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SOKO Fitness & Spa Group Expands Its Yoga Wave Brand With Entry Into Beijing Market

2010-07-12 16:30 1073

SOKO Expects to Open Yoga Wave Facility at Westin Chaoyang Hotel in the First Quarter of Fiscal 2011

HARBIN, China, July 12 /PRNewswire-Asia/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF) ("SOKO"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced that it has signed a lease agreement with the Westin Chaoyang Hotel to open its first yoga facility in Beijing. The new facility is expected to open during the first quarter of fiscal 2011, ending September 30, 2010. The facility, to be named Yoga Wave Beijing, will be SOKO's fourth yoga center, joining two facilities in Shenyang, China and one in Harbin, China.

The Westin Chaoyang Hotel is located in Chaoyang, currently the largest district in Beijing and the second most populous. Based on its central location in Beijing, in addition to traditional Yoga Wave classes and private training sessions for its clients, SOKO plans to utilize this Yoga Wave facility as a demonstration and teaching center for instructors to develop and hone specialized yoga techniques and programs that further establish SOKO's Yoga Wave as a leading yoga brand in China.

"This agreement marks our entry to the more central Beijing market, where we believe we can capture additional market share with our best-in-class facilities that cater to high-end clientele," said Tong Liu, Chief Executive Officer of SOKO. "In addition to our existing strategy of penetrating growing but underserved markets for fitness and spa services in China, we see an exceptional opportunity for the SOKO brand of yoga and fitness centers and spas in the Chinese luxury hotel market. Our Westin Chaoyang lease demonstrates our commitment to this strategy and, we believe, has the potential to provide the foundation for further cooperative agreements with other hotel locations in China, where we can immediately gain traction from the hotel's guests while we work to build our local membership and client base. We look forward to working closely with the team at the Westin Chaoyang as we seek to replicate the achievements of our other luxury hotel-based facility, the Lea Spa at the Sofitel Wanda in Harbin."

The new facility will operate under SOKO's Yoga Wave brand and will be open for regular SOKO members as well as available to guests of the Westin Chaoyang Hotel. In-line with SOKO's strategy to attract members to its facilities, the 550-room, five-star hotel is centrally located in an area that includes office complexes and high-end shopping centers. The 2,000 square foot Yoga Wave Beijing will include 2 full-size yoga classrooms and 1 private training room.

SOKO's fitness and yoga centers typically reach break-even within 14 months of their initial opening and demonstrate approximately 40% growth during the first year of operation. An additional 40% to 50% growth is typically achieved in a center's second year, and on average, SOKO facilities reach revenue maturity within approximately two to three years of opening.

SOKO currently owns and operates seven fitness centers, 12 spas and beauty salons including one non-surgical medical beauty salon, and one beauty school. Eight of SOKO's 19 fitness and spa facilities have been operated under SOKO's brand name for more than two years.

About SOKO Fitness & Spa Group, Inc.

SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go tohttp://www.sokofitness.com.

To be added to SOKO's email distribution for future news releases, please send your request tosoko@tpg-ir.com.

Cautionary Note Regarding Forward Looking Statements

This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, the projected opening and performance of the Yoga Wave Beijing facility and results regarding the Company's service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.

For more information, please contact:

The Piacente Group, Inc.

Investor Relations

Brandi Floberg or Lee Roth

Tel: +1-212-481-2050

Email: soko@tpg-ir.com

Shawn Qu

SOKO Fitness & Spa Group, Inc.

Tel: +1-908-208-8681

Email: shawnqu@sokofitness.com

Judy Jiang

SOKO Fitness & Spa Group, Inc.

Tel: +86-451-8770-2280

Email: judyjiang@sokofitness.com

Source: SOKO Fitness & Spa Group, Inc.
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