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Mazaran Leisure PLC (MZR)

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Tuesday 14 March, 2000

Mazaran Leisure PLC

Acquisition of Lingfield Health Club

Mazaran Leisure PLC
14 March 2000



                   MAZARAN LEISURE PLC
                            
          ACQUISITION OF LINGFIELD HEALTH CLUB
                            


Mazaran Leisure PLC ('Mazaran'), the fast growing health
and fitness club operator, has completed the acquisition
of the business of the Lingfield Health Club, based in
Belsize Park in North London.  The purchase consideration
is £412,000 payable in cash.  Mazaran is also taking a 50
year lease on the fully fitted 16,500 sq. ft. health club
property at £200,000 per annum from Lingfield Properties
Limited. A premium of £1.58 million is payable on the
grant of the new lease, such premium to be paid by way of
the issue to Lingfield Properties of 2.6 million new
ordinary shares, issued on the basis of 42p per ordinary
share, and the payment of £488,000 in cash.  Lingfield
Properties has given undertakings not to dispose of the
shares for at least 12 months.

Management accounts indicate that the business will have
made £430,000 profit before tax on turnover of £1.2
million for the year to 31 December 1999.  Mazaran has
received warranties from Lingfield Leisure and Lingfield
Properties regarding the performance of the business.

Lingfield Health Club, which was set up in the 1980s,
comprises 2 fully fitted gyms, two studios, a swimming
pool, a creche, bar and cafe.  Its current membership is
over 2,000 people.

Richard Yerbury Chief Executive of Mazaran commented:

'This club fulfils all our criteria for acquisition: it
is situated in a thriving catchment area, has the
potential to increase membership and average spend per
person through improvement of its services whilst the
scale of the operation fits well with our other 5 fitness
centres. Mazaran brings to the business financial and
operational expertise and I believe that this acquisition
will prove a significant addition to the group's
portfolio.'

'This development comes against the background of the
company's transformation to a branded health and fitness
club operator: our Heathrow club has re-opened after
refurbishment and has already increased membership by 10
per cent during February; our new Brentwood club opened
on 1st March, the refurbishment of our Chelmsford Club
will be completed by the middle of this month and the
work in Bristol is on track for completion by the end of
April; whilst like-for-like trading over the past five
months at our Richmond club is up 15 per cent compared to
the same period last year.  The company continues to make
considerable progress and review further opportunities
for expansion.'

Enquiries to:

Richard Yerbury, Chief Executive             Tel: 01454 888 666
Mazaran Leisure plc                               07968 063023

Simon Rothschild/Tarquin Edwards             Tel: 0171 256 5756
Millham Communications



                                                                                                                                                            

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