Bally Total Fitness Revises Potential Growth Indication for 2006

Bally Total Fitness Revises Potential Growth Indication for 2006; Provides Information On Strategic Alternatives Process; Expects to File Second Quarter Form 10-Q Prior to Initial Waiver Deadline
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CHICAGO -- Bally Total Fitness Holding Corporation (NYSE: BFT) reported today 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. The Company anticipates the amount for 2006 will be 10 to 20% lower than the $120 million cash contribution previously disclosed for 2005. However, the Company continues to anticipate that its cash flow and availability under its senior secured credit facility will be sufficient to meet its liquidity needs for working capital and other cash requirements through the first quarter of 2007. The 2005 cash contribution is reconciled to operating income at the end of this press release.

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 Total Fitness cautions that there can be no assurance as to the outcome of the strategic alternatives process, and Bally does not undertake any obligation to provide further updates.

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. On August 10, 2006, the Company filed a Form 12b-25 pertaining to this delay in filing the second quarter Form 10-Q.

About Bally Total Fitness

Bally Total Fitness is the largest and only nationwide commercial operator of fitness centers in the U.S., with approximately 390 facilities located in 29 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers.

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