July 17th, 2020

Dear Hot Tub and Aquatic Fitness Enthusiast,

I am happy to report that Watkins Wellness is again open for business at all facilities and is executing at a high level.

The events of 2020 have been both unsettling and unpredictable for everyone, affecting virtually everything in our personal and professional lives. Indeed, Watkins Wellness has been profoundly impacted.

Watkins Wellness has been the leader in the spa and pool industry for more than 40 years. We are a high-volume manufacturer with 5 production facilities and 3 distribution facilities worldwide. Due to Executive Orders issued by state Governors, as well as the Health Emergency Decree issued by the President of Mexico, our factories in California, Pennsylvania and Mexico were each completely closed between five and seven weeks in late-March through mid-May. Our distribution operations in California, Belgium, and The United Kingdom were also disrupted by shut down orders.

At the same time, demand for hot tubs and swim-in-place vessels generally, and our brands specifically (Hot Spring® Spas, Caldera® Spas, Free Flow® Spas, Fantasy® Spas, and Endless Pools®) is at unprecedented levels.

The result of increased demand combined with lost production time, is extended lead times for product delivery to our vast network of Independent Dealers, which spans more than 70 countries. Lead times that traditionally range between two and four weeks, are now being calculated in months.

One necessary outcome of this pandemic has been the reconfiguration of our factory floors to accommodate social distancing and other safety requirements. Keeping our more than 2,400 employees safe while productive is our priority, and our approach has been and is, to go above and beyond all mandated safety protocols.

Our purpose at Watkins Wellness is to produce products that when regularly used, improve peoples' lives in meaningful ways. As our tag line declares, we want everyone to Feel Good. Live Well®.

If you are a current customer, thank you for trusting us with your business. If you are considering or awaiting delivery of one of our products, thank you for your patience and understanding as we work to catch-up during these challenging times.

Be well,
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Steven M. Hammock
President

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