To: All of the Fans, Supporters and Participants of Robot Wars
From: Steve Plotnicki, President, Profile Records

I'm writing to give you an update on the current status. Also, many of your reactions to my letter of May 22nd were relayed to me and I thought I would respond. First, some good news.

I'm sure you're all aware that there was a U.K. television series based on Robot Wars. For the initial season, the producer of the show, Mentorn Productions, staged a live event and created a six-episode series. It was broadcast by the BBC2 and was such a great success that the BBC2 has commissioned an additional 18 episodes to be filmed later this year. Just this week I learned that Mentorn plans to film a US event and make it one of the episodes - if and when the event takes place. Mentorn wants to introduce the US robots to U.K. and, hopefully, European audiences. I informed Marc of this yesterday. I also told him we need to meet so we can figure out how we can hold an event so this can happen. If he agrees, an event can still take place August 14-16.

As for your responses to my letter, Marc has portrayed me as the villian and a number of you seem to have fallen for it. Maybe if I do a better job of explaining why an event hasn't yet been scheduled this year, you will direct your anger where it truly belongs: at him, not me.

As I told you in my last letter, Marc asked the Federal Judge who oversees our case for emergency relief on February 23rd. The emergency relief he was seeking was that the court should force Profile to give him a license to hold Robot Wars '98. This license would entitle Marc to keep all proceeds from holding the event. All the money from ticket sales, tee-shirts and caps, banner ads, etc. would go directly into his pocket, not Robot Wars'. In exchange for giving these rights to Marc, Profile was to receive the grand sum of $10.00. You don't have to be a lawyer to see that this is unfair.

Marc hasn't approached us about holding the event on any other basis. In past years, the event occurred because the parties reached an agreement. There were mulitple phone calls on a daily basis between Marc and Profile. Through that dialogue, all of the important issues about the event were decided including how we were going to pay for it. This year, I haven't spoken to Marc since we were in the U.K. for the filming of Mentorn's Robot Wars series, which took place in November. I have sent him numerous letters which were intended to lead to a dialogue but other than shaking his hand when I've seen him in court or at mediation sessions, there hasn't been any dialogue. Without an agreement between the parties, an event can't take place. There can't be an agreement unless the sides talk. Profile isn't the party who's refusing to talk.

There isn't much of a mystery as to why Marc isn't speaking to us. It takes a lot of money to put on the event, more than you might think. Borrowing isn't an option because Robot Wars is already in debt. The other alternative is investing. Profile is willng to increase its investment, but I don't think Marc has money to invest. If he allows someone else to invest the money that he can't put up (whether it's me or a third party), that person will have to get shares in exchange for their investment. When that occurs, Marc will become a minority shareholder, which it appears he is trying to avoid. But, unless Marc comes up with half the needed money on his own, his dilution seems inevitable.

He asked us to buy him out. He even set the price. And, after we agreed, he backed out. We were never given a good explanation for his conduct - and neither were you. That's why there has been a strong emphasis on getting this thing settled and allowing the business to go on. Until Marc allows that to happen, his intransigence is bring Robot Wars to a standstill. Unfortunately, he is holding you, the robot makers, hostage because of his financial predicament.

Sincerely,

Steve Plotnicki