Battlebots Update

[David Kelly]

AN IMPORTANT MESSAGE FROM BATTLEBOTS INC.

BattleBots would like to take this opportunity to touch base with
members of the Bot Building community. First, please be informed that BattleBots is still flourishing and working hard to promote the sport of robotic combat. Whether it involves a new television deal or a live event circuit,we are tirelessly working on ways to gain exposure for our sport.

BATTLEBOTS ON TV:
Rest assured that we are working hard so that the next incarnation of BattleBots on television will be loyal to the true nature of our sport. That means less reliance on campy, "sitcom-style" glitz. In the future, we will concentrate on the essential elements of robot combat - the sport, the builders and the technology of robot building. We hope to celebrate the builders as sporting heroes and the competition as a thrilling test of creativity and ingenuity.

BATTLEBOTS REGIONAL TOUR:
Until that time, we are still aggressively pursuing plans for the
BattleBots Summer 2003 Regional Tour. The plan would involve a series of local qualifying tournaments, which would then culminate in the Grand Nationals of BattleBots! This tour is crucial because it does NOT rely on the existence of a television deal. It would also enable more flexibility on licensing, sponsorship, and franchising issues. Details are still in the works, but we envision the tour to follow a Double Elimination format. There will most likely be a new Seeding System. The previous slate will be wiped clean, giving all competitors an equal opportunity to advance. We at BattleBots are working hard to make this a reality. Stay tuned for more details later.

ROYALTIES:
Royalties are currently being calculated. We anticipate that we will start paying them out by the end of this month. Your patience and cooperation are greatly appreciated.

NEWS ON OTHER FRONTS:
We are pleased to see that the sport of robotic combat is still very much a part of our popular culture. People want to see robots battling. In fact, BattleBots was featured in a recent episode of "Judging Amy" on CBS. In addition, the sport of robot combat will be spoofed on an upcoming episode of "The Simpsons" on Fox later this month. We are determined to capitalize on this continued visibility.

UPDATE TO THE "MEET THE ROBOTS" SECTION:
We are currently renovating our web site at http://www.battlebots.com to expand the "Meet the Robots" section. Our goal is to provide more timely and relevant Bot and Builder information and to allow more community feedback. Stay tuned for a first quarter of 2003 launch.

MATCH FOOTAGE ON DVD:
We are also planning to offer to competitors the opportunity to purchase their match footage on DVD/VHS for a reasonable "custom one-off, burn on demand" fee. More details will be forth coming. We hope to offer this in time for the Christmas season.

As we approach the end of the year, we look forward to continued
consultation with you. Please do not hesitate to contact us with your questions and/or concerns. Your input matters greatly and helps us to plot our course for the future. In the meantime, please accept our best wishes for the holidays. Continued Good Luck and Safe Building!

Yours Truly,

Trey and Greg