Private Equity Firm becomes significant investor in nation’s largest health club media and marketing network. Investment will support HCPN’s expansion plans, including nationwide rollout of its Digital Advertising Network.

Los Angeles, CA—Parthenon Capital, a middle market-focused private equity firm with over $1.8 billion of capital under management, announced today that it has made a significant investment in The Health Club Panel Network.

Network, the largest provider of advertising and marketing opportunities in US health clubs to national brands.

HCPN’s management team, operations and sales staffs will be remaining with the company. “We’re thrilled with this transaction,” said Michael Lederer, co-founder and Executive Vice President. “It validates all

the great work and the tremendous success the company has experienced since we launched in 1995, while providing a strong endorsement to the present and long term potential of the place-based media industry overall. We’re getting a great business partner in Parthenon, who can help us both with strategic planning as well as fund our aggressive growth plans,” he added.

These plans include rolling out the largest fully owned digital advertising network in US health clubs. HCPN presently has multiple flat panel monitors offering “zoned” content and advertising as well as a live RSS feed installed in over 300 health clubs, with a strong concentration in the Top 20 DMAs. With the support of Parthenon, HCPN now plans to have its digital advertising network installed in well over 1,000 clubs by the end of 2008. This network will strongly complement the exclusive static panel advertising and promotional/sampling opportunities that HCPN offers its agency and brand clients in nearly 3,000 health clubs nationwide. Additionally, HCPN will begin to explore, with critical support and expertise from Parthenon, many other tangential growth opportunities, including strategic acquisitions and/or investments in other relevant place-based media platforms.

Jon Grad, a Partner at Parthenon Capital involved in the firm’s business services investments, stated “HCPN is one of the leading companies in the alternative site advertising industry and we are excited to be significant investors in the company. HCPN’s fitness chain and ad agency relationships, in particular, are extremely valuable assets that we can work with management to build upon.” Michael Lederer added, “Parthenon has worked successfully with a number of highgrowth businesses in the past and was knowledgeable about the marketing services sector so there is a solid partnership fit here for the company.”

About Parthenon Capital: Parthenon Capital is a private equity firm with over $1.8 billion of capital under management and offices in Boston and San Francisco. Parthenon provides capital and strategic resources to growing middle market companies for acquisitions, internal growth strategies, and shareholder liquidity. The firm invests in a wide variety of industries, with particular expertise in Business and Financial Services, Healthcare, Distribution/Logistics, and IP-Based Manufacturing Products and Services. Parthenon’s 25 person investment team has deep experience in corporate strategy, capital markets and operations, enabling the firm to pursue complex, multi-faceted opportunities. For more information, visit www.parthenoncapital.com.

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