Us Distributors Conference Call - 7 March 2007

1. Powerhouse Gyms

As advised this week, LMI has negotiated a Preferred Vendor Agreement with Powerhouse Gyms International (Powerhouse). Powerhouse CEO Henry Dabish has undertaken to advise their licensees this week (his message attached) and, once confirmation has been received that this has happened, agents’ sales staff will be free to approach individual Powerhouse gyms in light of this powerful new endorsement.

Of the 200+ Powerhouse gyms in the US, the strongest regional concentration is around their Michigan base, with some 67 licensees in LMMW territory and with the balanced spread among LMSE (34 clubs), LMWC (24), LMNE (37), LMSC (28) and LMMA (14).

LMI suggests the initial approach from agents should take the form of a mailout of the club acquisition packs originally developed for the BTS switching back campaign (the buff-coloured box wrapped in black plastic and containing the sales cards and DVD), together with a covering letter. We will provide draft copy for the letter, together with a full contact database for all Powerhouse gyms in your territory.

Action: Please advise your stocks of these packs asap to and we will try to supplement as necessary. LMI will distribute the Powerhouse databases and draft covering letter later this week.

NB: Powerhouse will be running their annual convention in Las Vegas from September 26-28 (ahead of the Olympia bodybuilding expo) where Les Mills will have a presence and further sales opportunities will arise.

2. AGENDA - USA DISTRIBUTORS’ CONFERENCE CALL–WED 8 August 2007

CALL INFORMATION

• LM Northeast:Bill Austin, Don Murphy
• LM Mid Atlantic: Victor Brick, Erin Kelly
• LM South East: Kelli Hatton
• LM Mid West: Sara Kooperman, Alan Roth
• LM South Central: Robert Dyer, Rodney Morris, Bryan O’Rourke
• LM West Coast: Michelle McLemore
• LM Central Services: Julie Riker, Kendall Kimball
• LMI: Jill Tattersall, Vaughan Schwass, Brett Piper, Ian Ormiston, Russell Hill

1. Dial in from a touch-tone telephone. This is a US number so callers outside the US will need to add the +1 country code.
2. When prompted, enter the Participant Pass code followed by #
3. Follow the instructions and record your name to introduce yourself to the call.
4. Caller Controlled Mute/Unmute: to mute your end of the line as a courtesy to others should local background noise interrupt call clarity, then press *6 (to deactivate mute press *6 again)

CALL AGENDA

1. Previous meeting minutes and action items review

1. Sales – Round the Regions Update:

• July sales (new clubs, new programs, trophy accounts sold, sales success tips and new developments)

• BV July Sales & Feedback
• Success of July GFMs

1. Gold’s Convention.

• Debrief Gold’s Convention
• Actions and follow-ups from Convention

1. LMI Marketing Update:

• Golds Co Branding
• New Orleans Sept Meetings
• Phillip and Jackie’s Book
• New US Campaign
• Webinars and Michael Scott Scudder
• Agency eClub and eNet use
• Powerhouse Gyms
• Testimonials
• BTS Comparison

1. Julie and Doug agency visits

1. Business Development Update:

• Golds and other national accounts
• Clothing
• Barbells

1. Agency Staffing Update

1. LMI Staffing Update

Call Wrap

3. NEW ORLEANS TRAINING/ASSESSMENT STREAMS

Please note the correct schedule below for the upskilling sessions for these groups in New Orleans is as follows (this was incorrectly advised earlier):

Sat 8th - Training Coordinator Upskilling

Sun 9th - Assessment Coordinator Upskilling

4. NEWS FROM THE MARKETS – August 1, 2007

Publication of Les Mills news (see Appendix)

1. Michael Scott Scudder’s monthly e-newsletter quotes IDEA Fitness data that he says supports clubs taking group fitness more seriously. He concludes:

“It’s pretty clear that Group Fitness is on the rise and that dependence on equipment is taking a back seat in many clubs. Please take a close look at my Sponsors’ Section below, as several offer great solutions in Group Fitness activities (Les Mills) and specialized, programmed equipment (Polar, SciFit, Strive).”

1. BODYPUMP® was profiled in a three-minute TV item on “Style”, a daily one-hour afternoon show on NBC-affiliate WBIR in Knoxville TN. The web version includes a link to the Les Mills class locator. The item as it appeared on TV is streaming streaming here.
2. The News Messenger in Lincoln CA covered the roll-out of BODYVIVE™ in a local gym.
3. The arrival of BODYPUMP® and BODYCOMBAT® were covered on a Castle Rock CO community website that is affiliated with the Rocky Mountain News.

Editorial planning

1. We are working with Fitness Business News to support a “Marketwatch” feature in September 2007 on issues in the group-fitness sector.
2. We will be following up with editors and writers who were sent Fighting Globesity to encourage them to write articles based on the book for its September release in the US.

Please check the appendix items below……

Appendix

Women change the way they look at weight

April Lamb, Backpack Journalist ∙ 7/30/2007

Text:

Video:

Many women head to the gym trying to lose a few pounds, but at Ladies Total Fitness in Maryville, women are picking up the pounds. And they are proud of it.

For the ladies in the Body Pump class, weight isn't a foe, it's a friend.

"It's awesome," participant Elana Byerly said. "You get motivated. You can encourage each other to pack on more weight and push yourself."

The Body Pump classes combine a group workout, barbell exercises, and upbeat music. The combination is attracting more women to weightlifting.

"It's been great. There's two things that women have to have in a weight training class. They have to have predictability, and they have to have something that's motivating," said fitness coordinator Janet Tillery. "For the most part, women love to do cardio. They'll come in and take a step class, or they'll walk on the treadmill, but weight training is not necessarily what they desire."

Some women say a fear of bulking up or the myth that weight training is just for men keeps them away from free weights.

"I never really thought that I could do as much as I could," said participant Kelly Sanders. "I never really thought it was for women, to just pursue it on a regular basis. I just did it here and there, but I guess being in the Body Pump class for as long as I have been, I see it's a tremendous way for women to live their lives: building their muscles and feeling good about themselves and being stronger people."

The benefits of weight training for women have been highlighted by studies showing that weight-bearing and resistance exercises can help prevent osteoporosis.

"I really just wanted to tone my body, and my mother has severe osteoporosis, and weightlifting is just very good for the bones,? Byerley said.

The benefits of weight training go beyond healthier bones. According to the Mayo Clinic, weight training can help you burn calories more efficiently.

"Primarily over the age of 35, women have the tendency to lose up to two pounds a year in muscle tissue," Tillery said. "So if we can get them to weight train, then we can hopefully minimize that statistic, which will give them not only a better future in their body image, but also minimize their risk for osteoporosis and certain diseases that are affected by lack of strength training."

The group atmosphere of Body Pump helps keep women interested in weightlifting, consistency that can be a problem when women try and go it alone.

"I would say consistency is probably better for those who are in the group setting," Tillery added. "Again, it's really hard to motivate yourself to be on the floor, versus if you're in a class environment, you're with other people. Nintey percent of women statistically want to work out in a group setting. If they're in there with other women, they are far more successful, because it's fun. When it's fun you don't necessarily think about your intensity."

Sanders says she's seen so much benefit from the class, she recruited other women to start weightlifting as well.

"I think that the older you get, you see that things aren't where they used to be," Sanders said. "It benefits you tremendously to keep just trying to do better for your body, just working out. It gives you more strength and you feel better about yourself, not only physically, but emotionally."

The women who have taken the class for a while say weightlifting has changed the way they think about their own body weight.

"I have seen my body change, absolutely," Byerley said. "One thing about weightlifting, it's tricky. You can't get real hung up on the scales because muscle weighs more than fat, so you have to sort of get that out of your head. It's not about your weight, it's about the shape and the tone."

Body Pump is a program designed by Les Mills International and is taught at Ladies Total Fitness in Maryville. You can contact them at (865) 379-8256.

If you would like to find a class in your area you can find a class locator on the Les Mills website.

Feeling the vive

Thursday, July 26, 2007 · Lincoln CA

Wendy Lautner, The News Messenger

The fitness "vive" seems to be catching on. Seeing a need to build a group fitness class to meet the needs of often overlooked population groups, the Vive series reaches out to "baby boomers" and children.

The result is a low impact class designed for the older population dubbed BodyVive, where students develop cardio, balance and strength fitness components using props like different sized stability balls and bands while rocking out to generation specific tracks like the Beach Boys' "Kokomo" and Cher's "Strong Enough."

For the kids, FamilyVive offers game-laden and fun-intensive workouts as well.

"We say a family that 'vives' together stays together," says instructor and personal trainer Nike Evans. "We've modified the class for kids to include jumping jacks and dodge ball games as part of the workout."

Evans, a certified fitness specialist at TruFitness said she feels her role as an exercise instructor is very important.

"I love being out there," she said. "It's all about building a community. And I especially want the older population to understand how important exercise is."

The energetic 32-year-old instructor has somewhat of a following among the baby boomer crowd.

"She makes you want to come," said Judy Hust of Citrus Heights. "If you don't show up you feel like you miss something. She makes us laugh and she makes us work on innovative routines."

The hour-long class starts with a gentle warm up and incorporates exercises as simple as walking briskly in a circle to get the "required 10,000 step dosage," tai chi poses to reinforce balance and strengthening moves such as squats.

"A lot of baby boomers have been left behind," Evans says. "And now the workouts out there are too much for their joints. We're trying to give a good workout, focusing on mobility, flexibility, balance and strength without compromising the joints."

The students seem to agree with their instructor's philosophy.

"We already have places that hurt, so this is nice and forgiving," says Hust, who describes her age as "over 50." "I think when you're older you try to do other things, but I really believe this is more enjoyable you don't feel as pressured to keep up."

Classmate Gina Garbolino of Roseville, another "over 50 lady" agrees.

"It really does surprise me, this is so much for everyone," Garbolino said. "I get my heart rate going and have fun. Who can ask for anything more?"

It turns out not even 21-year-old personal trainer Sean Anub could.

"This is a good off day workout," he said after a recent class. "It's still really intense for an off day, but it keeps the muscles stretched out a lot."

TruFitness offers seven BodyVive and two FamilyVive classes per week. BodyVive classes take place at 8 a.m. Monday and Friday, 6:30 a.m. Wednesday, and 10 a.m. and 6 p.m. Tuesday and Thursday. FamilyVive classes are scheduled at 4 p.m. Tuesday and Thursday. For more information, call TruFitness at 782-8111 or visit trufitness.com.