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<SEC-DOCUMENT>0001297077-06-000021.txt : 20060324
<SEC-HEADER>0001297077-06-000021.hdr.sgml : 20060324
<ACCEPTANCE-DATETIME>20060324172455
ACCESSION NUMBER:		0001297077-06-000021
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060131
FILED AS OF DATE:		20060324
DATE AS OF CHANGE:		20060324

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:		06710173

	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>ew10qsb013106final.htm
<DESCRIPTION>10-Q
<TEXT>
<html>
<head><meta content="text/html; charset=">
<title>NEOREACH, INC</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="center">
<b>SECURITIES AND EXCHANGE COMMISSION</b><p align="center">
<b>Washington, D.C.  20549</b><p align="center">
<b>FORM 10-QSB</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
Mark One</p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
[X]</p>
</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
THE SECURITIES EXCHANGE ACT OF 1934</p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<u>For the quarterly period ended         January  31,
2006</u><p align="center">
OR</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
[&nbsp;&nbsp;&nbsp;]</p>
</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="529.333201" colspan="1" rowspan="1" >
<p>
THE SECURITIES EXCHANGE ACT OF 1934</p>
</td>
</tr>
</table></div>
<p>
<p align="center">
For the transition period
from&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;to&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;<p align="center">
Commission file number    <u>    &nbsp;0-17263</u><p align="center">
<u>CHAMPIONS SPORTS, INC.</u><br>(Exact name of registrant as specified in its
charter)</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
<p align="center">
<u>Delaware</u></p align="center">
</td>
<td width="250.666604" colspan="1" rowspan="1" >
<p align="center">
<u>52-1401755</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
<p align="center">
(State or other jurisdiction of</p align="center">
</td>
<td width="250.666604" colspan="1" rowspan="1" >
<p align="center">
(I.R.S. Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
<p align="center">
organization)</p align="center">
</td>
<td width="250.666604" colspan="1" rowspan="1" >
<p align="center">
Identification No.)</p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<u>2200 Wilson Blvd., Suite 102-316, Arlington VA 22201</u><br>(Address of
principal executive offices)<br>(Zip code)<p align="center">
<u>(703) 526-0400</u><br>(Registrant's telephone number, including area
code)</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="777.333139" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the
Registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes&nbsp;&nbsp;<u>&nbsp;&nbsp;x&nbsp;&nbsp;</u>&nbsp;&nbsp;No&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>
</td>
</tr>
<tr valign="top">
<td width="777.333139" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="777.333139" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March 16, 2006 the Registrant
had a total of 16,824,658 shares of common stock outstanding.</p>
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS SPORTS, Inc.</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="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
<u>Page</u></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
<p>
Part I. </p>
</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Financial Information</p>
</td>
<td width="153.333295" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Item 1.&nbsp;&nbsp;&nbsp;Financial Statements</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Balance Sheet as of</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
January 31, 2006 (Unaudited)</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Statements of Operations</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
For the Nine months and Three months ended </p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
January 31, 2006 and January 31, 2005 (Unaudited)</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Condensed Consolidated Statements of Cash Flow for the</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Nine months ended January 31, 2006 and January 31, 2005</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
5</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
(Unaudited)</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Notes to Condensed Consolidated Financial Statements (Unaudited)</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
6 - 16</p>
</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Item 2.&nbsp;&nbsp;&nbsp;Management's Discussions and Analysis</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
of Financial Condition and Results of</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Operations</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
17 - 22</p>
</td>
</tr>
<tr valign="top">
<td width="587.999853" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Controls and Procedures</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
22</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
<p>
Part II.</p>
</td>
<td width="485.333212" colspan="3" rowspan="1" >
<p>
Other Information and Signatures</p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
23</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Item 6.&nbsp;&nbsp;&nbsp;Exhibits and Reports on Form 8-K</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
23</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
<p>
Signatures</p>
</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
24</p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="3" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  </p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
25</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="3" rowspan="1" >
<p>
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p>
27</p>
</td>
</tr>
<tr valign="top">
<td width="497.333209" colspan="3" rowspan="1" >
<p>
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
</p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" 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 align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="653.333170" colspan="1" rowspan="1" >
<p align="center">
<a name="RANGE_A1_C41"></a><b>CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="653.333170" colspan="1" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="653.333170" colspan="1" rowspan="1" >
<p align="center">
<b>JANUARY 31, 2006 (UNAUDITED)</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>ASSETS</b></p align="center">
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>January 31, 2006</b></p align="center">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
<p align="center">
<b>(Unaudited)</b></p align="center">
</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>CURRENT ASSETS</b></p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cash and cash equivalents</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right">
21,019&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;Inventories</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>Total current assets</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">21,019&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
Property and equipment, net</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
Deposits</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
<b>TOTAL ASSETS</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">21,019&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>LIABILITIES AND STOCKHOLDERS' (DEFICIT)</b></p align="center">
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>CURRENT LIABILITIES</b></p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Accounts payable </p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right">
71,090&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;Dividend payable on preferred stock</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
350,460&nbsp;</p align="right">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">273,263&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
<b>Total current liabilities</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">694,813&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>COMMITMENTS AND CONTINGENCIES</b></p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>STOCKHOLDERS' (DEFICIT)</b></p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Preferred stock, $10 par value; 56,075 shares authorized;</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;32,450 shares issued and outstanding</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
324,500&nbsp;</p align="right">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Common stock, $.001 par value; 50,000,000 shares authorized </p>
</td>
<td width="134.666633" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;16,824,658 shares issued and outstanding</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
16,825&nbsp;</p align="right">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Additional paid-in capital</p>
</td>
<td width="134.666633" colspan="2" rowspan="1" >
<p align="right">
5,922,349&nbsp;</p align="right">
</td>
<td width="113.333305" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;Accumulated deficit</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(6,937,468)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
<b>Total stockholders' (deficit)</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(673,794)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="134.666633" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="403.999899" colspan="1" rowspan="1" >
<p>
<b>TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)</b></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">21,019&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these condensed consolidated
financial statements.</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 align="center">
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="767.999808" colspan="1" rowspan="1" >
<p align="center">
<a name="RANGE_A1_H36"></a><b>CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="767.999808" colspan="1" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="767.999808" colspan="1" rowspan="1" >
<p align="center">
<b>FOR THE  NINE AND THREE MONTHS ENDED JANUARY 31, 2006 AND 2005
(UNAUDITED)</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="179.999955" colspan="3" rowspan="1" >
<p align="center">
<b>NINE MONTHS ENDED</b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="3" rowspan="1" >
<p align="center">
<b>THREE MONTHS ENDED</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
</p>
</td>
<td width="179.999955" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>JANUARY 31,</b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="173.333290" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>JANUARY 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><u>2006</u></b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><u>2005</u></b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><u>2006</u></b></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><u>2005</u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
<b> </b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>OPERATING REVENUE</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
&nbsp;Sales</p>
</td>
<td width="15.999996" 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:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" 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="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>COSTS AND OPERATING EXPENSES </b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
&nbsp;General and administrative</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">146,803&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">195,944&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">24,754&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">61,543&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and operating expenses</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">146,803&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">195,944&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">24,754&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">61,543&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
<b>LOSS BEFORE OTHER (EXPENSE)</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (146,803)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (195,944)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(24,754)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(61,543)</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
<b>DISCONTINUED OPERATIONS</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;Loss from discontinued operations (net of taxes)</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(17,676)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(54,917)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(3,296)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(16,168)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
&nbsp;Loss on disposal of assets</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (142,520)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" 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="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total discontinued operations</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(160,196)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(54,917)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(3,296)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(16,168)</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>NET LOSS BEFORE PROVISION FOR INCOME TAXES</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(306,999)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(250,861)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(28,050)</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(77,711)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="2" rowspan="1" >
<p>
&nbsp;Provision for income taxes</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" 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="395.999901" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="383.999904" colspan="1" rowspan="1" >
<p>
<b>NET LOSS APPLICABLE TO COMMON STOCKHOLDERS</b></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (306,999)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (250,861)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (28,050)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (77,711)</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -5"><table border="1">
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" >
<p>
<b>BASIC AND DILUTED LOSS PER COMMON SHARE</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;Basic from continuing operations</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">($0.01)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">($0.02)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">($0.00)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">($0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" >
<p>
&nbsp;Basic from discontinued operations</p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">($0.01)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">($0.00)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">($0.00)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">($0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" >
<p>
<b>WEIGHTED AVERAGE NUMBER OF SHARES</b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="395.999901" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>OUTSTANDING </b></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">12,071,035&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these condensed consolidated
financial statements.</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: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p align="center">
<a name="RANGE_A1_C68"></a><b>CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p align="center">
<b>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW </b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p align="center">
<b>FOR THE NINE MONTHS ENDED JANUARY 31, 2006 AND 2005
(UNAUDITED)</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>(Reclassified)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2006</b></font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2005</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>CASH FLOW FROM OPERATING ACTIVITIES</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>Continuing Operations:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Net loss</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">($146,803)</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">($195,944)</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;Adjustments to reconcile net loss to net cash </b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;(used in) operating activities:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;Changes in assets and liabilities</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
1,620&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(24,542)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">59,854&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">114,328&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">61,474&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">89,786&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating activities -
operations</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (85,329)</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(106.158)</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>Discontinued Operations:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Loss from discontinued operations</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (160,196)</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (54,917)</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;Adjustments to reconcile net loss to net cash </b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;provided by operating activities:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
36,315&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
142,520&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>Changes in assets and liabilities</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right">
22,189&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Inventories</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
18,459&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
3,500&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right">
35,000&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(601)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Deposits</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
11,052&nbsp;</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease concessions</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,836)</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">172,031</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">93,567</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;Net cash provided by (used in)</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;operating activities - discontinued operations</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">11,835</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">38,650&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;Net cash (used in) operating activities - </b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;continuing and discontinued operations</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (73,494)</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (67,508)</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>CASH FLOWS FROM INVESTING ACTIVITIES</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>Discontinued Operations:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Proceeds from sale of assets</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">10,000&nbsp;</font></p>
</td>
<td width="97.333309" 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="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing
activities</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">10,000&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>NET (DECREASE) IN CASH AND CASH EQUIVALENTS</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(63,493)</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(67,508)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">84,513&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">120,116&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$21,019&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$52,608&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;Cash paid during the period for:</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$-&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$-&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">$-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
<p>
<b>SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION:</b></p>
</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;Exercise of common stock option by officer</p>
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$0&nbsp;</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="3">$80,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="502.666541" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p align="center">
The accompanying notes are an integral part of these condensed consolidated
financial statements.</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>
<p>
<p align="center">
<b>CHAMPIONS SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>JANUARY 31, 2006 AND 2005
(UNAUDITED)</b><p>
<b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS OF
PRESENTATION</u></b></p>
<p style="margin-left:45">Champions Sports, Inc., (the "Company") a Delaware
corporation, promoted a sport 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 were to Marriott. On
June 23, 2005, the Company ceased operations for its' only sports bar located in
San Antonio, Texas.  Fixed assets with a net book value of $152,520 were sold
for $10,000 and inventory consisting of primarily restaurant food and beverage
was sold for $3,200.</p><p>
</p>
<p style="margin-left:45">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'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, 2006
may not be indicative of the results for the entire year.</p><p>
</p>
<p style="margin-left:45">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:45">The Company has reclassified its financial statements
to take effect for the disposal of its only operating business.</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 SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principles
of Consolidation</u></b></p>
<p style="margin-left:45">The condensed consolidated financial statements
include the accounts of the Company and its subsidiaries. All material
intercompany transactions have been eliminated in consolidation. </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Property
and Equipment</u></b></p>
<p style="margin-left:45">Property and equipment are stated at cost.
Depreciation and amortization is computed from the date property is placed in
service using the straight-line method over estimated useful lives as
follows:</p><p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" 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="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" 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="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" 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="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" 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="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" 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:45">Depreciation and amortization expense was $0 and
$36,315 for the nine months ended January&nbsp;31, 2006 and 2005, respectively.
</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Use
of Estimates</u></b></p>
<p style="margin-left:45">The preparation of consolidated financial statements
in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period.  Actual
results could differ from those estimates. </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>
<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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net
(Loss) Per Share</u></b></p>
<p style="margin-left:45">Historical net (loss) per common share is computed
using the weighted average number of common shares outstanding. Diluted earnings
per share (EPS) includes additional dilution from common stock equivalents, such
as stock issuable pursuant to the exercise of stock options and warrants. Common
stock equivalents were not included in the computation of diluted earnings per
share when the Company reported a loss because to do so would be antidilutive
for periods presented.  </p><p>
</p>
<p style="margin-left:45">The following is a reconciliation of the computation
for basic and diluted EPS:</p><p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="center">
<b>(Reclassified)</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center">
<b>January 31,</b></p align="center">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="center">
<b>January 31,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2006</b></font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2005</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (306,999)</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (250,861)</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="222.666611" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Outstanding (Basic)</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
16,824,658&nbsp;</p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
12,071,035&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="222.666611" colspan="3" rowspan="1" >
<p>
Weighted-average common stock</p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Equivalents</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
&nbsp;Stock options</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
&nbsp;Warrants</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="222.666611" colspan="3" rowspan="1" >
<p>
Weighted-average common shares</p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
Outstanding (Diluted)</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">12,071,035&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:45">Options and warrants outstanding to purchase stock
were not included in the computation of diluted EPS for January 31, 2006 and
2005 because inclusion would have been antidilutive.  </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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash
and Cash Equivalents</u></b></p>
<p style="margin-left:45">For purposes of the condensed consolidated statements
of cash flow, the Company considers all highly liquid debt instruments purchased
with a maturity of three months or less, unless restricted as to use, to be cash
equivalents. At various times throughout the periods the Company had amounts on
deposit at financial institutions in excess of federally insured limits.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income
Taxes</u></b></p>
<p style="margin-left:45">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's assets and liabilities at enacted
tax rates expected to be in effect when such amounts are realized or
settled.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair
Value of Financial Instruments</u></b></p>
<p style="margin-left:45">The carrying amounts of the Company's financial
instruments, including cash and cash equivalents, accounts payable, and accrued
expenses, approximate fair values because of the short maturities of these
instruments.</p><p>
<p>
<a name="OLE_LINK2"></a><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b><b><u>Options
for Common Stock</u></b></p>
<p style="margin-left:45">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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock-Based
Compensation</u></b></p>
<p style="margin-left:45">Employee stock awards under the Company's compensation
plans are accounted for in accordance with Accounting Principles Board Opinion
No. 25 ("APB 25"), "Accounting for Stock Issued to Employees", and related
interpretations. The Company provides the disclosure requirements of Statement
of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" ("FAS 123"), and related interpretations. Stock-based awards to
non-employees are accounted for under the provisions of FAS 123 and has adopted
the enhanced disclosure provisions of FAS No. 148 "Accounting for Stock-Based
Compensation- Transition and Disclosure, an amendment of FAS No. 123".</p><p>
</p>
<p style="margin-left:45">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:45">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, "Accounting for
Equity Instruments that are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services". 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's common stock on the date that the commitment for performance by
the counterparty has been reached or the counterparty'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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u></b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Share
Based Payments</u></b></p>
<p style="margin-left:45">In December 2004, the FASB issued Financial Accounting
Standards No. 123 (revised 2004) (FAS 123R), "Share-Based Payment, " FAS 123R
replaces FAS No. 123, "Accounting for Stock-Based Compenasation", and supersedes
APB Opinion No. 25, "Accounting for Stock Issued to Employees."  FAS 123R
requires compensation expense, measured as the fair value at the grant date,
related to share-based payment transactions to be recognized in the financial
statements over the period that an employee provides service in exchange for the
award.  The Company intends to adopt FAS 123R using the "modified prospective"
transition method as defined in FAS 123R.  Under the modified prospective
method, companies are required to 1) record compensation cost prospectively for
the unvested portion, as of the date of adoption, of previously issued and
outstanding awards over the remaining vesting period of such awards.  FAS 123R
is effective January 1, 2006.  The Company is evaluating the impact of FAS 123R
on its' results and financial position.</p><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Inventory
Costs</u></b></p>
<p style="margin-left:45">In November 2004, the FASB issued Financial Accounting
Standards No. 151 (FAS 151), "Inventory Costs - an amendment of ARB No. 43,
Chapter 4".  FAS 151 clarifies the accounting for abnormal amounts of idle
facility expense, freight, handling costs and spoilage.  In addition, FAS 151
requires companies to base the allocation of fixed production overhead to the
costs of conversion on the normal capacity of production facilities.  FAS 151 is
effective for the Company in 2006.  The Company does not expect FAS 151 to have
a material impact on its results or financial statements.  </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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u> (Continued)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Exchange
of Non-Monetary Assets</u></b></p>
<p style="margin-left:45">On December 16, 2004, FASB issued Statement of
Financial Accounting Standards No. 153, "Exchanges of Non-monetary Assets, an
amendment of APB Opinion No. 29, Accounting for Non-monetary Transactions" ("FAS
153").  This statement amends APB Opinion 29 to eliminate the exception for
non-monetary exchanges of similar productive assets and replaces it with a
general exception for exchanges of non-monetary assets that do not have
commercial substance.  Under FAS 153, if a non-monetary exchange of similar
productive assets meets a commercial-substance criterion and fair value is
determinable, the transaction must be accounted for at fair value resulting in
recognition of any gain or loss.  FAS 153 is effective for non-monetary
transactions in fiscal periods that begin after June 15, 2005.  The
implementation of this standard did not have a material impact on its financial
position, results of operations or cash flows.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Reclassifications</u></b></p>
<p style="margin-left:45">The loss from discontinued operations for the nine
months ended January 31, 2005 was reclassified to reflect the sale of the
Company's only operating business activity in the condensed consolidated
statements of operations in accordance with the provisions of FAS 144. The
reclassification had no effect on net loss for the nine and three-month period
ended January 31, 2005.  In addition, certain expenses for the six months ended
October 31, 2005 were reclassified between discontinued and continuing
operations to conform to the presentation of the nine months ended January 31,
2006 presentation.  The reclassifications had no effect on net loss for the
three months ended January&nbsp;31, 2006.</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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 3-</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</i></p>
<p style="margin-left:45">The Company leased, as tenant, restaurant space under
an operating lease, which expired June 30, 2005 and was not renewed. The lease
escalated for increases in the landlord's expenses for increases in the Consumer
Price Index, and required additional rentals based on a percentage of restaurant
sales over a defined amount. The lease granted the Company certain concessions,
which were amortized to lease expense over the term of the lease.</p><p>
</p>
<p style="margin-left:45">Rental expense during the nine months ended January
31, 2006 and 2005 was $43,132 and $151,649, respectively.</p><p>
<p>
<b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>MARRIOTT LICENSE</u></b></p>
<p style="margin-left:45">The Company was an exclusive supplier of sports
memorabilia and a consultant to all new Champions Sports Bars located in
Marriott and Renaissance Hotels worldwide.  This agreement was terminated by
Marriott effective May 28, 2005. </p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER ACCRUED EXPENSES</u></b></p>
<p style="margin-left:45">This account represents accrued officer's payroll and
related payroll taxes. </p><p>
<p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS' DEFICIT</u> </b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common
Stock</u> </b></p>
<p style="margin-left:45">The Company has 50,000,000 shares authorized and
16,824,658 shares issued and outstanding at January 31, 2006.</p><p>
</p>
<p style="margin-left:45">There were no issuances of common stock during the
nine months ended January 31, 2006 and 2005, respectively.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred
Stock </u></b></p>
<p style="margin-left:45">The Company has 56,075 shares of preferred stock
authorized and 32,450 shares issued and outstanding at January 31, 2006. </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>CHAMPION SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2006 AND
2005 (UNAUDITED) </b><p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS' DEFICIT
(CONTINUED)</u></b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred
Stock (Continued) </u></b></p>
<p style="margin-left:45">The Series A preferred stock requires a dividend of 12
percent per annum, and the dividends are to be accrued on the Company's book if
not paid. The dividend may be paid in common stock of the Company at the
Company'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's common stock. There were no conversions in 2003.</p><p>
</p>
<p style="margin-left:45">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, 2006 and 2005, the deferral
was $0, respectively. Preferred stock dividends in arrears at October 31, 2005
aggregated $350,460 ($10.83 per preferred share). Effective November 2003,
pursuant to a board resolution, the Company cancelled its payment and/or
accruing of preferred stock dividends.  The remaining accrued dividends are
anticipated to be paid in cash or common stock upon successful merger or other
business combination. </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common
Stock Options</u></b></p>
<p style="margin-left:45">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 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING CONCERN</u></b></p>
<p style="margin-left:45">As shown in the accompanying condensed consolidated
financial statements, the Company has sustained net operating losses for the
years ended April 30, 2005 and 2004 and for the nine months ended January 31,
2006 and has sustained large accumulated deficits that raise substantial doubt
about its ability to continue as a going concern. In addition, the Company is in
search of acquiring a business, or finding a suitable merger candidate.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>14</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPION SPORTS, INC. AND SUBSIDIARIES</b><br><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)</b><br><b>JANUARY 31, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING CONCERN (CONTINUED)</u></b></p>
<p style="margin-left:45">Management has restructured the Company and is
continuing to search for a more profitable company to acquire. </p><p>
</p>
<p style="margin-left:45">The Company'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:45">The condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.</p><p>
<p>
<b>NOTE 8-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:45">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'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's consolidated tax
return. Deferred tax assets and liabilities are recognized based on anticipated
future tax consequences attributable to differences between financial statement
carrying amounts of assets and liabilities and their respective tax
bases.</p><p>
</p>
<p style="margin-left:45">At January 31, 2006, 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="185.333287" colspan="1" rowspan="1" >
<p>
Deferred tax asset</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
2,428,114&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(2,428,114)</font></p>
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
Net deferred tax asset</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="3">-0-</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:45">At January 31, 2006, the Company had federal net
operating loss carryforwards in the approximate amounts of $6,937,468 available
to offset future taxable income. The Company established valuation allowances
equal to the full amount of the deferred tax assets due to the uncertainty of
the utilization of the operating losses in future periods.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<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, 2006 AND
2005 (UNAUDITED)</b><p>
<b>NOTE 9- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>DISPOSAL OF BUSINESS</u></b></p>
<p style="margin-left:45">On June 23, 2005, the Company ceased operations for
its' only sports bar located in San Antonio, Texas.  Fixed assets with a net
book value of $152,520 were sold for $10,000 and inventory consisting of
primarily restaurant food and beverage was sold for $3,200.  The Company's
condensed consolidated financial statements have been reclassified to reflect
this sale as discontinued operations, for all periods presented. Summarized
operating results of discontinued operations are 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="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
January 31,</p align="center">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center">
January 31,</p align="center">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2006</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2005</font></p>
</td>
</tr>
<tr valign="top">
<td width="542.666531" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Revenues</p>
</td>
<td width="35.999991" 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">274,626&nbsp;</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">1,276,703&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Net loss before income taxes       </p>
</td>
<td width="35.999991" 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">(17,676)</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (54,917)</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Provision for taxes</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="35.999991" 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">(17,676)</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">54,917)</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Net loss per share</p>
</td>
<td width="35.999991" 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>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
Diluted loss per share</p>
</td>
<td width="35.999991" 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>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.00)    </font></p>
</td>
</tr>
</table></div>
<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>
<p>
<p>
<b>Item 2.&nbsp;&nbsp;&nbsp;Managements Discussion and Analysis of Financial
Condition and Results of Operations</b><p>
<b>There&nbsp;is&nbsp;substantial&nbsp;doubt about the Company's ability to
continue as a going&nbsp;concern. The Company's independent auditor, for the
year ending April 30, 2005, has expressed substantial doubt that the Company can
continue as a going concern due to recurring losses and working capital
shortages and that there is no guarantee that the Company will be able to raise
enough capital or generate revenues to sustain its operations. The Company is
continuing to face grave liquidity and cash problems as of date of the filing of
this 10-QSB. The Company's Champions sports bar restaurant in San Antonio, Texas
which provided almost 100 percent of its revenues, ceased its restaurant
operations in June of 2005 after its 16 year old lease expired. The Company does
not have the resources to open and operate a restaurant in another location. It
is the intention of the Company to continue operations until such time as
Champions finds a business opportunity and merges with another company or raises
additional financing, although there is no assurance that this can be done on
terms satisfactory to the Company. The Company is continuing to actively look at
various business opportunities in order to continue operations. If the Company's
liquidity situation does not improve, the Company might have to discontinue its
business as a going concern.</b><p>
<b>Through January 31, 2006 and currently, the business plan for the Company is
to  actively  pursue  opportunities  whereby the Company will primarily  serve
as a vehicle for the acquisition of a target business that the Company believes
will have significant growth potential. The Company intends to use its  capital
stock,  to  effect a  business  combination  with a private company  that
desires to establish a public  trading  market for its  securities while
avoiding  what it may deem to be adverse  consequences  of  undertaking a public
offering itself, such as time delays, significant expense, loss of voting
control and other burdens including significant  professional fees. The business
combination may be with a financially stable, mature company or a company that
is financially unstable or in its early stages of development or growth.</b><p>
<b>In seeking to attain this business objective, the Company will not restrict
its search to any particular industry.  Rather,  the Company  may  investigate
businesses  of  essentially  any kind or nature and  participate  in any type of
business  that may, in  management's  opinion,  meet the business  objectives as
described in this document.  The Company emphasizes that the description in this
document of its business objectives is extremely general and is not meant to
restrict the discretion of management to search for and enter into potential
business opportunities.</b><p>
<b>The  Company  has not chosen the  particular  business in which the Company
will engage in and has not  conducted  any market  studies  with  respect to any
business  or industry to  evaluate  the  possible  merits or risks of the target
business or the particular industry in which the Company may ultimately operate.
To the extent  that the  Company  may enter into a business  combination  with a
financially  unstable  company or an entity in its early stage of development or
growth, including entities without established records of sales or earnings, The
Company  will become  subject to numerous  risks  inherent in the  business  and
operations of financially  unstable and early stage or potential emerging growth
companies.  In addition, to the extent that the Company may enter a business
combination with an entity in an industry characterized by a high level of risk,
the Company will become subject to the currently unascertainable risks of that
industry.  An extremely high level of risk frequently characterizes certain
industries that experience rapid growth. In addition,  although the Company will
endeavor  to evaluate  the risks  inherent  in a  particular  industry or target
business,  the Company  cannot give  assurance  that the Company  will  properly
ascertain or assess all significant risk factors.</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>17</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<b>The Company  anticipates that target business candidates will be brought to
its attention from various  unaffiliated  sources,  including but not restricted
to, investment bankers, venture capitalists, securities broker-dealers,  bankers
and other  members of the  financial  community,  who may present  solicited  or
unsolicited proposals. Company's officers and directors and their affiliates may
also bring to the Company's attention target business candidates.  While the
Company does not  presently  anticipate  engaging  the services of  professional
firms that  specialize  in  business  acquisitions  on any formal or basis,  the
Company may engage such firms in the future, in which event, the Company may pay
a finder's fee or other  compensation  for such  introductions if they result in
consummated  transactions.  These fees are customarily between 1% and 5% of the
size of the overall transaction, based upon a sliding scale of the amount
involved.</b><p>
<b>The Company's management will have significant flexibility in identifying and
selecting a prospective target business.  In evaluating a prospective target
business, the management will consider, among other factors, the
following:</b><p>
<b>- the financial condition and results of operation of the target;</b><p>
<b>- the growth  potential of the target and that of the industry in which the
target   operates;</b><p>
<b>- the experience and skill of the target's  management and  availability of
additional personnel; o the capital requirements of the target;</b><p>
<b>- the competitive  position of the target;</b><p>
<b>- the stage of development that the target's products,  processes or services
are at;</b><p>
<b>- the degree of current or  potential  market  acceptance  of the  target's
products,  processes  or  services;</b><p>
<b>- proprietary features and the degree of intellectual property or other
protection of the target's products, processes or services;</b><p>
<b>- the regulatory environment of the industry in which the target
operates;</b><p>
<b>- the prospective equity interest in, and opportunity for control of, the
target; and</b><p>
<b>- the costs associated with effecting the business combination.</b><p>
<b>These criteria are not intended to be exhaustive.  Any evaluation relating to
the merits of a particular business combination will be based, to the extent
relevant, on the above factors as well as other considerations deemed relevant
by management in connection with effecting a business combination consistent
with Company's business objective.</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>18</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<b>In connection with Company's  evaluation of a prospective  target business,
the Company  anticipates  that it will  conduct due  diligence  review that will
encompass, among other things, meetings with incumbent management and inspection
of facilities,  as well as a review of financial or other  information that will
be made available to the Company.</b><p>
<b>The Company will endeavor to structure a business combination so as to
achieve the most favorable tax treatment to the Company, the target business and
both of the companies' stockholders.  There can be no assurance, however, that
the Internal Revenue Service or appropriate state tax authority will agree with
the tax treatment of the business combination.</b><p>
<b>Until the Company is presented with a specific  opportunity  for a business
combination, the Company is unable to ascertain with any degree of certainty the
time and  costs  required  to  select  and  evaluate  a target  business  and to
structure  and  complete  the  business  combination.   Any  costs  incurred  in
connection  with the  identification  and  evaluation  of a  prospective  target
business with which a business  combination  is not  ultimately  completed  will
result in a loss to the Company and will reduce the amount of capital  otherwise
available to complete a business combination.</b><p>
<b>Although the Company intends to carefully scrutinize the management of a
prospective target business before effecting a business combination, the Company
cannot give assurance that its assessment of the target's management will prove
to be correct, especially in light of the possible inexperience of Company's
management in evaluating certain types of businesses.  In addition,  the Company
cannot  give  assurance  that  the  target's  future  management  will  have the
necessary  skills,  qualifications  or  abilities  to  manage a  public  company
intending  to embark on a program  of  business  development.  Furthermore, the
future role of Company's officers and directors,  if any, in the target business
cannot  presently be stated with any certainty.  It is possible that one or more
of the Company's officers and directors will remain associated in some capacity
with the Company following a business combination and will devote their efforts
to the affairs of the new business combination.  Moreover, the Company cannot
give assurance that its officers and directors will have significant experience
or knowledge relating to the operations of the particular target
business.</b><p>
<b>The Company may seek to recruit additional managers to supplement the
incumbent management of the target business. The Company,  however,  cannot give
assurance  that it will be able to  recruit  additional  managers  who  have the
requisite  skills,  knowledge or  experience  necessary to enhance the incumbent
management.</b><p>
<b>The Company expects to encounter intense competition from other entities
having a similar business objective. Many of these entities, including financial
consulting companies and venture capital firms, have longer operating histories
and have   extensive   experience in   identifying   and effecting   business
combinations, directly or through affiliates. Many of these competitors possess
significantly greater financial, technical and other resources.  The Company
cannot give assurance that it will be able to effectively compete with these
entities.  In the event the Company is unable to compete effectively with these
entities, the Company may be forced to evaluate less attractive prospects for a
business combination. If the Company is forced to evaluate these less attractive
prospects, the Company cannot give assurance that the stated business objectives
will be met.</b></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>
<u>Results of Operation</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended January 31,
2006, the Company's net loss was $306,999 and the net loss for the three months
ended January 31, 2006 was $28,050.  The Company's total assets decreased by
$245,525 to $21,019 at January 31, 2006.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended January 31,
2005, the Company's net loss was $250,861 and for the three months ended January
31, 2005 was $77,711. <p>
<u>Revenues</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's total revenues were
$0.00 for the three months ended and nine months ended January 31, 2006 and for
the three-month period ended and nine month period January 31, 2006, as
reclassified.  The Company ceased operations at San Antonio Champions location
on June 23, 2005. The lease on this location expired on June 30, 2005 and the
Company vacated the premise on that date. The San Antonio location had provided
99% of the Company's revenues.  The Company's condensed consolidated financial
statements have been reclassified to reflect this cessation of business as
discontinued operations, for all periods presented. Summarized operating results
of discontinued operations are as follows:</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center">
January 31,</p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center">
January 31,</p align="center">
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2006</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2005</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Revenues</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">274,626&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">1,276,703&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Net loss before income taxes    </p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(17,676)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (54,917)</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Provision for taxes</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(17,676)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (54,917)</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Net loss per share</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(0.01)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="281.333263" colspan="1" rowspan="1" >
<p>
Diluted loss per share</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(0.01)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.00)</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<u>Expenses</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense for
the Company's corporate office was $146,803  for the nine months ended January
31, 2006 compared to $195,944 for the nine months ended January 31, 2005.  <p>
<u>Liquidity and Capital Resources</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's cash position as of
January 31, 2006 was $21,019 compared to $84,513 on April 30, 2005. For the nine
month period, the Company's operations, continuing and discontinued, used
$73,494 in cash. The Company met its liquidity needs from its cash reserves. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's working capital was a
negative $673,794 on January 31, 2006 and a negative $530,367 on April 30, 2005.
The Company's working capital is very unfavorable when compared to other public
companies.</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>
<u>Other</u><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is facing liquidity
problems and is uncertain that it will be able to continue operations without an
infusion of cash.  The Company's liquidity problems have been further
exasperated by the closing to the Company's San Antonio location.  The Company
continues to review and evaluate its operations and priorities.  The Company is
actively   pursuing merger or acquisition   candidates and other financing
possibilities to meet its liquidity needs.  There is no assurance that the
Company will be able to structure a merger or acquisition, or raise additional
financing to continue operations on terms satisfactory to the Company.<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, The Company's
independent auditor has expressed substantial doubt that the Company can
continue as a going concern.</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>21</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p>
<p align="center">
<b>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" (within the meaning of the Private Securities
Litigation Act of 1995) that inherently involve risk and uncertainties.  The
Company generally uses words such as "believe," "may," "could," "will,"
"intend,"  "expect,"  "anticipate,"  "plan," and similar expressions to identify
forward-looking statements.  One should not place undue reliance on these
forward-looking statements.  The Company'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, 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'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's expectations, except as required by
law.<p>
Item 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES<p>
The Company maintains a set of disclosure controls and procedures designed to
ensure that information required to be disclosed by the Company in the reports
filed under the Securities Exchange Act, is recorded, processed, summarized and
reported within the time periods specified by the SEC's rules and forms.
Disclosure controls are also designed with the objective of ensuring that this
information is accumulated and communicated to the Company's management,
including the Company's chief executive officer and chief financial officer, as
appropriate, to allow timely decisions regarding<p>
required disclosure.<p>
Based upon their evaluation as of the end of the period covered by this report,
the Company's chief executive officer and chief financial officer concluded
that, the Company's disclosure controls and procedures are not effective to
ensure that information required to be included in the Company's periodic SEC
filings is recorded, processed, summarized, and reported within the time periods
specified in the SEC rules and forms.<p>
The Company's board of directors were advised by Bagell, Josephs &amp; Company,
L.L.C., the Company's independent registered public accounting firm, that during
their performance of audit procedures for 2005 Bagell, Josephs &amp; Company,
L.L.C. identified a material weakness as defined in Public Company Accounting
Oversight Board Standard No. 2 in the Company's internal control over financial
reporting.<p>
This deficiency consisted primarily of inadequate staffing and supervision that
could lead to the untimely identification and resolution of accounting and
disclosure matters and failure to perform timely and effective reviews.<p>
However, the size of the Company prevents us from being able to employ
sufficient resources to enable us to have adequate segregation of duties within
our internal control system. Management is required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications of the Chief Executive
Officer and Chief Financial Officer regarding, among other items, disclosure
controls and procedures are included immediately after the signature section of
this Form 10Q-SB.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>22</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p>
<p>
<b>Part II.&nbsp;&nbsp;&nbsp;Other Information</b><p>
<b>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submission of Matters to A Vote of
Security Holders</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None<p>
<b>Item 6.  Exhibits and Reports on Form 8-K</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</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>
<p>
<p align="center">
SIGNATURES<p>
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<b>CHAMPIONS Sports, Inc.</b></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
James Martell</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
Chairman, President and Chief Executive Officer</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<a name="BM_1_"></a><u>/s/ James E. McCollam</u></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
James E. McCollam</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
Corporate Secretary, Chief Accounting</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="1" rowspan="1" >
<p>
Officer and Controller</p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
March 16, 2006</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>
<p>
<p align="center">
CERTIFICATION OF CHIEF EXECUTIVE OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES MARTELL, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS SPORTS,
INC., a Delaware corporation (the "registrant");<p>
(2) Based on my  knowledge,  this  quarterly  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;<p>
(3) Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;<p>
(4) The  registrant's  other  certifying  officers  and I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls
and procedures to ensure that material information relating to the registrant,
including its consolidated     subsidiaries, is made known to us by others
within those entities, particularly during the period in which this quarterly
report is being      prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the
registrant's disclosure controls and  procedures  as of a date  within 90 days
prior to the  filing  date of this  quarterly report (the "Evaluation Date");
and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Presented  in  this  quarterly
report  our  conclusions   about  the effectiveness  of the  disclosure
controls  and  procedures  based  on our evaluation as of the Evaluation
Date;</p 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>
(5) The registrant's  other certifying  officers and I have disclosed,  based on
our most recent evaluation, to the registrant's auditors and the audit committee
of the  registrant's  board of directors (or persons  performing  the equivalent
functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal controls which could adversely affect the
registrant's ability to record,  process,  summarize and report  financial data
and have  identified for the registrant's auditors any material weaknesses in
internal controls; and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud,  whether or not
material,  that involves management or other employees who have a significant
role  in  the  registrant's  internal controls; and<p>
(6) The registrant's  other  certifying  officers and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.<p>
Date:  March 16, 2006</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ JAMES MARTELL</font></p>
</td>
<td width="157.333294" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
JAMES MARTELL</p>
</td>
<td width="157.333294" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
<td width="157.333294" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>26</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p>
<p align="center">
CERTIFICATION OF CHIEF FINANCIAL OFFICER<p align="center">
Section 302 Certification<p>
I, JAMES E. MCCOLLAM, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS SPORTS,
INC., a Delaware corporation (the "registrant");<p>
(2) Based on my knowledge, this  quarterly  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report.<p>
(3) Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report; <p>
(4) The  registrant's  other  certifying  officers  and I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  Designed  such  disclosure
controls  and  procedures  to ensure  that  material information relating to the
registrant, including its consolidated subsidiaries, is  made  known  to  us by
others  within  those  entities, particularly  during  the period in which  this
quarterly  report is being     prepared;<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the
registrant's disclosure controls and procedures  as of a date  within 90 days
prior to the  filing  date of this quarterly report (the "Evaluation Date");
and<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  Presented  in  this  quarterly
report  our  conclusions   about  the effectiveness  of the  disclosure
controls  and  procedures  based  on our evaluation as of the Evaluation
Date;<p>
(5) The registrant's  other certifying  officers and I have disclosed,  based on
our most recent evaluation, to the registrant's auditors and the audit committee
of the  registrant's  board of directors (or persons  performing  the equivalent
functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal controls which could adversely affect the
registrant's  ability to record, process,  summarize and report  financial data
and have  identified for the     registrant's auditors any material weaknesses
in internal controls; and</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><p>
</p>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud,  whether or not
material,  that involves management or other  employees  who  have  a
significant  role  in  the  registrant's  internal controls; and<p>
(6) The  registrant's  other  certifying  officers and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.<p>
Date:  March 16, 2006</p align="right">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ JAMES E. McCOLLAM</font></p>
</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
JAMES E. McCOLLAM</p>
</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="275.999931" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</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>
<p>
<b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b><p>
In connection with the quarterly report of Champions Sports, Inc. (the
"Company") on Form 10-QSB for the nine months ended January 31, 2006 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
each of the undersigned, in the capacities and on the dates indicated below,
hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
1.</p>
</td>
<td width="611.999847" colspan="1" rowspan="1" >
<p>
The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </p>
</td>
</tr>
<tr valign="top">
<td width="629.333176" colspan="2" rowspan="1" >
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
<p>
2.</p>
</td>
<td width="611.999847" colspan="1" rowspan="1" >
<p>
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operation of the Company. </p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="287.999928" colspan="1" rowspan="1" >
<p>
Dated: March 16, 2006</p>
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James M. Martell</font></p>
</td>
</tr>
<tr valign="top">
<td width="287.999928" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
James M. Martell, Chief Executive Officer&nbsp;</p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="287.999928" colspan="1" rowspan="1" >
<p>
Dated: March 16, 2006</p>
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<p align="right">
By:&nbsp;</p align="right">
</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/ James E. McCollam&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="287.999928" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<p>
&nbsp; </p>
</td>
<td width="258.666602" colspan="1" rowspan="1" >
<p>
James E. McCollam, Chief Financial Officer&nbsp;</p>
</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>


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