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Knockout! Sports Network Files Lawsuit

LAS VEGAS -– (PRESS RELEASE) -- Knockout! Sports Network, Inc. (KSpN!) announced today that on March 24, 2006 it had electronically completed the filing of a lawsuit in the United States District Court for the District of Nevada against Matt Rose, Ultimate Sports Entertainment, Inc. (a fraudulent new Nevada corporation formed by Matt Rose after he abandoned KSpN!) and other defendants, seeking damages of $2 Billion and punitive damages of $6 Billion in separate claims.

Knockout! Sports Network, Inc. and other plaintiffs had previously filed a lawsuit in federal court against most of the same defendants, but the first lawsuit was dismissed on technical grounds-albeit "without prejudice" and "with leave to amend." For procedural reasons, KSpN! chose to file a new action in Case Number 2:06-cv-00372.

The claims in the new lawsuit are numerous and include federal and state securities violations, common law fraud, breach of contract, breach of implied covenant of good faith and fair dealing, conversion, mismanagement, breach of fiduciary duty, interference of contractual relationships and business opportunities, unlawful conspiracy, libel and slander, and malpractice plus declaratory and injunctive relief.

On November 10, 2005, Knockout! Sports Network, Inc. which is a Nevada corporation, completed a Type C reorganization under Section 368 of the Internal Revenue Service with LAS VEGAS CITY OF SPORTS, INC, a new Nevada corporation formed by the original principals of KSpN! and certain of their affiliates, who were fraudulently abandoned by Matt Rose and his cronies. Under the reorganization Las Vegas City Of Sports, Inc acquired all of KSpN!'s assets in exchange of stock of Las Vegas City Of Sports, Inc.

Las Vegas City Of Sports, Inc. owns all of KSpN!'s rights to own and develop a hotel/casino and sports resort. Those rights which were covered by written agreements, among other things, according to KSpN!'s complaint in the new federal lawsuit, were stolen by Matt Rose, Ultimate Sports Entertainment, Inc. (his new fraudulent company), and his cronies. The complaint also seeks damages and punitive for securities fraud from the named defendants, including KSpN!'s previous President Matt Rose and his new fraudulent company's lawyers, Flangas McMillan Law Group, Inc. The defendants were also engaging in a "Ponzi scheme", in attempting to do a rescission of a prior fraudulent securities offering structured by Matt Rose and his cronies to pay off previous investors with new investors' money in a new fraudulent securities offering. The scheme involved some 88 investors who paid more than $2,370,000.

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