Blackout Media Corp (BKMP)

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Blackout Media Corp. Issues Letter to Shareholders
Jun 6, 2006 9:15:00 AM
TORONTO -- (MARKET WIRE) -- 06/06/06 -- Blackout Media Corp. (PINKSHEETS: BKMP) announced today that it has released a Letter to Shareholders from President Sandy Winick. The text of the letter appears below.

Dear Shareholders:

Before discussing the various areas under The Fight Network, I would like to address the issue surrounding the untimely passing of Ryan Bennett. It is a very tragic event that occurred last Wednesday night and we are all very deeply saddened and scared by what had occurred. But we are also very mindful that we must carry on and we will. We will miss Ryan and he left us with big shoes that must be filled and they will be filled. It is everyone's job at The Fight Network to ensure that the company proceeds and succeeds and everybody at the company is committed to those goals. I hope that all the shareholders that supported us prior to this most tragic event will support us now more then ever. We are a strong and focused group and together we will be stronger and more driven by this.

Blackout Media's main asset is its 20% interest in The Fight Network and all its various brand extensions through Blackout Communications Inc.

It has been our goal from day one to build The Fight Network into a globally recognized brand that combatant sports fans will come to identify as "the Source" for fight sports events and entertainment. With that being said a number of initiatives have been implemented to achieve that long-term goal. Here are a few of the highlights:

Television

To date we have launched our services on most of the major carriers in Canada and a number of the smaller carriers. We anticipate by the end of 2006 that the remaining carriers will add TFN to their line-ups. In addition we have hired Trajectory Sports of New York to assist in getting us launched in the United States; the people from Trajectory are working very hard and we feel that it is only a matter of time before we lock down our first of many U.S. carriage deals. As well, we have had enquiries from several other countries around the world (Mexico, Panama, Australia, England, Ireland) which we are pursuing with the same conviction as North America.

It is our goal to provide viewers with the best possible programs and experience which is why we have further expanded our news coverage and presence at many of the top Pay Per View (PPV) fight events across North America (UFC Ultimate Fighting Championships, Showtime Boxing, and HBO Boxing) and Internationally (Pride Fighting Championships and K-1) in order to deliver in-depth pre-fight coverage of the weigh-ins and press conferences followed by post-fight coverage with interviews and wrap-ups done by our own dedicated news staff and unrivaled by any other sports network in the marketplace today.

Nielsen Media Research

In just seven (7) short months The Fight Network according to the Nielsen rankings for Digital Networks (Feb 27th to Mar 26, 2006) was the number one (1) Sports Specialty channel in Canada and was also listed as the twelfth (12) most popular specialty digital channel in Canada for that same period.

*It should also be noted at the time of the rankings that The Fight Network was still not available on all systems across Canada.

Fight Network Radio

Fight Network has syndicated across Canada our weekly LIVE talk radio show "Live Audio Wrestling" which covers the behind the scene news and information for pro wrestling and mixed martial arts. The current ratings for the show for males 18-34 was 17.8 and for males 25-49 was an 18.7, making the show number one (1) in the Toronto market for its time slot according to BBM for March 2006.

Fight Mobile

We have just recently launched Fight Mobile on cell phones. This service enables fight fans to get up to the minute news, information and round by round results plus more, right to their cell phones.

FIGHT MOBILE is now available in the United States on Verizon Wireless' Mobile Web 2.0 network. Other first-tier carriers are preparing to launch the U.S. service in the near future, while Canadian national and regional carriers are in discussions to add FIGHT MOBILE to their mobile content. When fully deployed, FIGHT MOBILE has the potential of reaching over 220,000,000 (Two Hundred and Twenty Million) cell phones in North America.

Fight Network Online

The Fight Network also has a very strong web presents with thefightnetwork.com while also owning and managing several other "Fight"-related web properties such as the highly popular liveaudiowrestling.com, mmaweekly.com, and the wrestlingobserver.com. Collectively these sites attract over 1.7MM unique visitors per month.

Another area that we are working on and anticipate launching very shortly is The Fight Store -- our e-commerce offering, enabling fans to purchase all the great Fight Network gear plus unique and limited editions articles.

Stock Buy-Back

To date the company has purchased just over 600,000,000 shares of the planned one billion. This was done within six months of the announcement of the buy-back plan. We anticipate that company finishing the entire repurchase depending on market conditions, company's available cash flow and any other limiting factors.

There are other opportunities that we are looking at, which will be released to the shareholders as they evolve.

I truly believe that this will be a great year for the company and the future is looking very bright and extremely optimistic.

Thank you.

Sandy Winick,
President - Blackout Media Corp.
About The Fight Network:

The Fight Network is a cross-platform media company with brand interest in television, radio, mobile and web. All four of these media offerings are seamlessly integrated to offer fans of combatant sports and related entertainment a true convergence experience. The Fight Network Inc. corporate headquarters is located in Toronto, Canada. Additional information on the company can be found at www.thefightnetwork.com.

About Blackout Media Corp.:

Blackout Media Corp. is a holding company with an interest in Blackout Communications, who is a diversified media and entertainment company conducting operations in digital television, VOD, PPV, radio, the Internet and print under the brand name "The Fight Network." The activities of Blackout Media Corp. are conducted principally in Canada and the United States.

Safe Harbor

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Media Contacts:

For The Fight Network
Stephen Murdoch
OEB International
Public Relations/Public Affairs
Tel: [phone] extension 22
Fax: [phone]
E-mail: [e-mail]

Tim Foster (Investor Relations Contact)
OEB International
Public Relations/Public Affairs
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]