Trading Update & Holdings in Company

Fitbug Holdings Plc / Epic: FITB.L / Index: AIM / Sector: Leisure

9 February 2010

Fitbug Holdings Plc ('Fitbug' or 'the Company')

Trading Update & Holdings in Company

Fitbug Holdings Plc, the AIM traded provider of online personal health and well-being services, is pleased to provide an update on activities following its reorganisation at the end of 2009.

Overview

·; Version 4.0 of fitbug.com, allowing the easy roll-out of multi-lingual sites, launched in the US in January 2010

·; Revenues on stream from transactions completed in 2009; including initial contributions from partnership with Nectar launched on 1 January 2010

·; Fitbug Body, the weight management service, launched within the public sector and is outperforming competing programmes

·; Piloting programmes of local consumer based weight management groups, in conjunction with Bupa, scheduled to begin February 2010

·; Strong pipeline of new business prospects

Fitbug Version 4.0

The Company has focussed on developing the UK and international sales of fitbug.com, its online personal health and well-being coach. To this end, in January 2010 the US fitbug.com site was launched based on the latest platform - Version 4.0. This platform is key in the expansion of the service and increasing membership engagement as it allows the easy roll-out of multi-lingual and white-label sites, provides enhanced backend reporting capabilities, alongside community functions such as route and recipe sharing. Fitbug anticipates rolling out Version 4.0 in the UK site in Q2 2010.

The Vitality Group

Following the launch of the US site, Fitbug has launched its service with The Vitality Group ('TVG'), developer of the world's longest-standing health enhancement programme. TVG is the US sister company to PruHealth and a subsidiary of South Africa-based Discovery Holdings Limited. In addition, the Company continues its discussions with a number of other significant organisations within the US, including major players in the health insurance market.

Nectar & Distribution Agreements

Fitbug is now starting to see income this year from a number of transactions which were finalised in 2009. The partnership with Nectar, which launched a white label version of Fitbug.com on 1 January 2010, is delivering good results, with encouraging responses to initial Nectar-led marketing. Further afield, distribution agreements with Yorbody in The Netherlands and Holmes Place International in the Middle East are due to launch over the coming months.

Weight Management Programmes

The Company is also pleased with results from its weight management service (branded Fitbug Body). Developed during 2009, the service was initially aimed at Primary Care Trusts ('PCTs'), which were looking for new ways to reduce obesity and increase the activity levels of patients. The Company has received excellent initial data from the first few courses, which show that on average nearly two thirds of participants lost the target 5% of their body weight during the 12 week course. The Directors believe that these results are significantly ahead of other weight management programmes.

Additionally, Fitbug has won contracts with Barnsley PCT and Kirkless PCT, to deliver the weight management service. Discussions are ongoing with other PCTs and it is hoped that further agreements will be completed in the near future. Following its success in the public sector, the service is now being introduced into the private sector and this month will see pilot programmes of local consumer based weight management groups commencing in conjunction with Bupa.

In addition to these confirmed contracts, Fitbug has had an encouraging start to 2010 and has a strong pipeline of prospects. The Company will provide updates on these over the next quarter.

Holding in Company

The Company further announces that it was informed on 4 February 2010 that the W J Weston 1996 Discretionary Settlement purchased 1,000,000 ordinary shares in the Company. Following the acquisition William J Weston is beneficially interested in 3,220,000 ordinary shares representing approximately 8.45 per cent. of the ordinary share capital of Fitbug.

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