Bally Total Fitness (BFT) Obtained Forbearance Agreement From Lenders

April 12, 2007 4:50 PM EDT

Bally Total Fitness (NYSE: BFT) has obtained a forbearance agreement from the lenders under its $284 million senior secured credit facility.

Under the agreement, the lenders have agreed, among other things, to forbear from exercising any remedies under their credit agreement as a result of defaults due to the Company's inability to provide audited financial statements for the fiscal year ended December 31, 2006 and certain other financial information to the lenders.

The lenders have also agreed not to exercise cross-default remedies as a result of defaults under the Company's public indentures due to the Company's previously disclosed inability to timely file its 2006 Annual Report on Form 10-K with the SEC.

The forbearance period expires on July 13, 2007, but could expire earlier if enforcement action is taken by any holder of the Company's 10-1/2% Senior Notes due 2011 or Senior Subordinated Notes, or if the Company pays any principal or interest on the Senior Subordinated Notes.

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