Nautilus, Inc. Announces Agreement to Sell Pearl Izumi USA to Shimano American Corporation

Tue Feb 19, 2008 5:00am EST

* Reuters is not responsible for the content in this press release.

  VANCOUVER, WA, Feb 19 (MARKET WIRE) -- 
 Fitness leader Nautilus, Inc. (NYSE: NLS) has agreed to sell its Pearl iZumi
apparel and footwear segment to Shimano American Corporation, a division of
cycling and fishing equipment provider Shimano, Inc. The transaction value of
$69.5 million is comprised of $65.3 million in cash and the assumption of $4.2
million in long-term debt, and is subject to adjustment for net working
capital. The transaction is expected to close by March 31, 2008, and is
contingent upon normal regulatory approval and customary closing conditions.

    "We believe this divestiture is in the best interest of shareholders by
providing liquidity and keeping our organization focused on restoring
profitability
to our global fitness business," said Bob Falcone, President and CEO of
Nautilus,
Inc. "Pearl iZumi is an excellent brand of apparel and footwear for cycling
and running. We are pleased to have found a strategic buyer in Shimano that
values
the brand as well as our talented apparel and footwear staff."

    Nautilus announced in October 2007 that its apparel business would be
offered for sale. The Company acquired Pearl iZumi USA in 2005. Nautilus
isbeing represented by Wachovia Securities.

    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(R), Bowflex(R), Schwinn(R)Fitness, StairMaster(R), and
Universal(R),Nautilus manufactures and markets innovative fitness products
through direct,
commercial, retail, and international channels. Formed in 1986, the company
had 2007 sales of $502 million. It has 1,450 employees and operations in
Washington, Oregon, Oklahoma, Virginia, Canada, Switzerland, Germany, United
Kingdom,
Italy, China, Australia and other locations around the world. Website:
www.nautilusinc.com.

    Forward-Looking Statements

    Certain statements contained herein are forward-looking statements, within
the
meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A
of the Securities Act of 1933, including statements concerning the divestiture
of
the Pearl Izumi USA segment of Nautilus, Inc.  Factors that could cause actual
results to differ materially from these forward-looking statements include
failure or delay in receiving regulatory approval and the inability or failure
to
satisfy certain conditions to closing of the transaction, some of which are
not within Nautilus' control. We 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
newinformation, events or circumstances after the date they were made or to
reflect the occurrence of unanticipated events.

    



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