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SOKO Fitness & Spa Group Broadens Geographic Expansion Strategy
Date:2/10/2010

oadened geographic expansion strategy was recently evidenced by its entry into the suburban Beijing market in December 2009 through the acquisition of a majority interest in two fitness centers. The acquisition of these centers is consistent with SOKO's growth strategy to pursue strategic geographic expansion through strategic acquisition. SOKO plans to pursue additional expansion opportunities in the Beijing, primarily targeting under- penetrated, suburban areas and sections of the city in which SOKO believes it has the potential to capture significant local market share.

"While we continue to target Tier-2 cities where we believe we have the most potential for return on investment, we believe a significant opportunity exists in and around larger markets as well," said Tong Liu, Chief Executive Officer of SOKO. "We believe that pursuing strategic growth opportunities in suburban areas of Tier-1 markets, such as Beijing, is consistent with our core strategy of opening facilities in areas that feature relatively low penetration from competitors, and where we believe SOKO can most effectively compete.

"As we move forward, we will look to broaden the range of services we offer to include beauty and aesthetics in addition to fitness centers. We believe this strategy will continue to enable us to cross-market and sell our full range of SOKO-branded services. We believe that we will be able to execute on this core strategy in these newer markets in a manner similar to what we have achieved in our historical markets of Harbin and Shenyang," Mr. Liu concluded.

SOKO's two currently owned Beijing fitness center facilities comprise a combined membership base of approximately 2,000 and are locate
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SOURCE SOKO Fitness & Spa Group, Inc.
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