The Nautilus Group Files Additional Trademark Infringement Lawsuit against Icon Health & Fitness, Inc.

VANCOUVER, Wash., Jul 22, 2004 (BUSINESS WIRE) -- The Nautilus Group, Inc. (NYSE:NLS), a leading marketer, developer, and manufacturer of branded health and fitness products, today announced it has filed an additional trademark infringement lawsuit against ICON Health and Fitness, Inc., the manufacturer of the "CrossBow" and "CrossBar" equipment.

The lawsuit, which was filed on July 21, 2004, in United States District Court for the Western District of Washington, alleges that ICON has further infringed on the Bowflex trademark by the use of the "CrossBar" trademark. According to the complaint, ICON had a legal obligation to re-name "CrossBow" in such a manner that it did not further infringe on the trademark rights of Bowflex. Nautilus seeks injunctive relief to prevent the sale of any fitness equipment that bears the trademark "CrossBar"as well as monetary damages.

On June 22, 2004, the Federal Court of Appeals in Washington, D.C. affirmed that Nautilus was entitled to an injunction barring ICON 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 Court's finding with respect to the strength of the Bowflex mark..." That injunction is in effect until Nautilus' trademark claim can proceed to trial on a date to be determined. After that injunction was issued, ICON re-named the "CrossBow" product as "CrossBar".

Gregg Hammann, Chairman and Chief Executive Officer of the Nautilus Group stated, "We strongly believe the "CrossBar" name is too similar to the "CrossBow" trademark already ruled likely to infringe on the Bowflex trademark. Nautilus will vigorously protect and defend its investments in intellectual property. We will seek an injunction for ICON's most recent infringement, will attempt to remove the infringing "CrossBar" product from the market and will pursue 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, 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
Integrated Corporate Relations, Inc.
John Mills, 310-395-2215 or 203-222-9013

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