The group formed in 1981 after vocalist Jordan Luck and guitarist Brian Jones disbanded their first group, Basement, and relocated from the South Canterbury town of Timaru to Christchurch with their ex-Splash Alley friend, Steve "Fingers" Cowan. Searching for a drummer in Christchurch, the trio met David Gent (bass) and Michael "Harry" Harallambi (drums) from punk band Channel 4. Cowan moved from bass to keyboards and guitar and the five piece became the Dance Exponents. Their first gig was at the Hillsborough Tavern on Luck's 20th birthday and Cowan's 22nd – 15 October 1981. A residency at Christchurch's Aranui Tavern quickly earned them a strong live reputation, and on the recommendation of Jim Wilson they were signed by Mushroom Records by Mike Chunn in 1982.