Zuma Beach Entertainment Agrees to Acquire World Arena Rugby Union

Zuma Beach Entertainment Agrees to Acquire World Arena Rugby Union Zuma Beach Entertainment, Inc ("ZUMA") (OTC: ZMBC.PK - News) today announced that it has completed its due diligence pertaining to the acquisition of World Arena Rugby Union, LLC (“WAR”) and will seek shareholder approval to acquire WAR. Following the completion of the acquisition, WAR shall become a wholly owned subsidiary of ZUMA.

ZUMA management plans to file a proxy statement with the Securities and Exchange Commission (SEC). All shareholders will receive a copy of the proxy statement, which will outline the acquisition of WAR and request their approval of the acquisition.

In consideration for the acquisition shareholders of WAR shall receive thirty one percent (31%) of the issued and outstanding common shares of ZUMA represented by newly issued common shares restricted under rule 144 of the Securities and Exchange Act of 1934.

WAR is a privately held Company that owns, operates and manages all aspects of an indoor World Arena Ruby Union, controlling all local advertising, marketing, team marks and merchandising rights. The game itself showcases 14 of the toughest men on earth battling for 52 minutes in a seven-a-side version of rugby, a sport that has been played for over 150 years. Competed on artificial turf within the confines of an indoor arena, this high scoring game offers unique on-the-fly substitutions to promote fast, non-stop action. It is a rough, physically demanding, electrifyingly entertaining, and above all fan-friendly sport.

Daniel P. Cannon, Chairman and CEO of ZUMA states, “We see a great business opportunity to enable ZUMA to leverage its investment in the entertainment industry and add a new component to our entertainment portfolio. We strongly believe the acquisition of WAR will have a significant positive effect on revenue growth. WAR offers a financially sound sports entertainment product that is projected to break even in 2006 and generate substantial operating revenue in 2007, 2008 and beyond.”

The sports industry is $375B business. Sponsorship spending in sports is larger than the U.S. Banking Industry, Auto Industry or the Transportation Industry. According to the Street and Smith Sports Journal, annual spending for sports advertising is $25B.

WAR was formed by Buckeye Epstein (Chairman and Founder) to create a profitable international professional indoor rugby league, with athletes and teams that are competitive on an international level while providing affordable sports entertainment for its fans.

Mr. Epstein has over 25 years of a diverse background in sports, marketing and financial management. At age 30 Mr. Epstein was named President of Major League Baseball Youth Marketing Program MLB “Pitch, Hit and Run”. During Mr. Epstein’s tenure in this industry, he has produced, organized, managed and raised millions of dollars in grassroots sports events. He has managed national events for organizations and corporations such as the NFL, Miller Brewing Company Racing, Miller Brewing Pro Beach Volleyball, Universal Pictures, Ford Motor Company, E! Entertainment, Gatorade, Nike, Champs Sports, Russell Sportswear, Champion Sportswear, Michael Bolton and more.

“The management team of ZUMA looks forward to acquiring WAR and to build WAR into a profitable sports entertainment product. As the League matures we anticipate strong profits from various revenue streams including ticket sales, licensing and merchandising, broadcast revenue etc.” said Cannon. With ticket prices at $10.95 per person, you can see why we believe this is what the public is waiting for. According to the Team Marketing Report/USA Today, the average ticket prices for the NFL, NBA, NHL and MLB in 2004 were $52.95, $44.68, $44.22 and $21.17 respectively. According to Wikipdia.com the NFL, NBA, MLB and NHL receives $2.27B, $660M, $345M, and $120M respectively from broadcast revenues. The AFL has a revenue-sharing agreement.

In addition to ticket sales and broadcast revenues, ZUMA management realizes the compounding value that a league comprised of successful franchises can accumulate year after year. According to the Sports Industry Almanac - Plunkett Research, a MLS franchise is worth approximately $20M. The Street and Smith Journal value an average AFL franchise at $15M (1998 - $250,000), an average NHL franchise at $148M (1993 - $50M) and an average NFL franchise at $530M (1993 - $167M).

“During the last six weeks, we have made tremendous progress in examining the sports and sports entertainment industries, the delivery capabilities of WAR and senior management's vision for WAR," said Cannon. "Once we have completed the proxy process and are able to close on this transaction, we feel strongly that our audience, employees and shareholders will all benefit greatly. We are looking forward to acquiring WAR, which we believe poses huge potential for growth and solid results."

About Zuma Beach Entertainment, Inc.

Zuma Beach Entertainment, Inc (OTC: ZMBC.PK) is an entertainment Company that develops, licenses and distributes music, film and animation, and sports entertainment products for all audiences. The Company aims to build a comprehensive entertainment library that meets and exceeds the consumers' needs and interests for high quality, captivating entertainment. Zuma Beach Entertainment uniquely markets and establishes the distribution of products and merchandise specific to each entertainment property, released to meet the needs of each specific target market.

The Company has identified a network of distribution channels to enable the superior delivery of its entertainment products and properties to market, to maximize licensing opportunities, to attain maximum profit potential, and to achieve economies of scale. Safe Harbor Statement

Certain statements in this press release constitute "forward-looking statements" relating to Zuma Beach Entertainment within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "would," "should," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.

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Website: http://www.zumabeachentertainment.com

Source: Zuma Beach Entertainment