Gold's Gym Awards Territorial Rights for Kentuckyand Tennessee.

Business Editors

FALLS CHURCH, Va.--(BUSINESS WIRE)--May 17, 2000

Global Fitness Holdings acquires exclusive development rights;

Expansion planned for Nashville, Memphis, Lexington and Cincinnati

Gold's Gym Franchising, a division of Gold's Gym International,

The deal, effective immediately, will see the conversion of seven World Gyms to Gold's Gyms throughout the three-state region. Royce Pulliam, chairman of Global Fitness Holdings, said his group will operate 10 Gold's Gyms by year's end, with plans for a minimum of 16 Gold's Gyms within the next four years.

"Awarding exclusive development rights for two states and a major market in a third (state) is unique to our industry," said GGI Chief Executive Officer Kirk Galiani. "Royce and his group have a fine reputation, are well-financed, and have demonstrated sound management abilities. They recognized our vision of how we want to grow Gold's Gym and they wanted to be a part of it."

Gold's Gym will make its debut in Nashville, Memphis, Knoxville, Cincinnati and Lexington, Ky., as part of the planned expansion undertaken by Pulliam's group.

"Gold's is going in the right direction," said Pulliam. "They are energetic and focused. They are a prudent force. I like their long-term strategy and growth plan. They understand what it's all about. They have what the industry has been looking for - leaders."

David Young, national account representative for Life Fitness and Hammer Strength, has worked with both Galiani and Pulliam for several years.

"I think this is an absolutely terrific marriage," said Young. "Kirk has a great vision for growing Gold's Gym International and Royce operates incredible facilities. It's easy to see why they're both pumped up about the prospects of developing this untapped region."

Regarded as the pioneer of the health and fitness industry, Gold's Gym opened its first location in Venice, Calif., in 1965. With the notoriety of Arnold Schwarzenegger, Lou Ferrigno and the movie, Pumping Iron, Gold's Gym quickly became known as "The Mecca of Bodybuilding." Today, Gold's is the gym of preference of amateur and pro athletes and the entertainment industry.

Gold's Gym was recently recognized in the Millennium Edition of "Guinness World Records 2000" as being the largest gym chain in the world. Gold's Gym is comprised of more than 550 gyms in 47 states and 26 countries and includes more than two million members.