Nautilus, Inc. and Pacific Cycle Inc. Partner to Serve Independent Bike Dealers

By Pyc Fitness
©2004-2008

The two organizations who have shared control of the Schwinn® brand since 2001, have formed a distribution agreement to better serve the cycling and fitness needs of the nation's independent bike dealers.

The agreement between Nautilus, Inc. (NYSE: NLS) and Pacific Cycle Inc., a division of Dorel Industries Inc., involves equipping the Pacific Cycle sales force to market Schwinn® Fitness and Bowflex® exercise products to the company's 2,000 independent bike dealer accounts, in addition to the outdoor cycling equipment the company currently markets.

"This arrangement nearly triples the distribution opportunity for our products through independent bike dealers where Pacific Cycle has relationships," said Tim Joyce, Senior Vice President of Global Sales for Nautilus, Inc. "This partnership will increase the opportunity for Pacific Cycle to further build sales relationships while minimizing the infrastructure required to present our brands in this important specialty retail channel."

"We're happy to be partnering with Nautilus and to be selling Schwinn Fitness and Bowflex equipment to the IBD channel. We look at this as an opportunity for both of us to further strengthen our sales relationships in the dealer network," said Steve Reeds, General Manager-Global IBD Division of Pacific Cycle Inc. "Our goal is to make it as easy and convenient as possible for dealers to supplement their bicycle sales, with the well-respected Schwinn and Bowflex lines of fitness equipment."

The transition will be completed by October 1 and will be presented to dealers at the upcoming Interbike show, the largest annual gathering of bike dealers, in Las Vegas. Through the partnership, independent bike dealers can offer certain models of Schwinn® Fitness upright and recumbent exercise bikes, and ellipticals, plus certain Bowflex® home strength training equipment.

About Pacific Cycle, Inc.

Based in Madison, Wisc., Pacific Cycle Inc., a division of Dorel Industries Inc., is a global leader in branded consumer products. Pacific Cycle designs, markets and distributes high quality bicycles and other recreational products around the world. Pacific Cycle's products span a wide range of brands including Schwinn, Mongoose, GT, and Schwinn Motor Scooters. Pacific Cycle sells more bicycles than any other company in North America, and sells products in more than 60 countries through more than 50 international distributors. Headquartered in Montreal, Dorel Industries, Inc. is a global consumer products company engaged in the designing, manufacturing and marketing of a diverse portfolio of powerful consumer brands. Dorel is listed on the Toronto Stock Exchange under the symbols DII.A and DII.B in Canada and on the NASDAQ Exchange under the symbol DIIB. Dorel employs approximately 5,000 people in 14 countries, and has offices in Shanghai and Shenzhen, China that oversee Asian operations.

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(R), 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 $680 million in 2006. It has 1,500 employees and operations in Washington, Oregon, Colorado, Oklahoma, Illinois, Virginia, Canada, Switzerland, Germany, United Kingdom, Italy, China, Australia and other locations around the world. More information is at www.nautilusinc.com.