We have been hard at work to continue to grow and position elements as the leading brand in womens fitness. I thought it would be great to share a listing of some of the exciting projects that are currently in our development pipeline.

- elements stories – a new “social” website which will connect the corporate site, magazine, and BalanceD diet. elements is a special brand – we are a collection of people who are making it happen…. entrepreneurs, survivors, motivators, leaders, mothers, daughters…. although each of us is different there is so much which is similar…. We will be “weaving” stories throughout this site….. stories of our club owners, members, friends, family members… women who are transforming their lives through being a part of the elements movement….. We will be taking all of the member testimonials (and continually adding) to create a dynamic, interactive experience….. My thinking is that this will be an incredible membership sales tool, a entertaining website for current members to visit and interact on, and a market differentiator for us – elements will be the only fitness brand with a live, growing social network. before/after pics, stories, motivation, overcoming…. from across the country, we will see the bonds that tie, and watch a community be built (Jan 2009 launch)

- New supplement line! – we have some great developments in store here! The line is coming together nicely… we are still asking for as many survey responses as you can get – my goal is to have 500 individual surveys prior to making any development decisions on the products – we would like (if possible) a true cross-sampling from all clubs, all ages, and all potential buyers…. this will be a significant revenue center for your club, we want to ensure the new brand and products is the best possible fit! (Projected Mar/Apr 2009 launch, products will be available for purchase in-club and also commissioned online)

- elements television network – We are about a month from announcing “elements TV” – a full entertainment system and network inside the clubs. Music videos (with top selections for our target audience), tips from the advisory board, healthy tips, and branded “shorts” – commercials set to music that you can select and run for all things elements: the latest magazine issue (more readers is better exposure and retention for you), personal training ads, testimonials, diet coaching ads, supplements (once launched), specialty classes and more. elements TV is a complete, expertly branded entertainment experience which will take the club experience to the next level – best news is we are working on a major corporate sponsor (Victoria’s Secret, lancome, or Estee Lauder type) to underwrite 80% of the ongoing cost of the network, implementation and production! (Ready in-club Mar./Apr 2009)

NEW CLUBS! We are very excited for our newest club openings… Columbus, Ohio and Madisonville, KY are already in presale. We will very soon have some great new cities coming online including… Aventura, Orlando, Toronto, Greenwich, and California. In addition, we have some exciting developments in the works…Expect some big things in 2009!

Stock Offering: Miami Beach, FL – 11/01/08 – elements™ is pleased to announce the launch of their new stock offering program through our parent company, ELEMENTS GROUP. Franchisees, vendors and investors will now be able to purchase stock and own a piece of the fast-growing fitness and lifestyle brand.

Set to correspond with the introduction of the new stock offering program, elements™ has also created a robust corporate business website at www.elementscentral.com to keep investors informed and generate interest for potential investors. The “elements central” site will offer real-time announcements, annual reports, brand previews and strategic information about all facets of the company.

For more information on business opportunities including obtaining a stock prospectus, click here.

Many first-time business owners do not know that, in commercial real estate, it is normal for a professional landlord to pay “TI” (tenant improvement) money as an incentive to attract popular national tenants to their center. The more favored a brand is, the more “TI” money the landlords are willing to pay to attract that brand to their center.

This makes good sense for landlords, the best “anchor” tenants quickly define the image of the Plaza, and the ultimate long-term success. Many landlords do not want to re-invent the wheel here, so they will follow the lead of other successful landlords and plazas nationally. Owners of great brands can offset a larger portion of their initial startup and construction expenses through a landlord contribution. elements has been very popular with landlords since the beginning. Our clubs have great curb appeal for a plaza, and attract one of the top buying demographics (upper income women, age 30-65) to the plazas on a repeat basis. As a result, elements and our startup team has always had excellent results with landlord negotiations. (we help to negotiate all leases on behalf of our franchisees)

I have said many times that we believe this is one of the best times in history to open a business in the US. Economic trends have converged to make this an excellent time to negotiate a lease, as landlords are sweetening their deals to attract key tenants to sign leases. We are seeing “TI” amounts double what they were last year, and long free rent periods, typically one year or more. Wow… what an exciting thought for any business owner -being provided a “turn-key” space, and a full year of no rent expense.

I heard one time that the definition of luck is luck is when preparedness meets opportunity. Successful entrepreneurs will think themselves very luck to be able to launch their businesses this year.

Although much of the retail news these days is filled with doom and gloom scenarios, there is at least one industry which is gearing for a real surge in business …. lucky for us, it is the fitness industry

Fitness, weight loss and wellness see a real spike in sales for a 70 day period, beginning in early January. Savvy fitness retailers, such as elements for women, are learning how to extend this season earlier, with cleverly designed Holiday promotions, encouraging sales, membership reservations, and spikes in referral traffic in conjunction with the Holiday shopping season. I would love to be able to tell you exactly what strategy we are employing (however that is a secret reserved for our franchisees at this moment)!

We began the launch and integration of this pre-New Years/Holiday campaign work with our franchisees and partners in Atlanta this week, where we ran into a surprise guest, at the club….

Is your business famous yet? It is important to understand how to really build buzz locally, and drive more traffic to your business organically.

We are all well aware of the importance of the web in consumer’s buying patterns. Consumers use the web to research, explore, and 78% make buying decisions prior to ever visiting your club (or business).

Web 2.0 is a term given to the new, interactive nature of the web, focusing on Social Networking, blogging, and consumer reviews.

Not only is it important for your business to have a great, clear website, but it is equally important to compliment a website with local business presence, and consumer reviews.

The more (positive) consumer feedback you have on your business, the more credible the business becomes, and the more confident a consumer will be in making a decision to join on her first visit.