On May 31, Bally Total Fitness (“Bally”) announced that it has reached an agreement in principle on the proposed terms of a consensual restructuring. Bally plans to implement the proposed restructuring by filing a pre-packaged Chapter 11 bankruptcy of the parent company Bally Total Fitness Holding Corp., and various subsidiaries.

According to Don Kornstein, Bally Chief Restructuring Officer and Interim Chairman, the consensual restructuring would reduce debt, reduce cash interest obligations by approximately $29 million and provide new cash availability.

The Chapter 11 filing is contingent upon, in part, approval of the proposed plan of reorganization. Bally expects to commence vote solicitation in mid-June. If the necessary votes are received, a pre-packaged Chapter 11 would be filed in July 2007. Bally expects to complete reorganization within 60 days of filing Chapter 11.

Bally expects to continue normal business operations during restructuring and would emerge from Chapter 11 no longer subject to public reporting obligations.

Bally is one of the largest operators of fitness centers in the U.S. Bally has over 400 facilities located in 29 states, Mexico, Canada, Korea, China and the Caribbean.

For more information, please read the Bally press release at: http://phx.corporate-ir.net/phoenix.zhtml?c=97646&p=irol-newsArticle&ID=1009808&highlight=

Ray