Pinnacle Fitness & Rehab Business Plan Members: Barker, Gorman, Hudzik, Jiwanmall, Jones, Kostos, Rafter

1. Pinnacle Fitness & Rehab Business Plan Members: Barker, Gorman, Hudzik, Jiwanmall, Jones, Kostos, Rafter

2. Executive Summary Objectives Mission Statement Keys to Success

3. Objectives • Become one of the premier centers for physical fitness • Trainers and physical therapist with specialized skills • Provide setting that offers Stress Relief • Offer special needs programs • Achieve long-term success through good management discipline & financial results • Exceed customer expectations

4. Mission Statement • Outperform all other health & fitness centers with unique offering • Offer tiered pricing to fit target markets affordability • Differentiated facility do to partnerships • Diverse attraction to all types of customers • Coaching and counseling from experts

5. Keys to Success • Attract & retain more upscale clients • Retain & attract highly trained personnel • Solidify & retain partnerships • Grow partnerships in targeted areas • Restore the health & well-being of clients

6. Keys To Success-Cont’d • Outperform competition-focus on clients • Demonstrate management expertise • Demonstrate clear profit • Business model outperforms industry • Attract interest of Venture Capitalists

7. Company Summary Ownership Start up Summary Location and Facilities

8. Ownership • Owned & operated by seven founders • Limited Liability partnership • Capital all self-funded

9. Start-up Summary • Pooled Capital • Significant upside potential to outperform traditional centers • Per capita income extremely high • Differentiated services • Lack of local competition

10. Location & Facilities • Ideal location and upscale market • Affordable rates on real estate • Easy access public transportation • State-of-the-art facilities and apparatus • Appealing Aesthetics

11. Products & Services Cardiovascular Training Weight Training Rehabilitation Services

12. Cardio Theatre Treadmills Elliptical Machines Stair Climbers Stationary Bikes

13. Weight Training Free Weight Room Cybex Circuit Training

14. Fitness Classes Spinning Step Aerobics Tae Bo Yoga Pilates

15. Certified Personal Trainers Weight Management Strength Training Sports Training

16. Rehabilitation Services Physical Therapy Occupational Therapy Sports Injury Rehabilitation

17. Physical Therapy Neck /Back Pain Headaches Fibromyalgia Temporomandibular Joint Disorders (TMJ) Post Surgical Rehabilitation Home Health Neurological/ Neuromuscular Rehabilitation Wound care

18. Occupational Therapy Hand Therapy Heart Disease & Diabetes Work Injury Management Driver Assessment Burn Rehabilitation Neurological Rehabilitation Pediatric Rehabilitation Edema Management Carpal Tunnel Syndrome

19. Sports Injury Services Advanced Strengthening/ Conditioning Motion Analysis On-site Game Coverage Training Level Assessments

20. Other Services Clean locker room with private showers “Child Learning Center” - babysitting services Juice Bar and Energy Supplements Water, Gatorade, Designer Whey Protein Shakes Clif, Powerbar, EAS, and Designer Whey energy and protein bars

21. Demographic Analysis

22. Camden County Population Growth • 5.0% population increase since 2000 • Current population over 445,000 people • Population projected to exceed 500,000 by 2010

23. Voorhees Residential Development Plan • 6 year, $42.5 million budget for building and development • increase in disposable income

24. Close Proximity/ Convenience • less than 30 minute drive from Philadelphia • less than 20 minutes form other affluent South Jersey towns • expect some clientele from surrounding areas such as Jersey Shore, Northern Delaware, Philadelphia, Trenton/Princeton metro areas

25. Income Statistics • Current HUD median income is $68,800 for Camden County • Previous Gym establishments (Bally’s, World Gym) shown profit increase when located in high median income areas.

26. N CAMDEN COUNTY 37 Municipalities Size: 222.3 sq. miles Population: 506,420 Households: 178,758

27. MARKET RESEARCH Demographics Camden County Greater Philadelphia + So. NJ Caucasian 76.6% 73.3% African American 16.2% 19.2% Hispanic 7.2% 4.4% Other 7.1% 3.1% Male 48.1% 48% Female 52.3% 52% Income Per Capita personal income $23,745 $23,948 Median Household Income $ 68,800 n/a Education Bachelor’s Degree 21% 27.6%* Graduate Degree 7% --- *number is inclusive of graduate degrees

28. Planet Fitness Cherry Hill Health and Racquet Philadelphia Sports Clubs World Gym Fit Quest Curves for Women Lucille Roberts Health Club The Firm Fit 21 Velocity Sports Performance Super Fitness LA Fitness Sports Clubs * Competition within a ten mile radius of Voorhees Town Center COMPETITION

29. MARKETING GOALS The objective of the marketing plan for the business is to generate awareness of, and drive membership enrollments to, Pinnacle Fitness & Rehab. Taking that into consideration, our goals are thus: • Enroll “X number” of people (combination of individual memberships, couples and families) pre-opening • Enroll “X number” of people within the first three months of full-time operation and “X number” of people in our first 12-months of operation • Have an enrollment base of “X number” of people at the end of year 1 • Maintain a membership turnover rate of less then or equal to the national average of 25% • increase brand awareness, and become known as the experts, when the consumer thinks about establishing and following a healthy lifestyle which includes exercise and healthy nutritional habits

30. TARGET MARKET • The core target market for Pinnacle Fitness & Rehab can be defined as: • Primary -- • Adults 35-55 • This group is made up of fitness enthusiasts, specifically those who have exercised or are currently exercising as part of their lifestyles; they are predominantly married, college educated and nearly all well established financially • Secondary -- • Adults 25-34 • The core target audience will be based in Camden County and predominantly within a 10-15 mile driving radius of the facility, thus ensuring that they can drive, from home, within 15-20 minutes maximum.

31. Communication Platform PROGRAM COMMUNICATION PLATFORM • Building the bridge between the needs/wants/desires of the consumer and the features, attributes and benefits of the brand (Brand Essence) • Consumer • Needs/Wants/Desires • Exceptional service • Quality programs meeting their health needs • Big gym attributes with small gym feel and service • Family • Friends • Positive Experiences • Brand/Property • Features/Attributes/Benefits/Value • Specialists in exercise physiology • Multiple membership plans and benefits • Industry and market leader • Proactive in developing better service models to benefit the consumer • Family, Service, and Community Oriented • True partners with members • Cutting Edge Technology/Programming

32. Sponsorships/ Partnerships Charitable Endeavors Direct to consumer Branding Spokespeople “Putting You First” Television Internet Print Radio

33. MEDIA/PROMOTIONAL CAMPAIGN HIGHLIGHTS • PRE-OPENING • Sign-Up Special: • $0 Down Enrollment Fee • Charter Memberships • DIRECT MAIL CAMPAIGN • A targeted brochure will be created which will serve two purposes: • Create greater awareness of the facility • Serve as a way for consumers to join early • A comprehensive group of lists will used in the direct mail campaign. A sampling of possible lists could include, but is not limited to: • Men’s Health Magazine • GQ Magazine • Comcast Cable Subscribers (Comcast providing cable to facility TV’s) • Men’s Fitness Magazine • Shape Magazine • Through a partnership with University Hospital Pinnacle will distribute over 150,000 pieces of mail through direct mail insertions

34. MEDIA/PROMOTIONAL CAMPAIGN • LOCAL PRINT -- four weeks prior to opening The Courier-Post The Philadelphia Inquirer Philadelphia Daily News Philadelphia Business Journal Philadelphia On-Line Philadelphia Weekly Burlington Country TimesPhiladelphia Magazine • RADIO – One week prior, and first week of operation AM Stations WIP – 610 (Sports) KYW – 1060 (News/Talk) FM Stations WXPN – 88.5 (UPenn) WMMR – 93.3 (Rock) WYSP – 94.1 (Active Rock) WPLY – 100.3 (Alternative Rock) WBEB – 101.1 (Soft AC) WIOZ – 102 (Top 40) WMGK – 102.9 (Classic Rock) WJJZ – 106.1 (Jazz)

35. MEDIA/PROMOTIONAL CAMPAIGN • LOCAL TELEVISION -- two weeks prior to opening • A targeted television campaign may be initiated using a variety of Philadelphia area outlets including, but not limited to: • over-air broadcast affiliates such as ABC, NBC, and CBS • cable based stations showing a strength in key demographics, i.e. – CNN, Headline News, ESPN, History Channel, A&E, HGTV, Discovery, and CNBC • OUTDOOR ADVERTISING -- one month prior to opening • A targeted outdoor advertising campaign will be initiated using a variety of area companies and locations in and around the Camden County area

36. MEDIA/PROMOTIONAL CAMPAIGN • Pre-Opening Grassroots • Using an extensive series of lists we will distribute collateral pieces throughout Camden County: • Facility Brochures -- to be displayed locally with retail partners: • Sporting Goods retailers • Health food retailers • Supermarkets • Select area schools – middle and high school levels • Counter Cards -- coupled with the brochures, counter cards will be distributed to local businesses throughout the Camden County area (see above)

37. Post-Opening Grassroots • Internet • Pinnacle Fitness & Rehab will aggressively pursue any and all internet based opportunities, i.e.-- look to partner with participating media outlets to receive additional placement on their existing web sites • Pinnacle Fitness & Rehab will also develop the Official Pinnacle Fitness & Rehab site. The site will serve as the “Official” site for the facility and provide all key information regarding the facility, including membership costs, fitness classes, nutritional information, etc. • Pinnacle Fitness & Rehab will also investigate the possibility of developing an internet based promotion geared towards consumers during the first month of opening

38. Management Overview • Management Summary • Motto and Motives • Board of Directors • Responsibilities

39. Organizational Structure • General Manager • Core Fitness Manager • Rehab Manager • Trainers • Other Staff

41. Future Products and Services Ventures to be explored post 2011: • Racquet Ball Courts • State of the are basketball courts for youth basketball league games • Establishment of a sauna • Completely self provided rehabilitation services , (introduction of Pinnacle’s own rehabilitation trainers) • Addition of a swimming pool to Pinnacle’s rehabilitation facilities • Expansion of the building including a café

42. S.W.O.T. Strengths, Weaknesses, Opportunities, and Threats

43. Strengths • differentiation from other gyms & health clubs • use of physical therapists and rehabilitation center • highly trained fitness specialist • highly qualified rehabilitation specialists • all in a safe suburban location

44. Weaknesses • name is unknown to the local clientele • more expensive than competition • currently not equipped with pool or court facilities

45. Opportunities • take advantage of need for facility with rehabilitation health program • increasing population • county budget put aside for residential development • high per-capita income • attract people who work in the area but do not necessarily live there

46. Threats • other accessible gyms in area • new to area, no established brand equity • the economy

47. Financials

50. Projected Membership