The Nautilus Group, Inc. reported net sales of $129.4 million for the first quarter ended March 31, 2003, compared to $135.9 million for the corresponding period last year. Net income for the quarter was $13.7 million compared to $24.0 million in the first quarter of the prior year. Diluted earnings per share for the first quarter were $0.42, compared to $0.67 for the corresponding period last year.

The Company also reiterated its comfort with revised guidance for 2003. The Company expects 2003 revenue to range from $525 million to $545 million with corresponding earnings per share in the $1.60 to $1.70 range. The Company expects operating cash flow for 2003 to be approximately $55 million to $65 million.

“As we have previously mentioned, the first quarter of 2003 presented a challenging business environment. This was due to increased competition and higher marketing expenses on the direct marketing side, combined with our overall business being affected by the economy, the war in Iraq and lower consumer confidence. Since we see no change in trends thus far in the second quarter, we are continuing our cautious outlook for the full year,” stated Brian Cook, Chief Executive Officer.

Mr. Cook added, “In spite of this current business environment, Nautilus continues to produce solid operating cash flow and maintains the strongest financial position in our industry. We are diversifying our portfolio of highly recognized brand names with product enhancements and new introductions such as the TreadClimber(TM). We are very encouraged by the launch of the TreadClimber(TM), which is being sold through our direct marketing channels. This product is a revolutionary patented cardiovascular health and fitness product that is complementary to the Bowflex strength-training machine.”

“On the retail side of our business, we began test marketing the Bowflex during the first quarter. Initial results have been solid, and toward the end of the first quarter we expanded the test phase of our retail plan. We expect to expand retail distribution of Bowflex products during the second quarter and throughout the year,” concluded Mr. Cook.

“Because of our confidence in future operating results, our Board of Directors declared a $0.40 per share annual dividend and authorized a $50 million share repurchase program during the first quarter,” stated Rod Rice, Chief Financial Officer. “We will continue to use our strong operating cash flow to build upon our leadership position by improving our core businesses and introducing new products into our direct and commercial/retail sales channels to enable our Company’s long-term growth in the health and fitness industry.”

The Company announced today that its Board of Directors has declared a regular quarterly dividend of $0.10 per common share, payable June 10, 2003, to shareholders of record as of May 20, 2003.

                       THE NAUTILUS GROUP, INC.
                 Consolidated Statements of Operations
            (In Thousands, Except Share and Per Share Data)

                                                 Three months ended 
                                                      March 31,
                                                    2003        2002
                                              ----------- -----------

NET SALES                                       $129,449    $135,914

COST OF SALES                                     59,502      58,753
                                              ----------- -----------

Gross profit                                      69,947      77,161

Selling and marketing                             39,501      31,600
General and administrative                         6,865       6,264
Related-party royalties                            1,791       2,148
Third-party royalties                                299         181
                                              ----------- -----------

Total operating expenses                          48,456      40,193
                                              ----------- -----------

OPERATING INCOME                                  21,491      36,968

Interest income                                      229         450
Other - net                                         (331)         19
                                              ----------- -----------

Total other income (expense), net                   (102)        469
                                              ----------- -----------

INCOME BEFORE INCOME TAXES                        21,389      37,437

INCOME TAX EXPENSE                                 7,700      13,479
                                              ----------- -----------

NET INCOME                                      $ 13,689    $ 23,958