Using our market research and knowledge base, we embarked on our first widespread direct marketing campaign in 1996. Based on positive viewer response, we accelerated our direct marketing campaign during the remainder of 1997 and throughout 1998. In May 1998, we changed our name to Direct Focus, Inc. to reflect our transformation from a home fitness equipment company into a direct marketing company. In 1997, we also recognized that our direct marketing expertise and techniques could be used to market other premium quality, premium priced branded products. In January 1999, we acquired substantially all of the assets of Nautilus International, including the Nautilus line of commercial fitness equipment and the widely recognized Nautilus brand name.
Direct marketing is a growing force within the retail industry.
It is projected that this segment will grow faster than the overall consumer sales at approximately 7.7 percent annually through 2003.