Market Need/NicheFalls in the aging American Population represent one of the most serious and complete-ly overlooked cause of serious injury, loss of independence and early death. In fact, thefocus on Osteoporosis and its pharmacological treatment is misplaced in that the waythat Osteoporosis often manifests itself is with a fall, and pharmacological treatment ofOsteoporosis does nothing to address fall risk which is a more significant risk factorthan bone density for fracture risk (see below). We will provide a program and methodto significantly reduce fall risk by increasing strength, balance, muscles mass and bonedensity with a minimal amount of commitment of time and little to no formal exercise.A brief look at some statistics on falls and osteoporosis will illustrate just how signifi-cant falls are and just how large an impact they have on quality and length of life foraging adults:

• Falls are the #1 cause of death as a result of unintentional injury among people 75 and older, (motor vehicle accidents are #2), and falls are the #2 cause of deathas a result of unintentional injury among people age 65-74.

• Falls are the # 1 cause of non-fatal unintentional injuries treated in hospital emergency rooms in every individual age group except ages 15 – 24, and overall falls are the # 1 cause of non-fatal unintentional injuries treated in hospital emergency rooms among all ages.

• Falls result in the second most expensive worker’s compensation claims costs. The average cost of a claim due to a fall or slip is $23,929. (Claims due to motor vehicle accidents are first, at an average cost of $46,033.)

• Very few people are ever screened by their physicians (or anyone else) for balance issue until AFTER they fall.

• Very few physicians have any training or tools to adequately assess fall risk.• One out of every three people older than 65 will fall this year.• 50 percent of people older than 65 who have fallen will fall again in the next 12

months.

• Most falls are unreported (even serious falls) because seniors fear losing their independence.

• Loss of independence is the most common fear of seniors, and in fact many seniors would rather die than lose their independence.

• Strength and balance training can significantly reduce the number of falls.• The pharmacological treatment of Osteoporosis using biophosphonates drugs

reduced vertebral fractures when 90% of patients complied with drug use during three years of treatment. For T-score less than -2.5, the cost of preventing one hip fracture is about $45,825, yet 70% of fractures still happen.

• There is even less evidence for hip fractures. For example, in an ideal world 577 post-menopausal women must be treated for one year to avert one hip fracture at a cost of about $234,000, and outside of clinical trials, drug treatment is less effective since only 50% of patients will use the drugs for one year.

• Must be very careful when interpreting drug company studies. For example in a study on Raloxifene, authors cite a 75% reduction using relative risk vs the actual reduction at 0.9%, BUT this translates into treating up to 270 women for three years to prevent ONE vertebral fracture.

• Among older people, falling, NOT Osteoporosis is the strongest risk factor for fracture.

• The type and severity of fall determines if fracture occurs.• 1 SD decrease in BMD increases facture risk by 2-2.5 times while a sideways fall

increases it by 3-5 times, up to 30 times if you hit the head of the greater trochanter.

Fall Prevention • 15% - 50% reduction in falls can be attained with proper training.• Must do Fall Risk Assessment in adults over 50.• Earlier tests such as stand and go are too subjective.• Modern computerized tools now available.• Up to 50-60% of all persons screened over 50 will fail screening.

Innovative Treatment• To date, the prevention of bone loss has been approached through drug intervention.• Long term safety is uncertain.• This approach ignores that bone structure changes in response to mechanical stimuli

which, until recently, has been ignored.• Our program will utilize state of the art computerized fall risk screening to provide a

baseline and system to accurately measure initial fall risk and subsequent improvement in fall risk utilizing the CAPS Computerized Dynamic Posturography System by Vestibular Technology which represents the gold standard for fall risk evaluation.

• The combination of vibrational training with the Impulse Training System and other proven balance modalities will provide the most comprehensive system to date to simultaneously address muscular strength, stability, balance, proprioception, muscle mass, bone density and reduction of fall risk utilizing an extremely time efficient protocol that will result in maximum compliance and results with a very, very low cost.

• Our program will involve a total of 45 minutes of time (3 fifteen minute visits) per week.

• And we will provide a home-based option utilizing vibrational exercise combined with other balance training.

Vibrational Exercise• Increases bone blood flow.• Increases muscle strength.• Increases balance.• Increases bone strength.• Improves lymph flow.• In one study BMD increased by 4.3% compared

to no change with walking.• Relieves back pain.• Strength training also led to no BMD changes.• Elderly women complied to use at 93%.

• 95% reported satisfaction with using vibration.• 57% preferred vibration over using oral medications.• Increases muscle strength and nerve-muscle function.• Improves hormonal profile.• Slows aging.• Safe even in heart transplant patients.• Everyone over 50 should receive vibration stimulus for at least 20-30 minutes/week.• Easy to perform with no perceptible effort required.

Impulse Training System• This system allows people of all ages and

levels of health, access to increased strength, improved organ function, and greater bone density. The propri-etary software uses exceedingly accurate load cell data, processes it for dynamic display to support sessions in real time. User exercise data moves via the internet to a network operations center for analysis and algorithm driven recommendations for user recovery, fortification, and exercise timing.

• With conventional resistance training, a person picks up a weight (or moves a bar that’s connected to a weight stack) and imposes load on the body. In the course of the range of motion there is a risk of injury. With Impulse Training however, the load used is created by the individual exerciser. This means that no matter how hard one exercises the load that is being dealt with is never beyond what is safe.

• After a client finishes an exercise session, he or she gets a printout representing all sessions and including an analysis and recommendation section so the software can prescribe the proper recovery timing.

What Medical Doctors Say Following Bone Density Testing of Female PHS Clients:

• Dr. Baldwin: “3% increase in BMD, please continue PHS exercise program.”• Dr. Kako: “3.5% lumbar, and 3% neck increase in BMD since 2005.”• Dr. Hetrick: “6.0% BMD increase from the prior examination of 11-02-04.”

What experts (Medical Doctors) say after 36 months of operation:

• Dr. Hynote: “Can I have one of these machines in my clinic?”• Dr. Sakakihara: “My muscles have turned from flab to rock.”• Dr. Shifflett: “I couldn’t be more enthused about this training and exercise program.”• Dr. McCoy: “There is a good scientific foundation for what PHS is doing.”

Client results after 36 months of operation:

• Active 2005 Clients Average Strength Gain (3 years) 123%• Active 2006 Clients Average Strength Gain (2 years) 63%• Active 2007 Clients Average Strength Gain (1 year) 42%• Average age 2005 Clients 52• Average age 2006 Clients 46• Average age 2007 Clients 51

StandStrong ClinicTM Design and Implementation• A Clinic location has been

secured at the Hockessin Athletic Club (HAC)

• HAC is a 120,000 square foot state of the art family wellness complex with over 13,000 members ages 1 – 95.

• The HAC geographic market (12 minute Drive Time at rush-hour) contains 33,000 households with projections of over 35,000 by 2012 with an average household income of $110,000.

• The HAC geographic market contains 30,361 adults over the age of 50.• In its Geographic Market HAC has penetrated many carrier routes to the point that

35% of the homes are members of the club so is uniquely positioned to bring a new program to market.

• The StandStrong™ Clinic within HAC will have its own private entrance so that non-members can utilize the clinic without joining or in fact ever having to use the club.

• StrandStrong will be marketed directly to the public and through HAC’s network of area physicians.

• The primary sales/marketing tool will be computerized free fall risk screens.

StandStrongTM Creators• Roger Ralph – Principal Hockessin Athletic Club (see attached bio)• Bob Carpenter – Principal Hockessin Athletic Club (see attached bio)• Greg Maurer – General Manager Hockessin Athletic Club (see attached bio)• Dr. Gregory Ellis – PhD., CNS (see attached bio)• Ed Trainor – Executive V.P. Fitness Town Sports International (see attached bio)• Fred Seabright – Strength Training Consultant

BiosROGER RALPH is a 1963 graduate of Middlebury College where he majored in history. Roger holds a Masters Degree in International Affairs from ColumbiaUniversity and was a Loeb Fellow at Harvard University. He began his career in thehealth club industry at the age of 37 when he quit his job as a Vice President of theColumbia Association in the new town of Columbia, MD to seek financing to build ahealth club. After a year’s effort and rejection by most banks in the State of Maryland,Roger and his wife Elaine obtained an SBA guaranteed loan and in 1980 opened a25,000 sq. ft. racquetball club and fitness center in Bel Air, MD.

When the Ralphs sold the Bel Air Athletic Club to the Wellbridge Company in 2000, ithad grown incrementally to 120,000 sq. ft. on eight acres and from 15 employees to 350.It made the International Health, Racquet and Sportsclub Association’s (IHRSA) list asone of the top five health clubs in the United States. Roger is a past recipient ofIHRSA’s Distinguished Service Award. He and his wife Elaine were honored by Ernstand Young as Entrepreneurs of the Year for the State of Maryland and by the SmallBusiness Administration as an outstanding small business model.

Prior to partnering with Bob Carpenter on the Hockessin Athletic Club, Roger workedwith Cal Ripken, Jr. assisting him in organizing his post career businesses and launching the Cal Ripken, Sr. Foundation. Roger is a Board Member of the MarylandMentoring Partnership and the Cal Ripken, Sr. Foundation. He is a former BoardMember of IHRSA, the Harford Community College (HCC) Foundation, the HarfordCounty Boys & Girls Clubs, and the Columbia Foundation. Roger has been a facultymember at IHRSA’s Management Institute, the Harford Leadership Academy, and in2005 the Commencement speaker at HCC. (For related information view www.RogerRalph.com)

Roger and his wife have three grown children and live in Stevensville, Maryland, a few miles from the Chesapeake Bay Bridge.

BOB CARPENTER went to the University of Delaware where he played varsity base-ball and graduated with a degree in Criminal Justice in 1986. Two years later Bob andhis family took over the Pike Creek Fitness Club in Pike Creek. Under Bob’s leadership,the club was modified and improved substantially. Bob sold the facility in 2007 in orderto devote 100% of his time to his new venture, the 105,000 sq. ft. Hockessin Athletic Club.

In 2003, Bob and his family entered into a contract with local auctioneer and property owner John McGrellis to purchase 11.5 acres that was being used primarily asa mushroom processing site. The purchase was contingent on having the land appro-priately rezoned in order to build a large scale family and community oriented healthclub. With virtually unanimous community support, the property was successfully rezoned. After a complicated and lengthy planning process--which includ-ed the construction of a shared use 337 space parking deck and coordinated effortswith the Delaware State Department of Transportation, owner of Tweed’s Park--theHockessin Athletic Club (HAC) opened its doors to members on June 10, 2007.

Bob is proud that HAC is positively impacting the health of thousands who use theclub regularly and the economic benefit the club is bringing to New Castle Country asemployer of more than 350 men and women. His personal interest in yoga led him toprovide for the public and HAC members the only “hot” yoga studios within a U.S.health club in the United States.

Bob is active in the community and supports various charitable causes. He is a memberof a national Executive Roundtable for health club owners and managers. He and hiswife Lynn and their three children live in Wilmington.

GREG MAURER is a summa cum laude graduate of Temple University, which heattended after four years in the Marine Corp. Greg holds a Practitioner's Certificate inHomeopathy from the British Institute of Homeopathy and is a Certified NutritionConsultant.

Prior to becoming HAC’s General Manager, Greg held similar positions at the PikeCreek Fitness Club, and the Tilton Fitness Club in Mays Landing, New Jersey. In addition to managing health clubs, Greg was the inventor of the Training Camp Slidewhich he also marketed and manufactured. In this capacity he created and edited fiveinstructional videos for instructors and users, and managed a network of 75 LateralMotion Trainers who trained and certified instructors in the correct use of the slide.After selling the rights to the Training Camp Slide which was distributed in Europe,Japan, Canada, South America, and the U.S., Greg developed a proprietary weightmanagement program used in 12 centers and managed a team of 15 trainer/instructors.

Greg’s professional experience combines in-depth functional knowledge with "realworld" business experience. His hard work, leadership, passion, and knowledge ofhealth and fitness have provided HAC members and staff with the opportunity toexperience some of the most advanced technology used in the health club industry.

His role in StandStrong Clinics™ will be to act as the day-to-day onsite business director of the initial StandStrong Clinic™ being located in the Hockessin AthleticClub.

GREGORY ELLIS, Ph.D., CNS has extensive knowledge in many and varied areas ofhealth improvement and fitness. He received his Ph.D. degree from the TempleUniversity School of Medicine’s Department of Physiology. He has a graduate level certification in nutrition from the American College of Nutrition (Certified NutritionSpecialist).

Fascinated with weight training since childhood, he opened one of the first Nautilusexercise centers in the country in the early 1970’s. Dr. Ellis has consulted with professional and amateur athletes. He has extensive knowledge about weight controland muscle building and has completed pioneering research in body composition. Hespecializes in the biochemistry of energy metabolism, nutritional supplementation, andadvanced techniques such as contemporary homeopathy.

Another area of interest is the effects of environmental pollution (including industrial,agricultural, and pharmaceutical pollution) and their negative impact on health maintenance. Dr. Ellis believes in integrating research with its ultimate goal: applica-tion for use by individuals. In addition to lecturing and writing, he has developed cutting-edge nutritional products, exercise equipment, and monitoring devices forweight control and fitness. Dr. Ellis operates a large clinical nutrition practice in thesuburban Philadelphia area.

ED TRAINOR came to Town Sports International in 1983 from Washington DC afterworking the prior two years with Roger Ralph, both at the Bel Air Athletic Club, andthe Washington Sports Club. Previously, Ed was a tenured teacher and coach in theMaryland School system. His ten years of experience, along with his BS and MS inPhysical Education, qualified him as TSI Fitness Director until 1989 when he becameVice President of Fitness Services and Product Development, a title he holds today. In his twenty-five years with TSI, Ed has contributed to the team effort of building the company from three squash clubs to the dominant 165 club chain in the East Coast.

Ed's current role is to help TSI continue develop the best fitness industry product for its 500,000 members through innovation and research. TSI and Ed have developedindustry recognition and networking strategies with manufacturers and other cluboperators worldwide that give the company its first alert status, helping it stay at theforefront of today’s consumer-driven market. Ed's daily responsibilities include annualevaluations of club needs in new and replacement equipment, as well as the manage-ment and maintenance of all fixed assets related to the fitness product, from the developmental stages of club layout, through the purchasing, installation and trade-out stages.