GYM SYSTEMS/EPG SIGNS ENERCISE DISTRIBUTORSHIP AGREEMENT

Beaumont to Sell, Install, Service in N.E.

New York City - JULY 31, 2002 - Gym Systems/EPG, Inc. has signed a distributorship agreement with Enercise, Inc., to sell, install and service Enercise Entertainment Systems for the Northeast region of the North American market, according to Gym Systems/EPG CEO and founder Tom Beaumont.

"Our primary job is to maximize the value of the entertainment experience for health club owners and their members. Enercise iTV and xTV systems provide excellent showcase products for any size health and fitness facility," reported Beaumont.

"The CD/DVD option with Enercise iTV systems is an exclusive feature, which provides substantial entertainment and educational value. The overall iTV system design, with protected cabling and 15-inch screen, sets a new industry standard. Enercise wireless products, particularly the xTV receiver with its Quick-Change headphone jack, demonstrates a reliability and intelligence of design born of years of experience in the health club industry."

"Tom has extraordinary experience with sales, installation and service of Netpulse E-Zone Entertainment Networks, which reflects the nature and scope of both current and future Enercise products," stated Tony Garcia, Enercise founder and president. "We are proud to have Gym Systems/EPG represent the Enercise entertainment brand."

Gym Systems/EPG has offices located in New York City. In Q2 2001, EPG contracted with TSI (Town Sports International - New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs & Washington Sports Clubs) to Project Manage the warehousing, installation, and service of E-Zone Networks in the Northeast corridor. Currently EPG is concentrating on the New York, New Jersey and Connecticut health club markets with a direct marketing campaign including mail service with commercial literature from both companies and supported by a telemarketing drive. In addition, the Enercise corporate sales division is providing leads to EPG.

EPG HISTORY

The company was founded February 2001 in response to the health club industry's need for a higher level of technical product consulting and service. With so many new technologies on the market, Beaumont felt it was imperative to offer clubs intensive support in evaluating and maintaining entertainment and security solutions to avoid costly product selection and installation/support mistakes.

CLIENTS AND ASSOCIATIONS

Current club groups, and electronic product manufacturers working with Gym Systems/EPG include:

• Alpha System Laboratories - Advanced Surveillance systems for offsite viewing
• Bose Audio - Speakers and Audio Equipment
• ClubCorp USA - National sporting and health club chain
• DirectTV and Music Choice - Satellite-Based Audiovisual entertainment
• Fitlinxx - Health club exercise monitoring systems
• Free Motion (formerly Ground Zero) - Exercise equipment
• HEALTHCLUBEXPERTS.COM
• IHRSA (International Health, Racquet & Sportsclub Association) - Associate Member
• Internet Café - "Kiosk-Based" Online access for club members
• JVC Corporation -Televisions, Viewing Systems and Audio/Video Components
• MACMA (Mid-Atlantic Club Management Association) - Associate Member
• Maxcomm Technologies - Computer-Automated Interactive Virtual Call centers for customer support and telecom messaging
• NASCOMM Network
• The New York City Police Survivors Fund
• NYPD Division of Computer & Information Technologies
• NEHRSA (New England Health, Racquet & Sportsclub Association) - Assoc. Member
• Town Sports International - Northeast based sports clubs with 120+ facilities

GS/EPG sells, installs and services audiovisual entertainment, paging and sound systems, digital video surveillance systems, access control automation via smart card systems, virtual call centers for telecommunications messaging, satellite TV and background audio. They have also recently expanded their offerings to include AED products, or Automatic External Defibrillators - for lifesaving first response in cases of cardiac arrest. GS/EPG expects this proven technology to become indispensable in the safety-conscious health club of the 21st Century