NORTEK POSTS RECORD QUARTERLY SALES AND NET EARNINGS PER SHARE

PROVIDENCE, RI, August 2, 2000—Nortek, Inc. (NYSE:NTK), continuing to build upon the strengths of recent acquisitions, today announced net sales of $604 million, the highest net sales for any quarter in the Company's history. Diluted per-share earnings for the second quarter ending July 1, 2000, were $1.67 per share, the highest of any second quarter in Nortek's history. Richard L. Bready, Nortek Chairman and Chief Executive Officer, said, "Our record sales and steady growth reflect a series of strategic acquisitions and our expansion and strengthened position in key markets."

Second-quarter financial highlights included:

• Net sales of $604 million, an 11-percent increase from the $544 million reported for the second quarter of 1999. In the second quarter acquisitions contributed approximately $36 million to net sales.
  
  
• Operating earnings of $57 million compared to last year's $58 million. As a percent of sales, operating earnings were 9 percent compared to 11 percent last year. Operating earnings for the second quarter of 2000 included a pre-tax gain of approximately $1.7 million from the sale of a parcel of land.
  
  
• EBITDA of $73 million compared to the $72 million reported in the prior year. As a percent of sales EBITDA was 12 percent compared to last year's 13 percent.
  
  
• Net earnings of $19 million compared to last year's $20 million.
  
  
• Diluted per-share earnings of $1.67 compared to $1.64 for the second quarter last year, on 623,000 fewer shares outstanding.
  
  
• Diluted per-share earnings for the second quarter of 2000 and the second quarter of 1999 were after amortization of goodwill and other intangible assets of $.44 per share and $.38 per share, respectively.

Net sales for the first six months of $1,095 million were 15 percent higher than the $951 million reported last year. In the first six months of 2000, acquisitions contributed $93 million to net sales. Operating earnings were $87 million compared to $86 million in 1999, and EBITDA increased to $118 million from $113 million last year. Net earnings of $23 million were comparable to the first six months of 1999. Diluted per-share earnings for the period were $2.01 compared to $1.94 a year earlier. Diluted per-share earnings for the first six months of 2000 and 1999 were after amortization of goodwill and other intangible assets of $.87 per share and $.74 per share, respectively.

The Company said that, despite record net sales, a number of factors had a slowing impact on its businesses in the second quarter. Rising petroleum prices caused significantly higher PVC resin costs which, in turn, raised manufacturing costs of vinyl products—costs that have yet to be completely offset by increased selling prices or cost-reduction measures. Higher than anticipated costs and delays occurred during the rationalization and relocation of some of NuTone's manufacturing operations and have caused some cost savings, along with production synergies, expected from the integration to be delayed until later this year. Furthermore, the industry-wide manufactured housing slowdown continued, but the effects were more than offset by increased sales of site-built residential and commercial air conditioning products.

As previously announced on July 3, Nortek acquired Eaton-Williams Holdings Limited of Edenbridge, England. Eaton-Williams designs, manufactures, installs and services a wide range of custom-made and standard humidification and air conditioning equipment. We believe Eaton-Williams represents a significant addition to our family of commercial air handling and conditioning companies, and provides a gateway for expansion in Europe.

Mr. Bready added, "We are encouraged that consumer confidence remains high, unemployment levels remain near record lows, and people continue to value home ownership and renovation as solid long-term investments. We anticipate that petroleum price pressures will moderate over the second half of the year, and assuming no significant additional interest rate increases, net earnings for the year should be in a range comparable to 1999. Finally, we continue to believe that Nortek common stock is undervalued and have purchased approximately 460,000 shares under our latest stock repurchase program of up to 1 million shares announced this past May."

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.

*As used herein, the term "Nortek" refers to Nortek, 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 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 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. 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.

The accompanying notes are an integral part of this unaudited condensed consolidated summary of operations.