Issue: 5/02

Watts Industries has agreed to form a joint venture with the Yuhuan County Cheng Guan Metal Hose Factory located in Taizhou, Zhejiang Province of the Peoples Republic of China. Cheng Guan, with annual sales of approximately $13 million, is a manufacturer of hose, hose connectors, multi-layer tubing and stainless steel braided hose.