BIDS.L Regulatory News (BIDS)

Fitbug Holdings Plc / Epic: FITB.L / Index: AIM / Sector: Leisure

14 June 2011

Fitbug Holdings Plc ('Fitbug' or 'the Company')

Four New Deals Extend Reach Across USA, the Middle East & Europe

Fitbug Holdings Plc, the AIM traded provider of online personal health and well-being services, is pleased to announce that it has signed four new agreements with both new and existing customers which will see the Company's customer base extended in both the USA, the Middle East and Europe.

Highlights:

·; Signed a new partnership agreement with Anxa, a premiere provider of wellness and nutrition products and services in Europe and Asia

·; Signed agreements to provide workplace health programmes for two major US corporations - Fitbug will be offered to a total of 16,000 employees

·; Order worth £200,000 from existing customer Holmes Place International, a leading health and fitness club operator in the Middle East and Europe

Fitbug Chief Executive Paul Landau said, "After significant Capex in product development these recent transactions confirm the role that Fitbug can play as both a stand-alone Fitbug.com branded proposition and also as a white-label solution that sits behind our clients' own web portals. Importantly, the international nature of these deals also highlights the versatility of what we have created and the role that Fitbug's technology has the potential to play both at home and abroad." 

Fergus Kee, recently appointed Executive Chairman, and former Managing Director of Bupa's UK and North America Division, said, "These four deals, together with the recently announced partnership agreement with Vitality Healthstyle Pty Limited, the rewards subsidiary of South Africa's largest health insurer, Discovery Health, demonstrate the market potential and strengthening interest in the proven capability of Fitbug's services to deliver effective health behaviour change with an appropriate price and promotional strategy ."

Fitbug has signed a new partnership agreement with Anxa, a premier provider of wellness and nutrition services in Europe and Asia. Under the terms of the agreement, Fitbug's proprietary health and well-being technology will be marketed by Anxa's subsidiary, Aujourdhui.com, which is France's leading diet club. Fitbug will provide Aujourdhui.com with their activity tracking devices and data feeds to facilitate the introduction of 'Le Booster', an activity component that will sit alongside Aujourdhui.com's existing diet propositions and will be marketed to their 60,000 members.

Additionally, Fitbug entered the US Market in 2010 and after numerous relatively smaller corporate programmes, has now commenced roll out of two large employer schemes through its US strategic partner, The Vitality Group ('TVG'). More than 16,000 employees from both companies will clock their steps to earn Vitality Points, redeemable for merchandise and other great rewards. The first of these companies is a leading supplier of services to healthcare providers in the USA. The company provided its employees with the newest addition to Fitbug's product line, a simpler entry level device, to 10,000 employees within a division of this 65,000 employee group. The second employer scheme deployed Fitbug devices to 6,000 employees of a US headquartered pharmaceutical company.

Fitbug has also received an order worth £200,000 from existing customer Holmes Place International ('Holmes Place'), a leading health and fitness club operator in the Middle East and Europe. This contract follows the successful launch of Holmes Place's new membership category in 2010, Holmes Place 2Go, which is now achieving significant traction and sales. This agreement will see Fitbug's devices and services delivered on a phased basis over the next 18 months.

Holmes Place Marketing Director Niv Harel said, "The Holmes Place 2Go proposition is now gaining significant momentum as various pilot programmes and test marketing initiatives over the first year have led to positive outcomes and strong uptake. We are confident of the programmes continued success and growth into 2012 and beyond."

** ENDS **

For further information visit www.fitbugholdings.com or contact:

Notes

Fitbug is a leading provider of online health and well-being services to help individuals to improve their lifestyles by making realistic changes to their daily routine. It combines activity tracking devices, which download to fitbug.com to provide an understanding of each user's daily activity achievements, with web technology which provides users with personalised weekly activity and nutrition targets, feedback, advice and encouragement. The World Health Organisation ('WHO') is projecting that by 2015 approximately 2.3 billion adults will be overweight and more than 700 million obese.*

Key market sectors include health insurance and rewards providers, workplace health programmes, Primary Care Trusts, fitness operators and consumers. Increasingly, Fitbug's platform acts as the driving force behind third party services such as white label sites, activity driven games and challenge microsites and rewards programmes.

 The Company's main focus is now on building strategic partnerships with organisations, with the United States as a particularly strong target, which can integrate Fitbug into their own service/product offerings or resell to their customer base.  (www.fitbug.com)

* Source: http://www.who.int/nmh/publications/fact_sheet_diet_en.pdf