June 6, 2011--Nautilus, Inc. (NYSE: NLS) today announced that its Board of Directors has joined with Sherborne Investors in expressing their full confidence in the Company’s new executive team and in acknowledging the accomplishments and progress by the Company over the past three years.
M. Carl Johnson, III, the Company’s newly elected Non-Executive Chairman, stated, “The Company’s new growth-oriented strategic direction is now the right one for Nautilus following the restructuring and cost improvements implemented since 2007 under Sherborne’s leadership. Both Nautilus and Sherborne are encouraged by the improved state of the Company as reflected in our performance over the two most recent quarters, and the new management team is well positioned to continue this positive momentum.”
Edward J. Bramson, former Chairman and Chief Executive Officer of Nautilus, and currently partner and a managing member of Sherborne Investors, stated, “At the beginning of the year, we encouraged the Nautilus Board to identify a new Chief Executive and Chairman since the turnaround of the Company was substantially completed and its financial performance and business outlook had greatly improved. Sherborne strongly endorses the Company’s new leadership team with Bruce Cazenave as Chief Executive Officer and Carl Johnson as Non-Executive Chairman of the Board and believes both are well qualified to move the Company forward to become a leading global fitness products company.” Bramson added, “Consistent with our Firm’s historical investment philosophy, Sherborne does not hold shares for our investors once we are no longer actively involved in the management of a company. The recent distribution of shares among our numerous investors enables those who wish to sell to do so and others to hold the stock and, like Sherborne, to remain interested in following the Company’s continued progress.”
Bruce M. Cazenave, newly appointed Chief Executive Officer, stated, “Although my tenure with the Company is short, I am encouraged by the positive trends of our products during this seasonally soft quarter and am confident of the profitable growth potential of Nautilus in both the direct and retail channels. Accordingly, we are aggressively advancing plans to expand our offerings and add new value to our current line-up, building on our strengths in product quality and innovation .”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®, the Company markets innovative fitness products through direct and retail channels. Website: www.nautilusinc.com. Safe Harbor Statement 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 without limitation statements concerning positive trends of products during the current quarter. Factors that could cause Nautilus, Inc.’s actual results to differ materially from these forward-looking statements include our ability to acquire inventory from sole source foreign manufacturers at acceptable costs, within timely delivery schedules and that meet our quality control standards, availability and price of media time consistent with our cost and audience profile parameters, a decline in consumer spending due to unfavorable economic conditions, an adverse change in the availability of credit for our customers who finance their purchases, our ability to pass along vendor raw material price increases and increased shipping costs, our ability to effectively develop, market and sell future products, our ability to protect our intellectual property, the introduction of competing products and our ability to get foreign-sourced product through customs in a timely manner. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission, including the "Risk Factors" set forth in our Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. You are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances.