SOURCE: Nautilus, Inc.

October 10, 2006 05:00 ET

Nautilus, Inc. Launches New Direct Response Campaign Encouraging Americans to Move

Ads for the First Time Feature Multiple Brands, Free Catalog Offer

VANCOUVER, WA -- (MARKET WIRE) -- October 10, 2006 -- Nautilus, Inc. (NYSE: NLS), a pure fitness company, has introduced a new direct response advertising campaign that encourages Americans to embrace lasting weight loss by increasing their physical activity.

The new campaign includes an appearance by Gregg Hammann, Nautilus chairman and CEO, outlining the overarching mission of "getting America moving" in two 60-second direct-response advertisements that offer a 52-page catalog featuring educational tips along with more than 150 fitness equipment, apparel and nutrition items.

The campaign reflects a capstone to the company's three-year effort to transition its business from a holding-company structure to a "power of one" multi-brand, multi-channel company that can serve a broad range of consumer preferences with high-quality fitness products wherever they want to shop or exercise. The company is now positioned to cascade its innovations across multiple channels of distribution and price points, and to evolve its marketing to emphasize fitness education instead of just products. Nautilus is now positioned to start proactively addressing the health care crisis.

"Seven out of ten Americans are overweight. Fad diets, pills, and gimmicky products are not solving the problem. And the truth is, most folks want to get in shape but don't know how," Hammann explains in one advertisement. "Well, there is an answer. The key to lasting weight loss is simply to move."

The campaign marks several firsts for Nautilus, Inc. It's the first time the company has showcased its family of industry-leading fitness brands -- Nautilus, Bowflex, StairMaster and Schwinn Fitness. It's the first time the action step is to receive a catalog by registering online at www.nautiluscatalog.com or calling 1-800-250-7762. And, it's the first time the company has directly addressed the health crisis of inactivity that is gripping America and other industrialized countries.

"We feel compelled to encourage people to move more, with the crisis of inactivity costing Americans about $300 billion in increased health costs -- nearly $2,700 annually per household. By being proactive and preventative through educating people on fitness we can make a difference," says Hammann.

"We think the proper action is to weave in educational and motivational information into our marketing efforts as we bring to market a new generation of innovative fitness products and accessories. In addition to testing this direct response advertising approach, we are now including educational information from professional trainers and fitness authorities in our advertising, catalogs, point-of-sale information, and through the Nautilus Institute."

The catalog and campaign will showcase a variety of strength and cardiovascular training equipment and apparel at a range of price points. "When it comes to fitness, we want people to select whatever they will use frequently. Compared to the health costs of inactivity, virtually any exercise option is affordable."

About Nautilus, Inc.

Headquartered in Vancouver, Wash., Nautilus, Inc. (NYSE: NLS) is a pure fitness company that provides tools and education necessary to help people achieve a fit and healthy lifestyle. With a brand portfolio that includes Nautilus®, Bowflex®, Schwinn® Fitness, StairMaster®, and Pearl iZUMi®, Nautilus manufactures and markets a complete line of innovative health and fitness products through direct, commercial, retail, specialty and international channels. The Company was formed in 1986 and had sales of $631 million in 2005. It has 1,600 employees and operations in Washington, Oregon, Colorado, Oklahoma, Texas, Illinois, Virginia, Canada, Switzerland, Germany, United Kingdom, Italy, China, and other locations around the world. More information is at www.nautilusinc.com.

This press release includes forward-looking statements, including statements concerning estimated future sales and earnings, new product introduction, and resolution of operational issues. 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.

Contact Information

  • CONTACTS:
    Nautilus, Inc.
    Ron Arp
    (360) 859-2514

    Integrated Corporate Relations, Inc.
    John Mills
    (310) 954-1105