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*** Nautilus Sells Schwinn Assets ***

Vancouver, Washington -- 12/09/2009
Nautilus, Inc. Announces Entry into Agreements
for Sale of a Portion of Commercial Assets.

Company Expects Sale to Generate Net Proceeds of $10.9 Million.



Fitness company Nautilus, Inc. (NYSE:NLS), (the “Company”)
announces today that it has entered into definitive agreements
for the sale of certain assets of its commercial business to Fit
Dragon International Ltd.

The agreements provide for the sale of certain assets of StairMaster®
and Schwinn® Fitness, including the licensing of indoor cycling products
of the Schwinn® Fitness brand for use in the commercial channel.

The company retains certain rights to the Schwinn® brand and
will continue to market Schwinn® fitness products in the consumer
channel, including both retail and direct to consumer.

The transactions are subject to customary conditions to closing
and are scheduled to close on or before December 30, 2009.

The Company had previously announced its intention to divest itself
of its commercial business in order to enable its team to invest all
resources on its branded consumer retail and direct businesses.

The agreements do not involve Schwinn® products which are sold in
the retail and direct sales channels, which Nautilus will continue to sell.

“We believe this is an important step towards our goal of focusing
exclusively on our direct and retail channels,” said Edward Bramson,
CEO of Nautilus.

“The Schwinn® and StairMaster® brands and products have been
an important part of the commercial market place and we are pleased
that these products will continue to be available for health clubs and
fitness centers for the future.

We are confident that Fit Dragon will be an excellent supplier to the
commercial markets, and we will work aggressively with them to
support an effective transition of our StairMaster® and Schwinn®
indoor cycling commercial products and service.

“We are retaining certain rights of the Schwinn® trademarks and
remain committed to the Schwinn® brand and fitness products in
the Consumer channel and will continue our marketing, product
development, and sales efforts in these channels,” added Mr.
Bramson.

Under the terms of the agreements, the assets are being sold for
$12.3 million. The Company will receive a net cash payment of
$10.9 million and approximately $1.4 million in liabilities are
being assumed by the buyer.

Nautilus will receive approximately $7.9 million cash at closing,
$2.0 million within 60 days, and the remaining $1.0 million over
the next three years. In addition, Nautilus will be entitled to receive
certain royalties based on the buyer’s post-closing sales of Schwinn®
commercial indoor cycling and StairMaster® products.

Nautilus will retain the right to continue to market and sell Schwinn®
indoor cycling products in the retail and direct to consumer sales
channels. Nautilus will also retain certain rights to sell StairMaster®
products in the retail and direct to consumer markets.

Nautilus continues to work with Robert W. Baird & Co. to divest
its remaining commercial assets, including the strength and cardio
lines and the manufacturing plant in Virginia.

With the disposition of these commercial businesses, Nautilus
plans to focus exclusively on the consumer marketplace.

As part of that effort, Bill McMahon has been promoted to
Senior Vice President and General Manager for the entire
Consumer business reporting directly to Edward Bramson,
CEO of Nautilus. In addition, the Company announced that
Sebastien Goulet, General Manager Commercial Business
and Senior Vice President Manufacturing, has elected to
leave the company to pursue other opportunities.

About Nautilus, Inc.

Headquartered in Vancouver, Wash., Nautilus, Inc. (NYSE:NLS)
is a global fitness products company providing innovative, quality
solutions to help people achieve a healthy lifestyle.

With a brand portfolio including Nautilus®, Bowflex®,
Schwinn® Fitness, and Universal®, Nautilus manufactures
and markets innovative fitness products through global direct,
commercial and retail channels.

Formed in 1986, the Company had 2008 sales of $411 million.
It has approximately 675 employees and operations in Washington,
Oregon, Virginia, Canada, Switzerland, Germany, United Kingdom,
China and other locations around the world.

Website: www.nautilusinc.com

CC -
http://investors.nautilusinc.com/releasedetail.cfm?ReleaseID=428995
http://www.marketwire.com/press-release/Core-Fitness-1089368.html

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Nautilus Sells Schwinn Fitness And StairMaster Assets

Nautilus Inc. on Wednesday said it has agreed to sell some
of its Schwinn Fitness and StairMaster assets to Fit Dragon
International Ltd. for $12.3 million.

Fit Dragon will receive the right to license indoor cycling products
of the Schwinn Fitness brand to commercial businesses. Nautilus,
meanwhile, will retain certain rights to the Schwinn brand and will
continue to market Schwinn fitness products to consumers through
both retail and direct-to-consumer channels.

Under the terms of the deal, Nautilus will receive $10.9 million
— $7.9 million at closing, which is expected by Dec. 30, and
another $2 million within 60 days. Fit Dragon will also assume
$1.4 million in liabilities.

Nautilus will be entitled to certain royalties from Fit Dragon sales
of Schwinn and StairMaster products. The company also retains
the right to sell certain StairMaster products in retail and direct-
to-consumer markets.

The Vancouver, Wash.-based maker of fitness equipment
(NYSE: NLS) announced in August that it was looking to sell
its commercial business, where it sells products to customers
such as health clubs and hotels. The division's losses in 2008
jumped from $1.1 million to $7.2 million as the company
discounted products to clear out inventory.

In August, CEO Edward Bramson said Nautilus had
invested $30 million into the commercial business.

By September the whole division was up for sale.

Nautilus on Wednesday said it is still working with Robert W. Baird
& Co. to sell the division’s remaining assets, including its strength
and cardio lines and a manufacturing plant in Virginia.

“We believe this is an important step towards our goal on
focusing exclusively on our direct and retail channels,”
Bramson said Wednesday in a news release.

Nautilus shares are down nearly 2.5 percent in morning trading to
$1.96 per share. Shares have traded between 45 cents and $2.96
in the past year.

ACC - www.genesbmx.com/SchwinnPage.html
www.genesbmx.com/Schwinn-Press-Releases.html
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