Leslie's Swimming Pool Supplies and Shasta Pool & Spas Announce Strategic Alliance

January 6, 2012: Leslie's Poolmart, Inc. ("Leslie's") and Shasta Pool & Spas ("Shasta") today announced they have entered into a strategic alliance and will join forces to create a unique and comprehensive experience for swimming pool owners in Arizona. The alliance features quality swimming pool construction by Shasta, with a unique relationship with Leslie's to provide pool owners at over 70 Leslie's retail stores in Arizona with exceptional products, excellent knowledge and friendly service by Leslie's employees.

As part of the strategic alliance, both companies are announcing that they have entered into a definitive agreement in which Leslie's will acquire the six Shasta retail stores in the greater Phoenix metropolitan area, further expanding Leslie's retail presence in Arizona. Closing of the transaction, anticipated in February 2012, is subject to certain closing conditions.

Shasta is a family owned and operated business that has been building, remodeling and servicing swimming pools and manufacturing pool components in Arizona since 1966. Shasta will continue their other lines of business, including the construction of new residential and commercial pools and manufacturing unique pool components, including various patented products.

Shasta owner and President, Skip Ast, Sr., believes this alliance will provide a winning combination for both Shasta and Leslie's.

"We are thrilled to announce our alliance with Leslie's," said Ast. "Nobody knows more about the Phoenix retail market or taking care of pool owners than Leslie's. As we continue to help homeowners build and remodel the pool of their dreams, we have good peace of mind knowing that the experts at Leslie's will be helping them to care for and maintain the pool after it's been built. With each of us focusing on our areas of expertise, Leslie's and Shasta are both better positioned to provide exceptional service to Phoenix pool owners and fulfill our mission to astonish our customers."

Customers who have previously shopped at Shasta's retail stores will find the same friendly faces in place as these stores join the Leslie's team. Customers can also count on the same great prices, expertise, and superior customer service that they have come to expect. Now, as part of Leslie's nationwide chain, these stores will offer even more services and products to better meet the needs of pool and spa owners in Phoenix.

Commenting on the alliance, Larry Hayward, Leslie's CEO and Chairman stated "The strategic alliance between our companies is a natural fit. Shasta is the number one pool builder in Arizona and has a powerful brand in the pool business across the country. The Shasta team has built a legacy in the swimming pool business and we are proud to have an affiliation with them as a preferred pool builder partner". Hayward added, "The acquisition of these six stores gives Leslie's customers even more convenient choices when shopping for pool and spa supplies and strengthens our company position in Arizona. The Leslie's name is one of the most trusted brands in pool and spa supplies and now we are positioned to better serve pool owners in the greater Phoenix market".

With the addition of these six retail stores, Leslie's will now have 62 stores in the greater Phoenix area and 76 stores in Arizona.

About Leslie's:
For almost fifty years, pool owners have trusted the experts at Leslie's Swimming Pool Supplies for the solutions they need to keep their pool and spa clean, safe and ready to enjoy. Leslie's is the world's largest retailer of pool and spa supplies and operates 684 retail stores and commercial service centers nationwide, as well as catalog (800-LESLIES) and internet (www.lesliespool.com) sales.

About Shasta Pool & Spas:
Shasta began in 1966 and is Arizona's largest swimming pool builder. Shasta has helped over 80,000 families enjoy the pleasure of swimming pool ownership and lifestyle. Today Shasta Industries consists of many divisions, all with a focus on the swimming pool industry and a drive to be the best. Shasta employs over 280 people in the Phoenix area, is the largest builder of Master Pools in the United States, and is the only builder of Master Pools in the greater Phoenix metropolitan area. For more information, please visit www.shastapools.com.


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