[David Kelly]

AN IMPORTANT MESSAGE FROM BATTLEBOTS INC.

BattleBots Inc. would like to inform the robot building community as to our future plans. Although we are dismayed by the Comedy Central decision not to renew for a Phase 6.0 Taping in November 2002, we are heartened by our promising opportunities and options for the future.

We are presently pursuing options with other television networks. We hope to revamp the format of our show by highlighting the builders as athletic heroes and high-tech role models. We will try to have the next incarnation of BattleBots on TV showcase the "behind the scenes" technologies of the
sport, with far less emphasis on satire and innuendo. We are doing our utmost to make this a reality. Stay tuned for updates.

We are also exploring the prospect of creating a "BattleBots Live USA Tour." This regional tournament circuit could tour up to eight (8) cities in the United States and follow a double elimination format. The regional advancers from this preliminary circuit would move onto a grand finale tournament that would crown the national champions of each weight class. We are very excited about this because it may usher in a brand new live event series for the sport of BattleBots. Stay tuned for more news on this front as well.

Although most of the aforementioned plans are still in the preliminary stages, we wanted you to know that we are working tirelessly to keep the sport flourishing at the highest level. Please remember that we are counting on your continued support and commitment. In the meantime, take care and we look forward to seeing you all again very soon.

Sincerely,

BattleBots Inc