/ BAR UP
Your Weekly Mail from LMI / March 8, 2007
1.ACTION
Agency Operations

Don Oliver Barbells (excluding Mid West)

Over the last few weeks, Les Mills has been working closely with Don Oliver to improve customer service quality to BODYPUMP™ licensees. These changes were outlined in the bulletin sent out last month.

Going forward, all clubs wanting to purchase barbells should be directed to - which is now live. (Please DO NOT refer customers to Don Oliver’s website as previously).

Customers can use this site to obtain quotes (freight inclusive) and pay for orders. Quotations and orders can only be requested and paid for online by credit card. We suggest you have a look at this site and familiarize yourself with it so that you can answer any customer inquiries.

Distributors can also log in using their eNet user name and password should they wish to obtain an estimated quote for a customer. Please note that the freight element of the quote is only an estimate and will need to be confirmed when the order is placed. If the customer wishes to proceed with the quote then they will need to log into and go through the ordering process.

As discussed on our recent conference call we are happy to walk you through on the phone how the new ordering and quoting system on the web site works.

What we need the Distributor to do

  1. Recommend Don Oliver Barbells.
  2. Refer new BODYPUMP™ licensees to the new store at to obtain quotes for their barbell requirements and pay for them with a credit card. Note, to ensure clubs are licensed, customers cannot access the quotation page without an eClub username and password.
  3. Instruct new licensees to give full and accurate delivery information in their order requests (including ZIP codes).
  4. Ensure that the licensees know they must pay for their order in advance by credit card. There are no payment terms offered.
Royalty payments

The site automatically logs orders for the payment of royalties to distributors. We are working on a system that will either email you all complete orders, or provide you access to a secure site so that you can view them. It will also allow you to view customers who obtain quotes and don’t pay for them – so that your sales staff can follow up. We will announce these enhancements as they become available.

If you have any questions please do not hesitate to contact me or Fady Mishriki ()

Ian W Ormiston

Business Development Director

Deadline:ongoing

2.INFORMATION / UPDATE
Marketing

NEWS FROM THE MARKETS – March 7, 2007

Media release (see Appendix)

1.We have put out a press release to USA industry media on the new Les Mills website.

Publication of Les Mills news (see Appendix)

  • Our press release on the new website was re-distributed immediately to the Jewish Community Center Association’s list-serves for facility directors and fitness managers.
  • The BODYJAM® feature mentioned last week has been published in the Courier-Journal of Louisville KY.
  • A local TV station in Evanston IN has done a nice feature on BODYPUMP®. See the video here.
  • BODYVIVE™ is featured in the February-March edition of the Journal of Active Aging.

News from US agents

  1. Highlights this week from Don Murphy at Les Mills Northeast:
  2. Last weekend’s Super Quarterly in Poughkeepsie was split into two sessions. About 80 people attended a Friday session that included a GFM seminar, a two-hour session on how to launch successfully in a club, a four-hour RPM® education seminar, and two-hour BODYPUMP® education seminars. About 240 people attended a one-day Quarterly on Saturday, with 180 attending the final BODYPUMP® session.
  3. Prospect clubs were invited to free VIP attendance at the Super Quarterly. About 25% of VIPs were converted into sales within the first week.
  4. LMNE made 12 BODYVIVE® sales in February, most of them to existing Les Mills clubs.

3.Nikitin will contact agents regularly to discuss items for this news update section. Agents are also invited to report these directly to him at (213) 268 3754 or .

Editorial planning

4.The following coverage is in the works (new items only):

  • The new website will feature as the focus of Les Mills’ “News from ICAA preferred vendors” in the next edition of ICAA’s Journal of Active Aging.
  • We have made contact with a new monthly industry newsletter, Fitness Business News, which will be launched at IHRSA. At a minimum, we hope to contribute to a feature on group exercise planned for September 2007.
  • We are working on obtaining the list of media attending the IHRSA convention in order to drum up interest in Phillip Mills’ presentation and in the launch of BODYVIVE™.

Please see attachment for clippings