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<SEC-DOCUMENT>0001297077-04-000014.txt : 20040915
<SEC-HEADER>0001297077-04-000014.hdr.sgml : 20040915
<ACCEPTANCE-DATETIME>20040914211217
ACCESSION NUMBER:		0001297077-04-000014
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040731
FILED AS OF DATE:		20040915
DATE AS OF CHANGE:		20040914

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS SPORTS INC
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING & DRINKING PLACES [5810]
		IRS NUMBER:				521401755
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		041030632

	BUSINESS ADDRESS:	
		STREET 1:		2500 WILSON BLVD
		STREET 2:		SUITE 305
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		703-526-04

	MAIL ADDRESS:	
		STREET 1:		1749 OLD MEADOW RD
		STREET 2:		STE 610
		CITY:			MCLEAN
		STATE:			VA
		ZIP:			22102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>csports10qsb073104.htm
<DESCRIPTION>CHAMPIONS SPORTS 10QSB
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<b>SECURITIES AND EXCHANGE COMMISSION</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<b>Washington, D.C.  20549</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<b>FORM 10-QSB</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<h1>
<font size="3">Mark One</font></h1>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
[X ]</p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF	</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
<h1>
<font size="3">THE SECURITIES EXCHANGE ACT OF 1934</font></h1>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<u>For the quarterly period ended         July 31, 2004</u></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="2" rowspan="1" >
<p align="center">
OR</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
[&nbsp;&nbsp;&nbsp;]</p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<h1>
<font size="3">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></h1>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
<h1>
<font size="3">THE SECURITIES EXCHANGE ACT OF 1934</font></h1>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
<h1>
<font size="3">For the transition period from    <u>          </u>
to</font></h1>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="563.999859" colspan="1" rowspan="1" >
<h1>
<font size="3">Commission file number    <u>     0-17263</u></font></h1>
</td>
</tr>
</table></div>
<p align="center">
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<u>CHAMPIONS SPORTS, INC.</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
(Exact name of registrant as specified in its charter)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<u>Delaware                        52-1401755</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
(State or other jurisdiction of      (I.R.S. Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
organization)                          Identification No.)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<u>Suite 214, 2420 Wilson Blvd., Arlington VA 22201</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
(Address of principal executive offices)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
(Zip code)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<u>(703) 526-0400</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
(Registrant&#8217;s telephone number, including area code)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
&nbsp;Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes    <u>&nbsp;x    </u>No<u>
</u></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
&nbsp;As of September 13, 2004 the Registrant had a total of 8,824,658 shares of
common stock outstanding.</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>1</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br><p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><p align="center">
<b>CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b><p align="center">
<b>JULY 31, 2004 AND 2003</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<p align="center">
<b>CHAMPIONS SPORTS, Inc.</b><p align="center">
<b>FORM 10-QSB</b><p align="center">
<u>INDEX</u></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="149.333296" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
<u>Page</u></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
Part I. </p>
</td>
<td width="479.999880" colspan="9" rowspan="1" >
<p>
Financial Information</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="243.999939" colspan="4" rowspan="1" >
<p>
Item 1.&nbsp;&nbsp;&nbsp;Financial Statements</p>
</td>
<td width="383.999904" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
Condensed Consolidated Balance Sheets as of</p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
&nbsp;&nbsp;July 31, 2004(unaudited) and</p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="447.999888" colspan="7" rowspan="1" >
<p>
&nbsp;&nbsp;April 30, 2004 (audited)</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;4	</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
Condensed Consolidated Statements of Operations:</p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
&nbsp;&nbsp;Three months ended  </p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="447.999888" colspan="7" rowspan="1" >
<p>
&nbsp;&nbsp;July 31, 2004, and  July 31, 2003,  (unaudited) </p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;5	</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
Condensed Consolidated Statements of Cash Flows:</p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="627.999843" colspan="9" rowspan="1" >
<p>
&nbsp;&nbsp;Three months ended July 31, 2004, and</p>
</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="339.999915" colspan="6" rowspan="1" >
<p>
&nbsp;July 31,2003 (unaudited)</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p>
</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;6	</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="447.999888" colspan="7" rowspan="1" >
<p>
Notes to Condensed Consolidated Financial Statements</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
7 - 17</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="525.333202" colspan="8" rowspan="1" >
<p>
Item 2.&nbsp;&nbsp;&nbsp;Management&#8217;s Discussions and</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="46.666655" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="293.333260" colspan="5" rowspan="1" >
<p>
Analysis of Financial Condition</p>
</td>
<td width="287.999928" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="46.666655" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="293.333260" colspan="5" rowspan="1" >
<p>
and Results of Operations</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
18</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="339.999915" colspan="6" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Controls and Procedures</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
20</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
Part II.</p>
</td>
<td width="479.999880" colspan="9" rowspan="1" >
<p>
Other Information and Signatures</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="447.999888" colspan="7" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="45.333322" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="293.333260" colspan="5" rowspan="1" >
<p>
of Security Holders</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
21</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p>
</p>
</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="447.999888" colspan="7" rowspan="1" >
<p>
Item 6.&nbsp;&nbsp;&nbsp;Exhibits and Reports on Form 8-K</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
21</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="103.999974" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="2" rowspan="1" >
<p>
Signatures</p>
</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="149.333296" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
22</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="12" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="10" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
<p>
23</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="10" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
<p>
24</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="10" rowspan="1" >
<p>
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="179.999955" colspan="2" rowspan="1" >
<p>
26</p>
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p align="center">
<b>JULY 31, 2004 (UNAUDITED) AND APRIL 30, 2004 (AUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p align="center">
<b>ASSETS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>July 31,</b></p align="center">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center">
<b>April 30,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">(<b>UNAUDITED</b>)</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>(AUDITED)</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>CURRENT ASSETS</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
$       127,131&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
$   120,116&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
22,713&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,323&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
30,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,886&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">6,750&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total current assets</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;167,340&nbsp;</font></p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">179,928&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Property and equipment, net</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;188,834&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
200,939&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Deposits</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,052&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">11,052&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>TOTAL ASSETS</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> $       367,226&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$    391,919&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p align="center">
<b>LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>CURRENT LIABILITIES</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable </p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
$         92,248&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
$      92,758&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend payable on preferred
stock</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350,460&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350,460&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44,432&nbsp;</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,569&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of deferred lease
concession</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,746&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,836&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total current liabilities</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;488,886&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;484,623&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>TOTAL LIABILITIES</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;488,886&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;484,623&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>COMMITMENTS AND CONTINGENCIES</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>STOCKHOLDERS&#8217; (DEFICIT)</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Preferred stock, $10 par value; 56,075 shares authorized;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;32,450 shares issued and outstanding, respectively</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;324,500
&nbsp;</font></p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;324,500&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Common stock, $.001 par value; 50,000,000 shares authorized </p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;8,824,658  shares issued and outstanding, respectively</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,825&nbsp;</font></p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,825&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Additional paid-in capital</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,850,349&nbsp;</font></p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font color="#333333">    5,850,349&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accumulated deficit</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,305,334)</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">   (6,276,378)</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(121,660)</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(92,704)</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
<p>
<b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></p>
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> $       367,226&nbsp;</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> $    391,919&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="374.666573" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="570.666524" colspan="3" rowspan="1" >
<p>
The accompanying notes are an integral part of these condensed consolidated
financial statements.</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
</p align="center">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="697.333159" colspan="3" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="697.333159" colspan="3" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="697.333159" colspan="3" rowspan="1" >
<p align="center">
<b>FOR THE THREE MONTHS ENDED</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="697.333159" colspan="3" rowspan="1" >
<p align="center">
<b>JULY 31, 2004 AND 2003 (UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="center">
<b>2003</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
OPERATING REVENUE</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Food and beverage&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;451,712&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;532,647&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Merchandise, memorabilia, and consulting fees</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
3,135&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
7,163&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Other income</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">2,245&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">3,385&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
&nbsp;Total  Operating  Revenue</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">457,092&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">543,195&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
COSTS AND OPERATING EXPENSES</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Cost of food and beverage sales</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
146,115&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
159,052&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Cost of merchandise and memorabilia</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
1,462&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
7,562&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Restaurant payroll and related costs</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
161,988&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
179,402&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Restaurant occupancy costs</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
61,765&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
67,366&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Other restaurant costs</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
84,181&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
100,127&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
General and administrative</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
18,432&nbsp;</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
64,929&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Depreciation and amortization</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">12,105&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">12,105&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
&nbsp;Total Costs and Operating Expense</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">486,048&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">590,543&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
NET (LOSS) BEFORE PROVISION FOR INCOME TAX </p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
(28,956)</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
(47,348)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Provision for Income tax </p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
NET LOSS</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
(28,956)</p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
(47,348)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
Preferred stock dividends</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(15,938)</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
(LOSS) APPLICABLE TO COMMON</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
STOCKHOLDERS</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28,956)</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(63,286)</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
BASIC (LOSS) PER COMMON SHARE</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="3">
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00)</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="3">
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.01)</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
WEIGHTED AVERAGE SHARES OUTSTANDING</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,824,658&nbsp;</font></p>
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="529.333201" colspan="1" rowspan="1" >
<p>
The accompanying notes are an integral part of these condensed consolidated
financial statements.</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="542.666531" colspan="3" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="3" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="3" rowspan="1" >
<p align="center">
<b>FOR THE THREE MONTHS ENDED JULY 31, 2004 AND 2003
(UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2003</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash flows from operating activities:</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Net loss </p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
$         (28,956)</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
$       (47,348)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Adjustments to reconcile net income to net</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash provided by  (used in) by operating activities:</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,105 </p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,105 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities:</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,713 </p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-   </p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,026 </p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,179)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,136)</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;560 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(510)</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;316</p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,863 </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,551 </font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Net cash provided by  (used in) </p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
operating activities</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,105 </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22,995)</font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash flows from investing activities:</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and
equipment</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,930)</font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Net cash (used in) investing activities</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,930)</font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash flow from financing activities:<br>     Principal payment on capital
lease</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,090)</font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,817)</font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Net cash (used in) financing activities</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
(1,090)</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
(1,817)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Net increase (decrease) in cash and</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
cash equivalents</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,015 </p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27,742)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash and cash equivalents - beginning of period</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120,116 </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;195,101 </font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Cash and cash equivalents - end of period</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> $        127,131 </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> $       167,359 </font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
Supplemental disclosures of cash flow information:</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for
interest</p>
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="3" rowspan="1" >
<p>
The accompanying notes are an integral part of these condensed consolidated
financial statements.</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>JULY 31, 2004 AND 2003</b><p>
<b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS OF
PRESENTATION</u></b></p>
<p style="margin-left:80">Champions Sports, Inc., (the &#8220;Company&#8221;) a
Delaware corporation, promoted a sports theme restaurant bar concept through
Company owned and licensed operations. The Company sold the rights to the
Champions brand to Marriott International, Inc. (Marriott) and became a licensee
of Champions Sports Bar Restaurants. Substantially all memorabilia sales are to
Marriott. At July 31, 2004 and 2003, respectively, the Company through its
subsidiaries, owns and licenses, without a royalty fee, one Champions Sports Bar
Restaurant in San Antonio, Texas.<br><br>The condensed consolidated unaudited
interim financial statements included herein have been prepared, without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
The condensed consolidated financial statements and notes are presented as
permitted on Form 10-QSB and do not contain information included in the
Company&#8217;s annual consolidated statements and notes.  Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such rules and regulations,
although the Company believes that the disclosures are adequate to make the
information presented not misleading.  The results for the three months ended
July 31, 2004 may not be indicative of the results for the entire
year.<br><br>These statements reflect all adjustments, consisting of normal
recurring adjustments, which in the opinion of management, are necessary for
fair presentation of the information contained herein.<br></p><p>
<b>NOTE 2-</b>  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p style="margin-left:80">Principles of Consolidation<br><br>The condensed
consolidated financial statements include the accounts of the Company and its
subsidiaries. All material intercompany transactions have been eliminated in
consolidation. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br><br>Property and
Equipment<br><br>Property and equipment are stated at cost. Depreciation and
amortization is computed from the date property is placed in service using the
straight-line method over estimated useful lives as
follows:<br></p><div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="229.333276" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="182.666621" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">Life</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="471.999882" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="229.333276" colspan="1" rowspan="1" >
<p>
Furniture and equipment</p>
</td>
<td width="182.666621" colspan="1" rowspan="1" >
<p align="center">
5-15 years</p align="center">
</td>
<td width="57.333319" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="471.999882" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="229.333276" colspan="1" rowspan="1" >
<p>
Leasehold improvements</p>
</td>
<td width="182.666621" colspan="1" rowspan="1" >
<p align="center">
Remaining term of the lease</p align="center">
</td>
<td width="57.333319" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Depreciation and amortization expense was $12,105 for
the three months ended July 31, 2004 and 2003, respectively.<br></p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-</b>  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)</u></b></p>
<p style="margin-left:80">Inventories<br><br>Inventories consist of goods and
supplies held for sale in the ordinary course of business and are stated at the
lower of cost, determined on the first-in-first-out basis, or market. The
components of inventories at July 31, 2004 were as
follows:<br></p><div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="253.333270" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2004</font></p>
</td>
<td width="127.999968" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="253.333270" colspan="1" rowspan="1" >
<p>
Restaurant food and beverage</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right">
$    22,188</p align="right">
</td>
<td width="127.999968" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="253.333270" colspan="1" rowspan="1" >
<p>
Promotional merchandise for sale to</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="127.999968" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="253.333270" colspan="1" rowspan="1" >
<p>
&nbsp;restaurant customers</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">7,135</font></p>
</td>
<td width="127.999968" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="253.333270" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right">
$    29,323</p align="right">
</td>
<td width="127.999968" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Net (Loss) Per Share<br><br>Historical net (loss) per
common share is computed using the weighted average number of common shares
outstanding.  Diluted earnings per share (EPS) includes additional dilution from
common stock equivalents, such as stock issuable pursuant to the exercise of
stock options and warrants.  Common stock equivalents were not included in the
computation of diluted earnings per share when the Company reported a loss
because to do so would be antidilutive for periods presented.<br><br>The
following is a reconciliation of the computation for basic and diluted
EPS:<br><br></p><div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="325.333252" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<b>July 31,</b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<b>July 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="349.333246" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2003</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="325.333252" colspan="2" rowspan="1" >
<p style="margin-left:80">Net loss</p></td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">$     (28,956)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">$     (63,286)</font></p>
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
</tr>
<tr valign="top">
<td width="325.333252" colspan="2" rowspan="1" >
<p>
Outstanding (Basic)</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
8,824,658&nbsp;</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right">
8,514,459&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
<p>
Weighted-average common stock</p>
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
<p>
Equivalents</p>
</td>
</tr>
<tr valign="top">
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="322.666586" colspan="1" rowspan="1" >
<p>
Stock options</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="322.666586" colspan="1" rowspan="1" >
<p>
Warrants</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
</tr>
<tr valign="top">
<td width="325.333252" colspan="2" rowspan="1" >
<p>
Outstanding (Diluted)</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,824,658&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459&nbsp;</font></p>
</td>
</tr>
</table></div>
<p style="margin-left:80"></p><p>
</p>
<p style="margin-left:80">Options and warrants outstanding to purchase stock
were not included in the computation of diluted EPS for July 31, 2004 and 2003
because inclusion would have been antidilutive.<br></p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Cash and Cash Equivalents<br><br>For purposes of the
condensed consolidated statements of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months or
less, unless restricted as to use, to be cash equivalents. At various times
throughout the periods the Company had amounts on deposit at financial
institutions in excess of federally insured limits.<br><br>Income
Taxes<br><br>The Company has adopted the provisions of Statement of Financial
Accounting Standards No. 109 (the Statement), Accounting for Income Taxes.  The
Statement requires an asset and liability approach for financial accounting and
reporting for income taxes, and the recognition of deferred tax assets and
liabilities for the temporary differences between the financial reporting bases
and tax bases of the Company&#8217;s assets and liabilities at enacted tax rates
expected to be in effect when such amounts are realized or settled.
<br><br>Fair Value of Financial Instruments<br><br>The carrying amounts of the
Company&#8217;s financial instruments, including cash and cash equivalents,
accounts payable, and accrued expenses, approximate fair values because of the
short maturities of these instruments.<br><br>Options for Common
Stock<br><br>The Company uses the intrinsic value method to account for options
granted to executive officers, directors and other key employees for the
purchase of common stock. No compensation expense is recognized on the grant
date, since at that date, the option price equals or is higher than the market
price of the underlying common stock. The Company discloses the pro forma effect
of accounting for stock options under the fair value method. The Company uses
the fair value method to account for options granted to advisors for the
purchase of common stock.
<br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>9</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<a name="OLE_LINK2"></a> <p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Stock-Based Compensation<br><br>Employee stock awards
under the Company&#8217;s compensation plans are accounted for in accordance
with Accounting Principles Board Opinion <br>No. 25 (&#8220;APB 25&#8221;),
&#8220;Accounting for Stock Issued to Employees&#8221;, and related
interpretations. The Company provides the disclosure requirements of Statement
of Financial Accounting Standards No. 123, &#8220;Accounting for
<br><br>Stock-Based Compensation&#8221; (&#8220;SFAS 123&#8221;), and related
interpretations.  Stock-based awards to non-employees are accounted for under
the provisions of SFAS 123 and has adopted the enhanced disclosure provisions of
SFAS No. 148 &#8220;Accounting for Stock-Based Compensation- Transition and
Disclosure, an amendment of SFAS No. 123&#8221;.<br><br>The Company measures
compensation expense for its employee stock-based compensation using the
intrinsic-value method.  Under the intrinsic-value method of accounting for
stock-based compensation, when the exercise price of options granted to
employees is less than the estimated fair value of the underlying stock on the
date of grant, deferred compensation is recognized and is amortized to
compensation expense over the applicable vesting period. In each of the periods
presented, the vesting period was the period in which the options were granted.
<br><br>The Company measures compensation expense for its non-employee
stock-based compensation under the Financial Accounting Standards Board (FASB)
Emerging Issues Task Force (EITF) Issue No. 96-18, &#8220;Accounting for Equity
Instruments that are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services&#8221;.  The fair value of the
option issued is used to measure the transaction, as this is more reliable than
the fair value of the services received.  The fair value is measured at the
value of the Company&#8217;s common stock on the date that the commitment for
performance by the counterparty has been reached or the counterparty&#8217;s
performance is complete. The fair value of the equity instrument is charged
directly to compensation expense and additional paid-in capital.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Recent Accounting Pronouncements<br><br>On October 3,
2001, the FASB issued Statement of Financial Accounting Standards No. 144,
&#8220;Accounting for the Impairment or Disposal of Long-Lived Assets&#8221;
(&#8220;SFAS 144&#8221;), that is applicable to financial statements issued for
fiscal years beginning after December 15, 2001.  The FASB&#8217;s new rules on
asset impairment supersede SFAS 121, &#8220;Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,&#8221; and
portions of Accounting Principles Board Opinion 30, &#8220;Reporting the Results
of Operations.&#8221;  This Standard provides a single accounting model for
long-lived assets to be disposed of and significantly changes the criteria that
would have to be met to classify an asset as held-for-sale. Classification as
held-for-sale is an important distinction since such assets are not depreciated
and are stated at the lower of fair value and carrying amount.  This Standard
also requires expected future operating losses from discontinued operations to
be displayed in the period (s) in which the losses are incurred, rather than as
of the measurement date as presently required. The adoption of SFAS No. 144 did
not have a significant impact on the Company&#8217;s results of operations or
financial position.<br><br>In April 2002, the FASB issued SFAS No. 145,
Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No.
13, and Technical Corrections.  This statement rescinds SFAS No. 4, Reporting
Gains and Losses from Extinguishment of Debt, and an amendment of that
statement, SFAS No. 44, Accounting for Intangible Assets of Motor Carriers, and
SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements.
This statement amends SFAS No. 13, Accounting for Leases, to eliminate
inconsistencies between the required accounting for sales-leaseback transactions
and the required accounting for certain lease modifications that have economic
effects that are similar to sales-leaseback transactions. <br><br>Also, this
statement amends other existing authoritative pronouncements to make various
technical corrections, clarify meanings, or describe their applicability under
changed conditions.  Provisions of SFAS No. 145 related to the rescissions of
SFAS No. 4 were effective for the Company on November 1, 2002 and provisions
affecting SFAS No. 13 were effective for transactions occurring after May 15,
2002.  The adoption of SFAS No. 145 did not have a significant impact on the
Company&#8217;s results of operations or financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>11</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Recent Accounting Pronouncements (Continued)<br><br>In
June 2003, the FASB issued SFAS No. 146, Accounting for Costs Associated with
Exit or Disposal Activities.  This statement covers restructuring type
activities beginning with plans initiated after December 31, 2002.  Activities
covered by this standard that are entered into after that date will be recorded
in accordance with provisions of SFAS No. 146.  The adoption of SFAS No. 146 did
not have a significant impact on the Company&#8217;s results of operations or
financial position.<br><br>In December 2002, the FASB issued Statement No. 148,
&#8220;Accounting for Stock-Based Compensation-Transition and Disclosure, an
amendment of FASB Statement No. 123&#8221;(&#8220;SFAS 148&#8221;). SFAS 148
amends FASB Statement No. 123, &#8220;Accounting for Stock-Based
Compensation,&#8221; to provide alternative methods of transition for an entity
that voluntarily changes to the fair value based method of accounting for
stock-based employee compensation. It also amends the disclosure provisions of
that Statement to require prominent disclosure about the effects on reported net
income of an entity&#8217;s accounting policy decisions with respect to
stock-based employee compensation. Finally, this Statement amends Accounting
Principles Board (&#8220;APB&#8221;) Opinion No. 28, &#8220;Interim Financial
Reporting&#8221;, to require disclosure about those effects in interim financial
information. SFAS 148 is effective for financial statements for fiscal years
ending after December 15, 2002. The Company will continue to account for
stock-based employee compensation using the intrinsic value method of APB
Opinion No. 25, &#8220;Accounting for Stock Issued to Employees,&#8221; but has
adopted the enhanced disclosure requirements of SFAS 148.<br><br>In April 2003,
the FASB issued SFAS Statement No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities", which amends and clarifies
financial accounting and reporting for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively referred to as
derivatives) and for hedging activities under FASB Statement No. 133, Accounting
for Derivative Instruments and Hedging Activities.  This Statement is effective
for contracts entered into or modified after June 30, 2003, except for certain
hedging relationships designated after June 30, 2003.  Most provisions of this
Statement should be applied prospectively.  The adoption of this statement did
not have a significant impact on the Company&#8217;s results of operations or
financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>12</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Recent Accounting Pronouncements (Continued)<br><br>In
May 2003, the FASB issued SFAS Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity". This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity.  It requires that an issuer classify a financial instrument that is
within its scope as a liability (or an asset in some circumstances).  This
statement is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning of the first interim
period beginning after June 15, 2003, except for mandatorily redeemable
financial instruments of nonpublic entities, if applicable.  It is to be
implemented by reporting the cumulative effect of a change in an accounting
principle for financial instruments created before the issuance date of the
Statement and still existing at the beginning of the interim period of adoption.
The adoption of this statement did not have a significant impact on the
Company&#8217;s results of operations or financial position.<br><br>In November
2002, the FASB issued Interpretation No. 45 ("FIN 45"), Guarantor&#8217;s
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others.  FIN 45 requires a company, at the time it
issues a guarantee, to recognize an initial liability for the fair value of
obligations assumed under the guarantees and elaborates on existing disclosure
requirements related to guarantees and warranties.  The recognition requirements
are effective for guarantees issued or modified after December 31, 2002 for
initial recognition and initial measurement provisions.  The adoption of FIN 45
did not have a significant impact on the Company&#8217;s results of operations
or financial position.<br><br>In January 2003, the FASB issued FASB
Interpretation No. 46 ("FIN 46"), Consolidation of Variable Interest Entities,
an Interpretation of ARB No. 51.  FIN 46 requires certain variable interest
entities to be consolidated by the primary beneficiary of the entity if the
equity investors in the entity do not have the characteristics of a controlling
financial interest or do not have sufficient equity at risk for the entity to
finance its activities without additional subordinated financial support from
other parties.  FIN 46 is effective for all new variable interest entities
created or acquired after January 31, 2003.  For variable interest entities
created or acquired prior to February 1, 2003, the provisions of FIN 46 must be
applied for the first interim or annual period beginning after June 15, 2003.
The adoption of FIN 46 did not have a significant impact on the Company&#8217;
results of operations or financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>13</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b></p>
<p style="margin-left:80">Reclassifications<br><br>Certain amounts for the three
months ended July 31, 2003 have been reclassified to conform to the presentation
of the July 31, 2004 amounts.  The reclassifications have no effect on net loss
for the three months ended July 31, 2003.</p><p>
<p>
<b>NOTE 3-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>COMMITMENTS AND
CONTINGENCIES</u></b></p>
<p style="margin-left:80">Operating
leases&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br><br>The Company leases, as tenant,
restaurant space under an operating lease which expires June 30, 2005. The lease
escalates for increases in the landlord&#8217;s expenses of for increases in the
Consumer Price Index, and requires additional rentals based on a percentage of
restaurant sales over a defined amount. The lease grants the Company certain
concessions, which are amortized to lease expense over the term of the
lease.<br><br>Rental expense charged to expense during the three months ended
July 31, 2004 and 2003 was $50,121 and $55,768, respectively. Future minimum
payments under the noncancellable restaurant lease as of July 31, 2004 are as
follows:<br></p><div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p>
2005</p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$    &nbsp;128,480</font></p>
</td>
</tr>
</table></div>
<p style="margin-left:80"></p><p align="center">
<p>
<b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CAPITAL LEASE OBLIGATION</u></b></p>
<p style="margin-left:80">The Company leased equipment under a capital lease.
The equipment cost of $32,286 was amortized over its useful life and such
amortization was included in the depreciation and amortization expense for 2003.
During 2003, the lease expired and the Company purchased the equipment.</p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MARRIOTT LICENSE</b></p>
<p style="margin-left:80">The Company is an exclusive supplier of sports
memorabilia and a consultant to all new Champions Sports Bars located in
Marriott and Renaissance Hotels worldwide. </p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>14</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217; DEFICIT</u>
</b></p>
<p style="margin-left:80">Common Stock <br><br>The Company has 50,000,000 shares
authorized and 8,824,658 shares issued and outstanding at July 31,
2004.<br><br>There were no issuances of common stock during the three months
ended July 31, 2004 and 2003, respectively.<br>.<br>Preferred Stock <br><br>The
Company has 56,075 shares of preferred stock authorized and 32,450 shares issued
and outstanding at July 31, 2004. <br><br>The Series A preferred stock requires
a dividend of 12 percent per annum, and the dividends are cumulative and are to
be accrued on the Company&#8217;s book if not paid. The dividend may be paid in
common stock of the Company at the Company&#8217;s discretion. The number of
shares comprising the dividend paid in common stock shall be determined by
dividing $1.20 by the closing bid price for the common stock on the payment
date. The Series A preferred stock is preferred in liquidation or dissolution up
to the amount of their par value ($10 per share). The Series A preferred stock
in 2004 converted into 15 shares of the Company&#8217;s common stock. There were
no conversions in 2003.<br><br>For each of the nine fiscal years ended April 30,
2004, the Company deferred payment of the annual dividend on the Series A
preferred stock. For the quarters ended July 31, 2004 and 2003, the deferral was
$0 and $15,938, respectively. Preferred stock dividends in arrears at July 31,
2004 aggregated $350,460 ($10.83 per preferred share).  Effective November 2003,
pursuant to a board resolution, the Company cancelled its payment and/or
accruing of preferred stock dividends. <br><br>Common Stock Options<br><br>The
Company in 1993 adopted a stock option plan, which expired on August 2, 2002.
No options were exercised under the plan.  All options granted by the Company
were granted pursuant to board resolutions and not under the stock option plan.
</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPION SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JULY 31, 2004 AND
2003</b><p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCK AGREEMENT</u></b></p>
<p style="margin-left:80">In January 2002, the Company entered into a
subscription agreement to sell 4,000,000 shares of common stock to an unrelated
party at $0.125 per share for a total of $500,000.<br><br>The purchaser paid
$20,000 at the closing of the agreement and provided a promissory note for
$480,000. The note is non-interest bearing and requires twenty-four monthly
payments of $20,000 each. The note is secured by the stock issued and the
transfer of such stock is restricted until the note is paid off. Certain other
restrictions regarding the transfer of the stock also exist.<br><br>The
purchaser paid a total of $55,000 during the year ended April 30, 2002 and
$5,000 during the year ended April 30, 2003, and has defaulted under the payment
terms of the note. The stock has not been issued, and the agreement was
cancelled.  </p><p>
<p>
<b>NOTE 8-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING CONCERN</u></b></p>
<p style="margin-left:80">As shown in the accompanying condensed consolidated
financial statements, the Company has sustained net operating losses for the
three months ended July 31, 2004 and 2003, and has sustained large accumulated
deficits. In addition, the Company is in search of acquiring a business, or
finding a suitable merger candidate. <br><br>Management has restructured the
Company and is continuing to search for a more profitable company to acquire.
<br><br>The Company&#8217;s future success is dependent upon its ability to
achieve profitable operations and generate cash from operating activities, and
upon additional financing. There is no guarantee that the Company will be able
to raise enough capital or generate revenues to sustain its
operations.<br><br>The condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.</p><p>
<p>
<b>NOTE 9-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:80">Deferred income taxes will be determined using the
liability method for the temporary differences between the financial reporting
basis and income tax basis of the Company&#8217;s assets and liabilities.
Deferred income taxes will be measured based on the tax rates expected to be in
effect when the temporary differences are included in the Company&#8217;s
consolidated tax return.  Deferred tax assets and liabilities are recognized
based on anticipated future tax consequences attributable to differences between
financial statement carrying amounts of assets and liabilities and their
respective tax bases.</p><p>
</p>
<p style="margin-left:80">At July 31, 2004, deferred tax assets consist of the
following: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;                       </p><p>
</p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="329.333251" colspan="1" rowspan="1" >
<p style="margin-left:80">Net operating loss carryforwards        </p></td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right">
$1,413,600&nbsp;</p align="right">
</td>
<td width="186.666620" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="329.333251" colspan="1" rowspan="1" >
<p style="margin-left:80">Less:  valuation allowance</p></td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (1,413,600)</font></p>
</td>
<td width="186.666620" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="329.333251" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$      -0-    &nbsp;</font></p>
</td>
<td width="186.666620" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p style="margin-left:80"><br><br>At July 31, 2004, the Company had federal net
operating loss carryforwards in the approximate amounts of $4,039,000 available
to offset future taxable income.  The Company established valuation allowances
equal to the full amount of the deferred tax assets due to the uncertainty of
the utilization of the operating losses in future periods.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>16</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations</b><p>
THERE IS SUBSTANTIAL DOUBT ABOUT THE COMPANY&#8217;S ABILITY TO CONTINUE AS A
GOING CONCERN DUE TO RECURRING LOSSES AND WORKING CAPITAL SHORTAGES, WHICH MEANS
THAT THE COMPANY MAY NOT BE ABLE TO CONTINUE OPERATIONS UNLESS IT OBTAINS
ADDITIONAL FUNDING.  THE COMPANY IS ACTIVELY   PURSUING MERGER OR ACQUISITION
CANDIDATES AND OTHER FINANCING POSSIBILITIES TO MEET ITS LIQUIDITY NEEDS.  THERE
IS NO ASSURANCE THAT THE COMPANY WILL BE ABLE TO STRUCTURE A MERGER OR
ACQUISITION, OR RAISE ADDITIONAL FINANCING TO CONTINUE OPERATIONS ON TERMS
SATISFACTORY TO THE COMPANY<p>
<u>Results of Operation</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended July 31,
2004, the Company&#8217;s net loss was $28,956. The Company&#8217;s total assets
decreased by  $24,693 to $367,226 from $391,919 at April 30, 2004.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended July 31,
2003, the Company&#8217;s net loss was $47,348 and the net loss available to
common shareholders was $63,286, ($0.01) per common share. The Company&#8217;s
total assets decreased by $34,297 to $452,869 from $487,166 at April 30, 2003<p>
<u>Revenues</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s total revenues
were $457,092 for the three months ended July 31, 2004 versus $543,195 for the
three-month period ended July 31, 2003, a decrease of $86,103 or 15.9% By
component, food and beverage sales decreased 15.2% from the previous year.  This
decrease in food and beverage sales is attributed to a decrease in customer
volume due a decline in convention and tourism in San Antonio.  Merchandise,
memorabilia and consulting revenues were $3,135 for the three months ended July
31, 2004 compared to $7,163 for the three months ended July 31, 2003.  Other
income represented less than 1.0% of total revenues for the three months ended
July 31, 2004 and 2003.<p>
<u>Expenses</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of food and beverage was 32.3%
and 29.9% of  related sales for the three months ended July 31, 2004 and 2003.
This increase is attributed to higher wholesale prices, as there was no
increases in selling prices during the three month period. Cost of merchandise
and memorabilia sales for the three months ended July 31, 2004  was $1,462
compared to $7,562 in the preceding year.  Restaurant payroll and related costs
were 35.9% of related food and beverage sales for the three months ended July
31, 2004 and 33.7% for the three months ended July 31, 2003.  Restaurant
occupancy costs were $61,765 or 13.7% of food and beverage sales compared to
$67,366 or 12.7% of related sales during the three months ended July 31, 2003.
This decrease in occupancy costs is attributed to the percentage paid to the
landlord in common area charges and base rent. Other restaurant costs were 18.6%
of related food and beverage sales for the three months ended July 31, 2004
compared to 18.8% of related sales during the three months ended July 31, 2003.
General and administrative expense for the Company&#8217;s corporate office was
4.0% of the Company&#8217;s total revenues for the three months ended July 31,
2004 compared to 12.0% of total revenues for the three months ended July
31,2003.  Depreciation and amortization expense were constant at approximately
2.7% of the Company&#8217;s total revenues for the three months ended July 31,
2004 compared to 2.2% in the comparable period. </p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>17</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<u>Liquidity and Capital Resources</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s cash position as
of July 31, 2004 was $127,131 compared to $120,116 on April 30, 2004. For the
three month period, the Company&#8217;s operations provided $7,015 in cash. The
Company used $1,090 for payment of a capital lease. The Company met its
liquidity needs from its cash reserves and from the cash flow from its San
Antonio location.<p>
The Company&#8217;s cash position as of July 31, 2003 was $167,359 compared to
$195,101 on April 30, 2003 a decrease of $27,742.  For the three month period,
the Company&#8217;s operations used $22,995 in cash in excess of revenues. The
Company purchased equipment for it San Antonio location for $2,930 and used
$1,817 for the payment of its capital lease. The Company met its liquidity needs
during the period from its cash reserves and cash flow provided from its San
Antonio location.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s working capital
was a negative $321,546 on July 31 2004 and a negative $304,695 on April 30,
2004.<p>
Stockholder&#8217;s equity was a negative $121,660 as of July 31, 2004 compared
to a negative $92,704 as of April 30, 2004. <p>
<u>Other</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is facing liquidity problems and is uncertain that it will be able to continue operations without an infusion of cash.  The Company continues to review and evaluate its operations and priorities.  The Company is actively   pursuing merger or acquisition   candidates and other financing possibilities to meet its liquidity needs.  There is no assurance that the Company will be able to structure a merger or acquisition, or raise additional financing to continue operations on terms satisfactory to the Company.	<p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, The Company&#8217;s
independent auditor has expressed substantial doubt that the Company can
continue as a going concern.</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>18</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" (within the meaning of the Private Securities
Litigation Act of 1995) that inherently involve risk and uncertainties.  The
Company generally uses words such as "believe," "may," "could," "will,"
"intend,"  "expect,"  "anticipate,"  "plan," and similar expressions to identify
forward-looking statements.  One should not place undue reliance on these
forward-looking statements.  The Company&#8217;s actual results could differ
materially from those anticipated in the forward-looking statements for many
unforeseen factors, which may include, but are not limited to, changes in
general economic conditions, the ongoing threat of terrorism, customer
acceptance of products offered, other general competitive factors, ability to
have access to financing sources on reasonable terms and other risks that are
described in this document. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable, they relate only to
events as of the date on which the statements are made, and the Company&#8217;s
future results, levels of activity, performance or achievements may not meet
these expectations.  The Company does not intend to update any of the
forward-looking statements after the date of this document to conform these
statements to actual results or to changes in the Company&#8217;s expectations,
except as required by law.<p>
Item 4.     CONTROLS AND PROCEDURES<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure controls are procedures
that are designed with the objective of ensuring that information required to be
disclosed in Company&#8217;s reports under the Securities Exchange Act of 1934,
such as this Form 10Q-SB, is reported in accordance with the Securities and
Exchange Commission&#8217;s rules.  Disclosure controls are also designed with
the objective of ensuring that such information is accumulated and communicated
to management, including the Chief Executive Officer and Chief Financial Officer
as appropriate to allow timely decisions regarding required disclosure.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within the 90 days prior to the date
of this report, the Company carried out an evaluation under  the  supervision
and  with  the participation of the Company&#8217;s  management,  including the
Company&#8217;s Chief  Executive  Officer  and  Chief  Financial  Officer,   of
the effectiveness of  the  design  and   operation  of  the  Company&#8217;s
disclosure  controls  and  procedures  pursuant  to  the  Securities Exchange
Act Rule  13a-14.  Based upon that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the Company&#8217;s disclosure controls
and procedures are effective in timely alerting them to material  information
relating  to the  Company (including  its  consolidated  subsidiaries)  required
to be in the Company&#8217;s periodic SEC filings. There were no significant
changes in the Company&#8217;s internal controls or in other factors that could
significantly affect these controls subsequent to the date of their
evaluation.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications of the Chief Executive
Officer and Chief Financial Officer regarding, among other items, disclosure
controls and procedures are included immediately after the signature section of
this Form 10Q-SB.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>19</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>Part II.   Other Information</b><p>
<b>Item 4.  Submission of Matters to A Vote of Security Holders</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None<p>
<b>Item 6.  Exhibits and Reports on Form 8-K</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 8-K was filed on June 28, 2004
relating to a change in the Company&#8217;s independent accountant. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 8-K/A was filed on August 13,
2004 amending the Form 8-K filed on June 28, 2004 relating to a change in the
Company&#8217;s independent accountant.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>20</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
SIGNATURES<p>
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<b>CHAMPIONS Sports, Inc.</b></p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
James Martell</p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
Chairman, President and Chief Executive Officer</p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="643.999839" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<a name="BM_1_"></a><u>/s/ James E. McCollam</u></p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
James E. McCollam</p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
Corporate Secretary, Chief Accounting</p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
Officer and Controller</p>
</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
September 13, 2004</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>21</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
CERTIFICATION OF CHIEF EXECUTIVE OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES MARTELL, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS SPORTS,
INC., a Delaware corporation (the "registrant");<p>
(2) Based on my  knowledge,  this  quarterly  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;<p>
(3)  Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;<p>
(4)  The  registrant&#8217;s  other  certifying  officers  and I are
responsible  for establishing and maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls
and procedures to ensure that material information relating to the registrant,
including its consolidated     subsidiaries, is made known to us by others
within those entities, particularly during the period in which this quarterly
report is being      prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the
registrant&#8217;s disclosure controls and  procedures  as of a date  within 90
days prior to the  filing  date of this  quarterly report (the "Evaluation
Date"); and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  Presented  in  this  quarterly
report  our  conclusions   about  the effectiveness  of the  disclosure
controls  and  procedures  based  on our evaluation as of the Evaluation
Date;<p>
(5) The registrant&#8217;s  other certifying  officers and I have disclosed,
based on our most recent evaluation, to the registrant&#8217;s auditors and the
audit committee of the  registrant&#8217;s  board of directors (or persons
performing  the equivalent functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal      controls which could adversely affect
the  registrant&#8217;s  ability to record,      process,  summarize and report
financial data and have  identified for the      registrant&#8217;s auditors any
material weaknesses in internal controls; and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud,  whether or not
material,  that involves management or other      employees  who  have  a
significant  role  in  the  registrant&#8217;s  internal      controls; and<p>
(6) The  registrant&#8217;s  other  certifying  officers and I have  indicated
in this quarterly report whether there were significant  changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.<p>
Date:  September 13, 2004</p align="right">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:</p align="right">
</td>
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<u>/s/ JAMES MARTELL</u></p>
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="407.999898" colspan="1" rowspan="1" >
<p>
JAMES MARTELL</p>
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="407.999898" colspan="1" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>22</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
CERTIFICATION OF CHIEF FINANCIAL OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES E. MCCOLLAM, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS SPORTS,
INC., a Delaware corporation (the "registrant");<p>
(2) Based on my knowledge, this  quarterly  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report.<p>
(3) Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report; <p>
(4)  The  registrant&#8217;s  other  certifying  officers  and I are
responsible  for establishing and maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  Designed  such  disclosure
controls  and  procedures  to ensure  that     material information relating to
the registrant, including its consolidated     subsidiaries,  is  made  known
to  us by  others  within  those  entities,     particularly  during  the period
in which  this  quarterly  report is being     prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the
registrant&#8217;s disclosure controls and     procedures  as of a date  within
90 days prior to the  filing  date of this     quarterly report (the "Evaluation
Date"); and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  Presented  in  this  quarterly
report  our  conclusions   about  the effectiveness  of the  disclosure
controls  and  procedures  based  on our evaluation as of the Evaluation
Date;<p>
(5) The registrant&#8217;s  other certifying  officers and I have disclosed,
based on our most recent evaluation, to the registrant&#8217;s auditors and the
audit committee of the  registrant&#8217;s  board of directors (or persons
performing  the equivalent functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal     controls which could adversely affect
the  registrant&#8217;s  ability to record,     process,  summarize and report
financial data and have  identified for the     registrant&#8217;s auditors any
material weaknesses in internal controls; and</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>23</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud,  whether or not
material,  that involves management or other     employees  who  have  a
significant  role  in  the  registrant&#8217;s  internal     controls; and<p>
(6) The  registrant&#8217;s  other  certifying  officers and I have  indicated
in this quarterly report whether there were significant  changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.<p>
Date:  September 13, 2004<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p align="right">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
<p align="right">
By:</p align="right">
</td>
<td width="390.666569" colspan="1" rowspan="1" >
<p>
/s/ JAMES E. McCOLLAM</p>
</td>
</tr>
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="390.666569" colspan="1" rowspan="1" >
<p>
JAMES E. McCOLLAM</p>
</td>
</tr>
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="390.666569" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
</tr>
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="390.666569" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>24</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
&nbsp;CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002	<p>
In connection with the annual report of Champions Sports, Inc. (the "Company")
on Form 10-QSB for the three months ended July 31, 2004 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), each of
the undersigned, in the capacities and on the dates indicated below, hereby
certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that to their knowledge:</p>
<div style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
<p>
1.    &nbsp; </p>
</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </p>
</td>
</tr>
<tr valign="top">
<td width="629.333176" colspan="2" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
<p>
2.    &nbsp; </p>
</td>
<td width="595.999851" colspan="1" rowspan="1" >
<p>
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operation of the Company. </p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p>
Dated: September 13, 2004</p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p>
By:&nbsp; </p>
</td>
<td width="310.666589" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James M. Martell</font></p>
</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="310.666589" colspan="1" rowspan="1" >
<p>
James M. Martell, Chief Executive Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p>
Dated: September 13, 2004</p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p>
By:&nbsp; </p>
</td>
<td width="310.666589" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James E. McCollam&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="310.666589" colspan="1" rowspan="1" >
<p>
James E. McCollam, Chief Financial Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
<p align="center">
25</p>


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