The document summarizes new designs from a spa company's research and development in 2007, including three categories of architectural trim, an upgraded water management system, new jet and diverter designs, interchangeable lighting features, and an intuitive new control system.

2. 30th A nniversary C elebration 1977-2007

3. R esearch, D evelopment, & D esign The Year in Review…

6. Our spas can be viewed with two distinct perspectives: • Hydronomics comprises how the spa works. E.g., Seating & Hydraulics. • Architectural Trim is what the spa looks like. Inside and out from Shell Color and Jets, to skirts & covers.

7. • All New System & Designs • New Exclusive Technologies • Enhanced Consumer Choices • Unique Product Positioning / Marketplace

8. • Enhanced Designer Feel • Picture Frame Design Premise - Recessed • Shadow Box Creates Interest/3Dimensional • Fastener Free Look

9. • Trimmed Pedestal Design !! • Highly Aesthetic Designs - Also Durable • Integrated LED Lighting Soft and Elegant • Artisan Design - Accents in Landscaping

10. 3 Architectural Trim Categories : Envirotect Trim Sommerset Trim Terracina Trim

11. Envirotect – 60 “ HDPE • Picture Frame Premise • Matching Pedestal Trim • Fastener Free Look • Same Durable Material • Enhanced Fit & Finish

12. Envirotect – 60 “ HDPE

14. Sommerset – CNC Milled HDPE • Artisan Cattails Design • Duotone Artisan Panels • Picture Frame Premise • Matching Pedestal Trim • Fastener Free Look • Same Durable Envirotect Material

15. Cattails Grey: Cattails Brown: Cattails Tan : Stoneridge Grey Exterior w/ Black Interior Myan Brown Exterior w/ Dark Brown Interior Adobe Tan Exterior w/ Dark Brown Interior

18. Terracina – Terra means “of the earth” Faux Stone & Wood Technologies TimberLite Oak StoneLite Granite

19. Terracina – “TimberLite Oak” • Picture Frame Premise • Matching Trimmed Pedestal • Durable Substrate • Performance Engineered Laminate • Fastener Free Look • Exclusive to D1

20. Terracina – “StoneLite Granite” • Picture Frame Premise • Matching Trimmed Pedestal • Durable ABS Substrate • Designed to use HDPE Accents • Unique Look – Texture Color Study • Exclusive to D1

21. Oak Colored Faux Wood Exterior / Entire Hot Tub TimberLite Oak :

22. TimberLite Oak :

23. Stonelite : StoneLite Granite : StoneLite Adobe Tan : StoneLite Mayan Brown : StoneLite Stoneridge Grey : Stone Panel w/ HDPE Accents Stone Panel w/ Adobe HDPE Accents Stone Panel w/ Mayan HDPE Accents Stone Panel w/ Stoneridge HDPE Accents

24. Stonelite

25. Product Availability: Envirotect Trim – Picture Frame Standard on All Product Lines Sommerset Trim Reflections & Bay Collection Terracina Trim Reflections & Bay Collection

26. R esearch, D evelopment, & D esign The Year in Review… 2007 D1 D esign

27. D esign S olutions A moré B ay U ltraPure PLUS J et & Diverter Designs A lrchitectural T rim LFX D esigns M• Drive

28. D esign G oals } • I nnovation as a Design Solution •R ecreate the aesthetic of hot tubs •R einforce D1 as the leader in design

29. D esign G oals } • U nderstanding consumer’s needs •C reating value in our hot tubs •A rtisanship & Sculptured Design

30. D esign G oals } • U nique design solutions •U nique purchase experience •U ncompromising quality & Support

31. W hat is the Aesthetic value of design?

35. I t is very much my pleasure to introduce to you…

38. D esign P remise S ensual Design Premise C urvilinear Footprint in the Bay Collection A rtisan Sculpture as a Design Language

39. A rtisan S culpture

40. D esign P remise U nique Product Experience O pen Freeform Design B ay Collection Feature Set

41. O pen F reeform D esign

42. D esign F eatures I ncredible Water Features • 3 LFX Fountains 2 Rain FX & 1 Cascade FX • 1 4’ Water Brook Fountain has separate Diverter and Flow controls!

44. D esign F eatures H is (30”) & Hers(26”) UltraLounges B arrier-Free Playground w/ Bench Seat @ 24”-26” P romotes engagement and freedom

48. D esign F eatures T actile Therapy for both feet & hands S culpted Hieroglyph Wall Details B i-Level Footwell

52. D esign F eatures U ltraPure PLUS is Standard A ccent Ring Jets & New Diverter B arrier Free Design

53. D esign F eatures E xceptionally Strong Hydraulics E ntire Body Coverage V ariety of massage styles

54. D esign S pecifications • 8’ x 9’ x 40” footprint • 3- 3.6HP Pumps / 64 Jets • 415 Gallons • Seats 7 • UltraPure PLUS • Free Form Curvilinear Design

58. U ltraPure PLUS W ater Management System is a scary word. That it, if you happen to be dirty, grimy particles that don’t belong in clean clear spa water. I’d like to introduce you to….

59. U ltraPure PLUS New UltraPure PLUS Water Management System • Enhanced UltraPure system • U.P. is a contact Biocide system • U.P. is an ozone based system • U.P leaves no residual sanitizers • Patented & Exclusive Designs • 1 st UL Approved System

60. U ltraPure PLUS New UltraPure PLUS Water Management System • UltraPure+ is a U.V. enhanced system • Water exposed to U.V. wavelengths • Exposure occurs through U.V. glass • on outer section of contact chamber • U.V. lamp in new contact chamber • U.V. lamp has 2 types of glass • U.V. light kills Pathogens

61. U ltraPure PLUS New UltraPure PLUS Water Management System • New lamp is Mercury Vapor Type • UV radiation in 200-300 nanometer range • U.V. light is extremely effective at killing microorganisms • U.V. lamp uniquely designed to produce highest amount of UV radiation

62. U ltraPure PLUS New UltraPure PLUS Water Management System • 90% of total rated energy is at 253.7nm • Our wavelength is close to peak wavelength for germicidal effectiveness curve of 265nm • 265nm is the most lethal wavelength • U.V. lamp uniquely designed to produce highest amount of UV radiation

63. U ltraPure PLUS New UltraPure PLUS Water Management System • Ozone is generated at 185nm • Ozone is extremely active oxidizer • Ozone destroys microorganisms & acts as deodorizer • The combination of the new system will reduce the need for sanitizers

64. U ltraPure PLUS New UltraPure PLUS Water Management System • The strength of our system has always been the SYSTEM – not just the components • Our competitors knock off components- but not the system • UP+ was designed as a SYSTEM – components that are effective – Together! So what do we end up with at the end of UltraPure PLUS cycle?

66. U ltraPure PLUS New UltraPure PLUS Water Management System • UV Bulb is easy to replace • Bulb change out is like a fluorescent bulb • System sets inside equipment compartment

67. So what does the system look like? U ltraPure PLUS

68. So what does that UV bulb look like? U ltraPure PLUS

69. UltraPure PLUS Plumbing Schematic

70. U ltraPure PLUS Right now, the UltraPure PLUS is ONLY available on the Bay Collection!

71. L iquid FX T he paradigm of hot tubbing is changing and LFX is here as the new definition.

72. L iquid FX New LFX Designs • New LFX Tile Line – Zoned Lighting • New LFX Mood Enhancers • LFX Interchangeable Water Feature • Auto Exterior Light System • Patented & Exclusive Designs

73. L iquid FX LFX Design Premise • User Interaction / Choice • Unique Market Position • “Hot Tub Experience” Focus • Elegant Design Solutions • Platform Design – After Market

74. L iquid FX LFX Designs – Tile Line • New Bezel Design • New Logo Design • Non Lit Design Standard on most Reflection Hot Tubs

77. L iquid FX LFX Designs – Mood Enhancers • Interchangeable Mood Enhancers • Soft, Sensual LED Lights • Part of Zoned LFX Lighting • 4 Different Designs • Swirl / Stars / Starfish / Starship • Patent Pending / Exclusive to D1

82. L iquid FX LFX Designs – LFX Fountain • Interchangeable LFX Flume Heads • Zoned LED Lighting • 3 Designs - Cascade / Flame / Rain • Silent Pump / Dramatic Presentation • Patent Pending / Exclusive to D1

86. L iquid FX LFX Designs – Auto Exterior Light System • Photo-Transistor Controlled • Long Lasting LED System • White Lights – Fit all Landscapes • Integrated Up Lighting Design • Architectural Look & Feel • Exclusive to D1

88. L iquid FX Product Availability: LFX Option • Standard on All Bay Collection • No Tile Line on Bay Collection • Optional Upgrade on Reflections: • Chairman II, Diplomat, Californian • Nautilus

89. A ccent R ing J et S ystem New Accent Ring Jet System • All New Custom Jet Faces • Unique Interchangeable System • Multiple Design Iterations • Enhanced User Functionality for Low • Hand Strength Conditions • Pat.Pend. Exclusive Designs

90. A ccent R ing J et S ystem New Accent Ring Jet System • Snap Fit Design Premise • Matching Diverter Valve Handle • New DuoTone Color Palette • BioMechanically Designed • Unique Product Positioning • Still Interchangeable & Adjustable

91. A ccent R ing J et S ystem New Accent Ring Jet System • Designed For Enhanced Grip Interface • Low Strength - Power Triangle • Sculpted Artisan Design • All Nozzle Variations Available • New Nozzle Variations

94. A ccent R ing J et S ystem Right now, these jets are ONLY available on the Bay Collection!

95. D iverter V alve New Diverter Valve Features • New Super Quite Design • New Lever Handle Design • Handle Design Matches Jets • Higher Flow Rates/Better Flow Control • Bartop Accessible • Exclusive Designs

97. D iverter V alve Right now, these Diverter Valves are ONLY available on the Bay Collection!

98. M•D rive G adgets, whizbangs and what-have-you. It’s all confusing unless you can control it. And that’s what M•Drive lives for. Welcome to the future of hot tub controls.

99. New M•Drive Upper Control • New intuitive menu driven software design • New tactile button designs • New XL white LCD screen • Scrolling Message Center • D1 Exclusive Design

100. New M•Drive Upper Control • Intuitive Navigation /Web Browsing • Integrated IR • Molded Design – No Inlay!! • New blue LED design • Enhanced user feedback on buttons

101. New M•Drive Upper Control • 5 Key design / cell phones • Dedicated feature buttons • Easy Home Button – Round Center • More features than TSC-24 • Easy to use / low learning curve

105. New M•Drive Upper Control • Standard on ALL Bay Collections • Standard on ALL Reflections (Arena)

106. A s you can see it has been a busy year.

107. T hank Y ou.