ESPORTA GROUP LIMITED REFINANCES AND RAISES NEW DEBT FACILITIES TO FINANCE EXPANSION

Esporta Group Limited, the UK's leading operator of premium racquets and health and fitness clubs, today announces it has raised new debt facilities totalling £155 million.

The debt facilities will refinance the existing indebtedness of Esporta Limited and Invicta Leisure Limited, both of which were acquired by Duke Street Capital, a leading European private equity house, in 2002. The new facilities will ensure a stable capital structure as well as financing the growth of Esporta's racquets club business.

Commenting on the announcement, Peter Taylor, Head of Private Equity at Duke Street Capital, said:

"Duke Street is excited by the opportunities available to Esporta to grow the racquets side of its business. The racquets clubs continue to deliver a strong performance and are a key differentiator to other health and fitness operators. Completion of the refinancing is an important milestone for Esporta, providing a solid capital structure and access to additional committed funding which, alongside the ongoing commitment of Duke Street, will enable Neil Gillis and his management team to progress a number of high quality expansion opportunities for the racquets business."

The new debt facilities have been provided by Joint Mandated Lead Arrangers Lloyds TSB, Royal Bank of Scotland, Credit Agricole Indosuez, National Australia Bank, Bank of Scotland, Allied Irish Banks and Alliance & Leicester Corporate Banking.

Michael Ball, Finance Director of Esporta, said:

"We are delighted to have secured the support of such a high quality banking group that understands our business and buys into our medium term strategy."

Close Brother Corporate Finance's Debt Advisory Group advised Esporta and co-ordinated all aspects of the debt raising.

Commenting on the deal, Simon Tilley, a Managing Director of Close Brothers Corporate Finance, said:

"This was a complex transaction but one where our expertise in the health and fitness sector, as well as our relationships amongst the banking community, assisted Esporta in securing a successful refinancing, thereby providing it with a stable capital structure and funding to pursue selected high quality opportunities for profitable expansion."

Esporta was advised on legal matters by Allen & Overy. Cameron McKenna provided legal advice to the banks.