Extensions (*.xem files) provide means for customizing and extending PowerDesigner metaclasses, parameters and generation. For example, you could attach extension files to a Java OOM to help you in working with a particular IDE and an O/R mapping framework. You can use extensions to define additional properties for existing object types or entirely new kinds of objects, to modify the PowerDesigner interface (reorganizing and adding property sheet tabs, palette tools and menu items), and to define additional generation targets and options.
PowerDesigner provides a number of predefined extension files and you can also create your own.