NEWARK, Del., July 2 /PRNewswire-FirstCall/ -- Theater Xtreme Entertainment Group, Inc.'s (BULLETIN BOARD: TXEG) Chief Executive Officer, Scott Oglum, was interviewed by "Wall Street Journal This Morning" radio show, Wednesday, June 27, 2007 to discuss how the Company differs from a "Big Box" store to offer affordable real movie theaters for the home. At an average cost of $7,000 Theater Xtreme's 7 to 12 foot big picture screens are sold not only as a video display, but have all necessary components including audio, furniture, and interior decor. Theater Xtreme also offers design software on its website that allows the consumer to design a theater in 5-10 minutes.

During the interview, Mr. Oglum commented, "We don't want to be in the same business that the big players are in, they experience extreme margin pressure as products become commodities, especially in the flat panel TVs. We looked at that area and tried to define a niche market that would have a lot of opportunities and I think that the consumer today has become accustomed to this big box environment. They're not getting the same excitement they did in the early days and it created an opportunity for us."

Mr. Oglum continued, "What is really important is that this market has made giant strides, the quality is exceptional and the prices have plummeted; we have taken advantage of those lower prices to give the consumer one of the best home theater experiences they could ever have."

A free replay of the interview can be downloaded on iTunes, as a podcast, by entering the search term "Wall Street Journal This Morning." The segment aired June 27, 2007 and the interview with Mr. Oglum begins at about 14 minutes into the broadcast.

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

About Theater Xtreme Entertainment Group, Inc.

Theater Xtreme Entertainment Group, Inc (BULLETIN BOARD: TXEG - News) 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
  
  Emily Hanan / Susan Morgenbesser
  Email:  /
         
  Website: http://www.investorrelationsgroup.com/

Source: Theater Xtreme Entertainment Group, Inc.

CONTACT: Emily Hanan, , or Susan
Morgenbesser, , , both
of The Investor Relations Group for Theater Xtreme Entertainment Group, Inc.

Web site: http://www.theaterxtreme.com/