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Virgin Active Press Room

Results for the 12 months ended 31 December 2007

Preliminary Results for 2007

Year of considerable domestic and international progress

Milton Keynes, 6th May 2008:  Leading international health club operator, Virgin Active, today announces summary results showing an 8th consecutive year of revenue and EBITDA growth.

Highlights (Unaudited):

12 months
ended
31 Dec 2007
12 months
ended
31 Dec 2006 (Proforma+)
 Change
Revenue £313.5m £300.8 +4%
EBITDA £76.2m £59.3m +28%
EBITDA Margin 24.3% 19.7% +4.6 ppts
# of members 872,000 835,000 +4%
# of clubs 169 165 +2%

+ 2006 proforma results are based on 2006 audited results, adjusted to include the full year revenue and EBITDA contribution of the Holmes Place UK business acquired on 31 October 2006

  • Strong sales and profit growth in South Africa, UK, Italy and Iberia

  • EBITDA margin increased to 24.3% reflecting benefits of acquisitions, on-going cost management and growth in the contribution from recent club openings

  • UK EBITDA increased by 70% (including Holmes Place on a proforma basis)

  • Relentless focus on customer service and innovation continues to drive year-on-year net membership growth

  • 5 new clubs opened in 2007 with plans to significantly accelerate international opening programme, having secured lease agreements for a further 20 clubs

  • Richard Baker, formerly Chief Executive of Alliance Boots, appointed Non-Executive Chairman

Commenting, Matthew Bucknall, Chief Executive of Virgin Active, said:

“2007 has been a year of significant progress for Virgin Active. We have performed strongly in every country in which we operate and have successfully turned around and integrated Holmes Place in the UK in a relatively short period. We have continued our international expansion - which will accelerate in 2008 - and grown our membership levels, leading to record results.”

For further information please contact:

Ben Foster/ Charlie Armitstead     Financial Dynamics      Tel: 020 7831 3113

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