-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 FpmGHwo2VxKDoR2CoswhqPmGTrO+oeu6HvC0YLWM7yUp8bKo7OvzIIcAEalAFth1
 0YwjYOu6NJHDAwCkQEiBBQ==

<SEC-DOCUMENT>0001297077-05-000121.txt : 20050808
<SEC-HEADER>0001297077-05-000121.hdr.sgml : 20050808
<ACCEPTANCE-DATETIME>20050808124408
ACCESSION NUMBER:		0001297077-05-000121
CONFORMED SUBMISSION TYPE:	10-Q/A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041031
FILED AS OF DATE:		20050808
DATE AS OF CHANGE:		20050808

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:		10-Q/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		051005144

	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>10-Q/A
<SEQUENCE>1
<FILENAME>csi10qsb-a_103104.htm
<DESCRIPTION>CSPORTS 10-Q/A
<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/A</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="107.999973" colspan="2" rowspan="1" >
<p>
Mark One</p>
</td>
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p>
[&nbsp;X&nbsp;]</p>
</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
THE SECURITIES EXCHANGE ACT OF 1934</p>
</td>
</tr>
<tr valign="top">
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" 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="637.333174" colspan="3" 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="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p>
[&nbsp;&nbsp;&nbsp;&nbsp;]</p>
</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" 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="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
For the transition period
from&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;to&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p align="center">
Commission file number<u>    &nbsp;0-17263</u><p align="center">
<b><u>CHAMPIONS SPORTS, INC.</u></b><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="227.999943" colspan="1" rowspan="1" >
<p align="center">
<b><u>Delaware</u></b></p align="center">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
<b><u>52-1401755</u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="227.999943" colspan="1" rowspan="1" >
<p align="center">
(State or other jurisdiction of</p align="center">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
(I.R.S. Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="227.999943" colspan="1" rowspan="1" >
<p align="center">
organization)</p align="center">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
Identification No.)</p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<b><u>Suite 214, 2420 Wilson Blvd., Arlington VA 22201</u></b><br>(Address of
principal executive offices)<br>(Zip code)<p align="center">
<b><u>(703) 526-0400</u></b><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="637.333174" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the
Registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90
days.&nbsp;&nbsp;Yes&nbsp;<u>&nbsp;&nbsp;x&nbsp;&nbsp;&nbsp;</u>
No&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="194.666618" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="215.999946" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<u>Page</u></p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="227.999943" colspan="3" rowspan="1" >
<p>
Part I.&nbsp;&nbsp;Financial Information</p>
</td>
<td width="269.333266" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
Item 1.&nbsp;&nbsp;Financial Statements</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Balance Sheets as of</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;October 31, 2004(unaudited) and</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;April 30, 2004 (audited)</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Statements of Operations:</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;Six months ended  October 31, 2004 and October 31,</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;2003,  (unaudited)</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Statements of Cash Flows:</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;Six months ended October 31, 2004, and</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
<b>&nbsp;&nbsp;</b>October 31, 2003 (unaudited)</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
5</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Notes to Condensed Consolidated Financial Statements</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
6 - 17</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
Item 2.&nbsp;&nbsp;Management&#8217;s Discussions and </p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Analysis
of Financial Condition</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
Results of Operations</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
18</p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;Controls and Procedures</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
21</p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="362.666576" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="443.999889" colspan="4" rowspan="1" >
<p>
Part II.&nbsp;&nbsp;Other Information and Signatures</p>
</td>
<td width="53.333320" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
22</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="4" rowspan="1" >
<p>
Item 6.&nbsp;&nbsp;Exhibits and Reports on Form 8-K</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
22</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
<p>
Signatures</p>
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
23</p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="410.666564" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="451.999887" colspan="5" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
24</p>
</td>
</tr>
<tr valign="top">
<td width="451.999887" colspan="5" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
26</p>
</td>
</tr>
<tr valign="top">
<td width="451.999887" colspan="5" rowspan="1" >
<p>
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
28</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="673.333165" colspan="6" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="673.333165" colspan="6" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED BALANCE SHEET</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p align="center">
<b>ASSETS</b></p align="center">
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>October 31,</b></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>April 30,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>(UNAUDITED)</b></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<b>(AUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>CURRENT ASSETS</b></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cash and cash equivalents</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
67,926&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
120,116&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
10,954&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
22,713&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Inventories</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
27,214&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
30,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">7,209&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">6,750&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total current assets</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
113,303&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
179,928&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
Property and equipment, net</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
176,729&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
200,939&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
Deposits</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">11,052&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">11,052&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;TOTAL ASSETS</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">301,084&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">391,919&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p align="center">
<b>LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></p align="center">
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>CURRENT LIABILITIES</b></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accounts payable </p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
81,409&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
92,758&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Dividend payable on preferred stock</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
350,460&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
350,460&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
232,860&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
146,116&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Deferred lease commission</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
656&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
2,836&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Related party payable</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">9,100&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total current liabilities</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">674,485&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">592,170&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p align="center">
<b>COMMITMENTS AND CONTINGENCIES</b></p align="center">
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>STOCKHOLDERS&#8217; (DEFICIT)</b></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Preferred stock, 10 par value; 56,075 shares authorized;</p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
32,450 shares issued and outstanding</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
324,500&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
324,500&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Common stock, $.001 par value; 50,000,000 shares authorized </p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
16,824,658 and 8,824,658 shares issued and outstanding, respectively</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
16,825&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
8,825&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Additional paid-in capital</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
5,922,349&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
5,850,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Subscription receivable</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
(80,000)</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accumulated deficit</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(6,557,075)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(6,383,925)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total stockholders&#8217; (deficit)</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(373,401)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(200,251)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;TOTAL LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">301,084&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">391,919&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
3</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="757.333144" colspan="9" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="757.333144" colspan="9" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="757.333144" colspan="9" rowspan="1" >
<p align="center">
<b>FOR THE SIX AND THREE MONHTS ENDED OCTOBER 31, 2004 AND 2003
(UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="191.999952" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="191.999952" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="179.999955" colspan="4" rowspan="1" >
<p align="center">
<b>SIX MONTHS ENDED</b></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">
<b>THREE MONTHS ENDED</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="179.999955" colspan="4" rowspan="1" >
<p align="center">
<b>OCTOBER 31,</b></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">
<b>OCTOBER 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2003</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2003</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="center">
(Restated)</p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
(Restated)</p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>OPERATING REVENUE</b></p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Food and beverage</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
851,710&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
986,337&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
399,998&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
453,690&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Merchandise, memorabilia, and consulting fees</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
9,384&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
12,918&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
6,249&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
5,755&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Other income</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">4,138&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">4,820&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,893&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,435&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total operating revenue</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">865,232&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,004,075&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">408,140&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">460,880&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>COSTS AND OPERATING EXPENSES </b></p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cost of food and beverage</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
276,631&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
274,953&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
130,516&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
115,901&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cost of merchandise and memorabilia</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
1,462&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
12,414&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
4,852&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Restaurant payroll and related costs</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
306,341&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
332,977&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
144,353&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
153,575&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Restaurant occupancy costs</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
124,856&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
129,522&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
63,091&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
62,156&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Other restaurant costs</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
169,204&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
184,577&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
85,023&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
84,450&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;General and administrative</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
135,679&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
125,328&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
76,917&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
60,399&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
24,210&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
24,209&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
12,104&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
12,104&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Interest</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>    &nbsp;Total costs and operating expenses</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,038382&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,083,980&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">512,004&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">493,437&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>NET (LOSS) BEFORE PROVISION FOR INCOME TAXES</b></p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
(173,150)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(79,905)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(103,864)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(32,557)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Provision for income taxes</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>NET LOSS</b></p>
</td>
<td width="83.999979" colspan="2" rowspan="1" >
<p align="right">
(173,150)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(79,905)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(103,864)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
(32,557)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
Preferred stock dividends</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (21,580)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (10,790)</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>(LOSS) APPLICABLE TO COMMON STOCKHOLDERS</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (173,150)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (101,485)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (103,864)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (43,347)</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>BASIC (LOSS) PER COMMON SHARE</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.02)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>WEIGHTED AVERAGE SHARES OUTSTANDING </b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">9,703,779&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">13,985,948&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
4</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="673.333165" colspan="5" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="673.333165" colspan="5" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS CASH FLOWS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="673.333165" colspan="5" 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="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
(Restated)</p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<b>2003</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>CASH FLOW FROM OPERATING ACTIVITIES</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Net loss</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (173,150)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (79,905)</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;Adjustments to reconcile net loss to net cash </b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used in) operating
activities:</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
24,210&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
24,209&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>Changes in assets and liabilities</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Decrease in accounts receivable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Decrease in other current assets</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Decrease in other assets</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
11,759&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Inventories</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
3,135&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
(3,848)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
(459)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
(4,449)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accounts payable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
(11,349)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
8,433&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
86,745&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
(12,326)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Deferred lease concessions</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(2,180)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,907)</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">111,860&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">9,112&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating activities</b></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(61,290)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (70,793)</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>CASH FLOWS FROM INVESTING ACTIVITIES</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Purchases of property and equipment</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,931)</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) investing activities</b></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,931)</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>CASH FLOWS FROM FINANCING ACTIVITIES</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Related party payable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
9,100&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>Net cash provided by financing activities</b></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">9,100&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>NET (DECREASE) IN CASH AND CASH EQUIVALENTS</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
(52,190)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
(73,724)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>CASH AND CASH EQUIVALENTS -</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;BEGINNING OF PERIOD</b></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right">
120,116&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
195,101&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">67,926&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">121,377&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cash paid during the period for:</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
<b>SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION:</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="433.333225" colspan="1" rowspan="1" >
<p>
Exercise of common stock option by officer</p>
</td>
<td width="10.666664" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">80,000&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
5</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>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>OCTOBER 31, 2004 AND 2003</b><p>
<b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS OF
PRESENTATION</u></b></p>
<p style="margin-left:80">Champions Sports, Inc., (the &#8220;Company&#8221;) a
Delaware corporation, promoted a sports theme restaurant bar concept through
Company owned and licensed operations. The Company sold the rights to the
Champions brand to Marriott International, Inc. (Marriott) and became a licensee
of Champions Sports Bar Restaurants. Substantially all memorabilia sales are to
Marriott. At 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>
<p style="margin-left:80">The Company has amended its previously issued
condensed consolidated financial statements for the six and three months ended
October 31, 2004.  The Company has amended these condensed consolidated
financial statements to recognize an additional $80,660 and $40,330 in
officer&#8217;s compensation and related payroll tax expense for the six and
three months ended October 31, 2004.  In addition, the July 31, 2004 three-month
period ended activity was inadvertently reported in place of the October 31,
2004 three-month period ended activity.  These transactions resulted in an
increase in net loss applicable to common shares of $80,660 and $74,918 for the
six and three months ended October 31, 2004 to a net loss of $173,150 and
103,864 as restated, and an increase in the accumulated deficit to
$6,557,075.</p><p>
<p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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
inter-company transactions have been eliminated in consolidation. </p><p>
<p align="center">
6</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>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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="165.333292" 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="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="165.333292" 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="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="165.333292" 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="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="165.333292" 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="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="165.333292" colspan="1" rowspan="1" >
<p align="center">
Remaining term of the lease</p align="center">
</td>
</tr>
</table></div>
&nbsp;	<p style="margin-left:80">Depreciation and amortization expense was
$24,209 and $24,209 for the six months ended October 31, 2004 and 2003,
respectively. </p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" 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="21.333328" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="63.999984" 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="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;restaurant customers</p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" 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="21.333328" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">27,214</font></p>
</td>
</tr>
</table></div>
&nbsp;	<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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 align="center">
7</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>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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Net
(Loss) Per Share (continued)</u></b></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: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="center">
(Restated)</p align="center">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="center">
<b>October</b></p align="center">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<b>October</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2004</b></font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2003</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" bgcolor=>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (173,150)</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" 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="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" 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="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Outstanding (Basic)</p>
</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
9,703,779&nbsp;</p align="right">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
8,514,459&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" 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="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Equivalents</p>
</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" 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="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Outstanding (Diluted)</p>
</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">9,703,779&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,514,459&nbsp;</font></p>
</td>
</tr>
</table></div>
&nbsp;	<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><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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 align="center">
8</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>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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>-->&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 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 align="center">
9</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>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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 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 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>
<p style="margin-left:80"><br><br><br><br></p><p align="center">
10</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 style="margin-left:80"></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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>
<p style="margin-left:80">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 align="center">
11</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>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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements</u> (Continued)</b></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>
<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.<br></p><p>
<p align="center">
12</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>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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements</u> (Continued)</b></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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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;RELATED PARTY PAYABLE</b></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>
&nbsp;	<p>
<p align="center">
13</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>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>
<b>NOTE 4-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>COMMITMENTS AND CONTINGENCIES
</u></b><p>
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
leases</i></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 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: -5"><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="105.333307" colspan="1" rowspan="1" >
<p>
$    &nbsp;&nbsp;&nbsp;93,440</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>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MARRIOTT LICENSE</b></p>
<p style="margin-left:80">The Company is an exclusive supplier of sports
memorabilia and a consultant to all new Champions Sports Bars located in
Marriott and Renaissance Hotels worldwide. </p><p>
<p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER ACCRUED EXPENSES</u>
</b></p>
<p style="margin-left:80">This account primarily represents accrued
officer&#8217;s payroll and related payroll taxes totaling $188,207 as October
31, 2004.</p><p>
<p align="center">
14</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>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>
<b>NOTE 8-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217;
DEFICIT</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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">
15</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>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>
<b>NOTE 9-&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 10-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:80">Deferred income taxes will be determined using the
liability method for the temporary differences between the financial reporting
basis and income tax basis of the Company&#8217;s assets and liabilities.
Deferred income taxes will be measured based on the tax rates expected to be in
effect when the temporary differences are included in the Company&#8217;s
consolidated tax return.  Deferred tax assets and liabilities are recognized
based on anticipated future tax consequences attributable to differences between
financial statement carrying amounts of assets and liabilities and their
respective tax bases.</p><p>
</p>
<p style="margin-left:80">At 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="215.999946" colspan="1" rowspan="1" >
<p>
Deferred tax asset    </p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
1,484,000&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">   (1,484,000)</font></p>
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
Net deferred tax asset</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="93.333310" 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 $4,240,000 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">
16</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>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>
<b>NOTE 11-&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>
<b>NOTE 12-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>RESTATEMENT OF PREVIOUSLY ISSUED
FINANCIAL STATEMENTS</u></b></p>
<p style="margin-left:80">The Company has amended its previously issued
condensed consolidated financial statements for the six and three months ended
October 31, 2004.  The Company has amended these condensed consolidated
financial statements to recognize an additional $80,660 and $40,330 in
officer&#8217;s compensation and related payroll tax expense for the six and
three months ended October 31, 2004.  In addition, the July 31, 2004 three-month
period ended activity was inadvertently reported in place of the October 31,
2004 three-month period ended activity.  These transactions resulted in an
increase in net loss applicable to common shares of $80,660 and $74,918 for the
six and three months ended October 31, 2004 to a net loss of $173,150 and
103,864 as restated, and an increase in the accumulated deficit to
$6,557,075.</p><p>
<p align="center">
17</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>
<b>Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations</b><p>
<b>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 $173,150  ($0.02) per
common share. For the three month period ended October 31, 2004, the
Company&#8217;s net loss from its operations was $103,864 ($0.01) 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. 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 11.4% 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 decreased 11.8%
from the same for the comparable period. This decrease is attributed to a
decrease in customer traffic, as few conventions were booked during the period.
Also the local NBA franchise changed venues from close proximity to the
restaurant location to several miles away, which eliminated pre and post games
customer traffic.  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">
18</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>
<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.  This variance is attributed to an increase in wholesale prices,
especially in beef, poultry and produce. While the Company implemented retail
price increases during FY 2004, in order to remain competitive, they were not
sufficient to absorb all of the wholesale price increases. Subsequently, the
Company has increased menu prices, again during the three months ended October
31, 2004 to reflect the increased costs. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant payroll and related costs
were 36.0% compared to 33.8% of related sales for the six months ended October
31, 2004 and 2003. The payroll costs as a percentage increase is attributed to
the decline in food and beverage sales. The actual amount decreased $26,636 from
the comparable period. Restaurant occupancy costs were 14.7% compared to 13.1%
of restaurant sales for the six-month comparable periods. Again, the percentage
increase is attributed to the decline in food and beverage sale, as the actual
amount decreased slightly form the pervious period.  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 $135,679 or 15.7% 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. The
Company has amended its previously issued condensed consolidated financial
statements for the six and three months ended October 31, 2004.  The Company has
amended these condensed consolidated financial statements to recognize an
additional $80,660 and $40,330 in officer&#8217;s compensation and related
payroll tax expense for the six and three months ended October 31, 2004.  In
addition, the July 31, 2004 three-month period ended activity was inadvertently
reported in place of the October 31, 2004 three-month period ended activity.
These transactions resulted in an increase in net loss applicable to common
shares of $80,660 and $74,918 for the six and three months ended October 31,
2004 to a net loss of $173,150 and 103,864 as restated, and an increase in the
accumulated deficit to $6,557,075.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, as decrease
of $52,190. For the six months ended October 31, 2004 the Company&#8217;s
operating activities used $61,290 in cash compared to $70,793 in the comparable
period.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended October 31,
2003, the Company replaced aging equipment for the  San Antonio Champions
restaurant for $2,931.<p align="center">
19</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>
&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 $561,182 versus a negative
$412,242 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 deficit increased
to $(373,401) as of October 31, 2004 compared to $(200,251) 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;During the three month period ended
October 31, 2004, an officer of the Company exercised an option to purchase
8,000,000 of the Company&#8217;s common shares at $0.01 per common share. The
officer executed an interest bearing note payable to the Company for $80,000,
which is secured by the common shares issued.<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>
<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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The lease for the Company owed San
Antonio restaurant will expire on June 30, 2005. The landlord has indicated that
it will not be renewed. Consequently, the restaurant will cease operations on
that date, furthering the Company&#8217;s liquidity problems.<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>
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">
20</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>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>
<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">
21</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>
<b>Part II.&nbsp;&nbsp;&nbsp;Other Information</b><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">
22</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">
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="2" 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="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James Martell</font></p>
</td>
<td width="121.333303" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="2" 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="2" 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="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<!--<a name="BM_1_"></a>--><font size="3">/s/ James E. McCollam</font></p>
</td>
<td width="121.333303" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="299.999925" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="286.666595" colspan="2" 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="2" 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="2" 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">
23</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 align="center">
CERTIFICATION OF CHIEF EXECUTIVE OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES MARTELL, certify that:<p>
(1)&nbsp;&nbsp;I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS
SPORTS, INC., a Delaware corporation (the "registrant");<p>
(2)&nbsp;&nbsp;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)&nbsp;&nbsp;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)&nbsp;&nbsp;The  registrant&#8217;s  other  certifying  officers  and I are
responsible  for establishing and maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Designed such
disclosure controls and procedures to ensure that material information relating
to the registrant, including its consolidated     subsidiaries, is made known to
us by others within those entities, particularly during the period in which this
quarterly report is being   prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Evaluated the
effectiveness of the registrant&#8217;s disclosure controls and  procedures  as
of a date  within 90 days prior to the  filing  date of this  quarterly report
(the "Evaluation Date"); and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Presented  in  this
quarterly  report  our  conclusions   about  the effectiveness  of the
disclosure  controls  and  procedures  based  on our evaluation as of the
Evaluation Date;<p>
(5)&nbsp;&nbsp;The registrant&#8217;s  other certifying  officers and I have
disclosed,  based on our most recent evaluation, to the registrant&#8217;s
auditors and the audit committee of the  registrant&#8217;s  board of directors
(or persons  performing  the equivalent functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;all  significant  deficiencies  in
the design or  operation of internal      controls which could adversely affect
the  registrant&#8217;s  ability to record,      process,  summarize and report
financial data and have  identified for the      registrant&#8217;s auditors any
material weaknesses in internal controls; and<p align="center">
24</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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp; any fraud,  whether or
not material,  that involves management or other  employees  who  have  a
significant  role  in  the  registrant&#8217;s  internal  controls; and<p>
(6)&nbsp;&nbsp;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:&nbsp;&nbsp;December 14, 2004</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ JAMES MARTELL</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
JAMES MARTELL</p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
25</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 align="center">
CERTIFICATION OF CHIEF FINANCIAL OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES E. MCCOLLAM, certify that:<p>
(1)&nbsp;&nbsp;I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS
SPORTS, INC., a Delaware corporation (the "registrant");<p>
(2)&nbsp;&nbsp;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)&nbsp;&nbsp;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)&nbsp;&nbsp;The  registrant&#8217;s  other  certifying  officers  and I are
responsible  for establishing and maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Designed  such
disclosure  controls and procedures to ensure  that material information
relating to the registrant, including its consolidated     subsidiaries,  is
made  known  to  us by  others  within  those  entities, particularly  during
the period in which  this  quarterly  report is being     prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Evaluated the
effectiveness of the registrant&#8217;s disclosure controls and     procedures
as of a date  within 90 days prior to the  filing  date of this     quarterly
report (the "Evaluation Date"); and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Presented  in  this
quarterly   report  our  conclusions   about  the effectiveness  of the
disclosure  controls  and  procedures  based  on our evaluation as of the
Evaluation Date;<p>
(5)&nbsp;&nbsp;The registrant&#8217;s  other certifying  officers and I have
disclosed,  based on our most recent evaluation, to the registrant&#8217;s
auditors and the audit committee of the  registrant&#8217;s  board of directors
(or persons  performing  the equivalent functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;all  significant
deficiencies  in the design or  operation of internal     controls which could
adversely affect the  registrant&#8217;s  ability to record,     process,
summarize and report  financial data and have  identified for the
registrant&#8217;s auditors any material weaknesses in internal controls;
and<p align="center">
26</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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;any fraud,  whether or
not material,  that involves management or other  employees  who  have  a
significant  role  in  the  registrant&#8217;s  internal     controls; and<p>
(6)&nbsp;&nbsp;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:&nbsp;&nbsp;December 14, 2004</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ JAMES E. McCOLLAM</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p>
JAMES E. McCOLLAM</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
27</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 align="center">
<b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT
</b><br><b>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>
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and <p>
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly
presents, in all material respects, the financial condition and results of
operation of the Company. </p>
<div style="position:relative; left: 0"><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="83.999979" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="274.666598" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James M. Martell</font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="274.666598" colspan="1" rowspan="1" >
<p>
James M. Martell, Chief Executive Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><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="83.999979" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="274.666598" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James E. McCollam&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="274.666598" colspan="1" rowspan="1" >
<p>
James E. McCollam, Chief Financial Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
<p align="center">
28</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>

</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
