Nautilus Demonstrates Innovative Products at Specialty Fitness Show

DENVER, Aug 31, 2004 (BUSINESS WIRE) -- Reviews are showing strong marketplace support for an innovative lineup of commercial fitness equipment presented by The Nautilus Group, Inc. (NYSE:NLS) at the 8th annual Health and Fitness Business Expo held here recently.

Long known for its dominance in the strength category but now expanding its cardiovascular product portfolio, Nautilus introduced both a new treadmill series and a soon-to-be-launched elliptical trainer considered by show attendees to be an important breakthrough in cardio exercise.

"This market is very hungry for new innovation," said Tim Hawkins, chief customer officer for the Vancouver, Wash.-based Nautilus Group. "Customers are energized that new products and ideas are coming for fitness consumers."

During the show, Nautilus unveiled demonstration models of its three high-end Nautilus Pro Series Treadmills which feature a larger running surface, new shock absorption technology, and highly programmable electronics that allow runners to track progress and simulate external races.

"Nautilus has taken the game to a new level of quality and reliability," said Mike Cirillo, president of The Fitness Store, a 23-year-old, $9-million operation with six retail locations in southern California. "We've watched these brand new Nautilus treadmills in progress, from drawings, to engineering prototypes, and now demonstration models. They have the look, feel, fit, quality, warranty, and brand support that will motivate more people to invest in their health."

The company also demonstrated a new elliptical product that will be made available to the commercial marketplace early in 2005. Unlike ellipticals on the market today which limit users to a half-stride, the new elliptical introduced by Nautilus includes patented technology that allows users to take any length of stride that is natural for them.

"It is very exciting to see these new innovative products come to fruition," said Katina Geralis, president of Leisure Fitness, which supplies commercial and retail customers in five Mid-Atlantic States, including Baltimore, Washington and Philadelphia metropolitan areas. "The new treadmills are awesome and we can't wait to have them. The ellipticals are very unique-looking and stylish. It's clear that Nautilus leaders are innovators. They're paving the way and turning heads in the process."

The Nautilus Group served as title sponsor for the 2004 Health & Fitness Business Expo and Conference, the specialty fitness industry's main event. During the show, the health and fitness leader showcased its revitalized Nautilus brand and plans to support it with advertising and product innovation.

Since its inaugural event in 1997, the Health & Fitness Business Expo and Conference has become the primary business event for manufacturers, suppliers, retailers, buyers, media and industry influencers surrounding the specialty fitness industry. The 2004 show attracted 171 exhibitors and nearly 2,500 attendees, including 1,087 retail buyers and people representing 588 individual retail stores.

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, Wash. 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 ability to effectively develop, market, and sell future products, its ability to effectively identify and negotiate any future strategic acquisitions, its ability to protect its intellectual property, 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 or 203-222-9013

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