Town Sports International Signs Deal to Sell New York City Property for $82 Million

  Town Sports International Signs Deal to Sell New York City Property for $82
  Million

Business Wire

NEW YORK -- December 24, 2013

Town Sports International Holdings, Inc. (Nasdaq:CLUB), the owner and operator
of New York Sports Clubs, is pleased to announce the entry into an agreement
to sell its property located at 151 East 86^th Street, New York to an
affiliate of Stillman Development International, LLC for a price of $82
million, subject to certain adjustments. The transaction is subject to various
closing conditions, and the parties expect the transaction to be completed on
or about March 31, 2014.

In connection with the sale of the property, Town Sports International will
continue to operate its NYSC health and fitness club at this location under a
lease with the purchaser of the property. After a period of two years, the
purchaser, upon prior notice, may exercise its right to terminate the lease in
order to commence the demolition of the premises and a currently adjacent
property, followed by the construction of a new high-rise multi-use property.
The parties have agreed to enter into a new lease for a health and fitness
club space to be located at the same location as the current fitness club
following completion of development of the new high-rise building.

Bob Giardina, Chief Executive Officer of Town Sports International, commented:
"We are pleased to announce this agreement to monetize our 151 East 86^th
Street location in New York that will generate substantial value for our
stakeholders. We are also excited for the opportunity to replace our 35 year
old club with a brand new club at this same location upon the completion of
the construction of a luxury high-rise building. ”

Forward-Looking Statements

Statements in this release that do not constitute historical facts, including,
without limitation, statements relating to future expectations regarding the
sale of the property described above and other statements that are predictive
in nature or depend upon or refer to events or conditions, or that include
words such as “expects,” “anticipated,” “intends,” “plans,” “believes,”
“estimates” or “could”, are “forward-looking” statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to various risks and
uncertainties, many of which are outside the Company’s control, including,
among others, the ability of the parties to satisfy closing conditions to the
sale of the property described above, the level of market demand for the
Company’s services, economic conditions affecting the Company’s business, the
geographic concentration of the Company’s clubs, competitive pressures, the
ability to achieve reductions in operating costs and to continue to integrate
acquisitions, environmental initiatives, any security and privacy breaches
involving customer data, the application of Federal and state tax laws and
regulations, the levels and terms of the Company’s indebtedness, and other
specific factors discussed herein and in other releases and public filings
made by the Company (including the Company’s reports on Forms 10-K and 10-Q
filed with the Securities and Exchange Commission). The Company believes that
all forward-looking statements are based on reasonable assumptions when made;
however, the Company cautions that it is impossible to predict actual results
or outcomes or the effects of risks, uncertainties or other factors on
anticipated results or outcomes and that, accordingly, one should not place
undue reliance on these statements. Forward-looking statements speak only as
of the date they were made, and the Company undertakes no obligation to update
these statements in light of subsequent events or developments. Actual events
or results may differ materially from anticipated events or results or
outcomes discussed in any forward-looking statement.

About Town Sports International

New York-based Town Sports International Holdings, Inc. is a leading owner and
operator of fitness clubs in the Northeast and mid-Atlantic regions of the
United States and, through its subsidiaries, operated 162 fitness clubs as of
September 30, 2013, comprising 108 New York Sports Clubs, 29 Boston Sports
Clubs, 16 Washington Sports Clubs (two of which are partly-owned), six
Philadelphia Sports Clubs, and three clubs located in Switzerland. These clubs
collectively served approximately 507,000 members, including 42,000 members
under its restricted student and teacher memberships as of September 30, 2013.

From time to time we may use our Web site as a channel of distribution of
material company information. Financial and other material information
regarding the Company is routinely posted on and accessible at
http://www.mysportsclubs.com. In addition, you may automatically receive email
alerts and other information about us by enrolling your email by visiting the
“Email Alerts” section at http://www.mysportsclubs.com.

Contact:

Town Sports International Holdings, Inc., New York
Investors:
212-246-6700 extension 1650
Investor.relations@town-sports.com
or
ICR, Inc.
Joseph Teklits / Farah Soi
203-682-8390
farah.soi@icrinc.com
 
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