SOURCE: Muscle Flex Inc.

August 17, 2009 05:00 ET

Muscle Flex Inc. Completes the Acquisition of the "In the Raw®" Trademark After Successfully Defeating the WWE's "Raw" Trademark Application 1,153,018 in Federal Appeals Court Ending a Multi-Year Dispute in Canada

LOS ANGELES, CA--(Marketwire - August 17, 2009) - Muscle Flex Inc. (PINKSHEETS: MFLI) announced today that it has completed the acquisition of the "In the Raw®" registered trademark. The multi-year dispute between Muscle Flex's "In the Raw" and WWE's "Raw" trademark concluded in April of this year when Muscle Flex Inc. successfully defended its "In the Raw®" trademark against WWE "Raw" trademark application 1,153,018 in a final Federal Court appeal by the WWE. Previously, on June 18, 2008, the Canadian Intellectual Property Office (CIPO) Opposition Board issued its final decision with respect to the WWE Canadian trademark application for "RAW." The ruling confirmed that certain wares listed in the RAW trademark application 1,153,018 were confusingly similar and thus lacked distinctiveness from the "In the Raw®" registered trademark.

As part of its trademark victory, Muscle Flex Inc. is expediting the development of a diversified portfolio of "In the Raw®" branded merchandise. Products include multiple lines of apparel, such as caps, T-shirts and workout wear, extreme sports, reality-based videos and related music. Future products will be marketed through direct response media as well as traditional retail distribution. Details of the Muscle Flex 'In the Raw' brand are expected to be released shortly.

"The defense of the 'In the Raw' trademark has lasted many years and our victory comes as no surprise," commented Danny Alex, CEO of Muscle Flex. "Now that the appeal process has concluded, Muscle Flex is beginning the process to monetize the many lucrative merchandising and future licensing opportunities of the 'In the Raw' brand that had to placed on hold during the time of the dispute. We also intend to vigorously enforce all of our rights to the Canadian 'In the Raw' trademark as well as seek damages and infringement on all unauthorized use of our brand in Canada."

Danny Alex, CEO of Muscle Flex Inc., continued, "We are now measuring the specific potential damages the WWE has caused over the years, including lost merchandising and licensing revenues of our 'In the Raw' brand in Canada and infringement. Muscle Flex is confident that its evidence proves undeniably that the WWE procured the sale and distribution of 'Raw' labeled products that infringed on the 'In the Raw®' wares and services over a period of many years. In 2002, we issued a Cease and Desist order that was ignored by the WWE as they continued to sell 'Raw' branded merchandise in Canada knowing that 'In the Raw' was a registered trademark in Canada and had been for many years prior. As well, there were many attempts to settle the case, all of which were routinely ignored."

In a press release date July 20, 2009, Muscle Flex Inc. disclosed that it was in possession of WWE "Raw" labeled items that it believes directly infringe on its 'In the Raw' trademark. Items include; various CDs, VHS tapes and a number of apparel items. According to the WWE's most recent reported financial quarter, combined sales of WWE's consumer products and digital media business segments produced $40 million in global revenues. In previous quarters, these numbers were even higher.

For additional information regarding the "In the Raw®" trademark and details on the Federal Court and CIPO ruling, please visit our corporate website at www.MuscleFlexInc.com.

"Muscle Flex" and "Extreme Machine" are registered trademarks of Muscle Flex Inc., All Rights Reserved.

"In the Raw" is a Registered Trademark of Muscle Flex Inc. in Canada, All Rights Reserved.

About Muscle Flex Inc. (www.MuscleFlexInc.com)

Muscle Flex Inc. brings new products to market using direct response TV infomercials specializing in the health, fitness, wellness and hygiene sectors. As well, Muscle Flex Inc. develops and creates general television content for network and cable television distribution. Muscle Flex's corporate strategy is to develop new and innovative products for sale and distribution via its proprietary direct response marketing system and the creation of television media and shows for general network and cable broadcast.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Muscle Flex Inc. to be materially different from the statements made herein.