Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995

• The demand for our swimming pool, irrigation and related outdoor lifestyle products may be adversely affected by unfavorable economic conditions.
• We are susceptible to adverse weather conditions.
• Our distribution business is highly dependent on our ability to maintain favorable relationships with suppliers.
• We face intense competition both from within our industry and from other leisure product alternatives.
• More aggressive competition by store- and internet-based mass merchants and large pool or irrigation supply retailers could adversely affect our sales.
• We depend on our ability to attract, develop and retain highly qualified personnel.
• Past growth may not be indicative of future growth, and while we contemplate continued growth through internal expansion and acquisitions, no assurance can be made as to our ability to:
• penetrate new markets;
• generate sufficient cash flows to support expansion plans and general operating activities;
• obtain financing;
• maintain favorable supplier arrangements and relationships; and
• identify and divest assets which do not continue to create value consistent with our objectives.
• Our business is highly seasonal.
• The nature of our business subjects us to compliance with employment, environmental, health, transportation, safety, and other governmental regulations.
• We store chemicals, fertilizers and other combustible materials that involve fire, safety and casualty risks.
• We conduct business internationally, which exposes us to additional risks
• Changes in tax laws and accounting standards related to tax matters have caused, and may in the future cause, fluctuations in our effective tax rate.
• We depend on a global network of suppliers to source our products. Product quality or safety concerns could negatively impact our sales and expose us to legal claims.
• We rely on information technology systems to support our business operations. Any disturbance or breach of our technological infrastructure could adversely affect our financial condition and results of operations. Additionally, failure to maintain the security of confidential information could damage our reputation and expose us to litigation.
• A terrorist attack or the threat of a terrorist attack could have a material adverse effect on our business.