After an exciting and productive 2010, the Gym Group, the UK's fastest-growing low-cost gym operator, has secured £20 million to fund its expansion plans.  This funding will enable the company to continue its ambitious schedule of gym openings across the UK and further consolidate its position as market leader.   Financial backing for the growth strategy consists of further incremental commitments from lead investor Bridges Ventures and a revolving credit facility from HSBC.

Commenting on the announcement, CEO, John Treharne, said: 

"Prevailing economic conditions mean that for many businesses access to new sources of funding remains limited.  Our ability to secure substantial financial backing from such respected finance providers  at a time when capital is so constrained is testament to the robustness of The Gym's business model and our continued delivery against its objectives. 

"This funding will allow us to focus on bringing affordable gyms to more consumers across the UK.  We are on target to reach a total footprint of 50 gyms over the next two years."

The funding will enable The Gym to continue its ambitious expansion strategy with the focus on densely populated residential and city centre retail/mixed use regeneration developments across the UK, to which The Gym brings footfalls of over 1,000 people daily.

The Gym was backed at its inception in 2007 by Bridges Ventures (www.bridgesventures.com), a sustainable growth investor with a mission to use its commercial expertise to achieve focused social or environmental benefit, as well as attractive returns for investors.  CEO John Treharne, former accountant and England squash player, has an established history in the industry having set up publicly quoted Dragons Health Club Group in the 1990s.  The first Gym opened in Hounslow in June 2008 and since then the company has rapidly expanded to a total of 14 sites across the UK with plans to acquire up to 20 additional sites in 2011.  The Gym was most recently ranked no.5 in the Startups Top 100 survey[1].

Anne-Marie Harris, Investment Director at Bridges Ventures, added:

"In spite of wider economic conditions, The Gym Group is thriving.  Under the leadership of its founder and executive management team the business has achieved rapid roll out and significant growth during a period of unprecedented economic uncertainty. While recent research[2] reveals that two thirds of consumers are still worried about the future of the economy, this has done little to curtail the growth in membership at The Gym's locations.

"Our decision to back The Gym centres on its vision to bring accessibility, affordability and flexibility to the health and wellbeing sector.  This has been a winning formula and is closely aligned with Bridges Ventures' core principle to invest in companies that achieve positive social and environmental impact as well as providing superior financial returns for investors.  In a very short space of time, The Gym has established itself as a successful business idea that addresses an important social need amongst traditionally excluded groups; for example up to 40% of members at some Gym sites have never been to a gym before."

Open 24 hours a day, with no minimum contract, no punishing tie-ins or lengthy membership process, The Gym's state of the art facilities can be accessed for just £15.99 per month - according to industry sources at least three times cheaper than the cost of joining the average mid-market or premium UK gym.  Over 50,000 members have already joined.

Kennedys provided legal support for The Gym.  Baker Tilly completed due diligence on behalf of HSBC.

- ENDS -

For all media enquiries and image requests contact:

Phoebe Oliver, Caburn Hope Ltd for The Gym

Email: p.oliver@caburnhope.co.uk

Tel: 01273 480 404

Claire Maloney, Capital MS&L for Bridges Ventures

Email: Claire.maloney@capitalmsl.com

Tel: +44 20 7307 5341 / +44 (0)7770 958 479

Notes to Editors:

About The Gym

• The Gym Group was formed in 2008 and is the most successful and fastest-growing operator in the sector
• The state-of-the-art gyms are accessible to all budgets at just £15.99 per month, with joining discounts for NUS card holders
• The Gym concentrates on securing prime locations and premises are open 24 hours a day 7 days a week
• No membership contracts and the option of daily membership, giving more flexibility and freedom than any competitors
• The great value and fresh approach appeals to a broad range of people and up to 40% of members at some Gym sites have never been to a gym before
• Green & ethical:
• over 70% of equipment is energy-efficient
• cleaning products are chemical-free
• cleaning equipment uses 70% less water than conventional machines.
• the joining process is totally paperless
• sensor controlled lighting, showers, WCs and wash hand basins.
• Members have donated over £15k to the charity JIGSAW4U through online payments made when joining
• Thirsty Planet bottled water is available in all gyms, raising money for the provision of clean water in Africa

Current Gym portfolio includes:

Birmingham • Brighton • Bristol • Guildford • Hounslow • Leeds • Leicester • Liverpool • Manchester

Nottingham • Plymouth • Southampton • Vauxhall • West Hampstead

For more information please go to www.thegymgroup.com

About Bridges Ventures

Bridges Ventures is a sustainable growth investor established in 2002 with a mission to use its commercial expertise to achieve focused social or environmental benefit, as well as attractive returns for investors. Bridges Ventures has raised four funds to date: Venture Funds I & II, the Bridges Sustainable Property Fund and the Bridges Social Entrepreneurs Fund.

The Bridges Venture Funds invest in businesses based in UK regeneration areas as well as businesses delivering social and environmental impact in education & training, environment and health & well-being. Bridges Venture Funds typically invest up to £10m at a time in ambitious, entrepreneurial businesses including early stage, growth capital and buyouts / buy ins. So far, £70m has been invested in 34 companies, many of whose employees have come out of long-term unemployment. To date there have been six successful exits: The Office, Harlands in Hull, SimplySwitch in South London, HS Atec in Yorkshire, EB2 in South London and IDL in Bournemouth.

In 2009 Bridges Ventures launched the Bridges Sustainable Property Fund, which invests in properties in regeneration areas and environmentally sustainable buildings that have the potential to make strong financial returns as well as delivering social and environmental impacts.

The Bridges Social Entrepreneurs Fund is a quasi-equity fund which provides an innovative financing solution that is tailored to the needs of ambitious social enterprises. It was seeded by the Bridges Ventures Charitable Trust in 2008 and launched in August 2009.

For more information please go to www.bridgesventures.com

[1] For a full copy of the Startups Top 100 report, please visit www.startups.co.uk

[2] British Lifestyles, Mintel's flagship report August 2010 - Mintel, a leading market research company, visit http://www.mintel.com