With the Mercury years now behind them, The Reels took the unusual step of aligning themselves with the K-Tel label, a distribution company best known for releasing licensed compilation albums of current hits, along with budget ‘golden oldie’ releases. It was a shrewd move on the part of the band, because K-Tel were also known for their extensive marketing muscle, and the band’s next album project doubtless benefited from a national advertising campaign. With Fairlight music computer by their side, The Reels entered the studio to record an album of cover songs, titled ‘Beautiful’. It was an appealing blend of easy listening love songs, that to some possibly resembled Muzak, but which for the most part, treated its subject matter with genuine affection. The stand out track was also the lead single, released in October 1982.

‘This Guy’s In Love (With You)’ was a faithful rendition of the classic Burt Bacharach and Hal David penned hit from the 60's. The song had originally been a hit for Herb Alpert & The Tijuana Brass (US#1/OZ#1/UK#3) in 1968, and was soon covered by Dionne Warwick as ‘This Girl’s In Love With You’ in 1969 (US#7/OZ#34).