Correct Craft's undisputed leadership has been demonstrated time and time again by designing sport-specific boats that are always on the cutting edge of technology. Striving for the highest level of all-around excellence, we have never settled for anything less than the very best -- No Sacrifices. No Shortcuts. No Substitutes. The Correct Craft Family is here to deliver the dream with world-class boats that provide unmatched performance, giving you a confidence that only comes from owning a Nautique.

CORRECT CRAFT MANUFACTURER PROFILE HISTORY No one in the ski boat industry has a history that can compare to that of Correct Craft. Correct Craft invented ski boats and has been building them nearly as long as water skiing itself has existed. When you talk about Correct Craft, you are talking about the Meloon family. When Walter C. Meloon moved his wife and three sons from New England to Pine Castle, Florida, in 1924, he had no intention of getting into the boat business, although it was clearly in his blood. A Meloon ancestor organized the first U.S. Coast Guard under George Washingtons directive. Meloon came to Florida to pursue real estate. When the market went bad in 1925 he opened a boat-building business. W.C. Meloon built a smaller, lighter variety of boats than were currently being produced and subsequently named his company the Florida Variety Boating Company. In 1930 it became the Pine Castle Boat and Construction Company, then eight years later after hearing a radio ad selling the correct heel for a shoe he renamed his boat company Correct Craft. Correct Craft not only has a storied history in boat building, it may have altered history altogether. In 1945, General Dwight D. Eisenhower needed to move his troops across the Rhine River in Germany. On February 9, the government contracted Correct Craft to build 300 boats by the end of that month. The companys previous production for February was just 48 boats. The Meloons attacked the assignment, upped their work force from 60 to 300, closing down Orange Avenue in south Orlando as their production overflowed the factory and onto the street. They miraculously completed the job with four days to spare and then picked up the slack of other contracted companies and quickly built another 100 boats. Military experts estimated 15,000 lives were saved because Correct Craft was able to deliver those boats on time. Correct Craft was awarded the Army and Navys prestigious E award, and the account of this production is preserved as a piece of American history in the National Archives in Washington, D.C. Business for Correct Craft was booming in the 50s, and when the government ordered 3,000 boats for the Korean conflict the Meloons once again geared up. This time, foiled by an inspector looking for bribes, the company had many of the boats rejected for not being up to specs. Having to shelve over 600 boats drove Correct Craft into bankruptcy, and they were forced to file for Chapter 11 protection. At one point they were 10 days away from liquidation but got a six-month reprieve. Released from bankruptcy protection in 1965, the Meloons made a commitment to repay the companys creditors, showing an ethical commitment now written about in a college business ethics textbook, as they hunted down creditors they no longer legally owed and paid them back in full, by 1984. Now stable in their position as the longest-running family-owned boat company, the Meloons regularly offer turnaround retreat weekends as a support group for Christian businesses working through financial difficulties. They preach the philosophy that kept them afloat ' 'it's always too soon to quit.' Correct Craft has been an innovator since its inception. The company started ski shows, serving as the boat supplier for Cypress Gardens beginning in 1935. They also supply the towboats for SeaWorld and Six Flags. Correct Craft always has actively promoted high-end skiing and wakeboarding by developing and sponsoring tournaments such as the Masters, the Worlds, the Wakeboarding Worlds, the Wakeboard Nationals and a variety of other top events. Their work with top athletes is unprecedented, including an association with legendary slalom skier Andy Mapple. Mapple now serves as product manager and was instrumental in the development of the new Ski Nautique. Correct Craft has been equally innovative in developing dealers. It was the first boat manufacturer to hold annual dealer meetings. As for the sport itself, Correct Craft has introduced tournament water skiing in many of the countries participating in the sport by donating boats and providing training and equipment for fledgling programs. The Correct Craft company philosophy has been transferred from generation to generation. As the great grandson of Walter C. Meloon and current National Sales Manager Gary Meloon states, Correct Craft will not settle for anything less than the highest standard of quality, performance and value. CONSTRUCTION Correct Crafts goal is to deliver the standard of the industry. One of its mottoes is, No sacrifices, no shortcuts, no substitutes. Their basic design philosophy is to build sport-specific boats that are always on the cutting edge of technology and to not only meet but to exceed the rigorous demands of water-sports. The company continually says it builds boats in the light of day, meaning every step of its construction is visible to inspection during the process. They say their high-tech, aggressive approach to construction is the foundation of the company, and they are most proud of their attention to details. National Sales Manager Gary Meloon says a high percentage of cost of the boat is spent on parts and procedures that no one ever sees. For example, starting with the molds, Correct Craft does intensive research and development on bottom designs, resulting in the Total Surface Control hull in 1997 and the TSC2 hull this year. Its Performance Strakes are designed to lift the transom of the boat to release pressure build-up along the surface of the hull. This creates a sharper release angle and creates a cleaner cut as well as a flat, soft wake. Their Dispersion Tunnel is designed to direct and control water accelerated by the prop to eliminate the trough and reposition the rooster tail so it doesnt affect a skiers performance. Other innovations, such as reversed chines and spray relief pockets, have been developed to ensure that the design of the boat is the best possible before it is made into a mold. To ensure the boats coming out of the mold accurately reproduce the design, Correct Craft braces each mold with wood and uniquely holds the layup into the mold by vacuum pressure. They also completely inspect and overhaul each mold after just 15 boats to ensure consistency. Correct Craft uses a premier buff-back called ArmorFlex, which is sprayed onto the hull with a pressurized airless gun that allows for fine atomization and a smooth, even application to help prevent stress cracks, blistering and air bubbles. The gelcoat is sprayed to 25 mils, measured at 16 locations then buffed back to a uniform 22 mils. Correct Craft engineers put the entire boat through a process called barring, which scrutinizes each boat for air bubbles. Correct Crafts construction is composed of two key elements they say ensure durability and dependability without sacrificing strength. The first is their exclusive use AME 5000 resin in 100 percent of the construction. AME 5000 is widely acclaimed as the best resin for marine purposes due to its strength and impact resistance. They say it is twice as strong as polyester blend resins and allows the structure to be 30 percent lighter for increased performance. The second element is the use of biaxial fiberglass in the primary laminate. Correct Craft says the biaxial is up to 60 percent stronger than other commonly used woven rovings because the smaller fibers require less resin to saturate properly, yielding a greater fiberglass-to-resin ratio. Correct Craft switched from only hand lay up to a combination of hand lay up and chopper gun, which they say speeds production, produces a seamless la

mination and accurately delivers the most consistent resin-to-glass ratio in the skin coat. Their skilled technicians are able to lay a consistent thickness of fiberglass that is gauged throughout the process. The stringer system is what Correct Craft calls the backbone of its boats. Their unique construction lays a stringer mold directly onto the boat then openly foams the stringers into place. This allows the stringer foaming process to be inspected for thoroughness. A piece of angled one-quarter-inch aluminum through which the engine bracket frame is bolted is integrated into the foam stringer as the stringer system is laminated with lateral and longitudinal layers of biaxial roving to completely enclose the foam. The boat is then foamed even with the stringer system. The open foaming allows for complete inspection to ensure the foam has completely filled all voids. The foam is then sanded smooth and the floor is glassed into place by laying saturated, overlapping layers of fiberglass to fully integrate the hull and create a solid, unibody one-piece construction. The walls of the boat receive layers of Coremat and a layer of Novidamp ED for sound dampening and additional stiffness. As the boat passes through the production line it undergoes what Correct Craft calls continuous integrated authoritative quality control. There are at least 800 inspections to ensure the boat is up to Correct Crafts standards. Interestingly, as part of its quality control, Correct Craft weighs each hull when its completed to make sure it is within a few tenths of a percentage variance. Nautique integrates its armrest into the actual gunnel of the boat, making it long and wide and comfortable for a wide range of drivers. Another unique item is the locking cooler/glove box integrated into the passenger side. Correct Craft options include: Kicker-equipped sound system including speakers, amp and subwoofer, Perfect Pass Correct Craft cruise control, Perfect Pass Wakeboard Pro, Depth Finder, pop-up bow lifting ring, heater, hot/cold shower and removable tables. Correct Craft uses Pleasurecraft Marine engines, offering four engines, all including standard electronic fuel injection and PCMs Power Plus Gear Reduction Transmission. At the entry level is the 5-liter, 275-horsepower throttle-body EFI. The most popular engine is the 5.7-liter Excalibur 350-cubic-inch, 330-horsepower GM multiport EFI. Another common option is the 5.8-liter GT-40 351-cubic-inch, 310-horsepower Ford multiport EFI. On the high end is the 8.1 H.O. Python (r), a 496-cubic-inch multiport EFI with 430 horsepower. Correct Craft built its own trailers until 1996, but since then has allowed their dealers to choose what kind of trailer best suits their customers needs. COMPONENTS GELCOATS: ArmorFlex buff-back sprayed to 25 mil, measured at 16 locations. RESINS: AME 5000 throughout. BULK LAMINATES: Biaxial fiberglass. REINFORCEMENT: Aluminum or HDPE backing plates behind all bolts and engine mount. MOTOR MOUNTS Engine frame lag bolted through frame, floor and aluminum plate. FLOORS: Solid unibody composite. STRINGERS: Open-foamed onto hull then encased in fiberglass. ASSEMBLY: Shoebox, stainless screws and bolts, polyurethane seal. DRIVE TRAIN: Laser-aligned shaft, Nibral strut tunable rudder and Acme performance-matched prop. CONTROLS: Rack-and-pinion steering, tilt steering. STEERING WHEEL: Ergonomically urethane molded leather like grip. GAUGES: Vision Series by Teleflex with LCD digital displays. CARPET: 28 oz. UPHOLSTERY: GNT non-woven vinyl with HR-70 closed-cell biocide-treated foam. KEY FEATURES Correct Crafts most vital boating amenities. UNDERWATER GEAR Correct Crafts boats are designed with three tracking fins, a laser-aligned stainless-steel prop shaft, a strategically placed strut, their unique Tunable Rudder and an all-new, CNC-machined Acme performance-matched propeller. Correct Craft uses a right-hand rotating prop, which distributes torque and balances the boat. The Tunable Rudder, known as Z-Trim, allows the driver to adjust the steering and match the boats handling to their own personal needs. UPHOLSTERY AND CARPET Correct Craft uses 28-ounce BCF (bulk continuous fiber) carpeting designed for durability, resilience, mold and mildew resistance, quick drying and color fastness. Its upholstery is made from a custom GNT non-woven, non-expanded, tear-resistant vinyl with a stain-resistant topcoat. Seams are double-stitched and backed with a nylon-based reinforcement tape for durability. DASH The Smart Pod dash has advanced digital technology, high-tech instrumentation and electronics and silver metallic bezels on all Vision Series gauges by Teleflex. Speedos have LCD digital displays with both an arc hand and numbered readout. Plus, the speedo has a unique deviation indicator, which makes holding speed the easiest, a coded keyless ignition, a touch-sensitive backlit console and color-coordinated accent panels. Theres also a 12-volt hot plug for your accessories. FLIGHT CONTROL TOWER Correct Craft introduced the patented Flight Control Tower in 1997. The tower is constructed from a larger-diameter tubing and a low-profile folding design. New for 2002 are the Flight Clips, a board rack system specifically designed for the FCT. LAUNCH CONTROL SYSTEM The LCS for the Super Sport and Super Air hold up to 520 pounds of rear ballast with an optional center tank for an additional 300 pounds. The tanks are factory-installed hard tanks with plumbing that maximizes space, allowing more interior space for loading up and stowing more gear. CUSTOMER SERVICE An interview with Jeff Warner and Gary Meloon. How does Correct Crafts customer service work? Customer service and customer satisfaction is one of our top priorities, along with quality, at Correct Craft. We, of course, prefer that things are handled at the dealer level, but we are quick to tell our customers and dealers that if we, the company, need to be involved, we are there. We do have an 800 number if the customer needs to contact us. We field questions from customers needing a part from a 1965 Ski Nautique to dealing with a question about a current model. One of our customer service strong suits is that we have customer service personnel who are not only knowledgeable in the current models, but in models that go all the way back to the 1940s. Probably 99-percent of the time the customer service department can handle the question right on the phone when the customer calls. Our philosophy on customer service is that we want the customer happy. The key to great boating is the customers happiness with the product. Their satisfaction of getting an answer immediately promotes their continuing happiness. A customers happiness with the purchase and the service after the purchase is key to us. Many dealers have dockside service that comes to the customer if work needs to be done. Thats the kind of dealer we look for who provides the kind of service we think is in line with the Correct Craft philosophy. After the sale we do three post-sale satisfaction surveys. One is immediately after the sale, which is a delivery survey that asks about the buying experience and how the dealer handled the process leading to the sale. We follow that up three months later with a survey asking about their experience with the product and then particularly about the relationship with the dealer if the dealer is meeting the customers needs. We also have an anniversary survey on the first anniversary of the products purchase. That sums up a years experience with Nautique. The surveys over the years have been highly responded to over 75-percent for close to a decade. We have other surveys in place to follow up on warranty work. We have Nautique service centers in place in each of the five regions that carry a variety of parts based on the necessity of replacement at a local dealership or by the customer himself. These service centers service a dealers needs locally so they can get parts quickly, six days a week. We also have a dealer intranet where dealers can order parts 24/7. Our service department fills them and ships them out if the service center doesnt have the par

t. STANDARD WARRANTY COVERAGE Deck/Hull/Stringer Lifetime Gelcoat 5 years Engine/Drive Train 5 years Components 5 years Instrumentation 5 years Upholstery 5 years Carpet 5 years Labor Shop Rate WARRANTY Correct Craft jokes that being in charge of warranty problems is like being the Maytag repairman. They dont have a lot of warranty issues. But... just in case, new for 2002 Correct Craft offers an unprecedented five-year, bumper-to-bumper warranty covering all non-structural components (which receive a lifetime warranty). Claims including engine-related ones are handled by the dealer. Extended Warranty: Not available through Correct Craft. Transferability: The hull, deck and stringer are covered for the lifetime of the boat and can be transferred to a second owner within the first five years of owning your boat. However, the five-year, bumper-to-bumper warranty policy is a privilege only available to the original owner. DEALER NETWORK How do you qualify your dealers? Who gets to be a dealer? Thats one of the hardest things is for us to go out and find a Correct Craft dealer. They not only need to be a boating enthusiast, but also a person who understands the market niche that we are in, and they are willing to carry that torch of what the Correct Craft philosophy is. We often require dealers to show us business plans on how they plan to run the business as well. We want to make sure the dealer is committed to succeed because if they dont then we'll have unhappy customers. The relationship doesnt end at the selling of the boat. It continues as an ongoing process. What kind of training do Correct Craft dealers go through? Whatever the specifics the dealer is looking for, we will put them in the production line and work them as an employee. We also require them to go to PCM school to service the engines. That all ties into the warranty flat rate they get paid when they do warranty claims, so there is a big incentive for them to do this. Additionally, we insist that our dealers are knowledgeable about our products. Each dealer is required to be a full-service dealer because they are required to provide warranty care. What are your post-sale policies-is there a standard procedure dealers use after they sell the boat? The dealer must take the customer to the water and demonstrate its operation as well as go over all the warning labels and explain what each means. We want the great boating experience to continue through the life of the boat, so we want to make sure the boat is working exactly as it should. We also have a basic maintenance outline in the owners manual we recommend the customer proscribes to, but there is nothing that mandates him to do so. Does the dealer have the ability to do engine repairs? They can do major repair-anything from rebuilding transmissions, replacements of heads its pretty extensive the amount of work they can do and PCM has a backup system by phone, fax or e-mail.