Nautilus, Inc.: Successful Enforcement against Counterfeiters

VANCOUVER, Wash.--()--In its continuing actions against counterfeiters of Bowflex® products, fitness company Nautilus, Inc. (NYSE:NLS) cooperated with and aided U.S. Immigration and Customs Enforcement (ICE) in obtaining the conviction of Chunchai “Katherine” Yu for bribery and trafficking in counterfeit exercise equipment. Yu was convicted by a federal jury in southern California on July 15, 2010 and faces a maximum sentence of 90 years in prison and fines totalling $12.5 million. In addition, Nautilus is continuing with its civil litigation against Yu for knowingly importing and selling counterfeit Bowflex products.

Civil litigation and cooperation with criminal investigations by U.S. Immigration and Customs Enforcement (ICE) are two of the multiple prongs in the Nautilus anti-counterfeiting program. Nautilus also works with U.S. Customs and Border Protection to block the importation of counterfeits and monitors domestic and international online sales to bring actions against sellers of counterfeits. Mark Meininger, Nautilus Corporate Attorney for counterfeiting matters, states, “Our multi-prong approach has achieved success against both importers and sellers of counterfeit Bowflex products. We will continue to identify and take action against all parties who are legally responsible for the importation and sale of counterfeit Bowflex products.”

Counterfeit goods are a significant problem for businesses and consumers. In the case of exercise equipment, consumers who buy counterfeits receive low quality goods that are not authentic and have no warranty or replacement parts support. When making a purchase, consumers are urged to confirm that the store or website selling branded products is an authorized dealer selling authentic Bowflex and Nautilus products.

Safe Harbor Statement:

This press release includes forward-looking statements, including statements concerning anticipated or possible improvements in results of operations. Factors that could cause Nautilus, Inc. actual results to differ materially from these forward-looking statements include availability and price of media time consistent with our cost and audience profile standards, our ability to successfully divest the remainder of our commercial business, our ability to generate sufficient positive cash flows or raise any necessary debt or equity, our ability to continue to reduce operating costs, a further decline in consumer spending due to unfavorable economic conditions, a change in the availability of credit for our customers who finance their purchases, our ability to complete a new agreement for financing of consumers in the direct business or to agree to satisfactory terms, our ability to effectively develop, market and sell future products, our ability to get foreign-sourced product through customs in a timely manner, our ability to effectively identify, negotiate and integrate any future strategic transactions, our ability to protect our intellectual property, introduction of lower-priced competing products, unpredictable events and circumstances relating to international operations including our 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.

Contacts

Nautilus, Inc.
Mark Meininger, (360) 859-2551

Contacts

Nautilus, Inc.
Mark Meininger, (360) 859-2551