SOKO signs revenue-sharing agreement with Bin Xian for education offering

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.