revenues including revenue from the USD 650,000 contract with the Canadian department of national defence, awarded during the quarter.

The company's cash position at March 31, 2007 was $4.8 million compared to $ 3.8 million at December 31, 2006. The increase was due primarily to the net income earned during the quarter. Working capital increased to $9.9 million from $8.9 million at December 31, 2006.

"We are very pleased with our second quarter results, our sales growth continues to be fuelled by a growing demand for high-performance, high quality video surveillance equipment and we believe that Extreme is well positioned to benefit from this" says Gin "We are also very pleased to have won an award from the security industry association at the international security conference for our "Black Diamond" infrared technology
during the quarter and have more exciting product launches planned for the quarters ahead" adds Gin.