You can do that. Configure the extreme to be a network that can be extended. Then configure the express to extend the network (and connect it to the wifi to extend). Real simple! You can also use the ethernet from the express to connect other devices (such as a tv, stereo .. etc).
Do note, however, that placing an extending device too close to the main device can create issues. I've done this and had to elminate the extension due to too strong of a signal from both routers seemed to confuse the connecting device (such as a laptop)