News

Release No. 0704-10
August 4, 2004

Contact:
Drew Graham
Ballast Point Ventures, L.P.
727-567-1500
dgraham@ballastpointventures.com

BALLAST POINT VENTURE PARTNERS
ANNOUNCES INVESTMENT IN LIFESTYLE FAMILY FITNESS, INC.

ST. PETERSBURG, Fla. – Ballast Point Venture Partners (“BPV”), a venture capital firm affiliated with Raymond James Financial, Inc., today announced it has closed an equity investment in Lifestyle Family Fitness, Inc. (“Lifestyle”). BPV led an investment of $8.0 million in the company, which will be used to fund expansion of the business. The Burton Partnership and existing investor Quantum Capital Partners also participated in the financing. According to data collected by Thomson Venture Economics, the investment in Lifestyle is the fifth largest venture capital investment in Florida to date in 2004.

Lifestyle, based in St. Petersburg, Fla., owns and operates fitness clubs in the Florida market. The Company currently has 19 clubs throughout Florida, with a particular focus on Central and Southwest Florida, and has approximately 1,100 employees. Lifestyle was a pioneer in the fitness industry in offering month-to-month memberships with no long-term contracts. All of the facilities include a variety of fitness equipment, group fitness classes, personal training, child care and related amenities. The Company has grown rapidly in the last three years to become one of the largest fitness club chains in the Southeast and currently serves more than 80,000 members.

Lifestyle is led by founder Geoffrey Dyer, president and chief executive officer, and Todd Bright, chief financial officer. Dyer has spent his career in the fitness club industry and is a former president of the International Health, Racquet & Sportsclub Association, the largest association of fitness centers in the world.

“We are excited to have Ballast Point Ventures as a partner,” said Dyer. “The partners at BPV have a successful track record of investing in high growth private companies and using their network and experience to help companies reach their maximum potential. This capital infusion, coupled with additional debt financing, will enable us to execute on our growth plan and take advantage of the opportunities we see in the Florida market.”

Drew A. Graham, managing partner with Ballast Point Ventures, will join the company’s board of directors. Graham, who has invested in numerous private companies throughout the Southeast, remarked, “We are delighted to have the opportunity to invest in Lifestyle Family Fitness. Geoff Dyer and his team have done an outstanding job of building a market-leading position in Florida, and they have demonstrated the ability to manage rapid growth while also achieving substantial profitability. Our investment in Lifestyle reflects the BPV strategy of providing expansion capital to rapidly growing, well managed companies in the Southeast and Texas.”

About Lifestyle Family Fitness, Inc.
Lifestyle Family Fitness, Inc. currently owns and operates 19 fitness facilities with more than 80,000 members throughout West and Central Florida. Headquartered in St. Petersburg, Fla., the Company has grown rapidly to become one of the largest fitness club chains in the Southeast and currently serves more than 80,000 members. Lifestyle is led by founder Geoffrey A. Dyer, president and chief executive officer, who is a 25-year veteran of the fitness club industry and recently served as president of the International Health, Racquet & Sportsclub Association. For more information, visit the Company’s Web site at www.lff.com.

About Ballast Point Ventures, L.P.
Ballast Point Ventures, L.P. is a venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast and Texas. The BPV partners have more than 60 years of combined experience investing in and building high-growth companies in a number of industries, including health care, business services, communications, technology, consumer products and specialty retail. The Fund seeks to make equity investments ranging in size from $1.0 million to $5.0 million. For more information, visit the Web site at www.ballastpointventures.com.

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For additional information visit www.ballastpointventures.com
or contact Richard J. Brandewie, Drew A. Graham
or Paul C. Johan at 727-567-1500.