NORTEK HOLDINGS - SALES/EARNINGS UP FOR SECOND QUARTER

PROVIDENCE, RI, August 3, 2004—Nortek Holdings, Inc. (“Nortek Holdings”), the parent company of Nortek, Inc. (“Nortek”), a leading international designer, manufacturer and marketer of high-quality brand name building products, today announced increased second quarter sales and earnings from a continuing strong residential housing and home improvement market.

Nortek Holdings second-quarter 2004 sales from continuing operations totaled $448 million, up 15 percent from the comparable period in 2003. Operating earnings from continuing operations for this year’s second quarter were $46.6 million compared to last year’s $43.8 million. The results from continuing operations exclude Nortek’s formerly owned subsidiary, Ply Gem Industries, Inc. (“Ply Gem”), which has been sold and accordingly treated as a discontinued operation.

Richard L. Bready, Chairman and Chief Executive Officer, said, “This was a very strong quarter in both revenue and earnings. Our operating performance was driven by strong sales gains in our Residential Building Products segment and the continuing benefit of Nortek’s manufacturing efficiency programs.”

On January 9, 2003, certain affiliates of Kelso & Company, L.P. and certain members of management acquired control of Nortek in a recapitalization transaction. Net sales for the nine-day period ending January 9, 2003 and the period from January 10 to July 5, 2003 were $25 million and $726 million, respectively. Operating earnings (loss) for the nine-day period ending January 9, 2003 and the period from January 10 to July 5, 2003 were $(81.8) million and $78.4 million, respectively.

Mr. Bready added, “Overall housing activity remains at very healthy levels and it is expected that overall residential housing markets will continue to be solid for the remainder of the year. The manufactured housing and commercial HVAC markets are not expected to see meaningful increases in 2004.”

Acquisitions contributed approximately $21.9 million and $37.3 million to net sales for the second quarter and six months ended July 3, 2004, respectively, and contributed approximately $4.0 million and $5.9 million to operating earnings for the second quarter and six months ended July 3, 2004, respectively. In addition, the six-month results for 2004 included a loss from early retirement of debt of approximately $12 million.

On July 15, 2004, Thomas H. Lee Partners L.P., in partnership with certain members of Nortek Holdings’ management, entered into a stock purchase agreement with affiliates of Kelso and Company L.P. and certain other parties to purchase all of the outstanding capital stock of Nortek Holdings in a transaction valued at approximately $1.74 billion before fees and expenses (the “THL transaction”). The THL transaction is subject to customary closing conditions and is expected to be consummated during the third quarter of 2004.

Nortek Holdings* (the parent company of Nortek, Inc.) is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential and commercial markets. Nortek Holdings offers a broad array of products for improving the environments where people live and work. Its products currently include: range hoods and other spot ventilation products; heating and air conditioning systems; indoor air quality systems; and specialty electronic products.

*As used herein, the term “Nortek Holdings” refers to Nortek Holdings, Inc., together with its subsidiaries, unless the context indicates otherwise. This term is used for convenience only and is not intended as a precise description of any of the separate corporations, each of which manages its own affairs.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Nortek Holdings’ current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors impacting such forward-looking statements include the availability and cost of raw materials and purchased components, the level of construction and remodeling activity, changes in general economic conditions, the rate of sales growth, and product liability claims. Nortek Holdings undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to the reports and filings of Nortek Holdings with the Securities and Exchange Commission.

							For the Periods
							Post-Recapitalization						Pre-Recapitalization
	For the Three Months Ended						Jan. 1, 2004			Jan. 10, 2003			Jan. 1, 2003 -
	July 3, 2004			July 5, 2003			July 3, 2004			July 5, 2003			Jan. 9, 2003
	(Amounts in thousands)
	(Unaudited)

Net Sales	$	448,393		$	390,029		$	855,836		$	726,106		$	24,951

Costs and Expenses:
Cost of products sold		316,409			280,737			605,081			520,394			18,635
Selling, general and administrative expense		81,854			63,425			155,839			123,498			5,014
Amortization of intangible assets		3,538			2,020			6,849			3,843			67
Expenses and charges arising from the Recapitalization		---			---			---			---			83,000

		401,801			346,182			767,769			647,735			106,716

Operating earnings (loss)		46,592			43,847			88,067			78,371			(81,765	)
Interest expense		(18,432	)		(12,636	)		(43,993	)		(29,427	)		(1,054	)
Loss from debt retirement		---			---			(11,958	)		---			---
Investment income		340			289			1,284			656			119

Earnings (loss) from continuing operations
before provision (benefit) for income taxes		28,500			31,500			33,400			49,600			(82,700	)
Provision (benefit) for income taxes		11,800			13,000			13,800			20,100			(21,800	)

Earnings (loss) from continuing operations		16,700			18,500			19,600			29,500			(60,900	)
Earnings (loss) from discontinued operations		(800	)		7,400			67,400			1,900			(1,000	)

Net earnings (loss)	$	15,900		$	25,900		$	87,000		$	31,400		$	(61,900	)

A. The unaudited condensed consolidated summary of operations for Nortek Holdings, Inc. and its subsidiaries (the “Company” or “Holdings”), in the opinion of management, reflects all adjustments necessary for a fair statement of the periods presented. Certain amounts in the prior year’s unaudited condensed consolidated summary of operations have been reclassified to conform to the current year presentation. This unaudited condensed consolidated summary of operations should be read in conjunction with the consolidated financial statements and the notes included in the Company's latest annual report on Form 10-K, its latest quarterly report on Form 10-Q and its latest Current Reports on Form 8-K as filed with the Securities and Exchange Commission (“SEC”).

The consolidated financial statements prior to November 20, 2002 reflect the financial position, results of operations and cash flows of Nortek, Inc. (“Nortek”), the predecessor company. On November 20, 2002, Nortek and Holdings reorganized into a holding company structure and each outstanding share of capital stock of Nortek was converted into an identical share of capital stock of Holdings, a Delaware corporation formed in 2002, with Holdings becoming the successor public company and Nortek becoming a wholly-owned subsidiary of Holdings (the “Holdings Reorganization”). Subsequent to November 20, 2002, the consolidated financial statements reflect the financial position, results of operations and cash flows of Holdings (the successor company). On January 9, 2003, Holdings was acquired by certain affiliates and designees of Kelso & Company L.P. (“Kelso”) and certain members of Nortek’s management (the “Management Investors”) in accordance with the Agreement and Plan of Recapitalization by and among Nortek, Inc., Nortek Holdings, Inc. and K Holdings, Inc. (“K Holdings”) dated as of June 20, 2002, as amended, (the “Recapitalization Agreement”) in a transaction valued at approximately $1.6 billion, including all of the Company’s indebtedness (the “Recapitalization”). Refer to the Company’s Form 10-K as filed with the SEC for a more detailed description of the Recapitalization.

B. On February 12, 2004, the Company sold the capital stock of its wholly-owned subsidiary Ply Gem for net cash proceeds of approximately $506,700,000, after excluding approximately $21,400,000 of proceeds provided to fund liabilities of Ply Gem indemnified by the Company, and recorded a net after-tax gain on the sale of approximately $72,300,000 in the first quarter of 2004. Ply Gem, through its operating subsidiaries, is a manufacturer and distributor of a range of products for use in the residential new construction, do-it-yourself and professional renovation markets, including vinyl siding, windows, patio doors, fencing, railing, decking and accessories. The results of operations of the operating subsidiaries of Ply Gem comprised the Company’s entire Windows, Doors and Siding Products (“WDS”) reporting segment and the corporate expenses of Ply Gem were previously included in Unallocated other, net in the Company’s segment reporting.

The Company allocates interest to dispositions that qualify as a discontinued operation for debt instruments which are entered into specifically and solely with the entity disposed of and from debt which is settled with proceeds received from the disposition. For the six months ended July 3, 2004, interest allocated to discontinued operations, included in interest expense, net in the table below, was approximately $2,800,000 (net of taxes of approximately $1,600,000). For the second quarter ended July 5, 2003 and the periods from January 10, 2003 to July 5, 2003 and from January 1, 2003 to January 9, 2003, interest allocated to discontinued operations, included in interest expense, net in the table below, was approximately $6,000,000 (net of taxes of approximately $3,600,000), $11,400,000 (net of taxes of approximately $6,700,000) and $800,000 (net of taxes of approximately $400,000), respectively.

	Post-Recapitalization
	For the Three
	Months Ended
	July 3, 2004			July 5, 2003

	(Amounts in thousands)
	(Unaudited)

Net sales	$	---		$	154,500

Operating earnings (loss) of discontinued operations *	$	(1,200	)	$	21,581

Interest expense, net		---			(9,881	)

Earnings (loss) before income taxes		(1,200	)		11,700
Provision (benefit) for income taxes		(400	)		4,300

Earnings (loss) from discontinued operations	$	(800	)	$	7,400

Depreciation and amortization expense	$	---		$	3,731

	For the Periods
	Post-Recapitalization						Pre-Recapitalization
	Jan. 1, 2004 -			Jan. 10, 2003 -			Jan. 1, 2003 -
	July 3, 2004			July 5, 2003			Jan. 9, 2003
	(Amounts in thousands)
	(Unaudited)

Net sales	$	40,600		$	253,600		$	8,800

Operating earnings (loss) of discontinued operations *	$	(3,244	)	$	21,771		$	(368	)

Interest expense, net		(4,556	)		(18,671	)		(1,232	)

Earnings (loss) before provision (benefit) for income taxes		(7,800	)		3,100			(1,600	)
Provision (benefit) for income taxes		(2,900	)		1,200			(600	)

Earnings (loss) from discontinued operations		(4,900	)		1,900			(1,000	)

Gain on sale of discontinued operations		122,700			---			---
Income tax provision on sale of discontinued operations		50,400			---			---

		72,300			---			---

Earnings (loss) from discontinued operations	$	67,400		$	1,900		$	(1,000	)

Depreciation and amortization expense	$	1,359		$	8,478		$	315

Operating earnings (loss) of discontinued operations for the period from January 10, 2003 to July 5, 2003 include approximately $600,000 of severance and other costs associated with the closure of certain manufacturing facilities. Operating earnings (loss) of discontinued operations for the period from January 10, 2003 to July 5, 2003 also include approximately $1,300,000 of costs and expenses for expanded distribution including new customers.

C. The Company has two reportable segments: the Residential Building Products Segment and the Air Conditioning and Heating Products Segment. In the tables below, Unallocated includes corporate related items, intersegment eliminations and certain income and expense items not allocated to reportable segments.

The Company evaluates segment performance based on operating earnings before allocations of corporate overhead costs. Intersegment net sales and intersegment eliminations were not material for any of the periods presented. The income statement impact of all purchase accounting adjustments, including goodwill and intangible asset amortization, is reflected in the operating earnings of the applicable operating segment.

	Three Months Ended
	July 3, 2004			July 5, 2003
	(Amounts in thousands)
	(Unaudited)
Net sales:
Residential building products	$	245,627		$	194,928
Air conditioning and heating products		202,766			195,101

Consolidated net sales	$	448,393		$	390,029

Operating earnings (loss):
Residential building products *	$	41,706		$	31,551
Air conditioning and heating products *		16,218			19,016

Subtotal		57,924			50,567
Unallocated:
Strategic sourcing software and
systems development expense		---			(300	)
Stock based compensation charges		(2,100	)		(200	)
Other, net		(9,232	)		(6,220	)

Consolidated operating earnings		46,592			43,847
Interest expense		(18,432	)		(12,636	)
Investment income		340			289

Earnings before provision
for income taxes	$	28,500		$	31,500

* The operating results of the Air Conditioning and Heating Products Segment for the three months ended July 3, 2004 and July 5, 2003 include approximately $600,000 and $1,400,000, respectively, of costs associated with the closure of certain manufacturing facilities. The operating results of the Air Conditioning and Heating Products Segment for the three months ended July 3, 2004 also include approximately $1,800,000 and $550,000, respectively, of estimated inefficient production costs and expenses associated with the start-up of a new manufacturing facility. The operating results of the Residential Building Products Segment for the three months ended July 3, 2004 and July 5, 2003 include approximately $600,000 and $100,000, respectively, and operating results the Air Conditioning and Heating Products Segment include for the three months ended July 3, 2004 approximately $400,000 of compensation expense related to stock options issued to employees of such segments in accordance with SFAS No. 123.

	For the Periods
	Post-Recapitalization				Pre-Recapitalization
	Jan. 1, 2004 -		Jan. 10, 2003 -		Jan. 1, 2003 -
	July 3, 2004		July 5, 2003		Jan. 9, 2003
	(Amounts in thousands)
	(Unaudited)

Net sales:
Residential building products	$	482,148	$	379,461	$	16,338
Air conditioning and heating products		373,688		346,645		8,613