NORTEK, INC. CHARTS MOST SUCCESSFUL YEAR IN ITS HISTORY AT ANNUAL MEETING

SETS STOCK REPURCHASE PROGRAM

PROVIDENCE, RI, May 20, 1999 Speaking here today at the annual stockholder meeting of Nortek, Inc. (NYSE:NTK), Richard L. Bready, Chairman and Chief Executive Officer, said the Company "enjoyed a year of strong growth and record earnings."

 Pointing to net sales of $1.7 billion, a 53 percent increase over the previous year, Mr. Bready said, "1998 was a year in which the Company made tremendous progress on a number of fronts.  Our financial performance represents four consecutive years of sales increases and a compound annual growth rate of nearly 30 percent since 1994. Earnings and net income were also up substantially. We also raised more than $265 million in new capital during the year". 

The Company marked solid growth in all its core businesses and was greatly strengthened by the ongoing integration of three recent acquisitions: Ply Gem Industries, Inc., NuTone Inc. and Napco, Inc. With these successful business combinations, we now hold market leadership positions in many of our major product lines. The many popular brands sold by Nortek are making their mark. 

Commenting on the year ahead, Mr. Bready said low inflation, high employment, low interest rates, strong liquidity and strong consumer confidence continue to fuel the American dream of home ownership and extensive home remodeling and expansion projects. Favorable demographic trends, a strong resale housing market and larger homes are also contributing to the health of Nortek markets, Mr. Bready told stockholders. 

"Nortek is financially strong, our momentum is producing competitive advantages, we are successfully completing key acquisitions, and we have solid management depth and experience. With strong business fundamentals in place and a healthy marketplace, we look forward to another year of substantial growth and expansion," added Mr. Bready.  

Mr. Bready also announced that the Board of Directors of Nortek had authorized an additional common stock repurchase program of up to 500,000 shares of the Company's common stock.  The timing of purchases will be dictated by overall market conditions, cash availability and the terms of the Company's outstanding debt instruments. 

Mr. Bready stated "the current price of Nortek stock does not reflect the progress we have made or Nortek's potential as an industry leader.  The Board and I feel the stock is very undervalued and a good investment at these levels." 

In other annual meeting news, J. Peter Lyons, Chairman of The Lyons Companies, and William I. Kelly, Director and Assistant Dean of the Northeastern University Graduate School of Professional Accounting, were re-elected to three-year terms on the Nortek Board of Directors. Stockholders also approved Nortek's 1999 Equity and Cash Incentive Plan. Mr. Bready said the plan "provides stock and cash incentives that best align executive management with the interests of all shareholders." 

Nortek 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.  The Company offers a broad array of products for improving the environments where people live and work.  Its products include range hoods and other spot ventilation products, heating and air conditioning systems, wood and vinyl windows and doors, vinyl siding products, indoor air quality systems, and specialty electronic products.

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as "expects," "anticipates," "intends," "plans," "estimates," or similar expressions are intended to identify these forward-looking statements.  These statements are based on the Company's 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 that could cause actual future activities and results to differ include the availability and cost of certain raw materials (including among others steel, copper, packaging materials, plastic, resins, glass, wood and aluminum) and purchased components, the level of domestic and foreign construction and remodeling activity affecting residential and commercial markets, interest rates, employment, inflation, Y2K readiness, currency translation, consumer spending levels, operating in international economies, the rate of sales growth, price and product liability claims.  The Company 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 Company’s reports and filings with the Securities and Exchange Commission.

 

 

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