Bowflex (BFXXQ) 8-K Nautilus, Inc. Third Quarter 2006 Earnings In Line with Company Guidance

Exhibit 99

FOR IMMEDIATE RELEASE

CONTACTS:	Nautilus, Inc.	Integrated Corporate Relations, Inc.
	Ron Arp	John Mills
	(360)859-2514	(310)954-1105

NAUTILUS, INC. THIRD QUARTER 2006 EARNINGS IN LINE WITH COMPANY GUIDANCE

VANCOUVER, Wash. – (November 1, 2006) – Nautilus, Inc. (NYSE: NLS), a pure fitness company, today announced results for the three months ended September 30, 2006.

Net sales for the three months ended September 30, 2006, were $159.6 million, compared to $163.3 million for the corresponding period last year, down 2.3 percent. Net income for the quarter was $9.4 million, or $0.29 per diluted share, inclusive of a tax reserve reversal of $3.0 million or 9 cents per share, and inclusive of about 1.5 cents per share for stock option expensing. Excluding the tax reversal, net income for the quarter was $6.4 million or $0.20 per share, compared with $7.7 million, or $0.22 per diluted share in the year-ago quarter on a non-GAAP basis when adjusted for FAS 123R.

“Driven by continued improvement in our operational and manufacturing efficiency, our gross margins have improved to 45 percent and are the highest they have been in six quarters,” said Gregg Hammann, Chairman and CEO of Nautilus, Inc. “Improving margins are also due to taking selective price increases and refining certain sales relationships to assure profitability. We also concluded manufacturing at our Tyler, Texas facility during the quarter, and eliminated about 100 product SKUs, both of which are expected to generate further margin improvement going forward.

“The combination of eliminating less profitable customers and SKUs and the prime fitness season moving later this year, caused net sales to be slightly below our plan. However, the changes we have made to our business will set us up for sustainable gross and operating margin improvement going forward, and we expect to achieve a net sales growth rate of around 10 percent annually.

“Regarding our balance sheet, we bought back about $17 million in stock during the quarter. Inventories are below $70 million, as we flow more goods directly to customers and bypass our distribution centers. As is expected at the end of the third quarter, our receivables are higher due to the beginning of the fitness season. We expect lower DSOs at year-end.”

For the fourth quarter of 2006, the Company estimates that net sales will be in the $190-210 million range, with expected earnings of $0.39 to $0.45 per diluted share, including about 1.5

cents per share for stock option expensing as required by FAS 123R in 2006, and with an additional 3 cents per share in expected tax reserve reversal.

The Company expects to conclude 2006 with annual net sales growth of about 10 percent, and annual earnings growth of 22-32 percent when factoring out FAS 123R and the tax reversal, a strong reflection on the operating health of the business. Including the tax reversal and FAS 123R, 2006 earnings are expected to grow 41-51 percent.

The Company expects 2007 plans to be highlighted by continued focus to achieve leverage through operating excellence. The Company said preliminary full year 2007 net sales growth is expected to be around 10 percent, and earnings growth is expected to be within its three-year target range of 20-30 percent growth.

“The greater visibility through our new information system is helping us uncover and capitalize upon a broad range of revenue and operational improvements, and we’re just getting started in capitalizing upon them,” Hammann said.

In addition, the Company announced that its Board of Directors declared a regular quarterly dividend of $0.10 per common share, payable December 8, 2006, to stockholders of record as of November 20, 2006.

The conference call is scheduled for 5:00 p.m. EST (2:00 p.m. PST), November 1, 2006. It will be broadcast live over the Internet hosted atwww.nautilusinc.com/events and will be archived online within one hour after completion of the call. In addition, listeners may call 800-621-5169 in North America and 212-748-2738 from outside North America. Participants will include: Gregg Hammann, Chairman and Chief Executive Officer; Bill Meadowcroft, Chief Financial Officer; and Tim Hawkins, President of Fitness Equipment.

A telephonic playback will be available from 4:00 p.m. PST, November 1, through 4:00 p.m. PST, November 11, 2006. North American callers can dial 800-633-8284, and international callers can dial 402-977-9140 to hear the playback. The passcode is 21306306.

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^®, 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 $631 million in 2005. It has 1,600 employees and operations in Washington, Oregon, Colorado, Oklahoma, Texas, Illinois, Virginia, Canada, Switzerland, Germany, United Kingdom, Italy, China, and other locations around the world. More information is atwww.nautilusinc.com.

This press release includes forward-looking statements, including statements concerning estimated future sales and earnings, new product introduction, and operational improvement. Factors that could cause Nautilus, Inc. actual results to differ materially from these forward-looking statements include availability of media time and fluctuating advertising rates, a decline in consumer spending due to unfavorable economic conditions, its ability to effectively develop, market, and sell future products, its ability to get foreign-sourced product through customs in a timely manner, its ability to effectively identify, negotiate and integrate any future strategic acquisitions, its ability to protect its intellectual property, introduction of lower-priced competing products, unpredictable events and circumstances relating to international operations including its use of foreign manufacturers, government regulatory action, and general economic conditions. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, for a further discussion of these risks and uncertainties. We also 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 new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.

NAUTILUS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30, 2006		December 31, 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,404	$	7,984
Trade receivables, net		120,901		116,908
Inventories		69,546		96,084
Prepaid expenses and other current assets		8,002		8,369
Short-term notes receivable		2,556		2,496
Assets held for sale		1,742		6,115
Deferred tax assets		5,633		7,235
Total current assets		211,784		245,191
PROPERTY, PLANT AND EQUIPMENT, net		54,374		59,320
GOODWILL		65,064		64,404
INTANGIBLE AND OTHER ASSETS, net		50,353		44,371
TOTAL ASSETS	$	381,575	$	413,286
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables	$	49,704	$	61,132
Accrued liabilities		25,388		29,097
Short-term borrowings		35,000		40,147
Income taxes payable		1,843		3,810
Customer deposits		2,084		3,327
Current portion of long-term debt		178		707
Total current liabilities		114,197		138,220
LONG TERM DEBT		4,245		5,610
NONCURRENT DEFERRED TAX LIABILITIES		16,917		16,990
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock		854		3,549
Unearned stock compensation		—		(1,947	)
Retained earnings		241,270		248,123
Accumulated other comprehensive income		4,092		2,741
Total stockholders’ equity		246,216		252,466
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	381,575	$	413,286

NAUTILUS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, in thousands, except per share amounts)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2006			2005		2006			2005
NET SALES	$	159,583		$	163,308	$	482,185		$	449,277
COST OF SALES		87,493			91,022		270,192			242,164
Gross profit		72,090			72,286		211,993			207,113
OPERATING EXPENSES:
Selling and marketing		42,621			44,526		137,887			129,425
General and administrative		14,507			11,146		40,399			34,567
Research and development		2,521			2,856		8,321			8,768
Royalties		1,296			1,297		3,991			3,952
Total operating expenses		60,945			59,825		190,598			176,712
OPERATING INCOME		11,145			12,461		21,395			30,401
OTHER INCOME (EXPENSE):
Interest income (expense), net		(537	)		145		(1,152	)		1,460
Other income (expense), net		(2	)		31		1,220			542
Total other income (expense)		(539	)		176		68			2,002
INCOME BEFORE INCOME TAXES		10,606			12,637		21,463			32,403
INCOME TAX EXPENSE		1,230			4,366		5,215			11,373
NET INCOME	$	9,376		$	8,271	$	16,248		$	21,030
EARNINGS PER SHARE:
BASIC	$	0.29		$	0.25	$	0.50		$	0.63
DILUTED	$	0.29		$	0.24	$	0.50		$	0.62
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC		32,138			33,549		32,577			33,367
DILUTED		32,240			34,365		32,732			34,090

NAUTILUS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Nine Months Ended September 30,
	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	16,248		$	21,030
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,815			11,066
Stock-based compensation		2,044			255
Amortization of discount on long-term debt		—			12
Loss on sale of property, plant and equipment		109			15
Tax benefit of exercise of nonqualified options		—			1,942
Excess tax benefit from exercise of employee stock options		(36	)		—
Deferred income taxes		1,182			2,032
Foreign currency transaction gain		(1,941	)		—
Changes in assets and liabilities:
Trade receivables		(2,338	)		8,935
Inventories		27,559			(21,035	)
Prepaid expenses and other current assets		370			(7,064	)
Trade payables		(12,678	)		(617	)
Accrued liabilities		(4,072	)		(2,812	)
Income taxes payable		(1,907	)		(7,651	)
Customer deposits		(1,523	)		542
Net cash provided by operating activities		35,832			6,650
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(8,372	)		(23,210	)
Proceeds from sale of property, plant and equipment		6,064			2,972
Net increase of intangible and other assets		(7,501	)		(306	)
Acquisition, net of cash acquired		—			(73,688	)
Purchases of short-term investments		—			(49,352	)
Proceeds from maturities of short-term investments		—			134,671
Net increase (decrease) in notes receivable		(60	)		107
Net cash used in investing activities		(9,869	)		(8,806	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid on common stock		(9,760	)		(10,010	)
Proceeds from exercise of stock options		484			5,565
Excess tax benefit from exercise of employee stock options		36			—
Stock repurchases		(16,653	)		(4,580	)
Net reduction in short-term borrowings		(5,147	)		—
Principal payments on long-term debt		(1,900	)		(89	)
Net cash used in financing activities		(32,940	)		(9,114	)
Net Effect of Foreign Currency Exchange Rate Changes		2,397			(566	)
Net Decrease in Cash and Cash Equivalents		(4,580	)		(11,836	)
Cash and Cash Equivalents, beginning of period		7,984			19,266
Cash and Cash Equivalents, end of period	$	3,404		$	7,430