Bally Total Fitness (BFT) Said Cash Contribution Growth in 2006 with not Be Acheived; No Sale

August 11, 2006 8:39 AM EDT

Bally Total Fitness Holding Corporation (NYSE: BFT) reported that due in substantial part to continued softness in member joins compared to prior periods, the Company's prior indication as to potential growth in "cash contribution" in 2006 versus 2005 will not be achieved.

Bally Total Fitness also stated that its previously announced process to evaluate strategic alternatives, which had focused on a sale or merger of the Company, is now expected to focus on exploring other financing alternatives, such as a recapitalization, private placement, underwritten rights offering or other corporate restructuring. In light of the developments noted above, and the fact that its discussions with potential interested parties have not to date resulted in any proposal, agreement or transaction involving a sale or merger of the Company, the Strategic Alternatives Committee of Bally Total Fitness has determined, after consultation with its outside financial advisors, that other alternatives should now be pursued.

Bally also announced that while the Company will not be filing its Quarterly Report on Form 10-Q for the three months ended June 30, 2006 in a timely manner, it expects to file that report before the September 11, 2006 expiration of the initial waiver period previously obtained from the Company's senior bank lenders and bondholders.

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