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Nautilus, Inc. Provides Update on $15 million Share Repurchase Program and Resumption of Certain Royalty Income
[August 27, 2015]

Nautilus, Inc. Provides Update on $15 million Share Repurchase Program and Resumption of Certain Royalty Income


August 27, 2015 - Nautilus, Inc. (NYSE:NLS) today provided an update on its previously announced $15 million share repurchase program authorized by the Company's Board of Directors in November, 2014. Nautilus has repurchased $6.6 million of common stock under the program during the third quarter to date at an average price of $16.98 per share. Total repurchases under the program from inception through August 27, 2015 are $8.6 million at an average price of $16.45.

Future repurchases under the program may be made in open market transactions at prevailing prices, in privately negotiated transactions, pursuant to Rule 10b5-1 plans or by other means in accordance with federal securities laws and applicable regulations. The timing, number and value of shares repurchased under the program will depend on a number of factors, including the market price of Nautilus' common stock, general market and economic conditions, and applicable legal requirements.

Nautilus also provided an update regarding royalty revenues. As previously disclosed, the Company's royalty revenue for the quarter ended June 30, 2015 declined in comparison to the same quarter of 2014 due to the expiration of certain patents in specific jurisdictions. In certain other jurisdictions, however, the relevant patents do not expire until January 2016. Following discussions with licensees regarding their royalty obligations related to the use of these patents, Nautilus now expects to continue receiving royalties with respect to all licensed sales through the expiration of the relevant patents in the remaining jurisdictions. In connection with the resumption of royalty payments during the third quarter Nautilus expects to receive a payment of back royalties attributable to the first and second quarters of 2015. The Company is not able to predict with certainty the future or back royalty payment amounts, which are based on sales of th licensee's products during the applicable periods.



Bruce M. Cazenave, Nautilus's Chief Executive Officer commented, "While we continue to reinvest in the core business and evaluate strategic acquisition opportunities, we believe the share repurchase program is consistent with our overall commitment to generate continued profitable growth and enhanced long-term shareholder value. Having successfully executed our operating and financial plans during the first half of 2015, we remain confident in our market position and the strategies implemented to deliver growth in revenues and earnings for the second half of 2015."

About Nautilus, Inc.


Headquartered in Vancouver, Washington, 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®, TreadClimber®, Schwinn®, Schwinn Fitness™ and Universal®, Nautilus markets innovative fitness products through Direct and Retail channels. Websites: www.nautilusinc.com and www.bowflex.com

Forward Looking Statements

This press release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995, including our ability to continue to consummate repurchases under our share repurchase program, the anticipated receipt of royalty payments and anticipated growth in revenues and earnings. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) fluctuations and volatility in our stock price; (ii) the impact of macroeconomic conditions on customer demand for our products or the products of our licensee; (iii) changes in our financial condition or the financial condition of our licensee; (iv) changes in business opportunities and priorities that could cause us to consider alternative uses of cash; (v) fluctuations in the level of cash that we have available for stock repurchases; and (vi) covenant obligations imposed by our existing or future financing agreements. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. Nautilus assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.


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