Bison is being shown a model of what the city he will create shall look like. He likes the model of Bisonopolis, but he thinks the food court should be made larger, because all the major chains are going to want in. Suddenly a report from Chun-Li appears on the view screens and she announces that Guile has been killed in action in a jail break led by Victor Sagat, a man who supplies weapons to Bison. Dee Jay thinks this is great news, but Bison says he mourns his death. He had hoped to face Guile on the battlefield, one gentleman warrior to another. Then he'd snap Guile's spine.

Bison then changes the subject by being annoyed with the media. Chun-Li just called him a warlord, and others are calling him "mad". He wants to know why, because all he wants to do is create genetic super soldiers for his own purposes -his own good purposes -and send them out to sweep away all of his adversaries. Carlos Blanka will be the first one of these. After he takes the world is his own grip, Bison announces that there will be peace and that all of humanity will bow down to him in tribute. Zangief thinks his speech was beautiful, whilst Dee Jay thinks they are both nuts.

Meanwhile, Chun-Li sets up a satellite dish on the outside of her news van. Inside, Balrog (her cameraman) and Honda are tracking the homing device they put on the truck Sagat used to escape in. They see it is heading north, but there seems to be some interference. Balrog finds out that there is another device causing this, and after messing around on a computer, he finds out that there is another signal which is tracing back to the AN headquarters. T. Hawk then appears and tells them they need to move out of here, so Honda starts driving.

Chun-Li wants to find out more info on this other signal. As the truck leaves, she slips out unnoticed by any AN soldiers and heads inside the HQ building. After sneaking around and avoiding some more guards, she uses a small computer to trace where the source of the signal is.

The takes her inside the AN's morgue, where she eventually finds another computer. She sees that this computer is also displaying information on where Sagat's truck is heading. She also sees a body on one of the beds and lifts the cover up to see the dead Guile underneath. She puts the cover back on.

But then she jumps back in fright as Guile turns out to be not quite as dead as previously thought! He's alive and well, as he reveals his wounds were fake. Chun-Li gets it straight away -those two guys (Ryu and Ken) must be working for him. She tries to leave but T. Hawk and Cammy arrive. Before T. Hawk can imprison her, Guile stops him as she says how she wants Bison's head and has been working for 20 years to get this far. But Guile has Hawk take her away as he says the war against Bison isn't a personal vendetta.

T. Hawk and Cammy lead her away, but she surprises them both by flipped over and then running straight towards a window. Before they can stop her, she leaps through it and then makes her way across the roof tops to the ground below. The AN forces are alerted but she is extremely fast and is soon out of sight.

Later on, far away from the AN base, there is a Shadaloo weapons market where lots of people are trading guns and other stuff. Inside one of the tents, Bison is there himself along with Sagat, Dee Jay, Zangief, Vega, Ryu and Ken. They are watching the arranged entertainment, which consists of 3 magicians putting on an act. What they don't know is that the 3 are Chun-Li, Balrog and Honda, who have got a plan ready to blow the entire place up.

But they have some tricks to do first, such as sticking Chun-Li in a barrel, which Balrog then chops in half. Thankfully Chun-Li isn't in it and she somehow appears from above, much to the delight of the audience. As she and the others head off stage so some dancers can come on, she whispers to Balrog and Honda that their explosive finish will have to wait, as they have a problem. That problem is Ryu and Ken, who they don't want to blow up. Ryu is trying to tell Ken how they need to concentrate on their mission of getting that homing device up to Bison's fortress, but Ken is much more interested in Chun-Li, who he goes off to find.

Vega starts passing around new hardware to Bison's troops, whilst Sagat and Bison talk money. Bison says that, rather than having money, he offers Sagat some of the land he has here, after the war with the AN is over. Sagat isn't convinced there will be any land left after the battle and instead wants to see the color of Bison's cash. Meanwhile, Ken has been captured by Chun-Li and her friends, and Ryu goes to look for him. He sees Ken in a tent and goes in, only for Honda to start fighting him. Chun-Li appears and breaks them up.

Sagat sees the color of Bison's money -it is red and has the dictator's face on it. Sagat thinks that this must be a joke and that the money isn't worth the paper it was printed on, but Bison thinks otherwise. He says that each Bison dollar shall be worth 5 British pounds -that is the exchange rate the Bank of England will set after he kidnaps their Queen. Sagat thinks Bison is a raving lunatic, saying as much and throwing his money into a fire. Meanwhile, Ryu and Ken have been tied up to a post, but Chun-Li tells them that they are really their friends. Ryu says he recognises Honda as a sumo from Hawaii.

Honda says he was going to be the grand sumo champion, but Shadaloo ruined his reputation. Balrog says they did the same thing to his boxing career. Chun-Li then says that they intend to blow up all of Sagat and Bison's weapons and ammo tonight, and send Bison straight to hell. Back inside the main tent, things turn nasty as Bison and his troops standing on one side, whilst Sagat and everyone loyal to him stand on the opposite side, with nearly everyone brandishing guns.

Ryu and Ken are sent back, having been given a 10 minute time limit. They don't think things can get any worse when they see that everyone is pointing guns at each other. They try and get the two sides to lower their arms, but Sagat threatens to shoot Ken whilst Bison chokes Ryu. Bison asks Ryu if he dares to interfere. Ryu says he does because there are enemy spies everywhere. His weak reasoning doesn't get past Bison, but then everyone hears Chun-Li's voice. Ryu says that she is one of the spies.

Everyone heads over to where the sound is coming from, and Bison opens a door to find a small TV inside. An image of Chun-Li, Balrog and Honda appears, with the three of them stood next to a truck. Chun-Li tells Bison and Sagat that all of their weapons are going to be blown sky high as Honda takes the clutch off and the truck starts to roll forward, getting faster and faster. The truck has a bomb on it, and as everyone continues to watch the screen, they realise it is heading straight for them!

"Quick! Change the channel!"

Zangief, you so dumb.

The truck goes too fast for anyone to even attempt at stopping it, so Bison orders everyone out. They leave in a hurry, seconds before the truck blows up and the entire camp is rocked by a massive explosion. Bison orders for the camp to be searched, as he wants Chun-Li found.

An AN satellite picks up the explosion, and thanks to the advanced sensors it has, manages to view what is going on down there. It displays pictures of Chun-Li and her friends being captured, but it also shows where Ryu and Ken are. They have been taken to Bison's base, but as one of them has the homing device, the satellite locates where the base is. Meanwhile Bison has taken everyone back to his base and gives them a brief tour. He tells Zangief to take Ryu and Ken and see they get clean clothes, as they are now guests of honor after telling him about Chun-Li's treachery. He tells Sagat and Vega that they are welcome to stay here, whilst he has Honda and Balrog taken away to be interrogated. Meanwhile, he decides to give Chun-Li a private interview and has her sent to his personal chambers.

Ryu and Ken discuss how much this sucks, because the good guys are being taken away because of something they did. The counter now has less than 12 hours on it, and at the AN HQ, Guile has called together everyone to discuss a plan of attack.

He says an air attack is impossible, but has has got another plan: a small team will lead the assault by using a stealth boat. The main force will come from the north, whilst the stealth boat will head up a nearby channel and distract the defenses the Shadaloo base has. Guile is going to be the one piloting the boat. He tells everyone to get ready, as this is it. Meanwhile, back at the Shadaloo base...

...Honda is being tortured, but thanks to him using some sumo technique which makes his mind be in one place and his body be in another, he doesn't show any signs of pain. The torturer gets tired and heads out. Honda goes out of his stance and feels the wounds the guy just whipped into his back, but he seems OK. Balrog passes Honda one of his chains, so Honda pulls it and it snaps.

Meanwhile, Zangief says that Ryu and Ken now look like real Bison troopers and after briefly showing them around the training grounds they have here, he says he'll see them later and leaves. Ryu and Ken play along for now, but they have both taken a good look at one of the maps to the base and head out. Back at the AN base, Guile is about to give a speech when a black car rolls up. He goes to greet the people inside it.

The main guy in the car is someone else from the AN, but he isn't here to fight. He says the security council has just voted and has decided to negotiate with Bison. Guile's new orders are to call off the assault and to contact Bison, asking him to extend the deadline as the AN are now prepared to pay the ransom money he wants. Guile tries to argue that if they pay this money, Bison could just take more hostages next month and ask for even more money, but he gets bluntly told to go and tells his troops that the attack is off. Guile goes back to the podium.

After giving the single greatest speech in AN army history, his main line about how he's going to kick that son of a bitch Bison's ass so hard that the next Bison wannabe will feel it gets the troops on his side and he asks them who is going home and who is going with him. Not surprisingly, everyone wants to go with him. As the AN troops pack onto boats, Guile takes T. Hawk and Cammy with him to their stealth boat.

The guy wanting to negotiate demands Guile to stop, but nobody is listening to him at this point and he and his buddies get sprayed with water as Guile heads out. The assault is back on!

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