HotSpring Spas UK Ltd entered into voluntary administration on Thursday 5th November 2008. This prudent action was taken to ensure that our ability to conduct business and to meet our liabilities under warranty were not affected by the current trading climate. Unlike some other retailers who have changed brands during difficult times, we take our obligations to our owners most seriously. Our Administrators, Vantis Business Recovery Services of Hornchurch, Essex, have confirmed that warranties issued for all HotSpring branded product will continue to be honoured, for both current and future owners.

Any statements to the effect that our business is being liquidated are thus false, and potentially libelous.

We have a proud 12 year history of retailing, delivering, installing and servicing the worlds best selling hottub brand in the U.K. Our commitment to doing exactly that on an ongoing basis remains undiminished.

I would like to assure our current and future customers that our standards of service, the envy of the U.K. industry, will not falter. We will emerge from Administration a leaner, fitter team. Anyone who has ordered a hottub from us will receive it. We will continue to support our products and our family of owners.

On behalf of HotSpring Spas management team, I would like to thank our colleagues for their confidence, loyalty and diligence in these difficult times.

Should any concerns remain, they can be addressed to the Administrator.

This statement on behalf of HotSpring Spas Ltd.

Andrew Biggs & Mike Dennis.