1. 1 Fitness Marketing Systems Strategic Briefing on Organizational Priorities & Goals LMI U.S. Agent’s Summit Meeting Mandeville, September 2007 U.S. South Central Agency

2. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 2 Presentation Outline Review of Key Philosophies Overview of Major Initiatives Some Emerging Ideas Conclusions, Wrap Up, Q&A Our Philosophy is That Long Term Success Requires: Disciplined People, Discipline Thought, Disciplined Action

3. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 3 Philosophies & Principles Where We Are - Where We Are GoingDisciplinedActionDisciplinedThought DisciplinedPeople First Who Then WhatFirst Who Then What Level 5 LeadershipLevel 5 Leadership First Who Then WhatFirst Who Then What Level 5 LeadershipLevel 5 Leadership Hedgehog ConceptHedgehog Concept Confront Brutal FactsConfront Brutal Facts Hedgehog ConceptHedgehog Concept Confront Brutal FactsConfront Brutal Facts AcceleratorsAccelerators Culture of DisciplineCulture of Discipline AcceleratorsAccelerators Culture of DisciplineCulture of Discipline Concepts From “Good to Great” By Jim Collins Concepts From “Good to Great” By Jim Collins 1 2 3 Anticipated Stages of Evolution Leaving Stage 1 & Entering Stage 2 Leaving Stage 1 & Entering Stage 2 Hedgehog The Cutting Edge

4. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 4 First Who – Then What Robert Dyer Executive Director Robert Dyer Executive Director Denisse Baquero Marketing Director Denisse Baquero Marketing Director Jinda Teichmiller Account Manager Jinda Teichmiller Account Manager Maureen O’Rourke, CPA Financial Officer Pinky Dyer Assessment Director Pinky Dyer Assessment Director Rodney Morris Sales Director Rodney Morris Sales Director Kristina Reilly Account Manager Kristina Reilly Account Manager Eleanor Hisey Club Coach Director Eleanor Hisey Club Coach Director Rebecca Betz Training Director Rebecca Betz Training Director Jose Melendez Customer Service Rep Jose Melendez Customer Service Rep We continue evolving our understanding of core needs while identifying skilled talent that is consistent with our philosophies and objectives. FMS will maintain Minimal Hierarchy FMS will maintain Minimal Hierarchy FMS TM Our culture requires equal accountability among team members. Bryan O’Rourke, MBA Business Advisor Bryan O’Rourke, MBA Business Advisor Ron & Sandy Franco Stockholders Stockholders

5. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 5 Disciplined Thought Drives Our Key Initiatives Success Relies on 3 Main Functions Sell: Exceed Sales Goals Service: Coach & Train Retain: Support Licensees

6. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 6 Club & Program Sale Recap Initiatives Build Relationships Strategic Partnerships Utilize Technology Development & Training

7. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 7 Club Implementation Recap Initiatives – Club Coaching Personnel & Process – Assessment Process Improvements

8. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 8 Retention Recap – Increased Club Management Participation in GFM Training – Highly attended Q’s – Managing & Developing the Trainer Network – Proactive Assessment-to- Launch Support/Coaching

9. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 9 Emerging Concepts Outsource of Fulfillment Outsource of Fulfillment Search Engine Marketing Search Engine Marketing Outsourced Sales Support Outsourced Sales Support Utilization of New Technologies Utilization of New Technologies All of the Initiatives Covered in March Have Been Executed. All of the Initiatives Covered in March Have Been Executed.

10. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 Emerging Technology SalesForce Demonstration 10 Web-based solution for customer file management and information maintenance across multiple operational departments Web-based solution for customer file management and information maintenance across multiple operational departments Real-time data to analyze trends, forecast production and identify outliers/Hi-Po/At Risk Clients Real-time data to analyze trends, forecast production and identify outliers/Hi-Po/At Risk Clients The ability to track, monitor, and quantify business success or failure at multiple stages in the lifetime of a lead/account The ability to track, monitor, and quantify business success or failure at multiple stages in the lifetime of a lead/account A One-Stop-Shop solution A One-Stop-Shop solution

11. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 Emerging Technologies- Training and Sales Tools

12. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 12 Conclusions & Wrap Up We have a long way to go; the average hedgehog concept took 4 years to conceive in Good to Great Companies & 7 years to begin to realize results. We have a long way to go; the average hedgehog concept took 4 years to conceive in Good to Great Companies & 7 years to begin to realize results. Learning takes disciplined people, disciplined thought and disciplined action. Learning takes disciplined people, disciplined thought and disciplined action. Technology is never the primary means of igniting transformation, yet its careful selected application is essential. Technology is never the primary means of igniting transformation, yet its careful selected application is essential. We are committed to getting there: Building The Recognized Leading Sales Organization in the Fitness Industry. We are committed to getting there: Building The Recognized Leading Sales Organization in the Fitness Industry.

13. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 13 “Thank you” to our fellow agencies in the U.S. and their staffs for all their help; “Thank you” to our fellow agencies in the U.S. and their staffs for all their help; “Thank you” to LMI team for the relationship and support; “Thank you” to LMI team for the relationship and support; “Thank you” to our partners, suppliers, consultants and employees; and “Thank you” to our partners, suppliers, consultants and employees; and “Thank you” to our customers, who use our wonderful programs to change lives every day. “Thank you” to our customers, who use our wonderful programs to change lives every day. Conclusions & Wrap Up

14. Fitness Marketing Systems, LLC South Central US Agency US AGENT’S SUMMIT MEETING 2007 14 Questions & Answers Comments & Questions