NORTEK POSTS RECORD SALES, NEAR RECORD EARNINGS FOR 3RD QUARTER

PROVIDENCE, RI, October 26, 2000-Nortek, Inc. (NYSE:NTK), continuing a trend of record performance, announced today the highest net sales and the second highest diluted per-share earnings for any third quarter in its history. The Company reported net sales of $591 million and diluted per-share earnings of $1.42 for the third quarter with all three of Nortek's major operating groups achieving sales increases compared to the prior year.

Richard L. Bready, Nortek Chairman and Chief Executive Officer, said, "Our record third-quarter sales reflect continued growth and expansion in the Company's core target markets, the ongoing integration of several strategic acquisitions, and the quality and depth of Nortek's building-products offerings."

Third-quarter financial highlights included:

•  Net sales of $591 million compared to $553 million reported for the third quarter of 1999. In the third quarter, acquisitions contributed approximately $25 million to net sales.
• Operating earnings of $53 million compared to last year's $59 million. As a percent of sales, operating earnings were 9 percent compared to 11 percent last year.
• EBITDA of $67 million compared to the $72 million reported in the prior year. As a percent of sales, EBITDA was 11 percent compared to last year's 13 percent.
• Net earnings of $16 million compared to last year's $21 million.
• Diluted per-share earnings of $1.42 compared to $1.70 for the third quarter last year, on 1,047,000 fewer shares outstanding.
• Diluted per-share earnings for the third quarter of 2000 and the third quarter of 1999 were after amortization of goodwill and other intangible assets of $.46 per share and $.38 per share, respectively.

Net sales for the first nine months of $1,686 million were 12 percent higher than the $1,504 million reported last year. In the first nine months of 2000, acquisitions contributed $119 million to net sales. Operating earnings were $140 million compared to $145 million in 1999, and EBITDA was $185 million, the same as last year. Net earnings were $39 million compared to $44 million for the first nine months of 1999. Diluted per-share earnings for the period were $3.42 compared to $3.65 a year earlier. Diluted per-share earnings for the first nine months of 2000 and 1999 were after amortization of goodwill and other intangible assets of $1.33 per share and $1.12 per share, respectively.

Several factors that negatively impacted the second quarter have continued to impact the third quarter. Rising petroleum prices have resulted in significantly higher PVC resin costs, increasing manufacturing costs for vinyl products. These costs have yet to be completely offset by increased selling prices or cost-reduction measures. Delays occurred in the ongoing integration of some of NuTone's manufacturing facilities and planned cost savings from the integration will not be realized in 2000. As the Company has previously stated, a general slowdown in the manufactured housing market has also negatively impacted business for the past year. Economic data released in recent weeks also suggests that the booming U.S. economy has slowed to a more moderate rate of growth.

Mr. Bready added, "Continued growth in our net sales demonstrates that we are executing our strategic business plan. During the period, we saw a particularly strong performance from our Air Conditioning and Heating Products Group, which has been able to offset the ongoing weakness in the manufactured housing market. This strong performance has helped to temper some of the market factors that are affecting other lines of business."

"We have maintained strong EBITDA of in excess of $230 million for the twelve months ended September 30, 2000, the same as the twelve months ended October 2, 1999. On the balance sheet side, we have improved our debt-to-equity ratio to 3.7:1 at the end of the third quarter compared to 4.0:1 at the same time last year, and have a debt structure of attractive fixed-rate notes that are well placed on the maturity scale."

We continue to believe that the equity markets have overreacted to some moderate softening in new construction and residential building products statistics and that Nortek common stock is substantially undervalued. We have purchased approximately 461,000 shares under our latest stock repurchase program of up to 1 million shares announced this past May and will be alert for additional purchase opportunities as cash flow and market conditions warrant."

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.

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NORTEK, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS

A. The unaudited condensed consolidated summary of operations for Nortek, Inc. and its subsidiaries ("the Company"), in     the opinion of management, reflects all adjustments necessary for a fair statement of the periods presented.  It is suggested that this unaudited condensed consolidated summary of operations be read in conjunction with the financial statements and the notes included in the Company's latest Annual Report on Form 10-K, and its latest Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission.

B.   EBITDA from operations is operating earnings plus depreciation and amortization expense (other than amortization of deferred debt expense and debt discount).

C.  In the second quarter of 2000, the Company sold a parcel of land resulting in a pre-tax gain of approximately $1,700,000 ($.10 net after tax gain per share) which is included in operating earnings.

D.  Net sales for the Company's principal segments for the three and nine months ended September 30, 2000 and October 2, 1999 were as follows: