DIRECT FOCUS SUBMITS BID TO ACQUIRE FITNESS DIVISION OF
SCHWINN
VANCOUVER, WA – September 6, 2001 – Direct Focus, Inc.
(Nasdaq: DFXI), a marketing company for
fitness and healthy lifestyle products with a direct business model, announced
today that it has submitted a bid for an upcoming bankruptcy auction to acquire
substantially all of the assets of Schwinn/GT’s fitness equipment
division. The Direct Focus bid is
linked to a bid submitted by Pacific Cycle LLC for the purchase of
substantially all of the assets of Schwinn/GT’s bicycle division.
In August of 2001, the
U.S. Bankruptcy Court for the District of Colorado approved a bid and auction
procedure for all of the assets of
Schwinn/GT’s bicycle
division. Although the bankruptcy
court’s bid and auction procedure directly addresses sale of the bicycle
division, it also allows bids for the entire Schwinn/GT business, including
both the bicycle and fitness assets.
Therefore, Direct Focus has submitted this joint bid with Pacific Cycle
for consideration by Schwinn/GT at the upcoming auction to be held on September
10, 2001, in Denver, Colorado, under the supervision of Bankruptcy Judge Sidney
B. Brooks. The purchase price for such
an acquisition has not yet been determined and will be subject to court
approval.
“We have a strong
interest in Schwinn’s fitness division assets,” said Brian Cook, CEO of Direct
Focus. “We have linked our bid to that
of Pacific Cycle, which is interested in acquiring the bicycle division
assets. Acceptance of our joint bid
will provide Direct Focus and
Pacific the best opportunity to protect the integrity of the Schwinn brand, and
will provide Schwinn with the option of selling substantially all of its assets
in one transaction.”
“Like our purchase of
the assets of Nautilus International, Inc. in January 1999 and the subsequent
turnaround and growth of those operations, expansion through acquisitions is an
important part of our strategy. We feel
that the bankruptcy auction provides us with a unique opportunity to expand our
business. Our management team is very
familiar with Schwinn, and we believe its strong brand name and quality fitness
products can be an excellent fit with our growing portfolio of fitness and
healthy lifestyle products.”
About Direct Focus, Inc.
Direct Focus, Inc. is
a marketing company for fitness and healthy lifestyle products with a direct
business model. The Company currently
markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems
directly to consumers, using an effective combination of television advertising,
800-call centers and Web sites. The
Company also sells its Nautilus commercial fitness equipment directly to health
clubs and other institutions, and its Nautilus consumer fitness products
through retail athletic stores. The
Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
This
press release contains forward-looking statements relating to anticipated sales
and the development of Direct Focus' products and services, including statements
regarding its Nautilus business. Factors that could affect Direct Focus' actual
results include its reliance on a limited product line, fluctuations in
advertising rates, market acceptance of its existing and future products,
growth management challenges, and general economic conditions. A more detailed
description of certain factors that could affect actual results include, but
are not limited to, those discussed in Direct Focus' annual report on Form 10-K
for the fiscal year ended December 31, 2000.