After Ryu defeated several prisoners, he is faced with a bug strong prisoner. He is Sagat, the former Muay Thai kick boxing champion. Sagat was not happy that Ryu defeated the prisoners. So, Ryu and Sagat fought. At first, Sagat had Ryu pinned down, then Ryu retaliated. Afgter the fight, Sagat tells Ryu on how he had it all, and why he was in prison, he as well as Ryu was set up by the Ashura. Meanwhile ,Ken finally finds the person who set up Ryu with the drugs. Then, Ryu was free from prison. Now, he helps Ken to defeat the Ashura.