HARBIN, China, Oct. 6 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC: SOKF) ("SOKO"), an operator of fitness centers, beauty salons and spas in Northeast China as well as suburban Beijing, today announced that it has signed a cooperation and revenue-sharing agreement with Bin Xian Vocational Technology and Education Center ("Bin Xian"), which is located in suburban Harbin, China.
Under the 5-year agreement, SOKO will provide products and personnel to Bin Xian for training and education programs in skincare, hair styling, cosmetology and facial treatments.
Bin Xian's classes using SOKO's products will begin in June 2011 and will be offered as a two-year comprehensive education program. A select group of qualified second-year students will be offered paid internships at SOKO's spa facilities.
Under the agreement, revenues from tuitions will be shared 60% by Bin Xian and 40% by SOKO, with the corresponding operating expenses undertaken by the parties. Revenues from sales of products to students, as well as the associated product costs, will be shared equally by SOKO and Bin Xian. SOKO does not expect that the revenues from this venture will add materially to its top line revenues but believes that it offers the company an opportunity to further broaden its brand name within the spa and beauty community in China.
"This agreement with Bin Xian presents a great opportunity for SOKO to build greater awareness of our education offering. We believe the partnership is an ideal compliment to our Harbin Queen Beauty Vocational Skill Training School and a natural step in the continued execution of our growth strategy. We believe that the partnership with Bin Xian will allow us to leverage our existing resources to develop an important tool through which to seek out and recruit the next generation of fitness and beauty center employees," said Tong Liu, Chief Executive Officer of SOKO.
SOKO currently operates 20 facilities in Northeastern China and Beijing, including 11 beauty salons and spas, one non-surgical medical beauty center, seven fitness centers and yoga studios, including two fitness centers in suburban Beijing, and one beauty school. As of May 31, 2010, SOKO had approximately 18,000 fitness club members, and approximately 21,000 beauty salon and spa clients. SOKO currently has 4 facilities under construction or engaged in pre-opening activities.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com.
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Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, the projected benefits associated with SOKO's cooperation with Bin Xian and results regarding the Company's service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
SOURCE SOKO Fitness & Spa Group, Inc.