August 14, 2000
Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 14, 2000

Sports Group International Inc. (OTC BB:SPGK)(the "Company") Monday announced record second quarter earnings for the three months ended June 30, 2000 of $484,533, or $0.05 per basic share, a 769% increase over the second quarter of 1999.

Total revenues for the three months ended June 30, 2000 were $3,133,281, a 33% increase over the second quarter of 1999. For the six months ended June 30, 2000, the Company earned $303,120, or $0.03 per basic share, on total revenues of $5,848,805.

According to Kevin Blackwell, the Company's president and chief executive officer, "The second quarter marked a major turning point for the Company.

"We achieved many milestones during the quarter, including opening our first two Tahi Mana stores in California and Arizona, entering into our first Area Development Agreement for the Surf City Squeeze and Frullati Cafe & Bakery concepts in Southern California, completing the construction of our first Frullati Cafe & Bakery outlet in California, and acquiring the Rollerz concept, including one corporate owned location."

Additionally, the Company was able to favorably resolve all outstanding material litigation involving the Company during the second quarter.

"The resolution of this litigation was extremely important as it has allowed myself and the rest of the Company's management team to focus 100% on growing the Company's four concepts throughout the United States and improving profitability for our shareholders," remarked Blackwell.

About Sports Group International Inc.

Sports Group International Inc. currently owns Surf City Squeeze, Frullati Cafe & Bakery, Rollerz, and Tahi Mana. Both Surf City Squeeze and Frullati Cafe & Bakery are franchisors and operators of juice bars/smoothie stores and healthy food cafes throughout the United States that off the company's signature line of smoothies, sandwiches, salads, soups and other healthy snacks.

Rollerz is a franchisor and operator of retail stores serving signature rolled sandwiches and blended fruit drinks/smoothies, and Tahi Mana is franchisor and operator of health food supplements stores centered around a juice bar.

There are currently over 200 outlets open nationwide of the Company's four concepts. To learn more about the Company and its four concepts, please visit the website at www.sportsgroupintl.com.

The information in this press release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws.

Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties including the future financial performance of the Company.

Although the Company believes the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitors, and general economic risks and uncertainties.

COPYRIGHT 2000 Business Wire

COPYRIGHT 2000 Gale Group

 
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