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*** Nautilus Inc Lays Off 50 Employees ***

Vancouver, Washington -- 02/26/2009
Nautilus lays off 50 Vancouver workers.
Fitness equipment firm blames latest cuts
on downturn.



Nautilus Inc. laid off 50 employees from its Vancouver headquarters
on Wednesday in an attempt to cut costs at the shaky fitness company.

“With the downturn in the economy continuing, it was apparent we had
to take a look at our overhead costs to get us back on the track to
profitability,” said Timothy Joyce, the company’s senior vice president
and general manager.

A head count of 350 employees remains at the company’s Vancouver
office, 16400 S.E. Nautilus Drive, off Southeast 164th Avenue and Mill
Plain Boulevard. Joyce said the laid-off personnel represent about 6
percent of the company’s world head count.

The cuts came just two weeks after Nautilus held a shareholder’s
meeting and then pushed back to March 10 the release of fiscal
2008 results.

Joyce would not comment on the most recent Nautilus
financial results or whether they influenced the staff cuts.

“It is one more step to properly align the company for the economic
climate we’re facing right now,” said Joyce, who has worked for the
company since September 2007. He was promoted to general
manager about one year ago.

Some laid-off employees were offered severance packages,
based on their number of years with the company, Joyce said.

“They were good employees and good people. It’s
unfortunate for our business and the economy,” he said.

The company’s third-quarter sales had been worse than expected,
with a $34.1 million loss in the three months ending Sept. 30. That
brought the company’s losses to $101.4 million during five
consecutive quarters.

In October 2007, Nautilus laid off 140 people, including 80
in Vancouver, to cut costs by $10 million annually in light
of lagging sales.

Nautilus brands include Nautilus, Bowflex, Schwinn Fitness,
StairMaster, and Universal. The company reported 2007
sales of $502 million.

ACC - www.nautilusinc.com
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