Nautilus, Inc. Mails Letter to All Shareholders; Urges Vote Against Proposals From Sherborne Investors LP and Its Affiliates

Market Wire, November, 2007

Nautilus is Positioned to be a Highly Profitable, Global Fitness Industry Leader

Nautilus owns five of the most recognized and respected brands in the fitness industry: Nautilus®, Bowflex®, Schwinn®Fitness, StairMaster® and Universal®. It is our expectation that these brands will enable Nautilus to become a highly profitable and global leader in the highly fragmented global fitness industry. We believe that we have a winning strategy and the necessary resources to deliver value to all shareholders by growing our global market share -- and our bottom line.

By developing innovative, high-quality fitness equipment, we believe that we will be a highly profitable, global leader in the fitness industry. To maximize our sales at attractive profit margins, we believe that our products should be sold in through a variety of distribution channels.

Nautilus has industry-leading personnel to execute our strategy and deliver shareholder value; and we will continue to add expertise to help grow our company. For example, we recently made several other key hires -- including naming Tim Joyce to the new position of Senior Vice President, Global Sales. Tim helped pioneer Nike's global expansion in the 1990s, and had significant leadership positions in the fitness industry.

Our Strategic Plan is Well Underway and We Expect To See Results in 2008

We believe that our strategic plan, along with the encouraging market dynamics for fitness-related products, will enable Nautilus to be a profitable, global leader in the fitness industry. To that end, we believe that improved financial results and a return to profitability are on the horizon in 2008.

Sherborne has failed to articulate any constructive ideas or a specific economic plan to build value for all shareholders. If Sherborne's nominee's take control of your board, Sherborne has stated that it will reverse many of the positive steps that we have already undertaken in furtherance of Sherborne's proposed strategy. Sherborne has stated that since three members of your board will remain in place, there will be continuity of leadership. However, if Sherborne's nominees obtain control of the board, Sherborne's nominees could ultimately replace your remaining incumbent directors, just as Sherborne plans on replacing your new CEO.

Protect your Investment -- Vote the WHITE Proxy Card TODAY

Your Board is committed to protecting and enhancing the value of your investment in Nautilus. We believe that our strategic plan will lead to creating value for all Nautilus shareholders.

To prevent Sherborne's nominees from taking control of your company's board, please use the enclosed WHITE proxy card to vote AGAINST the removal of your directors TODAY -- by telephone, by Internet, or by signing, dating and returning the WHITE proxy card.

                    Thank you for your continued support,

                    THE BOARD OF DIRECTORS

   Your Vote Is Important, No Matter How Many Or How Few Shares You Own.

  If you have questions about how to vote your shares, or need additional
  assistance, please contact the firm assisting us in the solicitation of
                                proxies:


                        INNISFREE M&A INCORPORATED
                Shareholders call Toll-Free: (888) 750-5834
             Banks and Brokers Call Collect: (212) 750-5833

                                IMPORTANT

   We urge you NOT to sign any green proxy card sent to you by Sherborne.
If you have already done so, you have every legal right to change your vote
   by using the enclosed WHITE proxy card to vote TODAY--by telephone, by
  Internet, or by signing, dating and returning the WHITE proxy card in the
                     postage-paid envelope provided.