Federal Circuit Court of Appeals Rules in Favor of the Nautilus Group; Nautilus Granted Immediate Injunctive Relief

VANCOUVER, Wash., Jun 22, 2004 (BUSINESS WIRE) -- The Nautilus Group, Inc. (NYSE: NLS), a leading marketer, developer, and manufacturer of branded health and fitness products, announced today that the United States Court of Appeals for the Federal Circuit ruled in favor of The Nautilus Group by affirming the grant of a preliminary injunction as previously granted by the Federal District Court. As a result, ICON Health & Fitness, Inc. is immediately barred from using the trademark "CrossBow" on any exercise equipment pending trial. In its ruling, the Court concluded that "...there remains sufficient evidence... to justify the preliminary injunction in Nautilus's favor. The degree of similarity of the marks, proximity of the products and services, strength of the Bowflex mark, and similarity of marketing channels are all factors that the court found to favor Nautilus. We have sustained the Districts Courts finding with respect to the strength of the Bowflex mark..."

"This preliminary injunction immediately prevents ICON and all retailers from marketing, advertising, or selling any fitness equipment that bears the "CrossBow" trademark at least until the outcome of the trial still to be scheduled," stated Gregg Hammann, Chairman and Chief Executive Officer. "We are very pleased that the Federal Courts have recognized the strength of our trademark case and ruled in our favor."

"In addition, we are aggressively pursuing the patent infringement claims against ICON. We have a trial date in April 2005 concerning these remaining claims," continued Mr. Hammann. "Our Company will continue to vigorously protect and defend our intellectual property using all remedies provided by law to which we believe we are entitled, including seeking monetary damages."

About The Nautilus Group

The Nautilus Group, Inc. is a leading marketer, developer, and manufacturer of branded health and fitness products sold under such well-known names as Nautilus, Bowflex, Schwinn and StairMaster. The Company currently markets its Bowflex and TreadClimber home fitness equipment and Nautilus Sleep Systems through its direct-marketing channel, using an effective combination of television commercials, infomercials, response mailings, the Internet, and inbound/outbound call centers. The Company sells its Nautilus, Schwinn and StairMaster commercial fitness equipment through its sales force and selected dealers to health clubs, government agencies, hotels, corporate fitness centers, colleges, universities, and assisted living facilities. The Nautilus Group also markets and sells a complete line of consumer fitness equipment, under its Nautilus, Schwinn, Bowflex, StairMaster and Trimline brands, through a network of specialty dealers, distributors, and retailers worldwide. The Company is headquartered in Vancouver, Washington. The Nautilus Group is located on the Web at www.nautilusgroup.com.

This press release includes forward-looking statements. Factors that could cause The Nautilus Group's actual results to differ materially from these forward-looking statements include availability of media time and fluctuating advertising rates, a decline in consumer spending due to unfavorable economic conditions, expiration of important patents, its reliance on a limited product line, its ability to effectively develop, market, and sell future products, its ability to effectively identify and negotiate any future strategic acquisitions, its ability to integrate any acquired businesses into its operations, unpredictable events and circumstances relating to international operations including its use of foreign manufacturers, government regulatory action, and general economic conditions. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.

SOURCE: The Nautilus Group, Inc.

The Nautilus Group, Inc.
Rod Rice, 360-694-7722
or
Investor Relations Inquiries:
Integrated Corporate Relations, Inc.
John Mills, 310-395-2215 / 203-222-9013

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