Federal Court Upholds Previously Disclosed Arbitration Award Against Bally Total Fitness

The Company does not believe the judgment would result in adefault under its $275 million secured credit facility until 30 daysfrom the entry of the judgment. Additionally, the Company does notbelieve the judgment would result in a default under the indenturesgoverning the Company's public bonds unless 60 days have passed or anenforcement proceeding is commenced with respect to the judgment,which under the applicable federal rules could occur as early asAugust 12, 2005.

About Bally Total Fitness

Bally Total Fitness is the largest and only nationwide commercialoperator of fitness centers, with approximately four million membersand 440 facilities located in 29 states, Mexico, Canada, Korea, Chinaand the Caribbean under the Bally Total Fitness(R), CrunchFitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R), Bally SportsClubs(R) and Sports Clubs of Canada(R) brands. With an estimated 150million annual visits to its clubs, Bally offers a unique platform fordistribution of a wide range of products and services targeted toactive, fitness-conscious adult consumers.

Forward-looking statements in this release including, withoutlimitation, statements relating to the Company's plans, strategies,objectives, expectations, intentions, and adequacy of resources, aremade pursuant to the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. These forward-looking statementsinvolve known and unknown risks, uncertainties, and other factors thatmay cause the actual results, performance or achievements of theCompany to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking statements. These factors include, among others, thefollowing: the existence of reporting covenant defaults under Bally'spublic indentures, whether Bally can obtain waivers of those defaultsfrom noteholders, and potential cross-defaults under Bally's seniorcredit facility; Bally's ability to satisfy the judgment arising outof the Household arbitration; the outcome of the SEC and Department ofJustice investigations, the review and restatement of previouslyannounced or filed financial results and the costs and expensesassociated therewith; the audit of the restated financial statements,including any further delays; the identification of one or more otherissues that require restatement of one or more prior period financialstatements; the completion and audit of Bally's 2004 financialstatements and the completion of Bally's financial statements for thefirst and second quarters of 2005, including the effect of this or anyfurther delays; the communication by Bally's management andindependent auditors of the existence of material weaknesses ininternal controls over financial reporting; general economic andbusiness conditions; competition; success of operating initiatives,advertising and promotional efforts; existence of adverse publicity orlitigation (including various shareholder litigations) and the outcomethereof and the costs and expenses associated therewith; acceptance ofnew product and service offerings; changes in business strategy orplans; quality of management; availability, terms, and development ofcapital; business abilities and judgment of personnel; changes in, orthe failure to comply with, government regulations; other than asdescribed above, Bally's ability to remain in compliance with, orobtain waivers under, its loan agreements and indentures; Bally'sability to maintain existing or obtain new sources of financing, onacceptable terms or at all, to satisfy the Company's cash needs andobligations; and other factors described in prior filings of theCompany with the Securities and Exchange Commission.