NORTEK ANNOUNCES 2000 ANNUAL AND FOURTH QUARTER RESULTS

NORTEK ANNOUNCES 2000 ANNUAL AND FOURTH QUARTER RESULTS

PROVIDENCE, RI, January 29, 2001—Nortek, Inc. (NYSE:NTK), a leading international designer, manufacturer and marketer of high-quality building products, today announced that net sales for 2000 were the highest of any year in the Company's history while net earnings and earnings per share for 2000 were at the second highest annual level in the Company's history. This is the sixth consecutive year that Nortek has reported record net sales.

Financial highlights for the full-year 2000 included:

Net sales for the year of approximately $2.2 billion, an approximately 10-percent increase, from approximately $2.0 billion for 1999.

EBITDA of approximately $225.0 million compared to approximately $234.0 million for the prior year.

Net earnings of approximately $41.6 million compared to last year’s $49.3 million.

Diluted net earnings per-share were $3.70 compared to the $4.11 reported for 1999, on approximately 736,000 fewer average-shares outstanding. Diluted net earnings per-share for 2000 and 1999 are after amortization of goodwill and other intangible assets of approximately $1.80 per share and $1.53 per share, respectively.

Richard L. Bready, Chairman and Chief Executive Officer, said, “We recorded a very strong year in 2000 and continued to increase sales and maintain or build market share in many of our businesses. Specifically, all three of Nortek’s operating groups achieved increases in net sales, led by Air Conditioning and Heating Products which increased net sales by approximately 16%, Windows, Doors and Siding Products by approximately 13%, and Residential Building Products by approximately 4%. For the year ended December 31, 2000, acquisitions contributed approximately $133 million to the increase in net sales. By owning a number of operating companies with leading brand names with a wide range of products in our served markets, we were able to better weather slowdowns in certain of our sectors. In 2000, we increased sales of site-built residential and commercial air conditioning products, focused more heavily on replacement HVAC products and generated approximately 50% of overall revenues from remodeling and replacement products.”

Mr. Bready added, “We achieved these results despite the fact that rising petroleum prices resulted in significantly higher PVC resin costs which in turn dramatically increased manufacturing costs for vinyl products. These costs have yet to be completely offset by increased selling prices, although manufacturing efficiencies achieved in response to rising resin prices are helping to support margins. Additionally, delays and difficulties occurred in our ongoing integration of some of NuTone’s manufacturing facilities. As a result, we incurred significantly higher costs in certain of our Residential Building Products businesses throughout the second half of the year and did not realize some of the planned costs savings from the integration of NuTone. Finally, as we have previously stated, the general economic slowdown, particularly in the manufactured housing market, continued to negatively impact Nortek’s business. These factors began in the second half of 1999 and continued to negatively affect the business throughout 2000.

We enter 2001 seeing economic data that suggests the booming U.S. economy has slowed, but there are signs of continued, though less than record, strength in U.S. home construction and remodeling. Other positive factors include falling mortgage rates, continued high employment and a recent interest rate cut by the Federal Reserve. Nevertheless, while we anticipate a moderation in the business environment, including some continued softness in new site-built and manufactured housing, many of our end markets remain strong and we believe certain cost issues that affected us in the latter part of 2000 are behind us. We expect overall earnings in 2001 to compare favorably to those achieved in 2000. However, if current economic conditions worsen, this result may not be achieved. The first quarter of 2000 was an exceptionally strong period for the Company, and although we are encouraged by our current outlook, we expect earnings in the first quarter of 2001 to be below both the first and fourth quarters of 2000.”

For the fourth quarter, Nortek reported net sales of approximately $511 million, an increase of approximately 5% from approximately $489 million a year earlier. Acquisitions contributed approximately $15 million of this increase in net sales. Operating earnings for the quarter were approximately $26 million compared to last year’s $34 million. EBITDA for the quarter was approximately $40 million compared to approximately $49 million in 1999. Net earnings for the 2000 fourth quarter were approximately $2.8 million compared to $5.4 million reported a year earlier. Diluted net earnings per share were $0.26 compared to $0.46 for the previous year. The lower results compared to the prior year were due to the factors previously discussed.

The Financial Accounting Standards Board’s Emerging Issues Task Force has reached final consensus with respect to accounting for shipping and handling fees and costs and the accounting for certain sales incentives effective for the fourth quarter of fiscal 2000. The Company has not completed its analysis of the potential impact of reclassifications between net sales, cost of products sold and selling, general and administrative expenses that are expected to occur as a result of these pronouncements. The Company does not expect that the impact of such reclassifications, if any, will have a material effect on operating earnings, EBITDA, net earnings or diluted net earnings per share for 2000 or any other period.

The results for 2000 discussed herein are preliminary and subject to completion of an audit by Nortek’s independent public accountants. We can provide no assurance that these results will not be subject to adjustment or reclassification upon completion of the audit.

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 costs 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.