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SOKO Fitness Reports Second Quarter Fiscal 2010 Results
Date:1/14/2010

HARBIN, China, Jan. 14 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers and beauty salons and spas in China, today reported financial results for the second quarter and first six months of fiscal 2010, ended November 30, 2009.

    Second Quarter and Recent Financial and Business Highlights

    -- Revenue increased 61% to $7.4 million, compared with revenue of $4.6
       million in the second quarter of fiscal 2009.

    -- Revenue increased across each of the company's business segments, with
       spa and beauty services and products accounting for 80% of revenue,
       fitness centers accounting for 15% of revenue and the beauty school
       accounting for 5% of revenue.

       -- Total professional services were $5.3 million, up 73% year-over-
          year;
       -- Total product sales were $598,000, up 102% year-over-year;
       -- Membership fees were $1.1 million, up 19% year-over-year; and,
       -- Revenue from beauty school tuition was $392,000, compared with
          $314,000 in the second quarter of fiscal 2009.

    -- Gross profit was $5.2 million, or 70% of revenue, compared with $3.0
       million, or 65% of revenue in the second quarter of fiscal 2009.

    -- Operating income improved by 76% to $3.2 million, compared with $1.8
       million in the second quarter of fiscal 2009.

    -- Net income improved by 89% to $3.2 million, or $0.17 per share
       (diluted), compared with net income of $1.7 million, or $0.10 per share
       (diluted) in the second quarter of fiscal 2009.

    -- As of November 30, 2009, cash and cash equivalents were $3.64 million,
       an increase of 91% over $1.91 million as of May 31, 2009.

    -- Opened its first "non-surgical medical be
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SOURCE SOKO Fitness & Spa Group, Inc.
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