The Sports Club Co. Inc. and Gold's Gym Enterprises Inc. Announce Letter of Intent for Acquisition of Gold's Gym

Business Wire, Sept 16, 1997

LOS ANGELES--(BUSINESS WIRE)--Sept. 16, 1997--The Sports Club Co. Inc. (ASE:SCY) and Gold's Gym Enterprises Inc. Tuesday announced that they had entered into a non-binding letter of intent for The Sports Club Co. Inc. to acquire the operations of Gold's Gym Enterprises Inc. and its related companies.

Gold's Gym Enterprises owns one Gold's Gym in Venice, Calif., and a related company acts as franchisor with respect to approximately 550 Gold's Gyms throughout the world. Gross revenues from Gold's Gym franchising operations in 1996 were approximately $2.6 million. D. Michael Talla, chairman of The Sports Club Co., said, "At this point the parties are investigating the desirability of a business combination and it is premature to predict whether the transaction will be consummated."

The Sports Club Co. operates upscale health and fitness clubs under the Sports Club and Spectrum Club names.

CONTACT: The Sports Club Co. Inc.

John M. Gibbons, 310/479-5200

or

Gold's Gym Enterprises Inc.

Ed Connors, 310/392-3005