SUN ANNOUNCES NASDAQ APPROVED STOCK SPLIT, SHAREHOLDER MEETING AND FILING OF ITS ANNUAL FINANCIAL STATEMENTS

 
DALLAS, TX -- (MARKET WIRE) – May 22nd 2008 – SUN Sports and Entertainment Inc., (Pink Sheets: SUNR) announced today the approval by NASDAQ of a Reverse Stock Split, notice of a Shareholders Meeting, and filing of Financial Statements for fiscal year ending (FYE) 2007.
 
SUN received approval from NASDAQ to effectuate a 100:1 reverse of its issued and outstanding shares reducing the amount from 250,000,000 to 2,500,000. The change in the capital structure is required to complete ongoing discussions concerning the recapitalization of the Company.
 
SUN is also holding a Shareholders Meeting on Monday June 9th 2008 in Dallas, TX for shareholders to vote on a number of items listed in a Proxy that will be mailed to all shareholders of record as of May 9th 2008. The meeting is restricted to Shareholders listed in the Proxy and will not be open to the General Public. The Company will be holding an Annual Shareholders Meeting to update and ratify items for approval and will issue notices accordingly.
 
The Company also posted its FYE 12/31/07 and FYE 12/31/06 (unaudited) Financial Statements and Balance Sheet on Pink Sheets (www.pinksheets.com <http://www.pinksheets.com> ). Revenue for 12/31/07 was $1,631,191 compared to Revenue for 12/31/06 of $170,906. In 2007 the Company invested heavily in marketing, event production, and brand development and as a result posted a Net Loss for 12/31/07 of $2,849,245 compared to Net Loss for 12/31/06 of $509,245.
 
As part of the continued reorganizational plan the Company has begun implementing a financial program intended to eliminate debt and provide new equity financing. The Company will seek to file a Form 10 with the intent to become a fully reporting company with audited financial statements.  The ongoing restructuring plan involves revising the corporate strategic goals and new financing to provide the Company the necessary capital to implement its operating plans.  
 
The Company has been working on building a foundation for its future to include new events, strategic relations in the media, venue, finance and global marketing partners. SUN Chief Operating Officer Clyde Gentry III stated, “With all the recent news of MMA in the media and the production of large scale MMA Events, the opportunity for SUN in this sport could not have come at a better time.” Gentry added, “I am pleased with the progress of the Company since my appointment in this position and even more impressed with the strategic relations that we are in discussions with. I am confident that we are in the right place at the right time.”