Nautilus Inc. said its board adopted a shareholder rights plan, a
provision that would make hostile takeovers difficult. An acquisition
of 20 percent or more of its outstanding shares without the board's
approval would trigger the rights plan.

“A shareholder rights plan protects the interests of all shareholders
from takeover or control tactics that do not offer all shareholders a
fair premium,” said Bob Falcone, chairman and CEO of Nautilus.
“The plan is not intended to prevent an offer that the board concludes
is in the best interest of Nautilus and its shareholders.”

The plan will continue in effect until October 28, 2010, unless earlier
terminated or redeemed by Nautilus, Inc. The board has
also resolved to submit the continuation of the plan to a shareholder
vote within the next 12 months. The plan may be terminated by the board at any time.

The shareholders right plan comes as shares of Nautilus have fallen
significantly amid losses and management change. The stock closed
Monday at $6.70. Its 52-week high is $18.63; its 52-week low is
$5.36.

The company, based in Vancouver, WA, operates Nautilus, Bowflex, Schwinn Fitness, StairMaster, Universal, and Pearl iZUMi.