News at Cinderella

Pool Distributors Implement Fuel Surcharge

June 16, 2008

Re: Fuel Surcharge Effective June 23, 2008

Dear Valued Customer:

As you know, the cost of fuel, and especially diesel fuel, has risen dramatically over the past twelve months to record highs. Given the high cost of delivering product and making service calls, many of you have instituted trip charges and delivery fees to help offset increased fuel costs. I am sure we all had hoped that the high fuel prices would only be temporary in nature; however, costs keep rising and few experts see fuel prices declining any time soon.

Due to record high fuel prices, Cinderella is being forced to institute a $10 fuel surcharge effective Monday, June 23, 2008, on all route delivery stops, chlorine trailer switches, and job site deliveries from both our Saginaw and Grand Rapids warehouses. This $10 fuel surcharge (net) will be invoiced separately from the invoice(s) for your product, and will carry the same terms as your account. There will only be one charge per delivery, no matter how many orders are placed.

This $10 charge will not cover all of the increased fuel and freight costs we have and continue to incur; however, Cinderella believes this modest fee is a fair compromise given the difficult economic environment in which all of us are operating.

If you have any questions regarding this fuel surcharge, please do not hesitate to contact me at (989) 755-7741.

Best wishes for warm weather and a good season.

Sincerely,

David Jaffe
C.E.O