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Mazaran Leisure PLC (MZR)


Thursday 12 August, 1999

Mazaran Leisure PLC

Acquisition, etc

12 August 1999


Mazaran Leisure PLC ('Mazaran'), the AIM-quoted health and fitness group 
in which Sandy Anderson owns more than a 48% stake, today announces a 
further step in its expansion programme by acquiring two health clubs 
in Essex.

Mazaran is acquiring the business and assets, along with a new 23 year 
lease, of the Chelmsford Squash and Fitness Centre for a total 
consideration of £290,000 cash. Located only half a mile from Chelmsford 
town centre the 16,000 sq ft building was purpose-built in 1973 and its 
facilities include a 4,000 sq ft gymnasium, six squash courts, aerobic 
studio, saunas, sunbeds and communal areas.

Mazaran believes there are opportunities of increasing the centre's 
earnings through a variety of ways including extending the existing 
premises by 25% to around 20,000 sq ft, increasing membership and better 
utilising the present facilities. 

While in Brentwood Mazaran has been granted a new 25 year FRI lease on a 
vacant building within the 56 acre Brentwood Leisure Park on the edge of 
town. Originally developed as a squash club during the 1970's the building 
has, in recent years, been altered and extended to provide a wide range of 
health club facilities and jungle gym.

Mazaran intends to refurbish the building and create a modern 13,000 sq 
ft health and fitness club on the site aimed at attracting a wider range 
of members as well as taking advantage of the large numbers of people 
visiting the Leisure Park. Additional land has been included in the 
lease for future expansion.

Richard Yerbury, Mazaran's Chief Executive, said: 'These latest additions 
fit into our stated strategy of acquiring well located centres around the 
Greater London area. We believe there is enormous potential to create 
two modern health and fitness centres in superb locations serving a 
substantial catchment area.'

The Company also announces that the Board has decided to change the 
Company's year end from 30th November to 31st August. The Company has 
undergone a complete transformation from its original property business, 
when it was known as South Country Homes plc, to a health and fitness 
company with a new shareholding structure.

The Board of Mazaran believes it is appropriate to report on a shorter 
period as these results would still comprise some of the old activities 
and not give a clear picture of the new business. The first full year's 
results, covering the period 1st September 1999 to 31st August 2000, will 
reflect the Company's new profile.

Contact:  Baron Phillips, 
          Baron Phillips Associates.                    Tel: 0171-224 1302


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