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

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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.

 

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