Watts Industries, Inc. Rebukes California Lawsuit Claims.

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Dec. 22, 1998--Watts Industries, Inc. (NYSE:WTS). Timothy P. Horne, Chairman and Chief Executive Officer of Watts Industries, Inc., responded to the press reports of litigation brought against the Company in Los Angeles, California, relating to the James Jones Company, a subsidiary of Watts which was sold to Tyco International, Ltd. in 1996, with the following statement:

"We are disappointed to see the false and misleading statements made by the City of Los Angeles in today's news reports. This lawsuit originates from a former employee of James Jones Company, who left the employ of Jones while it was owned by Tyco, the current owner of James Jones. The suit claims that some underground valves sold to the Los Angeles Water District did not meet specifications which could result in premature "dezincification" which could cause the valves to deteriorate at a faster rate than normal. The facts of these claims have not been proven, and based upon our review, we find no basis for concluding that the possibility for any substantial premature dezincification exists."

The litigation referred to in the news article is primarily James Jones Company which was a subsidiary of Watts until it was sold to Tyco in 1996. The products in question were sold by James Jones Company, which specializes in supplying products to the underground water supply market, mostly in California. Watts understands that the same products continued to be sold by James Jones after the sale to Tyco.

Mr. Horne further stated that, "The statements released by the Los Angeles Department of Water and Power relating to possible health hazards that could be caused by these valves is inflammatory and without foundation. The City's claims that James Jones' products represent any health hazard are inconsistent with standards and specifications for other water products that have similar applications. We are working with Tyco to determine the facts of this case and to determine a proper course of action. We believe, however, that the public statements made by the Los Angeles Department of Water and Power are irresponsible and unsupported. If our findings are consistent with what we believe, we will seek appropriate legal recourse."

Watts Industries, Inc. designs, manufactures and sells an extensive line of valves for the Plumbing and Heating, Water Quality, Industrial, and Oil and Gas markets.