Fitness Leader to Launch New Franchising Program at International Franchise Expo; Plans for Two New U.S. Franchises Already Underway

Bally Total Fitness the nation’s leader in health and fitness, has renewed its focus on franchising and will launch a new franchising program at the International Franchise Expo June 2-4, 2006 in Washington D.C. In addition to its presence at the expo, Bally is also advertising in key franchise trade publications to announce the program and attract franchisees. Meanwhile, plans for two new U.S. franchises are already underway.

According to Paul Toback, chairman and CEO of Bally Total Fitness: “Franchising is a key part of our strategic growth plan. We are excited to renew our focus on franchising here in the States as well as abroad and intend to build our business through franchising to enhance revenues.”

The plans for franchise expansion were set in motion last fall, when Robert Moschorak joined the company as managing director of franchise operations. Moschorak, who will lead the initiative, has more than 20 years
of experience in domestic and international franchising and has already laid the groundwork for success in this area. The new structure will include individual franchise agreements, area development agreements and
master franchise agreements to be used strategically going forward.

According to Moschorak: “We have developed a comprehensive strategy for franchise expansion and have a solid program in place. We seek to become the strongest and most recognizable franchise brand in the fitness industry.”

The fitness leader currently has 32 franchises, most of which are overseas. However, the company is eager to increase its domestic franchise locations and is excited to welcome two new franchisees in Baton Rouge,
Louisiana and Jacksonville, Florida.

The Baton Rouge franchise, which is slated to open later this year, will be the first Bally Total Fitness in the area and has already been well received by residents, who have been visiting a temporary location to get in on pre-opening membership offers and workout on a sample of the equipment the club will offer. The temporary location, located at 10101 Park Rowe Avenue, Suite 110, in Baton Rouge, offers personal training and fully equipped locker rooms for guests.

The full facility is expected to open its doors this December and will feature top of the line cardiovascular and resistance training equipment, a full range of group exercise classes such as Kwando and Reaction Cycling,
and a full personal training staff to assist members. The club will be located in the new Perkins Rowe development, which is slated to house numerous retailers, office space and a medical centre.

Bally Total Fitness is the largest and only nationwide commercial operator of fitness centres, with nearly 390 facilities located in 29 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers.

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