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News Archive
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ClubCom and Cardio Theater Merge
PITTSBURGH & ATLANTA (August 24, 2001) - On August 17, 2001, ClubCom and
Cardio Theater successfully
completed a merger of the two companies resulting in Cardio Theater becoming
a wholly owned subsidiary corporation of ClubCom. The Cardio Theater shareholders,
most notably Tony de Leede, have become shareholders of the ClubCom parent corporation.
The transaction, estimated to be valued at $10 million, results in the integration
of the fitness industry's leading entertainment hardware manufacturer with the nation's
leading broadcasting company for place-based communities. The merger also consolidates
within one organization the E-Zone installation base that was purchased by ClubCom
and Cardio Theater earlier this year.
"It's a perfect match. The integration of ClubCom, Cardio Theater and E-Zone provides
a fully compatible entertainment, club promotions and advertising solution." Mark Smith,
CEO of Town Sports International, a key network partner of ClubCom.
"The merger represents a synergistic convergence of hardware and content," states
Thomas G. Lapcevic, the Chairman and CEO of ClubCom. "The result is a standardized
entertainment platform for the fitness industry that systematically integrates
the
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powerful attributes of ClubCom programming with Cardio Theater and E-Zone hardware
technologies. This compatibility significantly enhances the media and advertising
opportunities we can offer to our health club partners."
ClubCom is a leading provider of private television networks for place-based
communities with an emphasis on commercial health clubs. It provides network services
for many of the nation's leading health club organizations with a current installation
base in excess of 600 facilities. ClubCom currently has a major media presence in several
of the nation's top designated market areas and expects to have concentrated coverage
in each of the nation's top ten markets by the middle of 2002. It is financially backed
by some of the world's leading institutional funds including Draper Triangle, an affiliate
of Draper Fisher Jurvetson, and Residex B.V. Venture Capital Network, part of the Achmea
Group of the Netherlands.
Cardio Theater is the fitness industry's leading manufacturer of interactive entertainment
systems with more than 6,000 health club installations. It pioneered the development
of the industry's entertainment sector in 1989 and continues to set technological standards
for the health club industry. Cardio Theater offers a complete spectrum of entertainment
hardware solutions including wireless interactive audio systems and E-Zone personal viewing
screens. In each case, proprietary technologies are being developed and incorporated
to enhance the viewer documentation and interaction for ClubCom programming and maximum
revenue generation for health clubs.
"It's really quite simple. ClubCom is rapidly changing the future of an important sector
of our industry and we wanted to be a participant not merely a spectator," states
Tony de Leede, President of Cardio Theater and CEO of Fitness First Australia, and who
is now a significant shareholder of ClubCom. "From a health club operator's perspective,
ClubCom's value proposition is exceptional. Our due diligence revealed that the ClubCom
financial model, for itself and its health club partners, is nothing short of remarkable.
We have been afforded the enormous advantage of seeing where ClubCom is going in the future.
We are developing our products accordingly."
"The merger results in tremendous synergies," claims Michael Stubler of Draper Triangle.
"From ClubCom's perspective, it has secured a highly respected and very profitable hardware
partner. From Cardio Theater's perspective, it has secured a broadcasting partner with
proven revenue models and an absolutely stunning network delivery system. It's definitely
a win-win for each party."
"It's another great move by ClubCom. It offers facilities tremendous efficiencies while
installing their ClubCom networks." Kirk Galiani, CEO of Gold's Gym International.
"The future direction of ClubCom and Cardio Theater is right on track. They're quickly
creating opportunities that in the past were only conceptual." Kevin D. Steele, Ph.D Vice
President of Health Services and Corporate Accounts for 24 Hour Fitness.
"It makes selecting entertainment hardware much easier knowing it's fully compatible
with ClubCom's broadcasting and business programs. You're not installing outdated
technologies." Will Dabish, CEO of PowerHouse Gyms International.
"It's good for the industry. Now one source can provide entertainment hardware and launch
your television network." Geoff Dyer, CEO of Lifestyle Family Fitness.
"It's a natural combination. It makes our entertainment solution simple." David
Patchell-Evans, CEO of Good Life Fitness.
"Many facilities are like ours. We already have Cardio Theater and E-Zone and we're
about to launch our private media network through ClubCom. It will be great working
with just one company." Joe Cirulli, Gainesville Health & Fitness Center.
ClubCom Contact:
Cardio Theater Contact:
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Julie Rush (412) 787-2221
Meredith Swain (770) 973-3798
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