December 11, 2007 17:18 ET

Penfund Announces $40 Million Follow-on Investment in GoodLife Fitness Clubs

TORONTO, ONTARIO--(Marketwire - Dec. 11, 2007) - Penfund, an independent investment company specializing in providing capital to middle market companies, announced today a $40 million follow-on investment in GoodLife Fitness Clubs.

"Penfund is proud of its longstanding partnership with GoodLife. We are confident this follow-on investment will accelerate GoodLife's expansion across Canada and help solidify its reputation as Canada's leading chain of fitness clubs," said Barry Yontef, a Penfund partner. Mr. Yontef added that Penfund designed a highly customized facility that provides GoodLife with long-term, patient capital.

Mr. Yontef said that GoodLife represents an ideal client. "Its world class management team has established a leading market position based on offering reasonably priced memberships, a high level of customer service and the best equipment and facilities in the sector".

Pat Jacklin, GoodLife's CFO said, "we are thrilled to expand our relationship with Penfund. They've been a supportive partner and we look forward to working together to grow our business".

The terms of Penfund's investment were not disclosed.

About Penfund

Penfund is an independent investment company specializing in providing junior capital to middle market companies. Penfund provides high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund III. Penfund manages institutional funds sourced from Canadian pension funds and insurance companies and has invested more than $2.2 billion in over 200 companies since its establishment in 1979.

About GoodLife Fitness Clubs

GoodLife was founded in 1979 by David Patchell-Evans and now has 144 clubs across Canada. Starting from a single, 2,000 square foot club in London, GoodLife has grown into the largest group of fitness clubs in Canada. GoodLife currently employs 4,000 associates and has more than 300,000 members. The Company has received many awards including being named one of Canada's 50 Best Managed Companies in 2003, 2004 and 2005 and is the consecutive winner of the Consumers Choice Award for Toronto and Ottawa since 2001. David Patchell-Evans was the Ernst & Young Entrepreneur of the Year in Ontario in 2006. GoodLife has been a consistent supporter of the communities in which it operates and has donated significant amounts to autism research.

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