<SUBMISSION>
<ACCESSION-NUMBER>0001104659-07-035896
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20070501
<ITEMS>2.02
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20070504
<DATE-OF-FILING-DATE-CHANGE>20070504
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>WATTS WATER TECHNOLOGIES INC
<CIK>0000795403
<ASSIGNED-SIC>3490
<IRS-NUMBER>042916536
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-11499
<FILM-NUMBER>07819388
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>815 CHESTNUT ST
<CITY>NORTH ANDOVER
<STATE>MA
<ZIP>01845
<PHONE>9786881811
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>815 CHESTNUT STREET
<CITY>NORTH ANDOVER
<STATE>MA
<ZIP>01845
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WATTS INDUSTRIES INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a07-13107_28k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>







</head>

<body lang="EN-US" style=" text-justify-trim:punctuation">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;color:windowtext;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED
STATES<br>
</font></b><b><font size="5" style="font-size:18.0pt;font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION<br>
</font></b><b>WASHINGTON,
D.C. 20549</b></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM
8-K</font></b></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
REPORT</font></b></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant
to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934</font></b></p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date
of report (Date of earliest event reported): May 1, 2007</font></b></p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">WATTS
WATER TECHNOLOGIES, INC.<br>
</font></b>(Exact Name of Registrant as Specified in its Charter)</p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>DELAWARE</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-11499</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">04-2916536</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other
  Jurisdiction</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of
  Incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="color:windowtext;margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="color:windowtext;line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">815
Chestnut Street, North Andover, Massachusetts 01845<br>
</font></b>&#160;(Address of Principal
Executive Offices) (Zip Code)</p>

<p align="center" style="color:windowtext;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(978)
688-1811<br>
</font></b>(Registrant&#146;s telephone number, including area code)</p>

<p align="center" style="color:windowtext;margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former Name or
Former Address, if Changed Since Last Report)</font></p>

<p align="left" style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (<i>see</i> General
Instruction A.2. below):</font></b></p>

<p align="left" style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font size="2" style="font-size:10.0pt;font-weight:normal;">&nbsp;&nbsp;Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</font></p>

<p align="left" style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font size="2" style="font-size:10.0pt;font-weight:normal;">&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</font></p>

<p align="left" style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font size="2" style="font-size:10.0pt;font-weight:normal;">&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p align="left" style="color:windowtext;font-weight:bold;margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font size="2" style="font-size:10.0pt;font-weight:normal;">&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;color:windowtext;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
2.02.&#160; Results of Operations and
Financial Condition.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May 1, 2007,
Watts Water Technologies, Inc. (the &#147;Corporation&#148;) announced its financial
results for the fiscal quarter ended April 1, 2007.&#160; The transcript of the conference call held on
May 1, 2007 relating to the Corporation&#146;s financial results for the fiscal
quarter ended April 1, 2007 is furnished as Exhibit 99.1 to this Current Report
on Form 8-K.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information in
Item 2.02 of this Current Report on Form 8-K and the related exhibit 99.1 attached
hereto shall not be deemed &#147;filed&#148; for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), or otherwise subject to
the liabilities of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933 or the Exchange Act,
except as expressly set forth by specific reference in such a filing.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
5.02.&#160; Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.</font></b></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May 2, 2007, at
the 2007 annual meeting of stockholders of the Corporation, the stockholders
approved an amendment (the &#147;Amendment&#148;) to the Corporation&#146;s Management Stock
Purchase Plan, amended and restated as of January 1, 2005 (the &#147;Plan&#148;),
increasing the number of shares of class A common stock authorized for issuance
under the Plan from 1,000,000 to 2,000,000, subject to adjustment for stock
splits, stock dividends and similar events.&nbsp; The Corporation&#146;s board of
directors adopted the Amendment on February 6, 2007, subject to stockholder
approval.&nbsp; The Plan provides management employees with the opportunity to
defer part or all of their annual bonus and apply the deferred bonus towards
the purchase of restricted stock units.</font></p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
9.01.&nbsp; Financial Statements and Exhibits.</font></b></p>

<p style="color:windowtext;font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exhibits</p>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Exhibit Index
attached to this Current Report is incorporated herein by reference.</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 align="center" style="color:windowtext;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURE</font></b></h1>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Pursuant to the requirements of
the Securities Exchange Act of 1934, the Registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Date: May 3, 2007</p>
  </td>
  <td width="55%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:55.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WATTS WATER TECHNOLOGIES, INC.</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="55%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:55.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="55%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:55.14%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.3%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;letter-spacing:-.1pt;">/s/ </font>William C. McCartney</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.44%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.74%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William C. McCartney</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.86%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.74%;">
  <p style="color:windowtext;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="color:windowtext;font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">EXHIBIT INDEX</font></u></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:9.5%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlNoTableShading -->Exhibit No.</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="88%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:88.12%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="9%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:9.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transcript of the conference call of Watts Water
  Technologies, Inc. held on May 1, 2007 relating to Watts Water Technologies,
  Inc.&#146;s financial results for the first quarter ended April 1, 2007.</font></p>
  </td>
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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="right" style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 99.1</font></b></p>

<p align="right" style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TRANSCRIPT</font></b></p>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">May. 01. 2007 /
5:00PM ET, Q1 2007 Watts Water Technologies Earnings Conference Call</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Good day, ladies and gentlemen, and welcome to the Q1,
2007 Watts Water Technologies earnings conference call. My name is Andwan and I
will be your operator for today. At this time all participants are in listen
only mode. We will conduct a question-and-answer session toward the end of the
conference. (OPERATOR INSTRUCTIONS) I would now like to turn the call over to
Mr. Kenneth Lepage Assistant General Counsel. Please proceed, sir.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kenneth Lepage<i>  </i>&#151;<i>
Watts Water Technologies - Assistant General Counsel</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thank you. Before Pat and Bill begin their
presentation I want to inform you that various remarks they may make about the
Company&#146;s future expectations, plans, and prospects constitute forward-looking
statements for the purposes of safe-harbor provisions under the Private
Securities Litigation Reform Act of 1995. Actual results may differ materially
from those indicated by these forward-looking statements as a result of various
important factors including those discussed under the heading, &#147;Risk Factors&#148;
in our annual report on Form 10K for the year ended December 31, 2006, filed
with the SEC, and other reports we may file from time to time with the SEC. In
addition, any forward-looking statements represent our views only as of today
and should not be relied upon as representing our views as of any subsequent
date. While we may elect to update forward-looking statements at some point in
the future we specifically disclaim any obligation to do so and therefore you
should not rely on these forward-looking statements as representing our views
as of any date other than today. I will now turn the presentation over to Pat
and Bill.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe<i>  </i>&#151;<i> Watts
Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thank you Ken. As normal, what we will do is I will
make some opening comments. Then I will turn the call over to Bill McCartney,
who will walk you through an analysis of the numbers for the quarter. And
following Bill&#146;s presentation we will open the lines and answer any and all
questions you might have.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">But let me start by saying sales for the quarter were
$346.1 million, an increase of 26% compared to the first quarter of the prior
year. Now, when you look at the sales increase it was achieved through really
solid internal growth, contributions from acquired Company and favorable
foreign exchange. We saw double-digit sales increase achieved in all three
geographical regions North America, Europe, and China. If you look at the net
income number, you will see the net income came in at $20 million or $0.51 per
share compared with net income of $15 million or $0.46 per share in the prior
year. Operating income for 2007 increased to 14% compared to the prior year.
However, operating margins for the first quarter decreased by 80 basis points
from the prior year.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As we previously discussed and had anticipated this
decrease in operating margin is primarily due to a decline in gross margins
caused by increasing raw material costs. This was more significant in North
America segment. The primary culprit in terms of raw material costs for us are
copper based alloys, and stainless steel. But we also saw increases in other
items like zinc and plastic resins. To mitigate the impact of these rising raw
material costs we implemented selective price increases in North America
effective February 26th. And we anticipate further North American price
adjustments during the second quarter.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We continue to &#151; the last thing I want to say is we
continue to experience softness in the North American residential market, which
was offset by continuing improvement in the North American commercial market.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With those opening comments I will now turn it over to
Bill who will walk you through financial analysis of the quarter. Bill?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, thanks Pat. What I would like to do is give a
high-level overview of the numbers and I will dive into the segments after
that. Total revenue with $346 million was an increase of 26%, composed of three
main factors; internal growth of $35.4 million, which is 12.9%, favorable
foreign exchange of $7.9 million, which is 2.9% and then acquisitions of $27.8
million, which is 10.1%. So, that totals $71.1 or 25.9%.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On the earnings per share side $0.51 this quarter
versus $0.46, Q1, 2006. Inside of those numbers, we have $0.04 of dilution,
which is a result of our stock offering we did in November, &#145;06. And then we
also have $0.05 favorable adjustment that went to the tax line, which we will
talk about in a moment. So, $0.04 dilution and $0.05 on tax.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On the North American segments. Sales were up 11%
closed at $218 million for the quarter. The three factors here; one, internal
growth $20 million, which is 10.3%; a slight unfavorable foreign exchange,
which is $100,000 unfavorable and a tenth of a point unfavorable; and then
acquisitions was small in North American segment this quarter, $1.6 million or
eight-tenths of a point. That totals $21.7 million or 11% in total.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inside of North America, looking at the retail
segments or retail market. First, we have $47.2 million of revenues in the
quarter, which is an increase of $1 million or 2%. Now, what&#146;s happening inside
of retail is basically we had some &#151; we saw the softness here as a result of
the residential markets slowing down. And that softness was offset by some new
product rollouts as well as some price increases. We&#146;re rolling out our Sea
Tech quick-connect fittings both at [Maynards] and Lowes and some of our
under-floor radiant heating products at Lowes as well.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the retail market is 90%-plus residential business,
so this is where we see the slowdown is very evident here where there is a
increase of 2%. On the wholesale side, 169, almost $170 million of revenue;
that&#146;s an increase of $19 million or 12.8%. And that&#146;s without acquisitions.
With the acquisitions, slightly more, $171.1 million, which is an increase of
$20.8 million or 13.8% and that&#146;s the acquisition of Calflex that we did in the
middle of last year.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Basically, what we are seeing on the wholesale side is
consistent with what we have discussed with you in the past that the commercial
side seems to be pretty strong, the residential side is soft. So, the
commercial is offsetting the residential for the most part. And when we look at
this change in terms of pricing and units, about 60% of that is driven from
pricing, about 40% from units, and the unit increases really tends to be more
towards the commercial side.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Few comments on Europe. Europe, we closed out the
quarter at $115.6 million; that&#146;s an increase of $43.3 million or 60%. The
three factors that we measure here &#151; internal growth, $12.9 million; that&#146;s
17.8%. Foreign exchange with the euro versus the dollar, $7.7 million; 10.7%.
And acquisitions of $22.7 million or 31%. So, that totals $43 million or 60%.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And in terms of the, what&#146;s happening in the business
here, it&#146;s very consistent with what we&#146;ve discussed with you in the past. We
continue to see strong performance relative to alternative energy, the solar
and geothermal product lines and we see nice expansion into Eastern Europe as
well.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On the acquisitions side we have ATF, Black Teknigas,
and KimSafe acquisitions that we completed last year for the $22.7 million.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Looking at China, $12.2 million in the quarter versus
$6.1 last year, so an increase of 100%. Factors in China are organic growth of
&#151; internal growth, $2.3 million, which is 38%; small foreign exchange of
$300,000, which is 4.9%; and then acquisitions of $3.5 million, which is 57% of
the increase.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The acquisition of Changsha Valve Works, we completed
that last May. Changsha manufactures the large butterfly valves for the Chinese
infrastructure market. On the organic side, we are seeing increased sales into
the Chinese market as well as increased exports out of China, predominantly
into the European plumbing market.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The gross margins, 33.1% this year versus 34.9% last
year. There&#146;s really very little impact here from acquisitions in terms of
impacting the mix here, so this is really an operating issue. And as Pat mentioned
in his opening remarks, the bulk of the issue here really is the North American
gross margin and &#151; which declined from 35.1 to 32.9%. And that is entirely due
to increased raw material costs, particularly copper and stainless steel.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In Europe, the gross margin declined by 1.3 points to
&#151; closed at 31.8%. We see some pricing issues here in Europe, not to the extent
that we did in the U.S. and we have a little bit of scrap and efficiency at one
of our factories, which we discussed with you last quarter. We&#146;re continuing to
work on that. In China, the margin is up 3.6 points to 18.6 and this is really
the result of improved manufacturing efficiencies as well as the impact of
including the gross margin of Changsha in our Chinese numbers.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Looking at the SG&amp;A we were able to leverage that
a little bit, dropped to 24.3%, so we leveraged about 80 basis points on the
SG&amp;A. The increase was $15 million in total or 21%. The $15 million is
comprised of a internal increase of $7 million, foreign exchange of $1.5, and
then acquisitions of $6.4 and that gives you your $15 million.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">So, operating earnings, as Pat mentioned, closed at
8.8%, which is a decline of about 80 basis points. That&#146;s the decline in the
margin offset by some leverage on the SG&amp;A.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The tax rate in the quarter dropped from 34.6 last
year to 26.4 this year. The main item here really is we were able to receive a
refund of some Italian taxes due to a change that occurred during Q1 in the
Italian tax law, and that&#146;s about $1.9 million. And we also had a little bit of
favorable mix relative to the Chinese performance and we are on some tax
holidays in China. So, it&#146;s really the combination of the Italian refund as
well as the mix in China.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And then the net income, $20 million, that&#146;s an
increase of 33% versus last year. And I think with that we can open it up for
some questions.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Q U E S T I ON &#160;A N D &#160;A
N S W E R</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(OPERATOR INSTRUCTIONS) The first question comes from
the line of Curt Woodworth with J.P. Morgan. Please proceed.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, hi, good afternoon.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, Curt.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, Curt.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In terms of the pricing strategy going forward, you
commented that you came out with a Feb. 26, increase and you&#146;re going to make
further increases in 2Q. I guess the first question is did you have success
with that first price increase. And given we are corporate now, can you help us
think about the timeline in terms of what additional increases do you need and
when do you think you can get back to more of a parity situation in the sort of
&#151; given the current state of copper.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, the &#151; first of all, the price increase that was
already affected was late in the month of February. So, we really didn&#146;t see
much in terms of impact on the first quarter from that price increase. It was a
selective price increase. We look now at the second quarter particularly on
products that are primarily based on stainless steel and on copper-based
alloys, bronze ingots, pre cutting brass et cetera that we anticipate we will
take additional action. However, you won&#146;t see the impact of those additional
price increases until into second quarter, okay? So, I don&#146;t anticipate that
you&#146;ll have a significant impact here on the second quarter. You actually fall
under the third quarter rather. So, now I think if you look at the &#151; if you
look at where we are at, we need additional price increases to cover the
current cost of copper. Did that help you, Curt?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes. So, given the run-up and the timing with the
price increases and the FIFO inventory valuation, would it be a fair assumption
to think that margins would again be down year-on-year in 2Q as best you could
&#151; you can tell?</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I think the second quarter is going to be a
similar quarter to the first in terms of difficulty in achieving year-over-year
comparison to growth margins in the North American segment.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And in terms of the SG&amp;A levers that you
talked about, which was strong this quarter, that &#151; is that a fair target for
the year? Do you think that you can see 70 to 80 basis points of improvement or
maybe talk about what your internal goal is there.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I think you&#146;re going to see some favorable
variances there on a BIPS basis just simply because we&#146;re &#151; we&#146;re controlling
our costs better than we have in prior years. So, I would say my best estimate
at this point in time, you&#146;ll see something similar again to what we saw in the
first quarter.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and lastly on commercial very strongly this
quarter, are you seeing any change in pattern in growth rates there as we move
through the quarter? It seems like there&#146;s a lot of varying viewpoints of how
the market in terms of commercial construction is doing. It seems like you&#146;re
still pretty optimistic on that part of the market.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, we &#151; it&#146;s hard for us to tell because it&#146;s
getting a little choppy. But I would say that we&#146;re relatively optimistic for
the remainder of this year.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Great, thank you very much.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thank you.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Michael
Schneider with Robert W. Baird &amp; Company. Please proceed.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Good afternoon, guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hey, Michael.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hey.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Just to continue on with what I expect will be a
string of questions on copper. If you went out with late February pricing and
Pat you made the comment that will make you hold at least some point in the
second half. I&#146;m curious, though, if you look at where the late February copper
was, it was still at 280. We&#146;re at 377 today. So, we&#146;re up 33% even from late
February, all right. How much yet needs to come or had you put in some type of
inflator anticipating a great call on copper being up 33% from then to now?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, I think, Michael, we have some tough decisions in
front of us in terms of pushing through some aggressive price increases because
you have the math correct. But the other side of this is that copper is
impacting us and our competitors at the same rate.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">So, we&#146;re anticipating that anybody who&#146;s
manufacturing products that compete with us is going to be in a similar
situation.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And how are the discussions going because other
companies in this kind of residential products neighborhood have been trying to
put through price increases for one reason or another. And it met with, I
guess, renewed resistance because your customers, in effect, are experiencing
softer volume, softer demand, excess inventory. How have the discussions
changed even just in the last few weeks revolving around these price increases?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, Michael, if you&#146;d go back when copper softened up
earlier in this year, I would say those conversations got extremely difficult.
People were essentially balking at the idea that you could push through a price
increase. Now, I think everyone recognizes that this is impacting everybody in
the industry. It&#146;s not simply Watts; it&#146;s not any of our competition. It&#146;s an
industry-wide problem. So, I&#146;m anticipating with all the press and everything
else with regard to copper and all the visibility on copper that you&#146;re going
to see movement going forward.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">So, to the extent you can give us some crystal ball
help here. Again, knowing that you got to go out with another round of pricing,
presumably even more aggressive than you&#146;ve got out there today, where do you
cross over? Assuming you get it, given there is probably a 30 to 60-day
implementation period, is it really the fourth quarter before we see gross
margins flat year-on&#151;year, or is it even later?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, it&#146;s third &#151; my anticipation is it&#146;s third
quarter.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and if you look at what&#146;s really happening to
us, we sort of have a two-quarter delay in terms of what runs through our
P&amp;L and because we&#146;re on FIFO.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">But we anticipate &#151; at this point in time, Michael, I
anticipate it&#146;s &#151; you&#146;re going to see the impact of it in the third quarter.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and then could you drill down into Europe for a
minute? Internal growth of 18%, the economy is strong but not that strong, and
you called lots of OEM work. Could you give us some specific examples of what&#146;s
driving that growth? Is it new products, new customers, new markets, any and
all of the above?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, let me talk here a little bit and then, Bill, you
can give him some detail. But I think, first of all, we&#146;ve had nice growth in
Eastern Europe, which is part of the European package. The second is we&#146;ve had
quite a bit of a success with the introduction of new products, primarily based
on alternative energy applications, where you have a number of key markets that
are being incentivized to install such products. So, we make a lot of control
packages and things like that. They go on geothermal heat pumps. They go on
solar applications. They go on pellet boilers and things of that nature. One of
the positive notes is there are additional countries that are coming online
with additional incentives. So, you had &#151; it started in Northern Europe. It&#146;s
moving down across Europe in terms of recognizing &#151; I think they&#146;re probably,
Michael, five years ahead of us in terms of understanding the necessity to move
to alternative energy packages. And I think the way they get there is they
subsidize heavily in terms of alternative energy and they tax oil products very
heavily. So, it&#146;s sort of an ideal environment.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I also think that what you saw to a certain extent is
the economy for example in Germany, you had some pent-up demand because it was
so slow over the last couple of years. So, some of that is in fact pent-up
demand and I anticipate maybe that the pent-up &#151; the additional demand that we
are seeing up and above the GNP rate, we&#146;ll probably see some slowdown in terms
of that pent-up demand. But I &#151; overall, quite honestly, at this point in time
most of their major economies are doing fine. The only one I&#146;m a little bit
concerned about is Italy, which I think has seen a slight slowdown.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And then just coming back to North America, you
mentioned that retail was up 2% primarily due to price. Do you have a
guesstimate as to what the units were actually down in North American retail?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well Mike, I mean, it&#146;s difficult to just say units
are down because the economy &#151; I mean, we had some lost &#151; or decreased sales if
you will offset by new product introductions. We&#146;re trying to manage the mix
there more effectively, letting some low-margins stuff go. So, it&#146;s a
combination of a lot of things happening there. I don&#146;t think we can say that
the decline on the residential slowdown caused X%. There is a lot of numbers
going on inside that market if you will.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and in fact on this idea of pruning some of the
lower-margin business. We had talked I think really in the second quarter of
last year about the potential of you guys walking away from some business just
based on pricing negotiations. Did you and have you walked away from anything
or is that process still &#151;?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have &#151; as we like to say, we are managing the mix,
so some low-margin business that we feel is unacceptable we have decided not to
offer them.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, inside of that 2% number, Mike, is some business
that we clearly made a conscious decision to walk away from.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It&#146;s a little bit weird in terms of how that happens
because you make a decision to walk away and then the big retailers come back
to you and ask you to support them until they can get another vendor in place.
But we&#146;ve been making decisions and we continue to see within those numbers
that that decision reflected in that &#151; in a decrease in volume.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, thank you again.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Ian
Fleischer with Friedman, Billings, Ramsey. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, good afternoon.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi there.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi. Just to go back to copper for a second, do you
have a sense as to the average price of copper that ran through your P&amp;L in
the first quarter?</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I mean, basically what you can do is you can &#151; our
inventory finished goods for copper products, we have about a 5- to 6-month
delay from the spot &#151; or not delay, a lag if you will. So, that&#146;s consistent,
so what&#146;s running gone through cost of goods now is essentially the spot from
5, 6 months ago.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and going back to the price increases, are you
seeing any different degrees of resistance among your different channels?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I think if you were to look at the channel of the
distribution, I think the retail market is &#151; or has continued to show
significant pushback but you&#146;re also seeing it in the other channels as well.
Especially, like I said earlier, when copper showed some softening, the
resistance went sky high, now has sort of come back to a normalized level.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And that resistance was even in your wholesale
distribution?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not so much, and I would say in order of pushback &#151; you
get most pushbacks in the retail your second year you get it from the OEMs and
third you get it from the wholesalers. The wholesalers recognize and follow
copper and everything else, so they are a little bit less inclined to pushback
and you also have a different size of customer there.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right. And with respect to price and volume, do you
have a sense as to what the &#151; what those two buckets contributed at the
consolidated level for sales?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On a consolidated basis I think you see that in &#151; and
I can give you the, sort of the, three main areas, Ian, if you like, it&#146;s &#151;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, sure.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In Europe, its pricing is somewhere between a third to
a half of the organic growth. So, we got a 17.8% organic growth. It&#146;s tough to
say exactly because you have so many business units and what not. In China, it&#146;s
all units. And when you look at North America, the wholesale side, it&#146;s about
60% price, 40% units. And then we talked about retail, which is predominantly
price.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And just one final item, how should we think
about tax rate for this year, any change there?</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, for the year, I mean, a normal tax rate
throughout this year should be about 34% roughly. In that situation Italy is
really a one-off.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ian Fleischer <i>&#160;</i>&#151;<i> Friedman, Billings, Ramsey - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Great, thanks very much.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thank you.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Keith Hughes
with Suntrust. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Could you give me any kind of update on the
acquisition market? Are prices there still elevated due to private equity, or
are you seeing that track at all in the last couple of months?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I&#146;d say the prices are somewhat elevated at the
moment. I think we had a couple of deals that got high visibility that put
seller&#146;s expectations up, and I think you&#146;re going to have to wait a couple of
months before you see some deals transacted at more reasonable levels. So, you&#146;re
correct there, Keith, it&#146;s that there have been some pressure upward on pricing
for deals. Not a lot of deals are getting done at the moment by the way.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Just to, kind of, shift the focus. Within North
America, is commercial around 80% of total business in that segment?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inside of just North America?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I don&#146;t see that it is that difference, maybe it&#146;s a
little bit more skewed towards residential because we have a heavy retail
business in the U.S.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Well, you had mentioned a 170 million, and I
didn&#146;t know if that was across all geographies or &#151;</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, the 170; is that North?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maybe I misunderstood what you said.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, the $171 million of revenue is North American
wholesale revenue.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In that we feed both residential and commercial
products.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Keith Hughes <i>&#160;</i>&#151;<i> Suntrust - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. All right. That was my fault. All right. Thank
you.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Jeff Hammond
with Keybanc Capital Markets. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, good afternoon, guys. Can you hear me?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, how are you doing, Jeff?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Doing well. Hey, just kind of a bigger question on
kind of managing the whole commodity inflation. I mean, if you go back to &#145;06 you
guys did a tremendous job of kind of matching up price with cost and it just
seems fourth quarter and first quarter that&#146;s materially changed. I just wanted
to better understand from your perspective what (inaudible) somewhat more
difficult or what&#146;s really changed in that whole dynamic.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, I think there is a couple of things that have
changed. One is that in some cases you have both residential and commercial
jobs that are not being &#151; they&#146;re actually not being performed because in a &#151; for
example they&#146;re going back to re-bid the project. So, there is pressure coming </font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">from &#151; when I &#151; I thought that this project was going
to cost me X millions of dollars, and now it costs me X millions of dollars
plus 10%. There is some actual pushback from building owners, and building
operators that is occurring as these copper prices continue to push the cost of
renovating or the cost of building facilities, upward. I think that&#146;s really
one of the fundamental things that&#146;s changed. Initially, when you saw raw
materials move and things like that they were committed, had financing in place
and other things. And now, I think you&#146;re starting to see &#151; they&#146;re looking at
their analysis a little bit more differently because copper continues to push
the cost of building that facility or renovating that facility, up. Now, you
are seeing some resistance from the owners.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. But that would not seem to be apparent in the
volumes you&#146;re seeing as you look at the organic growth even if you just cut
out price. So, does that imply that there is more pushback on price ultimately,
and you&#146;re not getting this much price through?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I think the answer to that is clearly that we haven&#146;t
gotten enough price through, otherwise we wouldn&#146;t see the contraction in the
margins. So, I think, overall, you&#146;re correct, and that we&#146;ve gotten some
pushback. We have some competitive situations where competitors are still
working our pricelist that are dated last summer and things of that nature. So,
there is some pushback. It wasn&#146;t there before.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And then as you look at operating margins, I
mean, the compression has been 80, 90 basis points for next &#151; the last couple
quarters. I think you mentioned as you get out the third quarter maybe that
flattens out, but how should we look at the progression in 1Q, the 3Q in terms
of margin compression?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well Jeff, I mean &#151; we didn&#146;t &#151; we&#146;re not prepared to
give specific guidance on how many basis points et cetera. But what we&#146;ve been
saying all along I think is still accurate, and that Q1 and Q2 we feel the pressure.
Pat mentioned earlier during the call that Q2 looks &#151; probably looks similar to
Q1. And then between &#151; because we have the six month lag on copper hitting the
P&amp;L, hitting cost of goods sold, we see the lower copper coming in, in Q3,
as well as, hopefully, some pricing because we&#146;re going to be replacing that
inventory with copper at spot. So, &#151; and then in Q4 we probably feel a little
bit of pressure relative to Q3. But, hopefully, by then the pricing will be
more inline with what&#146;s happening. That&#146;s the trending. I mean, we don&#146;t want
to say how much, &#151; how many basis points per quarter. Well, that&#146;s getting a
little far a field in terms of giving guidance, I think.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, no, I understand. I just wanted to understand
directionally, which is helpful.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes &#151;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Corporate expense. Can you just kind of explain the
variance there year-on-year, and how should we think about corporate expense on
a full year basis?</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I think if you look, we have some increase in some
stock-based compensation in this year versus last year. And we booked a little
bit of bad debt in there. So, I think you&#146;ll &#151; I would expect that corporate
expenses would decline a little bit from where they are now on a run rate
basis.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">But still up year-on-year.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I would expect so, yes.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeff Hammond <i>&#160;</i>&#151;<i> Keybanc Capital Markets - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Thanks guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Thank you.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Mark
Grzymski with RBC. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Good afternoon.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, Mark.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">How are you doing? Just trying to look at growth
assumptions going into Q2, obviously, you had good organic growth in Q1, and I
realized that some of it pricing and some of it was units and factoring and
everything. I&#146;m just curious. If you could give us a little guidance on revenue
growth, given that you don&#146;t seem to be doing a good job? And, I mean, and also
maybe a two-part question to that. You know, obviously, the retail market is
weak, and some have said that there was a little spike coming out of Q1. I&#146;m
curious if you&#146;re seeing that, and also, how long do you expect the weakness
from your view?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, when you talk about weakness, I look at the
residential market, and I don&#146;t really have any expectation that&#146;s going to
improve this year.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. So, I sort of thought what you thought in the
first quarter you&#146;re going to see for two or three more quarters. And I think
that&#146;s true on whether that&#146;s going through &#151; whether it&#146;s going through the
retail side or it&#146;s going through the wholesale side. I think you have the same
dynamics impacting both sides of the equation there.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And so, any additional color you could give on
growth assumption for us? Obviously, it&#146;s somewhat challenging given the
various markets that are performing well, and some performing poorly. I&#146;m
curious how we should look at it, given that you are trying to put price
increase there.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, it&#146;s tough to forecast that number precisely
Mark, but I mean I think that we would expect &#151; again going back to Pat&#146;s
comments earlier Q2 is going to look like Q1, we believe. We still &#151; I think
the trends that are in place are there for the year whether it&#146;s in Europe with
the alternative energy or the residential and commercial construction market.
So, I think it is going to be similar. I know I&#146;m not giving you very precise
answers.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Didn&#146;t think you would but I have got to try. Someone
earlier had asked about acquisitions and I realized that it&#146;s a little sticky
right now, but would you be more inclined, given the softness in the
residential market, to make an acquisition in that market assuming that you
maybe getting it at a discount?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, especially what we would consider to be a good
solid business. We&#146;ve always been a little bit contrarian so that we are buying
property that we think are good businesses in an off market and we&#146;re not afraid
to do that.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And also just the last question. From a curious
&#151; the order patterns coming from &#151; given inventory levels in the retail and
wholesale markets what are seeing there &#151; entering Q2.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I don&#146;t think anything is really changing from Q1.</font></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0pt 0pt 0pt;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i>
Watts Water Technologies - CEO</i></font></b></p>

</div>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We haven&#146;t seen any appreciable differences.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark Grzymski <i>&#160;</i>&#151;<i> RBC - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Great thank guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Richard
Paget with Morgan and Joseph. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Paget <i>&#160;</i>&#151;<i> Morgan and Joseph - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Good afternoon everyone.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi Richard.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Paget <i>&#160;</i>&#151;<i> Morgan and Joseph - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I hate to kind of harp on this topic but maybe I&#146;m not
understanding what pushback means because if I look at the copper chart, and
going back to beginning of October, copper continued to fall all the way until
February. So, those price increases that you already had in what &#151;shouldn&#146;t you
be benefiting from them. Unless by pushback you meant you actually gave some
pricing back.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, when I say pushback I&#146;m not saying that we gave
pricing back. I&#146;m saying that during that period when copper was falling to get
additional price increases to stick was a much more difficult issue, okay. We
anticipate with rising copper that has occurred like you just described it for
the last several months that, that environment of getting pricing to stick
would be much better. Particularly in a competitive environment, Richard, where
you didn&#146;t have compulsion on behalf of some of your competitors to shore up
pricing or ask for price increases. In a period were the press was talking
about declining copper and other alloys softening. What I&#146;m saying is that for
a while there when the market &#151; when those copper prices were softening it was
very difficult to ask for additional increases. Even though, higher copper they
had purchased six months earlier was rolling through your P&amp;L.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Paget <i>&#160;</i>&#151;<i> Morgan and Joseph - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, I understand that but in the second quarter, if
I go back five to six months, you should have cheaper copper rolling through
the P&amp;L.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, Rich, we do the analysis here on terms of how it
is trending and we did the analysis we showed that the copper from Q4 to Q1 is
similar and Q2 is going to be similar to that. And Q3 is where we get the
benefit. I don&#146;t have a copper spot chart in front of me.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Paget <i>&#160;</i>&#151;<i> Morgan and Joseph - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. I mean, I guess there must be that, some of the
other materials that you are speaking about. Steel, maybe that is influencing
it as well.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is all of those, I mean Rich, you have to look at
zinc as a major driver here, brass is 40% zinc. Nickel has gone up by 600%
versus this time last year. So, I mean we talk about copper a lot and that&#146;s
the one that gets the most press but there is a lot of other materials going on
here.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right at the moment one of the [nuisance] products
sort is all those stainless steel products. Okay, we have a considerable
purchase of stainless steel items.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Paget <i>&#160;</i>&#151;<i> Morgan and Joseph - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, thanks that&#146;s it from me.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Ryan Connors
with Boenning &amp; Scattergood. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi Ryan.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi guys. Just had a question. I guess just more
conceptually kind of stepping back and taking a look at the big picture on the
raw material environment and profitability. And I mean I think last year there
was kind of a perception out there that given the way your markets were
structured and the way the competitive situation breaks down there, that you
guys were kind of virtually immune to raw material spikes. And obviously, that&#146;s
turned out not to be the case. But my sense from what your &#151; from your comments
here is that, that ultimately that may still be true. But it just takes time to
get the pricing. I mean, I guess I just whether it is 3Q, 4Q whatever it is I
mean is that a fair statement kind of what you&#146;re trying to get across?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, and it is somewhat depends on what happens from a
competitive point of view as well. Because you get various periods where you
are out of step with your competitors. You raise prices, they don&#146;t and &#151; but I
think long-term the industry is made up of people who are impacted by the same
economics and therefore have the same reasons for pushing through cost
increases.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. So, I guess my question then is if raw materials
and copper and zinc and so forth were to suddenly stabilize and stay right here
through the end of time, I guess, you are saying then that the industry will
ultimately revert to its historical mean in terms of gross margins. I guess my
question is not casting quarters but is that a multi-year event? Is that a
several quarter event? How long do you think it takes till everybody gets in
line? Just in real rough terms.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Do you see a stabilizing in raw material?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, if you do see a stabilizing in raw materials, how
long does it take for the entire industry to get itself in order in terms of
pricing and get back to its historical profitability level? I mean &#151;</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I mean if you look across these university of
companies that are buying these kinds of materials this quarter you will see a
very common theme out there. Where people are getting impacted by margins
because of copper and nickel and stainless steel you will see similar behavior
relative to unit growth and sales growth in North America and International.
So, a lot of &#151; the question is difficult to answer because it depends how all
these other companies behave and how quickly do they want to get their margins
to the mean.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And if they follow our lead it will happen of sure.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right but thing and my question is there was a sense,
I think, before the fourth quarter results came out, that a much higher
percentage of your markets were made up of &#151; were areas when competitors got
into line pretty quickly. I think that now there is a perception it seems like
there is a realization that at least a higher percentage of the portfolio is
made up of product lines where maybe there is a little bit more cutthroat
competition out there. I mean I guess I was just trying to understand kind of
how long &#151; do you think it will be an issue if copper &#151; if raw materials were to
stay where they are right now for the rest of time, how long it would take to
kind of get back to 35% margins.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The only thing you can go is go back to historical
numbers, which it probably took anywhere from six to 12 months for everyone to
lineup and recognize that they are all being impacted by the same factors.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ryan Connors <i>&#160;</i>&#151;<i> Boenning &amp; Scattergood - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right, okay, that&#146;s helpful. Thanks guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes from the line of Jim Foung
with Gabelli and Company. Please proceed.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jim Foung <i>&#160;</i>&#151;<i> Gabelli and Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi Jimmy, how are you doing?</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jim Foung <i>&#160;</i>&#151;<i> Gabelli and Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. I know you talked about acquisitions update. But
could you just time it on your pipeline because &#151; I guess you referred to the
elevator prices for acquisitions earlier and possibly residential. Do these &#151; those
two things kind of influence your pipeline, your appetite for acquisitions in
the near term?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The problem in the near-term Jimmy, is that you have
some expectation that it was being created by some recent deals that got some
hype, a lot of publicity, and were brought at attractive &#151; high multiples and
attractive pricing. So, I think what you have at the moment is you have fewer
businesses coming to market. And when they come to market their expectations for
where they are going to sell are high. Now, I&#146;m not sure that at the end of the
day if they&#146;re going to be &#151; if those deals are going to go through because
many of these companies are smaller than the deals that are [typically] done by
a financial sponsor. Though I anticipate you have a short-term issue here but
it will get resolved over the &#151; in fact over the next six months. It&#146;s a
typical thing when somebody comes in you get a high-profile deal, all of a
sudden every business owner thinks that his business should sell at that type
of multiple.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jim Foung <i>&#160;</i>&#151;<i> Gabelli and Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">So, by that, that would kind of suggest that maybe
acquisitions that your pipeline is more like six months on delays so are pushed
back to the right a bit.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, I would say there is less deals out there today
than there has been over the last 12 to 18 months.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jim Foung <i>&#160;</i>&#151;<i> Gabelli and Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Continued pricing that you want right. Okay. Thank
you.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Doesn&#146;t mean that there won&#146;t be one tomorrow.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question comes
from the line of Francesca McCann with Stanford Financials. Please proceed.<a name="YourNextQuestionComesFromTheLineO_220608"></a></font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hello, good afternoon.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, Francesca.</font></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0pt 0pt 0pt;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i>
Stanford Financials - Analyst</i></font></b></p>

</div>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">So, most of my questions have been answered. But just
a couple of follow-up questions. With pricing increases who tends to lead, is
it you or [Dorm] and some of the other competitors or does it just depend on
the situation?</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Let&#146;s say the majority of the time Watts is the market
leader and accordingly &#151; probably is the party who typically takes the first
step.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And just a follow-up to the revenue non-guidance
question. Were there any large European orders that made a difference in this
quarter?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You mean big impact orders that we &#151; that I have
identified as unusual?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Correct.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not that I am aware of.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No, I don&#146;t think so.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And then on the European side break down of
retail versus wholesale.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Let&#146;s see, wholesale $56 million, OEM is $52 million
and Do-It-Yourself is &#151; retail is $7 million.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Great. And on the raw materials inventories, you
said it is at five to six months is generally kind of what you have on hand. I
think in another call it was about four to five months. But I guess is that
across the board for all of your raw materials or is there some variation in
that some you have more for &#151; kind of a three to four months supply others
maybe in the six months plus, or is it pretty standard?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, I think that is pretty standard.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are using a [thorough] weighted average to get to
that number.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, but there is not &#151; but it&#146;s not &#151; there is not a
wide skew?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I don&#146;t think so.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There is between where we&#146;re for example buying ink
and pouring our own (inaudible) compared to where we are buying semi-finished
components and things of that nature. And to have for semi-finished components
less investment in terms of basic alloys because you&#146;re not as fully integrated
backwards.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, that makes sense. And then I think my last
question. How much of the tax effect was related to the favorable Chinese mix?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It would be in the tenth of a point, Francesca, it&#146;s
the bulk of it is &#151;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very small one.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The European refund.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francesca McCann <i>&#160;</i>&#151;<i> Stanford Financials - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Excellent. Thank you.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Thank you.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your next question is a follow-up question from the
line of Curt Woodworth with JP Morgan. Please proceed.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes hi. I am just trying to get a better sense for the
gross margin progression of the Company over the past couple of years. It looks
like the gross margins over the past two years are down roughly 300 basis
points. And I always thought that with the commercial market growing quicker
that you would have positive mix benefits because that is a much higher
incremental margin business for you. So, is it really simply a function that
the commodity delta has just trumped that or are there other moving parts going
on either mix issues or maybe the acquisitions have been somewhat dilutive &#151; I
think the one was &#151; any color you can provide on that would be really helpful?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">But I don&#146;t see 300 basis points, Curt, but I do see
is a decline of maybe 200 basis points or if you go back over the last several
years.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On gross, okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes on gross margin. But irrespective of this &#151; it is
sort of a good question I think you see a couple of things. One is, if you go
back to the earlier part of the period in question you start to see a mix
change where retail a couple of years ago was growing pretty rapidly. So, that
had margins definitely below the average. You do see some impacts from
acquisitions in that you have to do a lot of purchase price amortization
against cost of goods sold. When you are amortizing customer lists and those
types of things. And then what we are seeing really in the most recent part of
the time period you&#146;re talking about basically the last two quarters is the
result of higher copper and stainless steel not being fully recouped through
pricing. And I don&#146;t think you see any major mix issues occurring now other
than the retail one that I pointed out.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, and given the decline in residential or
commercial is &#151; if you look at your North American business, is it &#151; has the
waiting changed they are now more like 60% commercial, 40 res &#151; what is your
kind of best view on that right now?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shifted, but probably not that dramatically. Probably
it&#146;s more like 55, 45.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Compared to a 50-50 a couple of years ago.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt Woodworth <i>&#160;</i>&#151;<i> J.P. Morgan - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right okay great thanks.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Operator instructions) Your next question comes from
the line of Michael Schneider with Robert W. Baird and Company. Please proceed.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Welcome back, Michael.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, thank you. Actually, maybe we can change topics
back to just reviewing some of the acquisitions that have been done. Can you do
somewhat of an update on some of the larger deals we&#146;ve done in the last 18 -
24 months. Dormont, ATS just what&#146;s met expectations, what&#146;s been behind just
given the change in some of the markets since then. And then maybe also give us
an update on what facility closures and restructuring have been done
year-to-date, what&#146;s been announced and yet to come?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay, I will take the question on acquisitions and you
can take the other side of this question, Bill.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you look at the larger acquisitions that we&#146;ve done
in the last 15 or so months it would be Dormont Manufacturing, which pretty
much is performing at our expectations. It is a nice business. It&#146;s performing
pretty much on the forecast and on the financial model that we put together at
the time we acquired the Company. If you take a look at the second largest
acquisition that was probably Core Industries, which is made up of Febco which
is a backflow prevention business. And Mueller which is an inline strainer
business. And that business is performing well for us. If I were to look at it
in total I&#146;d think we aren&#146;t complete with the integration of those facilities
and those product lines. But I think it&#146;s performing slightly above our
expectations and above the financial model that we put together. If you look at
the ATS, which is a business we brought in France last year, last spring. Again
at this point in time, it&#146;s essentially performing on plan, where we are going
to &#151; the integration plan at the moment, it&#146;s not complete but it&#146;s pretty much
on &#151; it is on schedule in terms of the implementation of the integration plan.
It&#146;s performing inline with our expectations. That help you Michael on the big
ones?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It does and maybe you can &#151; you talked about revenue,
but what about earnings contribution? Are these businesses being squeezed as
badly by materials right now, or any other change in the profitability
expectations?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, if you take Dormont for example Dormont is a
large user of stainless steel. And in fact it&#146;s struggling with the issue of
passing through price increases on stainless steel. If you take Core Industries
Febco the backflow prevention business is substantially impacted by the same
raw materials that Watts would be from a backflow prevention point of view,
which is bronze ingot and if the dynamics are identical, okay. So, I would say
we are in need of pushing substantial raw materials cost increases through to
the end user. And ATS &#151; it&#146;s got a wide variety of products and the pricing
dynamics in Europe are difference. So, I would say &#151; I&#146;d say Dormont is
impacted by raw materials more significantly, Core is quite significant and ATS
to a lesser extent.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And, Mike, on the question on the facility
closures, the one the &#151; the recent ones we&#146;ve done in the last six months or
so. We closed a facility this quarter, Q1 in the UK, smaller manufacturing
plants are consolidated into another plant we had in the UK. We closed two
plants in Italy during the latter half of 2006. And we consolidated them into
one larger plant. And we also in Q1 closed the warehouse in California.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And what&#146;s on the docket for the next three to
six months?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Well, right now, we have &#151; the one that&#146;s in motion is
in China. We&#146;re looking at relocating our facility, a joint venture, into a
smaller facility. That&#146;s really been announced, and we&#146;ve taken some
restructuring charges. And we also have &#151; actually, there is one other facility
that we closed that is mentioning to me here, our facility in Houston, Texas
which was a manufacturing and distribution center, we closed that in the latter
half of &#145;06 and consolidated that into another facility in California as well.
So, in terms of a specific list I can&#146;t tell you that we have a specific list.
And I don&#146;t think we can say something like that on a call like this. Since we
haven&#146;t worked with the employees of those plants.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">But I mean it is just to remind everyone since we grow
through acquisitions, and you have a lot of manufacturing, restructuring and
moving product to China that &#151; and other low-cost countries. That forces you to
always be examining your manufacturing and your logistics footprint because we&#146;ve
grown so much over the last several years. It creates a lot of opportunity and
need to rationalize your footprints. And it&#146;s a process that&#146;s ongoing. So, you
will see more of that in the future.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">And, Pat, I apologize since this comes at a left field
but Hunter is the only acquisition you&#146;ve done with no revenue and no earnings.
And I know it goes back aways what&#146;s the update there? Has that patent turned
out the way you had hoped?</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yes, Hunter Innovation was the name of the Company. We
bought it approximately five years ago. And it has performed very nicely for
us. We&#146;ve developed the entire product line. We got it all approved by all the
approval authorities. The technology is sound. It&#146;s clearly a superior product.
If there is a short-term issue with that product like, Michael, it is clearly a
superior product from the point of view it&#146;s made of stainless steel, and
therefore it&#146;s rust resistant. So, when you have applications for outside use
in many cases it&#146;s a preferred product. But short-term you have the impact of
raw material cost escalating on stainless steel. But it&#146;s been a very nice
acquisition for us. It performs very well. It&#146;s grown very well for us. I think
quite honestly it was a product line, like you say, that had no revenue. But we
developed the product line into a nice substantial business.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Schneider <i>&#160;</i>&#151;<i> Robert W. Baird &amp; Company - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Great. Thank you.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Next question comes from the line of David Smith with
LongBow Capital. Please proceed.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi guys.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi, David.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hi. Just kind of couple of quick follow-ups, and I
hope I don&#146;t kill you with this last question on copper pricing, and I even
(inaudible) with it but &#151;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You can&#146;t ask a question without having the word
copper in it.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All right, that brassy looking metal. If you look at
the &#151; I know that copper price is starting to rise quite a bit in the second
quarter last year. But if you look at the second quarter of last year and
compare it to where you are at now without any further price increases how much
would pricing be up year-over-year? Any sense of that?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It would be in the highs &#151; well, it&#146;ll be double
digits. We&#146;ve had a series of price increases. I would hazard a guess, let&#146;s
say 15%, but that&#146;s a real kind of a guess, if you don&#146;t mind &#151;</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. So that&#146;s more like a base sort of running into
the next quarter. And then you get more based on what you&#146;re talking about now.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. And then just the only other thing was how much
of a EPS benefit did you get from that foreign exchange gain in Europe?</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hold on one second. I think it was $0.02.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Smith <i>&#160;</i>&#151;<i> LongBow Capital - Analyst</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay. Great, thanks.</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="100%" noshade color="black" align="center"></div>

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bill McCartney <i>&#160;</i>&#151;<i> Watts Water Technologies - CFO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Okay.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There are no further questions at this time. I will
now like to turn the call back over to Patrick O&#146;Keefe.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pat O&#146;Keefe <i>&#160;</i>&#151;<i> Watts Water Technologies - CEO</i></font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I just want to thank everybody for joining us today.
We look forward to talking with you again in the near future. Thank you.</font></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0pt 12.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thank you for your participation in today&#146;s
conference. This concludes the presentation. You may now disconnect. Good day.</font></p>

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