The United States Court of Appeals for the Federal Circuit ruled in favor of The Nautilus Group Inc. in its suit against ICON Heath & Fitness, Inc. by affirming the grant of a preliminary injunction as previously granted by the Federal District Court. As a result, ICON is immediately barred from using the trademark “CrossBow” on any exercise equipment pending trial.

In its ruling, the Court concluded that “…there remains sufficient evidence… to justify the preliminary injunction in Nautilus's favor. The degree of similarity of the marks, proximity of the products and services, strength of the Bowflex mark, and similarity of marketing channels are all factors that the court found to favor Nautilus. We have sustained the Districts Courts finding with respect to the strength of the Bowflex mark…”

“This preliminary injunction immediately prevents ICON and all retailers from marketing, advertising, or selling any fitness equipment that bears the “CrossBow” trademark at least until the outcome of the trial still to be scheduled,” stated Gregg Hammann, Chairman and Chief Executive Officer. “We are very pleased that the Federal Courts have recognized the strength of our trademark case and ruled in our favor.”

“In addition, we are aggressively pursuing the patent infringement claims against ICON. We have a trial date in April 2005 concerning these remaining claims,” continued Mr. Hammann. “Our Company will continue to vigorously protect and defend our intellectual property using all remedies provided by law to which we believe we are entitled, including seeking monetary damages.”