For Release on November 2nd, 2006

TOWN SPORTS INTERNATIONAL HOLDINGS, INC. ANNOUNCES THIRD QUARTER 2006 FINANCIAL RESULTS

New York, NY — November 2nd, 2006 — Town Sports International Holdings, Inc. (“TSI” or “the Company”), a leading owner of health clubs located primarily in major cities from Washington, DC north through New England, operating under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs, announced its results for the quarter ended September 30, 2006.

Third quarter 2006 revenue grew 11.4% to $109.4 million from $98.2 million for the same period last year. Total revenue for the first nine months of 2006 grew 11.3% to $322.9 million from $290.0 million during the same period last year. Comparable club revenue increased 7.8% during the third quarter compared to the same period in the prior year.

Robert Giardina, Chief Executive Officer of TSI, commented, “We are very pleased to be able to report our fourth consecutive quarter of double-digit revenue growth, as well as 32.6% EBITDA growth, which is an acceleration from the first half of the year. During the quarter, we continued to post very solid comparable-club revenue growth along with double-digit member and ancillary revenue growth, and we are on track to meet our 2006 expansion goals while having established a pipeline of new clubs for 2007 and 2008.” Mr. Giardina continued, “We are now looking to finish the year in strong fashion and surpass our initial financial objectives for 2006, and we are excited to look to the future with good momentum, a unique strategy within our industry, and with a team of employees throughout our organization that continues to execute at a very high level.”

Quarter ended September 30, 2006, Financial Highlights:

Revenue (in $’000s) is comprised of the following:

	Three Months Ended September 30,
	2005				2006
Membership dues	$	78,133	79.6	%	$	87,257	79.7	%
Initiation fees		2,896	2.9	%		2,586	2.4	%
Membership revenue		81,029	82.5	%		89,843	82.1	%
Personal training revenue		10,003	10.2	%		11,564	10.6	%
Other ancillary club revenue		6,180	6.3	%		6,766	6.2	%
Ancillary club revenue		16,183	16.5	%		18,330	16.8	%
Fees and Other revenue		988	1.0	%		1,245	1.1	%
Total revenue	$	98,200	100.0	%	$	109,418	100.0	%

Total revenue for the third quarter grew 11.4% to $109.4 million from $98.2 million for the same period last year. The increase in revenue was driven by growth in membership revenue and ancillary club revenue.

• Membership revenue for Q3 2006 grew 10.9% to $89.8 million from $81.0 million in Q3 2005.

• Ancillary club revenue for Q3 2006 grew 13.3% to $18.3 million from $16.2 million in Q3 2005.

• Comparable club revenue increased by 7.8% during Q3 2006 compared to Q3 2005. This increase in comparable club revenue is due to a 4.8% increase in membership, a 1.9% increase in price, and a 1.5% increase in ancillary revenue offset by a 0.4% decrease in initiation fee revenue recognized as a direct result of our policy to amortize membership initiation fees over a 30 month, rather than a 24 month period, which was implemented in the first quarter of 2006.

Total operating expenses increased by 5.8% to $94.2 million in Q3 2006 compared to $89.0 million in Q3 2005.

• Payroll and related expenses totaled $39.7 million in Q3 2006 compared to $38.4 million in Q3 2005.

     For the quarter:

• Payroll costs directly related to the Company’s personal training, Group Exclusives, and Sports Clubs for Kids programs increased $0.7 million or 9.2%, due to increased demand for these programs.

• In Q3 2006, share-based compensation charges totaled $0.4 million.

• Club operating expenses totaled $37.7 million for Q3 2006 compared to $34.1 million in Q3 2005.

• Rent and occupancy expenses increased $2.4 million. Rent and occupancy costs at clubs that have opened since October 1, 2005 or that are currently under construction increased $1.9 million.

• Utility costs increased $1.1 million. $0.6 million of the increase in utilities was at clubs that were opened or acquired in 2005 and 2006. The balance of the increase is due to higher utility rates throughout the remainder of the club base.

• General and administrative expenses were $6.7 million in Q3 2006 and 2005.

• Depreciation and amortization expenses totaled $10.1 million during Q3 2006 compared to $9.9 million in Q3 2005.

• Loss on extinguishment of debt totaled $7.4 million during Q3 2006 due to the early termination fees, deferred financing costs write-off, and associated fees related to the July 7, 2006 redemption of 35% of the 11% Senior Discount Notes.

• The Company recorded an income tax provision of $0.5 million in the quarter ended September 30, 2006 compared to an income tax benefit of $0.1 million in the quarter ended September 30, 2005.

Net income for Q3 2006 was $0.8 million compared to net loss of $0.1 million in the same period of prior year. The $7.4 million pre-tax loss on extinguishment of debt in Q3 2006 was an offset to the net income during the quarter.

EBITDA for Q3 2006 increased 32.6% to $25.8 million from $19.5 million in Q3 2005. As a percentage of total revenue, EBITDA margin was 23.6% in Q3 2006, compared to 19.8% in Q3 2005.

Adjusted EBITDA for Q3 2006 increased 34.4% to $26.3 million from $19.6 million in Q3 2005. As a percentage of total revenue, adjusted EBITDA margin was 24.0% in Q3 2006, compared to 19.9% in Q3 2005.

Nine Months ended September 30, 2006, Financial Highlights:

Revenue (in $’000s) is comprised of the following:

	Nine Months Ended September 30,
	2005				2006
Membership dues	$	230,203	79.4	%	$	257,160	79.6	%
Initiation fees		9,018	3.1	%		6,839	2.1	%
Membership revenue		239,221	82.5	%		263,999	81.7	%
Personal training revenue		31,976	11.0	%		36,915	11.5	%
Other ancillary club revenue		15,924	5.5	%		17,841	5.5	%
Ancillary club revenue		47,900	16.5	%		54,756	17.0	%
Fees and Other revenue		2,921	1.0	%		4,158	1.3	%
Total revenue	$	290,042	100.0	%	$	322,913	100.0	%

Total revenue for the first nine months ended September 30, 2006 grew 11.3% to $322.9 million from $290.0 million during the same period last year. The increase in revenue was driven by growth in membership revenue and ancillary club revenue.

• Membership revenue for the nine months ended September 30, 2006 grew 10.4% to $264.0 million from $239.2 million during the same period last year.

• Ancillary club revenue for the nine months ended September 30, 2006 grew 14.3% to $54.8 million from $47.9 million during the same period last year.

• Comparable club revenue increased by 7.9% during the nine months ended September 30, 2006 compared to the prior-year period. This increase in comparable club revenue is due to a 5.0% increase in membership, a 2.0% increase in price, and a 1.6% increase in ancillary revenue offset by a 0.7% decrease in initiation fee revenue recognized as a direct

result of our policy to amortize membership initiation fees over a 30 month, rather than a 24 month period, which was implemented in the first quarter of 2006..

Operating expenses totaled $283.7 million, compared with $260.7 million for the same period last year.

• Total payroll and related expenses for the nine months ended September 30, 2006 increased $7.2 million to $121.2 million from $114.0 million during the same period last year.

• Payroll costs directly related to our personal training, Group Exclusive, and Sports Club for Kids programs increased $2.9 million or 12.0%, due to an increase in demand for these programs.

• In the nine months ended September 30, 2006, share-based compensation charges totaled $1.0 million.

• Total club operating expenses for the nine months ended September 30, 2006 grew 11.9% to $108.9 million from $97.3 million during the same period last year.

• Rent and occupancy expenses increased $5.7 million. Rent and occupancy costs at clubs that have opened since October 1, 2005 or that are currently under construction increased $4.5 million.

• Utility costs increased $4.3 million. $1.6 million of the increase in utilities was at clubs that were opened or acquired in 2005 and 2006. The balance of the increase is due to higher utility rates throughout the remainder of the club base.

• Total general and administrative expenses for the nine months ended September 30, 2006 increased $2.8 million to $22.6 million from $19.8 million during the same period last year. In the nine months ended September 30, 2006 we incurred expenses of $1.7 million related to the examination of financing alternatives, now completed.

• In the nine months ended September 30, 2006, depreciation and amortization expenses increased $1.2 million to $30.9 million from $29.7 million during the same period last year.

• Loss on extinguishment of debt totaled $16.1 million during the nine months ended September 30, 2006. The Company recorded a loss of $7.4 million during the third quarter of 2006 due to the early termination fees, deferred financing costs write-off, and associated fees related to the redemption of 35% of the 11% Senior Discount Notes on July 7, 2006. During the second quarter, the Company incurred a loss of $8.7 million related to the early redemption of $85.0 million of outstanding principal of the 9 5/8% Senior Notes.

• The Company recorded an income tax benefit of $0.1 million during the nine months ended September 30, 2006 compared to an income tax provision of $0.4 million in the same period last year.

Net loss for the nine months ended September 30, 2006 was $2.0 million compared to net income of $0.5 million in the same period of prior year. The $8.7 million and $7.4 million pre-tax charges related to the extinguishment of debt in Q2 2006 and Q3 2006, respectively were contributors to the net loss in the nine months ended September 30, 2006.

EBITDA for the nine months ended September 30, 2006 grew 18.6% to $71.5 million from $60.3 million during the same period last year. As a percentage of total revenue, Year-to-date EBITDA margin was 22.1% compared to 20.8% in 2005.

Adjusted EBITDA for the nine months ended September 30, 2006 increased 23.9% to $76.1 million from $61.4 million during the same period last year. As a percentage of total revenue, adjusted EBITDA margin was 23.6% in the first nine months of 2006, compared to 21.2% in 2005.

Cash flow from operations for the nine months ended September 30, 2006 grew 3.1% to $59.6 million from $57.8 million from the prior year. Cash flow from operations has increased due to the increase in operating income excluding the effects of depreciation and amortization, net changes in operating assets and liabilities, including the increase in deferred revenue and the decrease in prepaid taxes. For the nine months ended September 30, 2006, cash flows from operations were decreased by $13.0 related to payment of interest on Payment-in-Kind Notes.

Cash used in financing activities for the nine months ended September 30, 2006 totaled $54.2 million. On June 2, 2006, the Company completed an IPO of 8,950,000 shares of common stock at a price to the public of $13.00 per share, 7,650,000 of which were sold by the Company and the remainder of which were sold by certain selling stockholders to certain specified

purchasers. Upon completing the offering, the Company received approximately $91.8 million of proceeds net of underwriting discounts and expenses. The IPO proceeds were used for the redemption of 35% of the aggregate principal amount of its outstanding 11% Senior Discount Notes due 2014 and the remainder of the proceeds together with cash on hand was used to consummate the tender offer for $85.0 million of the 9 5/8% Senior Notes due 2011. The tender offer for the 9 5/8% Senior Notes was consummated on June 8, 2006 and the redemption of the 11% Senior Discount Notes occurred July 7, 2006. In connection with the IPO the Board of Directors approved a 14 for 1 common stock split.

The Company will hold a conference call on Thursday, November 2, 2006 at 5:00 PM (Eastern) to discuss the third quarter results. Robert Giardina, chief executive officer, and Richard Pyle, chief financial officer, will host the conference call. The conference call will be Web cast and may be accessed via the Company’s Investor Relations section of its Website at www.mysportsclubs.com. A replay and transcript of the call will be available via the Company’s Website beginning November 3, 2006.

2006 Business Outlook:

Based upon the current business environment, year-to-date performance and current trends in our marketplace, the Company currently expects the following updated results for calendar year 2006, subject to risks and uncertainties in any forward looking statements:

Total revenue is expected to be between $431.0 and $433.0 million, an 11.0% to 11.5% growth over 2005 — driven by club membership and ancillary revenue growth, the maturation of recently opened clubs as well as new clubs opened during the year. This is an increase from our previous guidance of between $428.0 and $433.0 million.

EBITDA is expected to be between $96.5 and $98.0 million, an 18.0% to 20.0 % growth over 2005. This is an increase from our previous guidance of $92.5 to $95.0 million. When adjusted for the effects of financing and severance expenses written-off during the year as well as deferred rental expense and stock option compensation expense, we expect such Adjusted EBITDA to be between $100.0 and $102.0 million, a 19 — 21% increase over 2005’s results. This is an increase from our previous guidance of $95.5 and $98.0 million.

Net income is expected to be between $1.5 and $2.5 million — when compared with 2005’s net income of $1.7 million. The net income for 2006 will be arrived at after a total charge of approximately $16.1 million for early extinguishment of debt before corporate income taxes. On an adjusted basis, net income would have been between $11.0 and $12.0 million without the post tax effects of our recent debt extinguishment costs. We expect EPS of between $0.06 and $0.11 per share for the year, or between $0.47 and $0.52 per share when adjusted for the early debt extinguishment charges on a post-tax basis, increased from $0.44 and $0.49 included in our previous guidance.

About Town Sports International Holdings, Inc.:

New York-based Town Sports International Holdings, Inc. is a leading owner and operator of fitness clubs in the Northeast and mid-Atlantic regions of the United States. In addition to New York Sports Clubs, TSI operates under the brand names of Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs, with 144 clubs and more than 446,000 members in the U.S. In addition, the Company operates three facilities in Switzerland. For more information on TSI visit http://www.mysportsclubs.com.

Town Sports International Holdings, Inc., New York

Contact Information:

Investor Contact:
(212) 246-6700 extension 710
Investor.relations@town-sports.com or

Joseph Teklits
Integrated Corporate Relations
joseph.teklits@icrinc.com

TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2005 and September 30, 2006
(All figures in $’000s, except share data)
(Unaudited)

	December 31,			September 30,
	2005			2006
ASSETS
Current assets:
Cash and cash equivalents	$	51,304		$	14,531
Accounts receivable, net		7,103			9,094
Inventory		421			492
Prepaid corporate income taxes		4,518			—
Prepaid expenses and other current assets		13,907			13,603
Total current assets		77,253			37,720
Fixed assets, net		253,131			269,360
Goodwill		49,974			50,064
Intangible assets, net		741			1,047
Deferred tax asset, net		24,378			30,265
Deferred membership costs		11,522			15,274
Other assets		16,772			13,171
Total assets	$	433,771		$	416,901
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current portion of long-term debt	$	1,267		$	252
Accounts payable		8,333			7,354
Accrued expenses		31,620			37,675
Accrued interest		5,267			7,800
Deferred revenue		33,028			39,248
Total current liabilities		79,515			92,329
Long-term debt		409,895			278,012
Deferred lease liabilities		48,898			52,549
Deferred revenue		2,905			8,139
Other liabilities		8,241			11,039
Total liabilities		549,454			442,068
Stockholders’ deficit:
Class A voting common stock, $.001 par value; issued and outstanding 18,327,722 and 25,936,148 shares at December 31, 2005 and September 30, 2006, respectively		1			26
Paid-in capital		(113,588	)		(21,719	)
Unearned compensation		(509	)		—
Accumulated other comprehensive income (currency translation adjustment)		386			501
Accumulated deficit		(1,973	)		(3,975	)
Total stockholders’ deficit		(115,683	)		(25,167	)
Total liabilities and stockholders’ deficit	$	433,771		$	416,901

TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 2005 and 2006
(All figures in $’000s except share and per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2005			2006			2005			2006
Revenues:
Club Operations	$	97,212		$	108,173		$	287,121		$	318,755
Fees and Other		988			1,245			2,921			4,158
		98,200			109,418			290,042			322,913
Operating Expenses:
Payroll and related		38,388			39,724			113,952			121,211
Club operating		34,146			37,677			97,314			108,928
General and administrative		6,653			6,668			19,796			22,635
Depreciation and amortization		9,850			10,125			29,673			30,911
		89,037			94,194			260,735			283,685
Operating Income		9,163			15,224			29,307			39,228
Loss on extinguishment of debt		—			7,446			—			16,113
Interest expense		10,485			7,388			31,113			28,471
Interest income		(618	)		(475	)		(1,452	)		(1,862	)
Equity in the earnings of investees and rental income		(446	)		(463	)		(1,321	)		(1,371	)
Income (loss) before provision (benefit) for corporate income taxes		(258	)		1,328			967			(2,123	)
Provision (benefit) for corporate income taxes		(135	)		543			420			(121	)
Net income (loss)	$	(123	)	$	785		$	547		$	(2,002	)
Earnings (loss) per share:
Basic	$	(0.01	)	$	0.03		$	0.03		$	(0.09	)
Diluted	$	(0.01	)	$	0.03		$	0.03		$	(0.09	)
Weighted average number of shares used in calculating earnings (loss) per share:
Basic		18,327,722			25,933,506			18,336,812			21,669,090
Diluted		18,327,722			26,345,601			18,350,365			21,669,090
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(123	)	$	785		$	547		$	(2,002	)
Foreign currency translation adjustments		21			(53	)		494			115
Comprehensive income (loss)	$	(102	)	$	732		$	1,041		$	(1,887	)

TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2005 and 2006
(All figures in $’000s)
(Unaudited)

	Nine Months
	Ended September 30,
	2005			2006
Cash flows from operating activities:
Net income (loss)	$	547		$	(2,002	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		29,673			30,911
Interest expense on Senior Discount Notes		11,495			11,480
Loss on extinguishment of debt		—			16,113
Payment of interest on Payment-in-Kind Notes		—			(12,961	)
Amortization of debt issuance costs		1,227			1,117
Noncash rental expense, net of noncash rental income		1,079			65
Compensation expense incurred in connection with stock options		35			961
Net changes in certain operating assets and liabilities		16,391			15,228
Increase in deferred tax asset		(10,300	)		(5,887	)
Landlord contributions to tenant improvements		6,389			6,413
Increase in reserve for self-insured liability claims		1,496			2,025
Decrease (increase) in deferred membership costs		303			(3,752	)
Other		(513	)		(76	)
Total adjustments		57,275			61,637
Net cash provided by operating activities		57,822			59,635
Cash flows from investing activities:
Capital expenditures, net of effect of acquired businesses		(40,773	)		(41,354	)
Acquisition of businesses		(3,861	)		(819	)
Net cash used in investing activities		(44,634	)		(42,173	)
Cash flows from financing activities:
Proceeds from initial public equity offering, net of underwriting discounts and offering costs		—			91,750
Repayment of Senior Notes		—			(128,684	)
Premium paid on extinguishment of debt and related costs		—			(13,273	)
Repayment of long term borrowings		(959	)		(2,733	)
Costs related to a planned equity offering		(685	)		—
Change in book overdraft		—			(986	)
Repurchase of common stock		(184	)		(433	)
Proceeds from exercise of stock options		—			124
Net cash used in financing activities		(1,828	)		(54,235	)
Net increase (decrease) in cash and cash equivalents		11,360			(36,773	)
Cash and cash equivalents at beginning of period		57,506			51,304
Cash and cash equivalents at end of period	$	68,866		$	14,531
Summary of change in certain operating assets and liabilities; net of effects of acquired businesses:
Increase in accounts receivable	$	(2,803	)	$	(4,870	)
Decrease (increase) in inventory		109			(70	)
Decrease in prepaid expenses, prepaid income taxes, and other current assets		155			3,533
Increase in accounts payable, accrued expenses and accrued interest		11,532			5,358
Increase in deferred revenue		7,398			11,277
Net changes in certain operating assets and liabilities	$	16,391		$	15,228

TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Net Income (loss) to EBITDA and Adjusted EBITDA
For the three and nine months ended September 30, 2005 and 2006
(All figures in $’000s)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2005			2006			% Chg.			2005			2006			% Chg.
Net income (loss)	$	(123	)	$	785					$	547		$	(2,002	)
Provision (benefit) for corporate income taxes		(135	)		543						420			(121	)
Loss on extinguishment of debt		—			7,446						—			16,113
Interest expense, net of interest income		9,867			6,913						29,661			26,609
Depreciation and amortization		9,850			10,125						29,673			30,911
EBITDA	$	19,459		$	25,812			32.6	%	$	60,301		$	71,510			18.6	%
Noncash rental expense, net of noncash rental income		111			107						1,079			65
Noncash compensation expense incurred in in connection with stock options		10			387						35			961
Costs incurred in connection with the examination of financing alternatives		—			—						—			1,717
Severance Costs		—			—						—			1,630
Lease termination expense		—			—						—			225
Adjusted EBITDA	$	19,580		$	26,306			34.4	%	$	61,415		$	76,108			23.9	%
EBITDA Margin		19.8	%		23.6	%					20.8	%		22.1	%
Adjusted EBITDA Margin		19.9	%		24.0	%					21.2	%		23.6	%

Non GAAP Financial Measures:

EBITDA is defined as earnings before interest, taxes, depreciation and amortization and loss on extinguishment of debt. EBITDA provides useful information regarding the Company’s operating performance and financial condition, subject to the limitations described below. EBITDA should not be considered in isolation or as a substitute for net income, cash flows or other consolidated income (loss) or cash flow data prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) or as a measure of the Company’s profitability or liquidity. Additionally, investors should be aware that EBITDA may not be comparable to similarly titled measures presented by other companies. EBITDA margin is defined as EBITDA as a percentage of consolidated revenue.

Adjusted EBITDA is calculated by adding to or deducting from EBITDA (as defined above) certain items of income and expense consisting of: (i) noncash deferred rental expense, net of noncash deferred rental income, (ii) noncash compensation expense incurred in connection with stock options, (iii) costs incurred in connection with potential financing and business combination transactions that have not been consummated, (iv) severance and related costs and (v) lease termination expenses. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), cash flows or other consolidated income (loss) or cash flow data prepared in accordance with GAAP or as a measure of the Company’s profitability or liquidity. Additionally, investors should be aware that Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of consolidated revenue.

Adjusted EBITDA helps the Company’s investors to more meaningfully evaluate overall operating performance, and compare results from period to period, by removing those items that are generally of a non-operating nature. This measure also enables investors to assess the Company’s performance on the same basis applied by the Company’s management and Board of Directors, and to ease comparisons with peer companies that present Adjusted EBITDA. Adjusted EBITDA is substantially similar to a metric used by the Company’s lenders when assessing our compliance with debt covenants and is therefore useful to the Company’s investors so that they may also assess debt covenants compliance. Also, Adjusted EBITDA is substantially similar to criteria that the Company has historically used for performance-based components of employee compensation.

Forward-Looking Statements:

Statements in this release that do not constitute historical facts, including, without limitation, statements under the caption “2006 Business Outlook” and other statements regarding future financial results and performance and potential sales revenue are “forward-looking” statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which are outside the Company’s control, including the level of market demand for the Company’s services, competitive pressures, the ability to achieve reductions in operating costs and to continue to integrate acquisitions, the application of federal and state tax laws and regulations, and other specific factors discussed herein and in other releases and public filings made by the Company; accordingly, actual results could differ materially from any such forward-looking statement. The forward-looking statements speak only as of the date and hereof and the Company does not intend to update this information to reflect developments or information obtained after the date hereof and the Company disclaims any legal obligation to the contrary.