Audio Karate signed to kung fu records in fall 2004. They put out their debut album, space camp, on may 14, 2002. The album featured the songs "nintendo 89," "rosemead," and "senior year. " after the release of Space Camp, Audio Karate toured the world with bands such as The Ataris, NOFX and Blink-182.
After the heavy touring, the band decided to take a break to write their next record. The result was an album named Lady Melody that was produced by Bill Stevenson of the descendents. Lady Melody was released on June 1, 2004 on Kung Fu Records.