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<SEC-DOCUMENT>0001297077-04-000051.txt : 20041215
<SEC-HEADER>0001297077-04-000051.hdr.sgml : 20041215
<ACCEPTANCE-DATETIME>20041215115104
ACCESSION NUMBER:		0001297077-04-000051
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041031
FILED AS OF DATE:		20041215
DATE AS OF CHANGE:		20041215

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:		041203793

	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>csports10q103104rev.htm
<DESCRIPTION>CHAMPIONS SPORTS, INC.
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>CHAMPIONS SPORTS, INC</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="center">
<b>SECURITIES AND EXCHANGE COMMISSION</b><br><b>Washington, D.C.
20549</b><p align="center">
<b>FORM 10-QSB</b></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" >
<p align="center">
Mark One</p align="center">
</td>
<td width="587.999853" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
[X]</p>
</td>
<td width="582.666521" colspan="1" rowspan="1" >
<p>
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="1" rowspan="1" >
<p>
THE SECURITIES EXCHANGE ACT OF 1934</p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="1" rowspan="1" >
<p>
<u>For the quarterly period ended         October 31, 2004</u></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="613.333180" colspan="2" rowspan="1" >
<p align="center">
OR</p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
[&nbsp;&nbsp;&nbsp;]</p>
</td>
<td width="582.666521" colspan="1" rowspan="1" >
<p>
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="1" rowspan="1" >
<p>
THE SECURITIES EXCHANGE ACT OF 1934</p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="613.333180" colspan="2" rowspan="1" >
<p>
For the transition period from    <u>          </u> to&nbsp;&nbsp;_______    <u>
</u></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="613.333180" colspan="2" rowspan="1" >
<p>
Commission file number    <u>     0-17263                      </u></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<u>CHAMPIONS SPORTS, INC.</u><br>(Exact name of registrant as specified in its
charter)</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
<u>Delaware</u></p align="center">
</td>
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
<u>52-1401755</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
(State or other jurisdiction of</p align="center">
</td>
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
(I.R.S. Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
organization)</p align="center">
</td>
<td width="318.666587" colspan="1" rowspan="1" >
<p align="center">
Identification No.)</p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<u>Suite 214, 2420 Wilson Blvd., Arlington VA 22201</u><br>(Address of principal
executive offices)<br>(Zip code)<p align="center">
<u>(703) 526-0400</u><br>(Registrant&#8217;s telephone number, including area
code)</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p>
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> x    </u>    No    <u>
</u></p>
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p>
As of December 14 2004, the Registrant had a total of 16,824,658 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></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><p align="center">
<b>CONSOLIDATED FINANCIAL STATEMENTS</b><p align="center">
<b>OCTOBER 31, 2004 AND 2003</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></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>INDEX TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>OCTOBER 31, 2004 AND 2003</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="53.333320" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
<u>Page</u></p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="509.333206" colspan="5" rowspan="1" >
<p>
Part I.&nbsp;&nbsp;&nbsp;Financial Information</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Item 1.&nbsp;&nbsp;&nbsp;Financial Statements</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Condensed Consolidated Balance Sheets as of</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
&nbsp;&nbsp;October 31, 2004 (unaudited) and</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;April 30, 2004 (audited)</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
3</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Condensed Consolidated Statements of Operations:</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
&nbsp;&nbsp;Six months ended  October 31, 2004 and October 31,</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;2003,  (unaudited) </p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
4</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Condensed Consolidated Statements of Cash Flows:</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
&nbsp;&nbsp;Six and three months ended October 31, 2004, and</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;October 31, 2003 (unaudited) </p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
5</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
Notes to Condensed Consolidated Financial Statements</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
6 - 16</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Item 2.&nbsp;&nbsp;&nbsp;Management&#8217;s Discussions and</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="3" rowspan="1" >
<p>
Analysis of Financial Condition</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="2" rowspan="1" >
<p>
and Results of Operations</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
17</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Controls and Procedures</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
20</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="509.333206" colspan="5" rowspan="1" >
<p>
Part II.&nbsp;&nbsp;&nbsp;Other Information and Signatures</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="491.999877" colspan="4" rowspan="1" >
<p>
Item 4.Submission of Matters to a Vote</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="2" rowspan="1" >
<p>
of Security Holders</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
21</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
<p>
</p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
Item 6.    Exhibits and Reports on Form 8-K</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
21</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="443.999889" colspan="3" rowspan="1" >
<p>
Signatures</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
22</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="461.333218" colspan="4" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
23</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="461.333218" colspan="4" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
25</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="461.333218" colspan="4" rowspan="1" >
<p>
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
27</p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></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="671.999832" colspan="5" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="671.999832" colspan="5" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>ASSETS</b></font></p align="center">
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>October 31,</b></font></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>April 30,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2004</b></font></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2004</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(UNAUDITED)</b></font></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(Audited)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>CURRENT ASSETS</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<font size="2">    Cash and cash equivalents</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;$	</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">67,926&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">120,116&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Accounts receivable</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10,954&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">22,713&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Inventories</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,214&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">30,349&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Prepaid expenses</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">7,209&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,750&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total current assets</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">113,303&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">179,928&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">Property and equipment, net</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">176,729&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">200,939&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">Deposits</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">11,052&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">11,052&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">301,084&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">391,919&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>LIABILITIES AND STOCKHOLDERS&#8217;
(DEFICIT)</b></font></p align="center">
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>CURRENT LIABILITIES</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<font size="2">    Accounts payable </font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;$	</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">81,409&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">92,758&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Dividend payable on preferred stock</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">350,460&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">350,460&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Other accrued expenses</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">44,653&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">38,569&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Deferred lease commission</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">656&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,836&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Related party payable</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,100&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total current liabilities</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">486,278&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">484,623&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>COMMITMENTS AND CONTINGENCIES</b></font></p align="center">
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS&#8217; (DEFICIT)</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Preferred stock, $10 par value; 56,075 shares
authorized;</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,450 shares issued
and outstanding</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">324,500&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">324,500&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Common stock, $.001 par value; 50,000,000 shares authorized
</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,824,658 and
8,824,658 shares issued and outstanding, respectively</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">16,825&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8,825&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Additional paid-in capital</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5,922,349&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5,850,349&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Subscription receivable</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (80,000)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2">    Accumulated deficit</font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (6,368,868)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (6,276,378)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total stockholders&#8217; (deficit)</b></font></p>
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (185,194)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (92,704)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="109.333306" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217;
(DEFICIT)</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="109.333306" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">301,084&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">391,919&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>The accompanying notes are an integral part of these condensed
consolidated financial statements.</b></font></p align="center">
<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="731.999817" colspan="9" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="9" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="731.999817" colspan="9" rowspan="1" >
<p align="center">
<font size="2"><b>FOR THE SIX AND THREE MONHTS ENDED OCTOBER 31, 2004 AND 2003
(UNAUDITED)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="539.999865" colspan="5" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="539.999865" colspan="5" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="166.666625" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>SIX MONTHS ENDED</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>THREE MONTHS ENDED</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="166.666625" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31,</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>2004</u></b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>2003</u></b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>2004</u></b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>2003</u></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b> </b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>OPERATING REVENUE</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and
beverage</font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">851,710 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">986,337 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">451,712 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">453,690 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise,
memorabilia, and consulting fees</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9,384 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">12,918 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,135 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5,755 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,138 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,820 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,245 &nbsp;</font></p>
</td>
<td width="11.999997" 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="2">1,435 &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total operating revenue</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">865,232 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,004,075 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">457,092 &nbsp;</font></p>
</td>
<td width="11.999997" 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="2">460,880 &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>COSTS AND OPERATING EXPENSES </b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of food and
beverage</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">276,631 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">274,953 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">146,115 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">115,901 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of merchandise and
memorabiia</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,462 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">12,414 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,462 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,852 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant payroll and
related costs</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">306,341 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">332,977 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">161,988 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">153,575 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant occupancy
costs</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">124,856 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">129,522 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">61,765 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">62,156 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other restaurant
costs</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">169,204 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">184,577 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">84,181 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">84,450 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and
administrative</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">55,019 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">125,328 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18,432 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">60,398 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
amortization</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24,209 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24,209 &nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">12,105 &nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">12,105 &nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total costs and operating expenses</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">957,722 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,083,980 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">486,048 &nbsp;</font></p>
</td>
<td width="11.999997" 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="2">493,437 &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>NET (LOSS) BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (92,490)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (79,905)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (28,956)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (32,557)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income
taxes</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">- &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">- &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">- &nbsp;</font></p>
</td>
<td width="11.999997" 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="2">- &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>NET LOSS</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (92,490)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (79,905)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (28,956)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (32,557)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2">Preferred stock dividends</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">- &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (21,580)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">- &nbsp;</font></p>
</td>
<td width="11.999997" 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="2"> (10,790)</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
<font size="2"><b>(LOSS) APPLICABLE TO COMMON STOCKHOLDERS</b></font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (92,490)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (101,485)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (28,956)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (43,347)</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BASIC (LOSS) PER COMMON SHARE</b></font></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.01)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.01)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.00)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.01)</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING </b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">9,703,779 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">8,514,459 &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">13,985,948 &nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">8,514,459 &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
&nbsp;	<p>
</p>
&nbsp;	<p>
<p align="center">
<font size="2"><b>The accompanying notes are an integral part of these condensed
consolidated financial statements</b></font><b>.</b></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>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="605.333182" colspan="4" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="605.333182" colspan="4" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS CASH FLOWS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="605.333182" colspan="4" rowspan="1" >
<p align="center">
<b>FOR THE SIX MONTHS ENDED OCTOBER 31, 2004 AND 2003
(UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2004</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2003</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOW FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (92,490)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (79,905)</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to
reconcile net loss to net cash </b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(used in) operating
activities:</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
amortization</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24,209&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24,209&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Changes in assets and liabilities</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
receivable</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">11,759&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,135&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (3,848)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
expenses</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (459)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (4,449)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
payable</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (11,349)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8,433&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued
expenses</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6,085&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (12,326)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease
concessions</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (2,180)</font></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="2"> (2,907)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
adjustments</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">31,200&nbsp;</font></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="2">9,112&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)
operating activities</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (61,290)</font></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="2"> (70,793)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM INVESTING ACTIVITIES</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property
and equipment</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></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="2"> (2,931)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)
investing activities</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></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="2"> (2,931)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party
payable</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9,100&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
financing activities</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,100&nbsp;</font></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="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET (DECREASE) IN CASH AND CASH EQUIVALENTS</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(52,190)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(73,724)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEGINNING OF
PERIOD</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">120,116&nbsp;</font></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="2">195,101&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">67,926&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">121,377&nbsp;</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the
period for:</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
paid</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="406.666565" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="406.666565" colspan="2" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF NON-CASH
INFORMATION:</b></font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="406.666565" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">Exercise of common stock option by officer</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">80,000&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="406.666565" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p align="center">
<font size="2"><b>The accompanying notes are an integral part of these condensed
consolidated financial statements.</b></font></p align="center">
<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><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>OCTOBER 31, 2004 AND 2003</b></p>
&nbsp;	<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 October 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.</p><p>
</p>
<p style="margin-left:80">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 six months ended October 31, 2004
may not be indicative of the results for the entire year.</p><p>
</p>
<p style="margin-left:80">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.</p><p>
<p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principles
of Consolidation</u></b></p>
<p style="margin-left:80">The condensed consolidated financial statements
include the accounts of the Company and its subsidiaries. All material
intercompany transactions have been eliminated in consolidation. </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Property
and Equipment</u></b></p>
<p style="margin-left:80">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:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">Life</font></p>
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Furniture and equipment</p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
5-15 years</p align="center">
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Leasehold improvements</p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
Remaining term of the lease</p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Depreciation and amortization expense was $24,209and
$24,209for the six months ended October 31, 2004 and 2003, respectively.</p><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>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Inventories</u></b></p>
<p style="margin-left:80">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 October 31, 2004 were as follows:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2004</font></p>
</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
<p>
Restaurant food and beverage</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
20,079 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
<p>
Promotional merchandise for sale to</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restaurant customers</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" 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">7,135 </font></p>
</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">27,214 </font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net
(Loss) Per Share</u></b></p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">The following is a reconciliation of the computation
for basic and diluted EPS:</p><p>
</p>
<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" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>October</b></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>October</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>2003</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" 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"> (92,490)</font></p>
</td>
<td width="21.333328" 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"> (101,485)</font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Outstanding (Basic)</p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
9,703,779 </p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
8,514,459 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="3" rowspan="1" >
<p>
Weighted-average common stock</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Equivalents</p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options</p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
- - </p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
- - </p align="right">
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" 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">- </font></p>
</td>
<td width="21.333328" 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">- </font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Outstanding (Diluted)</p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">9,703,779 </font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459 </font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Options and warrants outstanding to purchase stock
were not included in the computation of diluted EPS for October 31, 2004 and
2003 because inclusion would have been
antidilutive.</p><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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</b> <b>(CONTINUED)</b></p>
&nbsp;	<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash
and Cash Equivalents</u></b></p>
<p style="margin-left:80">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.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts
Receivable</u></b></p>
<p style="margin-left:80">Management believes that all accounts receivable as of
October 31, 2004 are fully collectible.  Therefore, no allowance for doubtful
accounts is recorded.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income
Taxes</u></b></p>
<p style="margin-left:80">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.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair
Value of Financial Instruments</u></b></p>
<p style="margin-left:80">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.</p><p>
<p>
<!--<a name="OLE_LINK2"></a>--><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b><b><u>Options
for Common Stock</u></b></p>
<p style="margin-left:80">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 </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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u> (CONTINUED)</b></p>
&nbsp;	<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Options
for Common Stock (Continued)</u></b></p>
&nbsp;	<p style="margin-left:80">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.
</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based
Compensation</u></b></p>
<p style="margin-left:80">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 </p><p>
</p>
<p style="margin-left:80">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;.</p><p>
</p>
<p style="margin-left:80">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. </p><p>
</p>
<p style="margin-left:80">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>9</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>OCTOBER 31, 2004 AND
2003</b></p>
&nbsp;	<p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u> (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u></b></p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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. </p><p>
</p>
<p style="margin-left:80">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>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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u> (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements (Continued)</u></b></p>
<p style="margin-left:80"><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.</p><p>
</p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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>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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements (Continued)</u></b></p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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>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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u> (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Reclassifications</u></b></p>
<p style="margin-left:80">Certain amounts for the six months ended October 31,
2003 have reclassified to conform to the presentation of the October 31, 2004
amounts.  The reclassifications have no effect on net loss for the six months
ended October 31, 2003. </p><p>
<p>
<b>NOTE 3-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>RELATED PARTY PAYABLE</u></b></p>
<p>
</p>
<p style="margin-left:80">In October 2004, the Company received an advance from
an officer of the Company for certain working capital needs.  These funds were
repaid in November 2004. </p><p>
<p>
<b>NOTE 4-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>COMMITMENTS AND CONTINGENCIES
</u></b></p>
<p style="margin-left:80">Operating leases</p><p>
</p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">Rental expense charged to expense during the six
months ended October 31, 2004 and 2003 was $101,144 and $129,522, respectively.
Future minimum payments under the noncancellable restaurant lease as of October
31, 2004 are as follows:</p><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="106.666640" colspan="1" rowspan="1" >
<p align="center">
2005</p align="center">
</td>
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;$	</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">93,440 </font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>NOTE 5-&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 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>OCTOBER 31, 2004 AND
2003</b><p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>MARRIOTT LICENSE</u></b></p>
&nbsp;	<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>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217;
DEFICIT</u></b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common
Stock </u></b></p>
<p style="margin-left:80">The Company has 50,000,000 shares authorized and
16,824,658 shares issued and outstanding at October 31, 2004.</p><p>
</p>
<p style="margin-left:80">On October 11, 2004, an officer of the Company
exercised his stock option to acquire 8,000,000 shares of restricted common
stock at $.01 per share. </p><p>
</p>
<p style="margin-left:80">There were no other issuances of common stock during
the six months ended October 31, 2004 and 2003, respectively.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred
Stock </u></b></p>
<p style="margin-left:80">The Company has 56,075 shares of preferred stock
authorized and 32,450 shares issued and outstanding at October 31, 2004. </p><p>
</p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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 October 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. </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common
Stock Options</u></b></p>
<p style="margin-left:80">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>14</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>OCTOBER 31, 2004 AND
2003</b></p>
&nbsp;	<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 six
months ended October 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. </p><p>
</p>
<p style="margin-left:80">Management has restructured the Company and is
continuing to search for a more profitable company to acquire. </p><p>
</p>
<p style="margin-left:80">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.</p><p>
</p>
<p style="margin-left:80">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.<br><br>At October 31, 2004, deferred tax assets consist of
the following:  </p><p>
</p>
<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>
Net operating loss carryforwards  </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;$	</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
1,423,800&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance</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">(1,423,800)</font></p>
</td>
</tr>
<tr valign="top">
<td width="251.999937" colspan="1" rowspan="1" >
&nbsp;</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">At October 31, 2004, the Company had federal net
operating loss carryforwards in the approximate amounts of $4,068,000 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>15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>NOTE 10-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUBSEQUENT EVENT</u></b></p>
<p style="margin-left:80">In November 2004, the Company received a down payment
from Marriott, for the memorabilia and consulting fee for the new Champions
Sports Bar Restaurant that is projected to open in the Marriott hotel in
Louisville, Kentucky in March 2005.</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>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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</b><p>
<b><u>Results of Operation</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended October 31,
2004, the Company&#8217;s net loss from operations was $92,490,  ($0.01) per
common share. For the three month period ended October 31, 2004, the
Company&#8217;s net loss from its operations was $28,956, ($0.00) per common
share<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended October 31,
2003, the Company&#8217;s net loss from operations was $79,905 before preferred
stock dividends of $21,580, resulting in a net loss available to common
shareholders of  $101,485. For the three months ended October 31, 2003, the
Company&#8217;s net loss from operations was $32,557 before preferred stock
dividends of $10,790, resulting in a net loss available for common shareholders
of $43,347.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s assets decreased
to $301,084 at October 31, 2004 from $391,919 at April 30, 2004, as a result of
the net loss for the six-month period.<p>
<b><u>Revenues</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s total revenues
decreased by 13.8% for the six-month period and decreased 0.8% for the three
months period ended October 31, 2004. The Company&#8217;s total revenues were
$865,232 and   $1,004,075 for the six months ended October 31, 2004 and 2003. By
component, food and beverage sales decreased 13.6% for the comparable six-month
periods. For the three-month period, food and beverage sales were essentially
the same for the comparable period. Merchandise and memorabilia sales for the
six months ended October 31, 2004 were $9,384 compared to $12,918 in the
comparable period. The Company did not provide any sports memorabilia to
Marriott hotels during the six months ended October 31, 2004.
</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>
<b><u>Expenses </u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of food and beverage were 32.5%
and 27.9% of food and beverage sales of for the six months ended October 31,
2004 and 2003. The increase in the cost of food and beverage is attributed to
the increase in wholesale prices. Subsequently, the Company has increased menu
prices to reflect the increased costs.   Restaurant payroll and related costs
increased to 36.0% from 33.8% of related sales for the six months ended October
31, 2004 and 2003. Restaurant occupancy costs were 14.7% from 13.1% of
restaurant sales for the six-month comparable periods.  Other restaurant costs
were 19.9% and 18.7% of sales for the comparable periods.  General and
administrative expenses for the Company&#8217;s corporate office were $55,018 or
6.4% of the Company&#8217;s total revenues for the six months ended October 31,
2004 compared to $125,328 or 12.5% for the six months ended October 31, 2003.
Depreciation and amortization expense represented 2.8% of the Company&#8217;s
total revenues during each six-month period ended October 31, 2004 and 2.4% for
the six-month period ended October 31, 2003.<p>
<b><u>Liquidity and Capital Resources </u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s cash position on
October 31, 2004 was $67,926 compared to $120,116 on April 30, 2004, a decrease
of $52,190. For the six months ended October 31, 2003 the Company&#8217;s
operating activities used $70,724 in cash.  For the six months ended October 31,
2003, the Company replaced aging equipment for the  San Antonio Champions
restaurant for $2,931.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended October
31, 2004 and 2003, the Company met its cash needs from its revenues and cash
reserves and from cash flow from its San Antonio restaurant. During the six
months ended October 31, 2004, an officer of the Company advanced the Company
$9,100  to meet its immediate obligations, subsequently, the $9,100 has been
repaid.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 31, 2004 the
Company&#8217;s working capital was a negative $372,975 versus a negative
$304,695 on April 30, 2004.   The Company is uncertain that it will be able to
meet its cash requirements for the next twelve months from its cash reserves and
from its operating activities.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder&#8217;s equity increased
to $(185,194) as of October 31, 2004 compared to $(92,704) as of April 30, 2004,
as a result of the net loss for the six-month period. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s Board of Directors
voted to defer the annual meeting of shareholders in order to preserve the
Company&#8217;s cash position.</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><u>Other</u></b><p>
&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>
<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>
<b><u>Subsequent Event</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2004, the Company received
a down payment from Marriott, for the memorabilia and consulting fee for the new
Champions Sports Bar Restaurant that is projected to open in the Marriott hotel
in Louisville, Kentucky in March 2005.<p align="center">
<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 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>Item 4.&nbsp;&nbsp;CONTROLS AND PROCEDURES</b><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>20</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p>
<b>Part II.    Other Information</b></p>
<p>
<p>
<b>Item 4.&nbsp;&nbsp;Submission of Matters to A Vote of Security Holders</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None<p>
<b>Item 6.&nbsp;&nbsp;Exhibits and Reports on Form 8-K</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 8-K was filed on October 13, 2004
relating to the exercise of a stock option for 8,000,000 common shares by an
officer of the Company.</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">
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 style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<b>CHAMPIONS Sports, Inc.</b></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
James Martell</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
Chairman, President and Chief Executive Officer</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<!--<a name="BM_1_"></a>--><u>/s/ James E. McCollam</u></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
James E. McCollam</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
Corporate Secretary, Chief Accounting</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
Officer and Controller</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
December 14, 2004</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 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>
<p style="margin-left:45">&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><p>
</p>
<p style="margin-left:45">&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><p>
</p>
<p style="margin-left:45">&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><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>
<p style="margin-left:45">&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><p>
</p>
<p style="margin-left:45">&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><p>
</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>
(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<p>
regard to significant deficiencies and material weaknesses.<p>
Date:  December 14, 2004</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;&nbsp;</p align="right">
</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<u>/s/ JAMES MARTELL</u></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
JAMES MARTELL</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="1" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
<td width="1.333333" 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">
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>
<p style="margin-left:45">&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><p>
</p>
<p style="margin-left:45">&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><p>
</p>
<p style="margin-left:45">&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><p>
<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>
<p style="margin-left:45">&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<br>&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><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>25</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<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:  December 14, 2004</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;&nbsp;</p align="right">
</td>
<td width="238.666607" colspan="1" rowspan="1" >
<p>
<u>/s/ JAMES E. McCOLLAM</u></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
<p>
JAMES E. McCOLLAM</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>26</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b><p>
In connection with the report of Champions Sports, Inc. (the "Company") on Form
10-QSB for the six months ended October 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="35.999991" colspan="1" rowspan="1" >
<p>
1.</p>
</td>
<td width="761.333143" 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="797.333134" colspan="2" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
2.</p>
</td>
<td width="761.333143" 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="359.999910" colspan="1" rowspan="1" >
<p>
Dated: December 14, 2004</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
By:&nbsp; </p>
</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
<u>/s/ James M. Martell        &nbsp;&nbsp;&nbsp;</u></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
James M. Martell, Chief Executive </p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
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="359.999910" colspan="1" rowspan="1" >
<p>
Dated: December 14, 2004</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
By:&nbsp; </p>
</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
<u>/s/ James E. McCollam&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
James E. McCollam, Chief Financial </p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="323.999919" colspan="1" rowspan="1" >
<p>
Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<b>27</b></p>


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