Apollo Management L.P. Signs Agreement to Acquire Jacuzzi Brands, Inc.

NEW YORK -- Apollo Management L.P. ("Apollo") today announced that its affiliates have signed a definitive merger agreement to purchase Jacuzzi Brands, Inc. (NYSE: JJZ) in a transaction having a total value of $1.25 billion, including the assumption of $257 million of outstanding debt, net of cash. Under the terms of the merger agreement, Jacuzzi Brands shareholders will receive $12.50 per share in cash.

The transaction, which is expected to close in the first quarter of 2007, will be financed through a combination of equity and debt and is subject to the customary closing conditions, including receipt of equity and debt financing, regulatory approval and approval by Jacuzzi Brands' shareholders. The Board of Directors of Jacuzzi Brands has approved the merger agreement and has recommended to Jacuzzi Brands' shareholders that they vote in favor of the transaction.

Apollo also announced that, upon closing, Jacuzzi Brands' water management business ("Zurn"), a leader in the domestic water management industry, will be acquired by one of its existing portfolio companies, Rexnord Corporation (www.rexnord.com), a leading manufacturer of highly engineered power transmission, aerospace, and other precision motion technology products. Jacuzzi Brands' Bath and Spa businesses ("Jacuzzi Bath"), the global leader in branded bath, spa and shower products, will become a stand-alone company, retaining the Jacuzzi name. Al Marini, President & CEO of Jacuzzi Brands will continue to have leadership responsibility for both the Zurn and Jacuzzi Bath businesses.

Larry Berg, a Senior Partner of Apollo, said, "We are excited to be partnering with George M. Sherman, Non-Executive Chairman of Rexnord Corporation, and former President and CEO of Danaher Corporation, in the acquisition of Jacuzzi Brands. George will assume the role as Non-Executive Chairman of Jacuzzi Bath and will be a co-investor with Apollo in this acquisition. We also look forward to supporting Al Marini, and his management team, in continuing the success of these businesses."

George Sherman, said, "I look forward to working with Al Marini and the management teams at Zurn and Jacuzzi Bath. By adding Zurn to Rexnord's already successful business, we will create a high quality multi-industry company with the potential for enhanced growth. As a private stand-alone focused entity, Jacuzzi Bath has the potential to leverage premier brands, innovation, and quality to achieve accelerated performance and growth."

Credit Suisse served as financial advisor to Apollo Management on this transaction.

About Apollo

Apollo, founded in 1990, is a recognized leader in private equity, debt and capital markets investing. Since its inception, Apollo has successfully invested over $16 billion in companies representing a wide variety of industries, both in the United States and internationally. Apollo is currently investing its sixth private equity fund, Apollo Investment Fund VI, L.P., which, along with related co-investment entities, represents approximately $12 billion of new capital.

About Jacuzzi Brands

Jacuzzi Brands, Inc., through its subsidiaries, is a global manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets. These include whirlpool baths, spas, showers, sanitary ware and bathtubs, as well as professional grade drainage, water control, commercial faucets and other plumbing products. Its products are marketed under a portfolio of brand names, including JACUZZI([R]), SUNDANCE([R]), ZURN([R]), and ASTRACAST([R]).

Forward-Looking Statements

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing and competitive and technological factors, among others, as set forth in our SEC filings. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law. Although we believe this acquisition will occur, there can be no assurance regarding the successful completion of either Apollo's acquisition of Jacuzzi or RBS Global/Rexnord Corporation's acquisition of Zurn.