NORTEK ACQUIRES MULTIPLEX TECHNOLOGY, INC. 

"Wired" Houses Technology Expands Nortek's Product Offering for Homebuilders

PROVIDENCE, RI, June 2, 1999—In a move to expand its product offering for the nation’s homebuilders, Nortek, Inc. (NYSE:NTK) today announced it has acquired Multiplex Technology, Inc., a leading manufacturer and designer of high-performance, multi-room video distribution equipment for home automation/home entertainment.  Multiplex Technology, a 16-year-old, privately held firm located in Brae, California, reported 1998 net sales of approximately $10 million.  Terms of the acquisition were not disclosed. 

Multiplex’s products, which are marketed under the ChannelPlusÒ name, send high-quality VCR, satellite, laserdisc player, DVD and surveillance camera pictures from single input devices to multiple televisions in the home.  In addition, the Company’s infrared remote control systems allow these input devices to be controlled from any television in the home.  ChannelPlus’ integrated home network system provides video entertainment and telecommunications (telephone, fax and Internet connections) throughout the house. 

Through Multiplex, Nortek will benefit from the growth in the home automation/ home entertainment market, which is being driven by the proliferation of such products as VCR, cable, DVD systems, laserdiscs, satellite television and the Internet. 

Richard L. Bready, Nortek’s Chairman and Chief Executive Officer, said that, “One of our major business strategies is to provide the homebuilder with one-stop shopping for assorted building materials.  The acquisition of Multiplex gives us the opportunity to complement our already strong position with homebuilders by providing them with state-of-the-art "wired" house technology.  Today’s home buyers are expecting a new home to be fully ‘wired’ and capable of delivering the Internet to all computers as well as to all TVs. In addition, front door cameras, satellite TV, and DVD players should be available on all TVs.  Consumers expect telephone, computer, and television outlets throughout the modern home.  Multiplex's products combined with our market access will move Nortek to a leadership position in the home-systems market. 

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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