Matthew and Josie were each other's first love. They got to know each other as teenagers in 1988 by talking on the Teen Chat Line. In 1989, Josie discovered her mother had been a prostitute, and Matthew was able to help her deal with the revelation. They got engaged to be married in 1990, but during the small ceremony, they backed out at the last minute. Years later they would reflect that both were simply too young.

Josie's growing success as a model distanced her from Matthew. She wanted a glamorous career in Hollywood with all the trimmings, but Matt didn't want to end up being "Mr. Josie Watts." They both realized they had changed into different people who wanted different things. They parted amicably in late 1990 when Josie left for Los Angeles.

When Josie returned to Bay City in 1993, she and Matthew reminisced, but neither was interested in resuming their affair. Both remain good friends.