Theater Xtreme Franchise Coming To Atlanta Market

ALPHARETTA, GA (Tuesday, July 17, 2007) - Theater Xtreme Entertainment Group, Inc. , a nationwide retailer and installer of real movie theaters for the home, has approved a franchise territory for Badkhan Entertainment Group, Inc., a Georgia corporation. The franchise will be located in Alpharetta, GA, a northern suburb of Atlanta.

Kurt Lewis, Badkhan Entertainment Group's principal, commented, "As a 20-year veteran of the custom A/V market, I have long been interested in owning my own custom A/V business. Theater Xtreme employs the turnkey approach that is necessary for running a successful business. I believe in the Company's model and I look forward to being a part of Theater Xtreme's nationwide growth and store expansion."

"Kurt is a natural fit as a franchisee," said Theater Xtreme's President and Chief Operating Officer Ken Warren. "His background, focus, and deep understanding of the A/V industry are assets that will take him far with Theater Xtreme and help our Company grow."

Lewis has held various sales and installation management positions in the A/V industry. While residing in Southern California, he gained recognition for installing home theaters and audio systems for Hollywood clientele, including Robert Zemeckis, Danny DeVito, and Jimmy Smits. Lewis was in the second graduating class at the prestigious THX(R) training program at Skywalker Ranch, a curriculum developed by film legend George Lucas.

The Alpharetta, GA location is expected to open by December 2007.

To be added to Theatre Xtreme's investor contact list, please contact Justin Schakelman at jschakelman@theaterxtreme.com.

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.

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