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BALLY TOTAL FITNESS EXERCISING NEW DISTRIBUTION AGREEMENT

Bally Total Fitness of Chicago has announced a three year agreement with Distributech, a division of Haas Publishing Company of Atlanta, Georgia. The agreement will see the distribution of advertising circulars, targeted vertical publications and other promotional materials to Bally's members and guest who attend its fitness centres. Under the agreement, Distributech will build, deliver and service custom racks in the reception areas of Bally's fitness centres. Haas Publishing Company will produce some of the materials to be distributed and sell advertising for its publications and distribution agreements. Over the three year deal, Bally Total Fitness will receive $1 million from Distributech. The nationwide, commercial operator of fitness centres, will also hold the rights to distribute additional materials on the racks as well as sell advertising space on the sides of the racks. Bally Total Fitness has approximately 4 million members, operating 350 facilities in 27 states and Canada.

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