SOURCE: Blackout Media Corp.

November 13, 2006 11:37 ET

Blackout Media Corp. Issues Letter to Shareholders

TORONTO -- (MARKET WIRE) -- November 13, 2006 --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:

I would like to take this opportunity to highlight some of the exciting events that have occurred over the last few months since the last shareholder letter and what we can expect in the future from our involvement in The Fight Network, but before we get to that I would like to try and clarify the preferred share dividend that was issued to you as I have had a number of inquiries from a lot of you, our shareholders with regards to the preferred share dividend and some of issues that you have been encountering over the past 30 - 60 days:

First of all the dividend was nothing more than a way to try and thank you, our loyal shareholders for supporting the company over the past months and years.

Secondly the dividend was for every 1 share of common stock held on the close of business of the 12th of September, 2006 that you would receive 10,000 preferred shares, the 12th is the ex-dividend date and the 15th is the payment date.

For example if you own 1,000,000 shares on the ex-dividend date you would get 10,000,000,000 preferred shares.

1. The preferred shares have there own CUSIP number 09250L 20 0 and trade separately under their own symbol as preferred shares -- different from the common shares, the symbol is BKMPP. The CUSIP number that ends with 994 has been assigned by the DTC as a temporary CUSIP number that bears no relation to the company or the actual or real CUSIP number that has been assigned by Standard & Poors, who are the only organization who can assign CUSIP numbers. There is no reason whatsoever why there needs to be this temporary CUSIP number out there but we at the company do not use it nor does the transfer agent, as we both deal with the assigned number ONLY.

2. NO this is not an option this is an outright grant to all shareholders, you have to do nothing, they should have already appeared in your brokerage account, as the shares have been delivered to the DTC in New York. The DTC in New York has distributed the preferred shares in certificate form to each of the participants (brokerage houses).

3. The value of the shares is whatever the market assigns to the shares, it is a free market and they will assign a fair value to them, I can't tell you what it will be that is not up to me.

4. A preferred shares is a non-voting stock that is similar to a debt instrument.

5. The preferred shares are free trading shares.

6. You will not be diluted by this dividend, because the preferred shares are non-convertible and non-voting, they do not affect the outstanding common shares of the company as they have a totally separate trading symbol (BKMPP) from your present common shares which will continue to trade under the symbol of BKMP.

7. A number of the shareholders especially from the online brokerage firms are having trouble getting their preferred shares and a number of different stories are circulating with regards to this.

First of all -- the dividend was never cancelled as some brokerage firms have reported.

Secondly, the transfer agent has delivered the shares contrary to another rumor saying they haven't.

The simple fact is that the preferred shares have been delivered to the Depository Trust Corporation in New York, who in turn delivered shares to each of the brokerage firms that we owed stock to, in other words each firm has there stock. That is the simple fact. There is no excuse for them not delivering your shares to you. We have done what we were suppose to do unfortunately we cannot force the brokerage firms to deliver or credit your accounts with what you are entitled to, you need to apply as much pressure as you can to get what you are entitled to. We have no power to force them to do anything.

8. Even though each one of you received quite a few preferred shares it seems the brokers and the central depository (DTC) are not allowing it to be traded, as management we feel that it would in the best interest of all concerned to roll back or reverse split just the preferred shares (not the common shares) so that they become a manageable number for everyone concerned. Your feedback and comments are welcome before anything will be done.

It has always been our goal 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:


Canada is basically finished with regards to our penetration on the cable and satellite carriers, we have also added some IPTV providers as well. Since last reported The Fight Network has added over a dozen new carriers, most significant is Bell ExpressVu. By early next year they will have completed all the second tier carriers that have the ability to carry their network on their system and it will be time to move to international markets.

TFN is presently in various stages of discussions with carriers and providers in a number of overseas markets:

United States                 Columbia
Panama                        Australia
Hungary                       New Zealand
England                       China
Ireland                       Turkey
Croatia                       Brazil
Malaysia                      Ecuador
They hope to finalize a number of these in the next 12 to 24 months and have presence in every corner of the globe before the end of this decade.

Nielsen Media Research

They are continuing to post extremely good results and they are maintaining their position in the digital marketplace in Canada as the top sports specialty network in the country.

Fight Network Radio

It is their goal to expand their weekly LIVE talk radio show "Live Audio Wrestling" into other markets outside Canada and they have started to explore those options.

In addition they will be launching in the first or second quarter of 2007 a daily internet MMA radio show with there news team that will be available from there website.

Fight Mobile

They are getting some great feedback from the carriers on the Fight Mobile service. 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.

They are looking to expand this coverage to other carriers and are actively working with there partners to do this.

In addition they will be offering SMS texting, ringtones, ringbacks, wallpaper and video content for mobile phones in 2007.

The final frontier for the mobile phone will be mobile TV -- they are actively looking at this opportunity will a number of potential partners from around the world and they anticipate rolling this out in 2007 as well.

Fight Network Online

The Fight Store -- their e-commerce offering, enabling fans to purchase all the great Fight Network gear plus unique and limited editions articles has successfully launched.

If you interested in the branded merchandise go to The Fight Network website click on "store" to order.

As shareholders of Blackout -- use this discount code TFN013 and receive 15% off any of your purchases between now and Christmas

The Fight Network also has a very strong web presents with while also owning and managing several other "Fight" related web properties such as the highly popular, and the

Fight Network -- Newsletter

Every month Mike Garrow -- president of The Fight Network puts out an in-depth newsletter on the state of wrestling, MMA and boxing. It is a very well written concise letter that gives you news and information on the different areas of the fight game.

A number of you have shown your support for BKMP and TFN by signing up for the newsletter, but a number of you have not.

Many of you invested in BKMP because of its ownership stake in The Fight Network -- you believe in the company and its product -- and as loyal shareholders of BKMP and The Fight Network I feel very strongly that every shareholder out there should show their support by signing up for the newsletter.

I want to see each and every one of you out there signing up for The Fight Network's monthly newsletter and supporting the company.

Fight Network Personnel

For those who haven't keep up with the resent additions over the past several months to the Fight Network family I just wanted to recap them for you as they have added a number of key personnel:

1. Mauro Ranallo -- some people in the MMA industry consider Mauro to be the best on air talent in the business, we happen to agree with them.

2. Loretta Hunt -- probably the best news reported in MMA has taken over as editor of the MMA news section of our website.

3. Jason Abelson -- a well know and respected boxing reporter -- who has taken over the managing our boxing news section of The Fight Network website.

4. Randy "the Natural" Couture -- MMA legend and hall of fame member has come aboard on The Fight Network as an ambassador for the Network and will be doing a number of additional things with the network.

5. Frank Trigg -- a world-class mixed martial arts competitor and color commentator for PRIDE Fighting Championships has joined The Fight Network broadcast team, as an on-air analyst for the Network's expanding news coverage for the sport of mixed martial arts.

6. Diego " Chico " Corrales -- has joined The Fight Network as a monthly columnist for boxing across all of its distribution platforms.

Stock Buy-Back

There have been no changes in the share buy back since last reported.

There are other opportunities that we are looking at, which will be release 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

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.

Contact Information

  • Media Contacts:

    For The Fight Network
    Stephen Murdoch
    OEB International
    Public Relations/Public Affairs
    Tel: (905) 682-7203 extension 22
    Fax: (905) 682-7481

    Tim Foster (Investor Relations Contact)
    OEB International
    Public Relations/Public Affairs
    Tel: (905) 682-7203
    Fax: (905) 682-7481