-----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,
 F0omd2WyB5PHcjYl5G/fd7qt3FdQ5mdTp+OLhgHQsz6bede7BlB4MSB2wm5XsOUs
 p2Qyk2Gk8LWEB6t7Iuu9sA==

<SEC-DOCUMENT>0001297077-05-000040.txt : 20050317
<SEC-HEADER>0001297077-05-000040.hdr.sgml : 20050317
<ACCEPTANCE-DATETIME>20050317172914
ACCESSION NUMBER:		0001297077-05-000040
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050131
FILED AS OF DATE:		20050317
DATE AS OF CHANGE:		20050317

FILER:

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

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		05689856

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

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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>cs10q-01312005.htm
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center">
<b>SECURITIES</b> <b>AND</b> <b>EXCHANGE</b>
<b>COMMISSION</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center">
<b>Washington</b>, <b>D.C.</b>  <b>20549</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center">
<b>FORM 10-QSB</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
<p>
Mark One</p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
[X]</p align="center">
</td>
<td width="697.333159" colspan="1" rowspan="1" >
&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
<p align="center">
<u>For the quarterly period ended                January 31,
2005</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
<p align="center">
OR</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
[&nbsp;&nbsp;&nbsp;]</p align="center">
</td>
<td width="697.333159" colspan="1" rowspan="1" >
&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
<p align="center">
For the transition period from&nbsp;&nbsp;&nbsp;_________
to&nbsp;&nbsp;&nbsp;________</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="2" rowspan="1" >
&nbsp;Commission file number        0-17263	</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
<u>CHAMPIONS SPORTS, INC.</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
(Exact name of registrant as specified in its charter)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
<p align="center">
<u>Delaware</u></p align="center">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="349.333246" colspan="1" rowspan="1" >
<p align="center">
<u>52-1401755</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
<p align="center">
(State or other jurisdiction of</p align="center">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="349.333246" colspan="1" rowspan="1" >
<p align="center">
(I.R.S. Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
<p align="center">
organization)</p align="center">
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="349.333246" colspan="1" rowspan="1" >
<p align="center">
Identification No.)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
<u>2420 Wilson Blvd., Suite 214, Arlington VA 22201</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
(Address of principal executive offices)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
(Zip code)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
<u>(703) 526-0400</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
(Registrant&#8217;s telephone number, including area code)</p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" 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.  </p>
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p align="center">
Yes&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;No&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March 17, 2005 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 align="center">
<b>CHAMPIONS SPORTS, Inc.</b><br><b>FORM 10-QSB</b><p align="center">
<u>INDEX</u></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="47.999988" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<u>Page</u></p>
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="479.999880" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Part I.&nbsp;&nbsp;Financial Information</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Item 1.&nbsp;&nbsp;&nbsp;Financial Statements</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
Consolidated Balance Sheets as of January 31, 2005 (unaudited)</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;and April 30, 2004</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Consolidated Statements of Operations:</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;Three months and nine months ended January 31, 2005, </p>
</td>
<td width="83.999979" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;and  January 31, 2004, (unaudited)</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Consolidated Statements of Cash Flows:</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;Nine months ended January 31, 2005, and</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;January 31, 2004 (unaudited)</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
5</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Notes to Consolidated Financial Statements</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
6 - 17</p>
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" >
<p>
&nbsp;&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Item 2.&nbsp;&nbsp;&nbsp;Management&#8217;s Discussions and Analysis of
Financial Condition</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
Results of Operations</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
18</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Controls and Procedures </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" >
<p>
23</p>
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="479.999880" colspan="3" rowspan="1" >
<p>
Part II.&nbsp;&nbsp;&nbsp;&nbsp;Other Information and Signatures</p>
</td>
<td width="83.999979" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
24 </p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
Item 6.&nbsp;&nbsp;&nbsp;Exhibits and Reports on Form 8-K</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
24</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="455.999886" colspan="2" rowspan="1" >
<p>
Signatures</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
25</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="479.999880" colspan="3" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" >
<p>
26</p>
</td>
</tr>
<tr valign="top">
<td width="479.999880" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
28</p>
</td>
</tr>
<tr valign="top">
<td width="479.999880" colspan="3" rowspan="1" >
<p>
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="2" rowspan="1" >
<p>
29</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>
&nbsp;	<p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="587.999853" colspan="3" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="3" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="3" rowspan="1" >
<p align="center">
<b>JANUARY 31, 2005 (UNAUDITED)</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="3" rowspan="1" >
<p align="center">
<b>ASSETS</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>January 31,</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>April 30,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>2005</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>(UNAUDITED)</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="center">
<b>(AUDITIED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>CURRENT ASSETS</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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Cash and cash equivalents</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">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,608&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">
120,116&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Accounts receivable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
524&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
22,713&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Inventories</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
26,849&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
30,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Prepaid expenses</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">7,351&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" 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="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>Total current assets</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,332&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
179,928&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Property and equipment, net</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;164,624&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
200,939&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Deposits</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">11,052&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">11,052&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>TOTAL ASSETS</b></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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263,008&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">391,919&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="3" rowspan="1" >
<p>
<b>LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>CURRENT LIABILITIES</b></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Accounts payable </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;$	</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,216&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">
92,758&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Dividend payable on preferred stock</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
350,460&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
350,460&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Other accrued expenses</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
260,444&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
146,116&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Deferred lease commission</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="119.999970" colspan="2" rowspan="1" >
<p align="right">
2,836&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Deferred revenue</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">35,000&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>Total current liabilities</b></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">714,120&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">592,170&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>COMMITMENTS AND CONTINGENCIES</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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>STOCKHOLDERS&#8217; (DEFICIT)</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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Preferred stock, $10 par value; 56,075 shares authorized;</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,450 shares issued and
outstanding</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;324,500&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
324,500&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Common stock, $.001 par value; 50,000,000 shares authorized </p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,824,658 and 8,824,658 shares issued
and outstanding</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,825&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
8,825&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Additional paid-in capital</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,922,349&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
5,850,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Subscription receivable</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(80,000)</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
Accumulated deficit</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;(6,634,786)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">(6,383,925)</font></p>
</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>Total stockholders&#8217; (deficit)</b></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;(451,112)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">(200,251)</font></p>
</td>
</tr>
<tr valign="top">
<td width="467.999883" 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="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217; (DEFICIT)</b></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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263,008&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</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">391,919&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="791.999802" colspan="12" rowspan="1" >
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="791.999802" colspan="12" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="791.999802" colspan="12" rowspan="1" >
<p align="center">
<b>FOR THE NINE AND THREE MONHTS ENDED JANUARY 31, 2005 AND 2004
(UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="574.666523" colspan="6" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="5" rowspan="1" >
<p align="center">
<b>NINE MONTHS ENDED</b></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="5" rowspan="1" >
<p align="center">
<b>THREE MONTHS ENDED</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="5" rowspan="1" >
<p align="center">
<b>JANUARY 31,</b></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="5" rowspan="1" >
<p align="center">
<b>JANUARY 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="center">
<b><u>2005</u></b></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="center">
<b><u>2004</u></b></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="center">
<b><u>2005</u></b></p align="center">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="center">
<b><u>2004</u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b> </b></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>OPERATING REVENUE</b></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
1,265,368&nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
1,442,782&nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
413,658&nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
456,445&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise, memorabilia, and
consulting fees</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
11,335 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
17,512 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
1,951 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
4,594 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">6,090&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">5,857&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,952&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,037&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>Total operating revenue</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,282,793&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,466,151&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">417,561&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">462,076&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>COSTS AND OPERATING EXPENSES </b></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of food and beverage</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
405,507 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
423,066 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
128,876 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
148,113 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of merchandise and
memorabilia</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
2,973 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
16,167 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
1,511 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
3,753 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant payroll and related
costs</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
451,382 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
486,985 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
145,041 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
154,008 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant occupancy costs</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
187,005 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
184,767 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
62,149 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
55,245 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other restaurant costs</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
252,327 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
280,755 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
83,123 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
96,178 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
198,145 &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
221,328 &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
62,466 &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
46,667 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">36,315&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">36,314&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">12,106&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">12,105&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>Total costs and operating expenses</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,533,654&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">1,649,382&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">495,272&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">516,069&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>NET (LOSS) BEFORE PROVISION FOR INCOME TAXES</b></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
(250,861)</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
(183,231)</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(77,711)</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
(53,993)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
Provision for income taxes</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
- - &nbsp;</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
- -   &nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
- -   &nbsp;</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
- -   </p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>NET LOSS</b></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
(250,861)</p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
<p align="right">
(183,231)</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(77,711)</p align="right">
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
<p align="right">
(53,993)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
Preferred stock dividends</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(21,580)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>(LOSS) APPLICABLE TO COMMON STOCKHOLDERS</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (250,861)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (204,811)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(77,711)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (53,993)</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>BASIC (LOSS) PER COMMON SHARE</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.02)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.02)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00)</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" 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="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
<p>
<b>WEIGHTED AVERAGE SHARES OUTSTANDING </b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">12,071,035&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,690,375&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">8,729,750&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="369.333241" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="695.999826" colspan="6" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS CASH FLOWS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="695.999826" colspan="6" rowspan="1" >
<p align="center">
<b>FOR THE NINE MONTHS ENDED JANUARY 31, 2005 AND 2004
(UNAUDITED)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="center">
<b>(Restated)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="center">
<b>2005</b></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>CASH FLOW FROM OPERATING ACTIVITIES</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (250,861)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (183,231)</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>   Adjustments to reconcile net loss to net cash </b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(used in) operating
activities:</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
36,315 </p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
36,314 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>  Changes in assets and liabilities</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
22,189 </p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
- - </p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
3,500 </p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
(7,451)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
(601)</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
(1,388)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
(24,542)</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
(3,824)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
114,328 </p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
56,110 </p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
35,000 </p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
- - </p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease concessions</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,836)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (3,997)</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">183,353</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">75,764</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating
activities</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (67,508)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (107,467)</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>CASH FLOWS FROM INVESTING ACTIVITIES</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and
equipment</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-   </font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" 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="491.999877" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) investing
activities</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-   </font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" 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="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>NET (DECREASE) IN CASH AND CASH EQUIVALENTS</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
(67,508)</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
(110,398)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>CASH AND CASH EQUIVALENTS -</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>    BEGINNING OF PERIOD</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">120,116</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">195,101</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
<p align="right">
&nbsp;</p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">52,608</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">84,703</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for:</p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-   </font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<b>SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION:</b></p>
</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
Exercise of common stock option by officer</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">80,000</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>JANUARY 31, 2005 AND 2004</b></p>
&nbsp;	<p>
<b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS OF
PRESENTATION</u></b></p>
<p style="margin-left:80">Champions Sports, Inc., (the &#8220;Company&#8221;) a
Delaware corporation, promoted a sports theme restaurant bar concept through
Company owned and licensed operations. The Company sold the rights to the
Champions brand to Marriott International, Inc. (Marriott) and became a licensee
of Champions Sports Bar Restaurants. Substantially all memorabilia sales are to
Marriott. At January 31, 2005 and 2004, 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 nine months ended January 31,
2005 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 restated its April 30, 2004 audited
consolidated balance sheet and unaudited condensed consolidated statements of
operations for the nine and three months ended January 31, 2004 and condensed
consolidated statement of cash flows for the nine months ended January 31, 2004
to account for the accrual of management salaries in accordance with an
employment agreement with an officer of the Company. The Company recognized an
additional $107,547 in its consolidated balance sheet as other accrued expenses,
and an additional $67,217 in general and administrative expenses in the nine
months ended January 31, 2004 and $17,884 for the three months ended January 31,
2004.</p><p>
<p>
<b>NOTE 2-</b>  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b><p>
&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
intercompany transactions have been eliminated in consolidation.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS</b> <b>SPORTS, INC</b>. <b>AND SUBSIDIARIES</b><br><b>NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31,
2005 AND 2004</b><p>
<b>NOTE 2-</b>  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Property and
Equipment</u></b></p>
<p style="margin-left:80">Property and equipment are stated at cost.
Depreciation and amortization is computed from the date property is placed in
service using the straight-line method over estimated useful lives as
follows:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">Life</font></p>
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Furniture and equipment</p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
5-15 years</p align="center">
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Leasehold improvements</p>
</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
Remaining term of the lease</p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Depreciation and amortization expense was $36,315 and
$36,314 for the nine months ended January 31, 2005 and 2004, respectively.
</p><p>
<p>
&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 January 31, 2005 were as
follows:<br><br><br><br></p><div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Restaurant food and beverage</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,719 	</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Promotional merchandise for sale to</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restaurant customers</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,130 </font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">26,849 </font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net (Loss) Per Share</u></b></p>
<p style="margin-left:80">Historical net (loss) per common share is computed
using the weighted average number of common shares outstanding.  Diluted
earnings per share (EPS) includes additional dilution from common stock
equivalents, such as stock issuable pursuant to the exercise of stock options
and warrants.  Common stock equivalents were not included in the computation of
diluted earnings per share when the Company reported a loss because to do so
would be antidilutive for periods presented.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (Loss) Per Share
(Continued)</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: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>January 31,</b></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>January 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>2005</b></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<b>2004</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(129,871)</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(137,594)</font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Outstanding (Basic)</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,071,035&nbsp;</p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,690,375&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" >
<p>
Weighted-average common stock</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Equivalents</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000,000 &nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
Outstanding (Diluted)</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,071,035&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,690,375&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Options and warrants outstanding to purchase stock
were included in the chart above, however, not included in the computation of
diluted EPS for January 31, 2005 and 2004 because inclusion would have been
antidilutive.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash and Cash
Equivalents</u></b></p>
<p style="margin-left:80">For purposes of the condensed consolidated statements
of cash flows, the Company considers all highly liquid debt instruments
purchased with a maturity of three months or less, unless restricted as to use,
to be cash equivalents. At various times throughout the periods the Company had
amounts on deposit at financial institutions in excess of federally insured
limits.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts Receivable</u></b></p>
<p style="margin-left:80">Management believes that all accounts receivable as of
January 31, 2005 are fully collectible.  Therefore, no allowance for doubtful
accounts is recorded.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income Taxes</u></b></p>
<p style="margin-left:80">The Company has adopted the provisions of Statement of
Financial Accounting Standards No. 109 (the Statement), Accounting for Income
Taxes.  The Statement requires an asset and liability approach for financial
accounting and reporting for income taxes, and the recognition of deferred tax
assets and liabilities for the temporary differences between the financial
reporting bases and tax bases of the Company&#8217;s assets and liabilities at
enacted tax rates expected to be in effect when such amounts are realized or
settled.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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;<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">
<div align="center" color="#000080" style="position:relative; left: -5"><b>9</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</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;<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 align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent Accounting
Pronouncements</u></b></p>
<p style="margin-left:80">On October 3, 2001, the FASB issued Statement of
Financial Accounting Standards No. 144, &#8220;Accounting for the Impairment or
Disposal of Long-Lived Assets&#8221;  (&#8220;SFAS 144&#8221;), that is
applicable to financial statements issued for fiscal years beginning after
December 15, 2001.  The FASB&#8217;s new rules on asset impairment supersede
SFAS 121, &#8220;Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of,&#8221; and portions of Accounting
Principles Board Opinion 30, &#8220;Reporting the Results of Operations.&#8221;
This Standard provides a single accounting model for long-lived assets to be
disposed of and significantly changes the criteria that would have to be met to
classify an asset as held-for-sale. Classification as held-for-sale is an
important distinction since such assets are not depreciated and are stated at
the lower of fair value and carrying amount.  This Standard also requires
expected future operating losses from discontinued operations to be displayed in
the period (s) in which the losses are incurred, rather than as of the
measurement date as presently required. The adoption of SFAS No. 144 did not
have a significant impact on the Company&#8217;s results of operations or
financial position.</p><p>
</p>
<p style="margin-left:80">In April 2002, the FASB issued SFAS No. 145,
Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No.
13, and Technical Corrections.  This statement rescinds SFAS No. 4, Reporting
Gains and Losses from Extinguishment of Debt, and an amendment of that
statement, SFAS No. 44, Accounting for Intangible Assets of Motor Carriers, and
SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements.
This statement amends SFAS No. 13, Accounting for Leases, to eliminate
inconsistencies between the required accounting for sales-leaseback transactions
and the required accounting for certain lease modifications that have economic
effects that are similar to sales-leaseback transactions. </p><p>
</p>
<p style="margin-left:80">Also, this statement amends other existing
authoritative pronouncements to make various technical corrections, clarify
meanings, or describe their applicability under changed conditions.  Provisions
of SFAS No. 145 related to the rescissions of SFAS No. 4 were effective for the
Company on November 1, 2002 and provisions affecting SFAS No. 13 were effective
for transactions occurring after May 15, 2002.  The adoption of SFAS No. 145 did
not have a significant impact on the Company&#8217;s results of operations or
financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>11</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent Accounting
Pronouncements</u> (Continued)</b></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>
<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">Statement should be applied prospectively.  The
adoption of this statement did not have a significant impact on the
Company&#8217;s results of operations or financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>12</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent Accounting
Pronouncements</u> (Continued)</b></p>
<p style="margin-left:80">In May 2003, the FASB issued SFAS Statement No. 150,
"Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity". This Statement establishes standards for how an issuer
classifies and measures certain financial instruments with characteristics of
both liabilities and equity.  It requires that an issuer classify a financial
instrument that is within its scope as a liability (or an asset in some
circumstances).  This statement is effective for financial instruments entered
into or modified after May 31, 2003, and otherwise is effective at the beginning
of the first interim period beginning after June 15, 2003, except for
mandatorily redeemable financial instruments of nonpublic entities, if
applicable.  It is to be implemented by reporting the cumulative effect of a
change in an accounting principle for financial instruments created before the
issuance date of the Statement and still existing at the beginning of the
interim period of adoption.  The adoption of this statement did not have a
significant impact on the Company&#8217;s results of operations or financial
position.</p><p>
</p>
<p style="margin-left:80">In November 2002, the FASB issued Interpretation No.
45 ("FIN 45"), Guarantor&#8217;s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others.  FIN 45
requires a company, at the time it issues a guarantee, to recognize an initial
liability for the fair value of obligations assumed under the guarantees and
elaborates on existing disclosure requirements related to guarantees and
warranties.  The recognition requirements are effective for guarantees issued or
modified after December 31, 2002 for initial recognition and initial measurement
provisions.  The adoption of FIN 45 did not have a significant impact on the
Company&#8217;s results of operations or financial position.</p><p>
</p>
<p style="margin-left:80">In January 2003, the FASB issued FASB Interpretation
No. 46 ("FIN 46"), Consolidation of Variable Interest Entities, an
Interpretation of ARB No. 51.  FIN 46 requires certain variable interest
entities to be consolidated by the primary beneficiary of the entity if the
equity investors in the entity do not have the characteristics of a controlling
financial interest or do not have sufficient equity at risk for the entity to
finance its activities without additional subordinated financial support from
other parties.  FIN 46 is effective for all new variable interest entities
created or acquired after January 31, 2003.  For variable interest entities
created or acquired prior to February 1, 2003, the provisions of FIN 46 must be
applied for the first interim or annual period beginning after June 15, 2003.
The adoption of FIN 46 did not have a significant impact on the Company&#8217;
results of operations or financial position.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>13</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Reclassifications</u></b></p>
<p style="margin-left:80">Certain amounts for the nine months ended January 31,
2004 have reclassified to conform to the presentation of the January 31, 2005
amounts.  The reclassifications have no effect on net loss for the nine months
ended January 31, 2004. </p><p>
<p>
<b>NOTE 3-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>RELATED PARTY PAYABLE</u></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>
<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;Operating
leases&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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 of for increases in the Consumer
Price Index, and requires additional rentals based on a percentage of restaurant
sales over a defined amount. The lease grants the Company certain concessions,
which are amortized to lease expense over the term of the lease.</p><p>
</p>
<p style="margin-left:80">Rental expense charged to expense during the nine
months ended January 31, 2005 and 2004 was $151,649 and $180,659, respectively.
Future minimum payments under the noncancellable restaurant lease as of January
31, 2005 are as follows:</p><p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="106.666640" colspan="1" rowspan="1" >
<p align="center">
2005</p align="center">
</td>
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="3"> $      59,545 </font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CAPITAL LEASE OBLIGATION</u></b></p>
<p style="margin-left:80">The Company leased equipment under a capital lease.
The equipment cost of $32,286 was amortized over its useful life and such
amortization was included in the depreciation and amortization expense for 2003.
During 2003, the lease expired and the Company purchased the
equipment.<br><br><br><br><br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>14</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"></p><p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>MARRIOTT LICENSE</u></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. Marriott terminated the exclusive
consulting services and sports memorabilia supply agreement dated November 7,
1997 in February 2005.</p><p>
</p>
<p style="margin-left:80">In November 2004, the Company received a down payment
of $35,000 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 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217; DEFICIT</u>
</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common Stock</u> </b></p>
<p style="margin-left:80">The Company has 50,000,000 shares authorized and
16,824,658 shares issued and outstanding at January 31, 2005.</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">In accordance with Emerging Issues Task Force (EITF)
95-16, &#8220;Accounting for Stock Compensation Arrangements with Employer Loan
Features under APB Opinion No. 25,&#8221; this option was exercised with a note
receivable from the officer. The note is secured along with any related interest
by the stock, and the note is prepayable and due on demand. It does not
constitute a new grant of an option under EITF 95-16, because the option
agreement did not contain a clause that permitted the officer to exercise the
option with a nonrecourse note, and the exercise with a note does not extend the
original option period. Despite the Company&#8217;s lease expiring in June 2005,
the Company believes that the receivable is fully collectible, due to the
officer&#8217;s pursuit of a business combination.</p><p>
</p>
<p style="margin-left:80">There were no other issuances of common stock during
the nine months ended January 31, 2005 and 2004, respectively.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred Stock </u></b></p>
<p style="margin-left:80">The Company has 56,075 shares of preferred stock
authorized and 32,450 shares issued and outstanding at January 31, 2005. </p><p>
</p>
<p style="margin-left:80">Effective November 2003, pursuant to a board
resolution, the Company cancelled its payment and/or accruing of preferred stock
dividends. The Company&#8217;s Board of Director&#8217;s decided to only
pay/accrue the preferred stock dividend upon a successful merger or business
combination. The Series A preferred stock would be equal to 12 percent per
annum, and the dividends are to be accrued on the Company&#8217;s book if not
paid. The dividend may be paid in cash or common stock of the Company at the
Company&#8217;s discretion. The number of shares comprising the dividend paid in
common stock shall be determined by dividing $1.20 by the closing bid price for
the common stock on the payment date. The Series A preferred stock is preferred
in liquidation or dissolution up to the amount of their par value ($10 per
share). The Series A preferred stock in 2004 converted into 15 shares of the
Company&#8217;s common stock. There were no conversions in
2003.<br><br><br><br><br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"><br></p><p align="center">
<b>CHAMPION SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217; DEFICIT</u>
(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred Stock
</u>(Continued)</b></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 January 31, 2005 and 2004, the deferral
was $0 and $15,938, respectively. Accrued preferred stock dividends at January
31, 2005 and 2004 aggregated $350,460 ($10.83 per preferred share). The
remaining accrued dividends are anticipated to be paid in cash or common stock
upon a successful merger or other business combination.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common Stock Options</u></b></p>
<p style="margin-left:80">The Company in 1993 adopted a stock option plan, which
expired on August 2, 2002.  No options were exercised under the plan.  All
options granted by the Company were granted pursuant to board resolutions and
not under the stock option plan. </p><p>
<p>
<b>NOTE 8-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING CONCERN</u></b></p>
<p style="margin-left:80">As shown in the accompanying condensed consolidated
financial statements, the Company has sustained net operating losses for the
nine months ended January 31, 2005 and 2004, and has sustained large accumulated
deficits. In addition, the Company is in search of acquiring a business, or
finding a suitable merger candidate. </p><p>
</p>
<p style="margin-left:80">Management has restructured the Company and is
continuing to search for a more profitable company to acquire. </p><p>
</p>
<p style="margin-left:80">The Company&#8217;s future success is dependent upon
its ability to achieve profitable operations and generate cash from operating
activities, and upon additional financing. There is no guarantee that the
Company will be able to raise enough capital or generate revenues to sustain its
operations.</p><p>
</p>
<p style="margin-left:80">The condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.</p><p>
<p>
<b>NOTE 9-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:80">Deferred income taxes will be determined using the
liability method for the temporary differences between the financial reporting
basis and income tax basis of the Company&#8217;s assets and liabilities.
Deferred income taxes will be measured based on the tax rates expected to be in
effect when the temporary differences are included in the Company&#8217;s
consolidated tax return.  Deferred tax assets and liabilities are recognized
based on anticipated future tax consequences attributable to differences between
financial statement carrying amounts of assets and liabilities and their
respective tax bases.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>16</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPION SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2005 AND
2004</b><p>
<b>NOTE 9-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME TAXES</u>
(CONTINUED)</b></p>
<p style="margin-left:80">At January 31, 2005, 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="230.666609" colspan="1" rowspan="1" >
<p>
Net operating loss carryforwards  </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
1,396,000&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="254.666603" colspan="2" rowspan="1" >
<p>
Less:  valuation allowance</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (1,396,000)</font></p>
</td>
</tr>
<tr valign="top">
<td width="230.666609" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">At January 31, 2005, the Company had federal net
operating loss carryforwards in the approximate amounts of $4,105,000 available
to offset future taxable income.  The Company established valuation allowances
equal to the full amount of the deferred tax assets due to the uncertainty of
the utilization of the operating losses in future periods.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>17</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
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&#8217;s actual results could differ materially from
those anticipated in the forward-looking statements as a result of unforeseen
external factors.  These factors may include, but are not limited to, changes in
general economic conditions, the ongoing threat of terrorism, customer
acceptance of products offered and other general competitive factors, and the
ability to have access to financing sources on reasonable terms.  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect management&#8217;s analysis, judgment, belief or expectation only as of
the date hereof.<p>
&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;<br><b>Item
2.&nbsp;&nbsp;&nbsp;Managements Discussion and Analysis of Financial Condition
and Results of Operations</b><p>
THERE IS SUBSTANTIAL DOUBT ABOUT THE COMPANY&#8217;S ABILITY TO CONTINUE AS A
GOING CONCERN DUE TO RECURRING LOSSES AND WORKING CAPITAL SHORTAGES, WHICH MEANS
THAT THE COMPANY MAY NOT BE ABLE TO CONTINUE OPERATIONS UNLESS IT OBTAINS
ADDITIONAL FUNDING.  THE COMPANY IS ACTIVELY   PURSUING MERGER OR ACQUISITION
CANDIDATES AND OTHER FINANCING POSSIBILITIES TO MEET ITS LIQUIDITY NEEDS.  THERE
IS NO ASSURANCE THAT THE COMPANY WILL BE ABLE TO <b>STRUCTURE</b> A MERGER OR
ACQUISITION, OR RAISE ADDITIONAL FINANCING TO CONTINUE OPERATIONS ON TERMS
SATISFACTORY TO THE COMPANY<p>
Certain amounts for the nine months ended January 31, 2004 have been
reclassified to conform to the presentation of the January 31, 2005 amounts.
The reclassifications have no effect on net loss for the nine months ended
January 31, 2004.<p>
<u>Results of Operation</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine month period ended
January 31, 2005, the Company&#8217;s net loss applicable to common shareholders
was $250,861 or ($0.02) per common share as compared to a net loss of  $204,811
or ($0.02) per common share for the nine month period ended January 31, 2004.
For the nine months ended January 31, 2005 and January 31, 2004, the net loss
was from the Company&#8217;s ongoing operations. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s assets decreased
to $263,008 at January 31, 2005 from $391,919 at April 30, 2004.  For the three
months ended January 31, 2005 the Company&#8217;s net loss from its ongoing
operations was $77,711 compared to a net operating loss of $53,993 during the
three months ended January 31, 2004.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>18</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<u>Revenues</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s total revenues
decreased 12.5% to $1,282,793 for the nine months ended January 31, 2005 versus
$1,466,151 for the nine-month period ended January 31, 2004. By component, food
and beverage sales decreased 12.3% from the previous year for the nine months
and 9.4% for the three months period from the previous year. The decrease in
food and beverage sales is attributed to a decrease in conventions and tourism
in the San Antonio area. Merchandise and memorabilia sales for the nine months
ended January 31, 2005 decreased to $11,335 compared to $17,512. The Company did
not provide any memorabilia and consulting services to Marriott International
during the nine month period ended January 31, 2005 and 2004, and the Company
owned restaurant in San Antonio ceased selling tobacco products to comply with a
new enacted city ordinance. For the three months ended January 31, 2005 and
2004, merchandise and memorabilia sales were less than 1% of the Company&#8217;s
total revenues.  For the nine months ended January 31, 2005 and 2004, other
income was less than 1% of the Company&#8217;s total revenues.  <p>
<u>Expenses</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of food and beverage increased to
32.0% of related sales compared for the nine months ended January 31, 2005
compared to 29.3% related sales for the comparable period.  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 and
2005, in order to remain competitive, they were not sufficient to absorb all of
the wholesale price increases. Cost of merchandise and memorabilia sales for the
nine months ended January 31, 2005  was $2,973 compared to $16,167 in the
preceding year. Restaurant payroll and related costs  were 35.7% of related food
and beverage sales contrasted to 33.8% for the nine months ended January 31,
2004. The higher percentage to related sales is attributed to the decrease in
food and beverage sales, as the dollar amount decreased from the comparable
period was approximately $35,000.  Restaurant occupancy costs were $187,005 for
the nine months and $62,149 for the three months ended January 31, 2005 compared
to $184,767 for the nine months and $55,245 for the three month comparable
period in 2004. The increase in occupancy costs it attributed to an increase in
real estate taxes and common area charges passed on by the landlord. Other
restaurant costs were 19.9% of food and beverage sales for the nine months and
20.1% of food and beverage sales for the three months ended January 31, 2005
compared to 19.5 of food and beverage sales for the comparable nine month and
21.1% for the three months in 2003. General and administrative expense was
$198,145 for the nine months ended January 31, 2005 compared to $221,328 for the
nine months ended January 31, 2004, as restated. The Company has restated its
April 30, 2004 audited consolidated balance sheet and unaudited condensed
consolidated statements of operations for the nine and three months ended
January 31, 2004 and condensed consolidated statement of cash flows for the nine
months ended January 31, 2004 to account for the accrual of management salaries
in accordance with an employment agreement with an officer of the Company. The
Company recognized an additional $107,547 in its consolidated balance sheet as
other accrued expenses, and an additional $67,217 in general and administrative
expenses in the nine months ended January 31, 2004 and $17,884 for the three
months ended January 31, 2004.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>19</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
Depreciation and amortization expense accounted for approximately 2.5 % of the
Company&#8217;s total revenues during the nine months ended January 31, 2005 and
2004 and during the three months ended January 31, 2005 and 2004.<p>
<u>Liquidity and Capital Resources</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s cash position on
January 31, 2005 decreased by $67,508 to $52,608 from $120,116 on April 30,
2004, as a result of its ongoing losses. For the nine months ended January 31,
2005, the Company&#8217;s ongoing operations used cash totaling $67,508.  For
the comparable period ending January 31, 2004, the Company&#8217;s ongoing
operations used cash of $110,398. For the nine months ended January 31, 2004,
the Company purchased equipment for its San Antonio location for $2,931.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2004, an officer of the
Company exercised an option to acquire 8,000,000 restricted common shares at
$0.01 per share by issuing to the Company a  note in the amount of $80,000. The
note is secured along with any related interest by the stock issued, and the
note is prepayable and due on or before October 2006.<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company met its cash needs during
the nine months ended January 31, 2005 and 2004 from its cash reserves and from
cash flow from its San Antonio, Texas operation.<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 with out
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 on terms satisfactory to the Company
to improve its liquidity.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s working capital
was a negative $626,788 on January 31, 2005 and negative $412,242 on April 30,
2004. The Company&#8217;s working capital when compared to other publicly traded
companies in the restaurant industry is unfavorable.  This is primarily
attributed to accrued dividends on the preferred shares and to the fact that
other companies in the industry have multiple locations with a broader sales
base and generate greater cash flows to offset corporate overhead expense. In
the Company&#8217;s current situation, the one operating unit has generated cash
to cover its operating expense, but has not produced sufficient cash to offset
the corporate overhead costs</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>20</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder&#8217;s equity was a
negative $451,112 as of January 31, 2005 compared to a negative $200,251 as of
April 30, 2004. The decrease in stockholder&#8217;s equity is due to the loss
for the nine months ended January 31, 2005.<p>
<b>Other</b><p>
The Company&#8217;s independent auditor, for the year ending April 30, 2004, has
expressed substantial doubt the Company can continue as a going concern. <u>The
Company is still facing grave liquidity and cash problems as of January 31, 2005
and through the date of the filing of this 10-QSB </u>The Company has reduced
its general and administrative expense to conserve 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 on terms satisfactory to the Company or to
improve its liquidity. If the situation does not improve, the Company might be
forced to discontinue its operations. The Company&#8217;s Board of Directors
voted to defer the annual meeting of shareholders to preserve to Company&#8217;s
cash  position. <p>
The Company was notified in February 2005, that it would no longer be the
exclusive supplier of sports memorabilia and consulting services to Marriott
International, Inc. effective May 28, 2005. The Company may continue to receive
additional consulting work, no longer on an exclusive basis, from Marriott in
the future.<p>
The restaurant lease for the Company&#8217;s CHAMPIONS location in San Antonio
Texas will expire on June 30, 2005 and the Company&#8217;s restaurant operations
will cease at that point. The Company does not have the resources to open and
operate in another location. It is not the intention of the Company to cease
operations if its restaurant in San Antonio stops operating. It is the intention
of the Company to continue operations until such time as Champions finds a
business opportunity and merges with another company. We are continuing to
actively look at various business opportunities in order to continue
operations.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>21</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>SPECIAL</b> <b>NOTE</b> <b>REGARDING</b> <b>FORWARD-LOOKING</b>
<b>STATEMENTS</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" (within the meaning of the Private Securities
Litigation Act of 1995) that inherently involve risk and uncertainties.  The
Company generally uses words such as "believe," "may," "could," "will,"
"intend,"  "expect,"  "anticipate,"  "plan," and similar expressions to identify
forward-looking statements.  One should not place undue reliance on these
forward-looking statements.  The Company&#8217;s actual results could differ
materially from those anticipated in the forward-looking statements for many
unforeseen factors, which may include, but are not limited to, changes in
general economic conditions, the ongoing threat of terrorism, customer
acceptance of products offered, other general competitive factors, ability to
have access to financing sources on reasonable terms and other risks that are
described in this document. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable, they relate only to
events as of the date on which the statements are made, and the Company&#8217;s
future results, levels of activity, performance or achievements may not meet
these expectations.  The Company does not intend to update any of the
forward-looking statements after the date of this document to conform these
statements to actual results or to changes in the Company&#8217;s expectations,
except as required by law.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>22</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>Item</b> <b>4.&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES</b></p>
&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>23</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>Part II</b>.&nbsp;&nbsp;&nbsp;<b>Other Information</b><p>
<b>Item 4</b>.&nbsp;&nbsp;&nbsp;<b>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;&nbsp;Exhibits and Reports on Form 8-K</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 8 K was file on February 8, 2005
regarding the termination by Marriott of the exclusive Consulting Services and
Sports Memorabilia Supply Agreement, dated November 7, 1997, effective May 28,
2005.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>24</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
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
thereunto duly authorized.</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="335.999916" colspan="2" rowspan="1" >
<p>
CHAMPIONS Sports, Inc.</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="335.999916" colspan="2" rowspan="1" >
&nbsp;</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="335.999916" colspan="2" rowspan="1" >
&nbsp;</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="335.999916" colspan="2" rowspan="1" >
&nbsp;</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="143.999964" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3"> /s/ James Martell </font></p>
</td>
<td width="205.333282" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="335.999916" colspan="2" rowspan="1" >
<p>
James Martell</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="335.999916" colspan="2" rowspan="1" >
<p>
Chairman, President and Chief Executive Officer</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James E. McCollam</font></p>
</td>
<td width="205.333282" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="335.999916" colspan="2" 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="335.999916" colspan="2" rowspan="1" >
<p>
Corporate Secretary, Chief Accounting</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="335.999916" colspan="2" rowspan="1" >
<p>
Officer and Controller</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
March 17, 2005</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>25</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
CERTIFICATION OF CHIEF EXECUTIVE OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES MARTELL, certify that:<p>
(1)&nbsp;&nbsp;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&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 align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>26</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
(6)&nbsp;&nbsp;&nbsp;&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>
&nbsp;Date: March 17 2005	<p>
</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:</p align="right">
</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="181.333288" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="335.999916" colspan="2" rowspan="1" >
<p>
JAMES MARTELL</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
</p>
</td>
<td width="335.999916" colspan="2" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>27</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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;&nbsp;&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">
<div align="center" color="#000080" style="position:relative; left: -5"><b>28</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;&nbsp;&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;&nbsp;&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>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="671.999832" colspan="3" rowspan="1" >
<p>
Date:&nbsp;&nbsp;March 17, 2005</p>
</td>
</tr>
<tr valign="top">
<td width="671.999832" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">By: /s/ JAMES E. McCOLLAM</font></p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
JAMES E. McCOLLAM</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
<td width="1.333333" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>29</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  following  certification  will
not be deemed  "filed" for  purposes of Section 18 of the  Securities  Exchange
Act of 1934 or otherwise  subject to the liability of that section,  nor will
the certification be deemed incorporated by reference  into any filing under the
Securities  Act of 1933 or the  Securities Exchange  Act of 1934,  except to the
extent  that the  registrant  specifically incorporates it by
reference.<p align="center">
&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;<br>CERTIFICATION OF CHIEF EXECUTIVE
OFFICER<br>PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, James  Martell,  President  and
Chief  Executive  Officer  of  Champions Sports,  Inc.  (the  "Company"),
certify,   pursuant  to  Section 906  of  the Sarbanes-Oxley Act of 2002, that,
to my knowledge:  <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;The  accompanying
Quarterly  Report on Form 10-QSB of the Company for the fiscal  quarter  ended
January 31, 2005 (the  "Report")  fully  complies  with the requirements of
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;The information
contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.</p>
<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>
March 17, 2005  </p>
</td>
<td width="227.999943" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="227.999943" colspan="1" rowspan="1" >
<p>
James Martell</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="227.999943" colspan="1" rowspan="1" >
<p>
President and Chief Executive Officer</p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A signed original of the above
certification has been provided to Champions Sports. Inc. and will be retained
by Champions Sports, Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.  </p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>30</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  following  certification  will not be deemed  "filed" for  purposes of Section 18 of the  Securities  Exchange Act of 1934 or otherwise  subject to the liability of that section,  nor will the certification be deemed incorporated by reference  into any filing under the  Securities  Act of 1933 or the  Securities Exchange  Act of 1934,  except to the extent  that the  registrant  specifically incorporates it by reference.	<p align="center">
<br>&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;<br>CERTIFICATION OF PRINCIPAL
ACCOUNTING OFFICER<br>PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, James E. McCollam, Treasurer,
Secretary and Principal Accounting Officer of Champions Sorts,  Inc. (the
"Company"),  certify,  pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that, to my knowledge:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;The  accompanying
Quarterly  Report on Form 10-QSB of the Company for the fiscal  quarter ended
January 31, 2005 (the  "Report")  fully complies with the requirements of
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;The information
contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="591.999852" colspan="3" rowspan="1" >
<p>
March 17, 2005</p>
</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
</p>
</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="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
</p>
</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p>
James E. McCollam</p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p>
Treasurer, Secretary and</p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="191.999952" colspan="1" rowspan="1" >
<p>
Principal Accounting Officer</p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A signed original of the above certification has been provided to Champions Sports, Inc. Inc. and will be retained by Champions Sports, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.	<p>
</p>
&nbsp;	<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>31</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>


</body>

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