PROVIDENCE, RI, February 20, 2001—Nortek, Inc. (NYSE:NTK), a leading international designer, manufacturer and marketer of high-quality building products, today announced results for the year and fourth quarter 2000. Nortek announced preliminary results on January 29, 2001.

Financial highlights for the full-year 2000 included:

All three of Nortek’s operating groups achieved increases in net sales, led by Air Conditioning and Heating Products which increased net sales by 17 percent; Windows, Doors and Siding Products by 13 percent; and Residential Building Products by 4 percent. For the year ended December 31, 2000, acquisitions contributed approximately $134 million to the increase in net sales.

Richard L. Bready, Chairman and Chief Executive Officer, said, “Nortek had another strong year in 2000 and continued to increase sales and maintain or build market share in many key business segments. We achieved these results despite rising petroleum prices that significantly impacted PVC resin costs which, in turn, dramatically increased manufacturing costs for vinyl products. Also during 2000, we experienced delays in our ongoing integration of some of NuTone’s manufacturing facilities which resulted in higher costs in certain Residential Building Products businesses. Finally, a general economic slowdown, particularly in the manufactured housing market, continued to impact our business.

“Going forward, there are signs of continued, though less than record, strength in U.S. home construction and remodeling. Positive factors include falling mortgage rates, continued high employment and a recent, second interest rate cut by the Federal Reserve. We expect that overall earnings in 2001 will compare favorably to 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 while we are encouraged by our current outlook, we expect operating results in the first quarter of 2001 to be below the first and fourth quarters of 2000.”

For the fourth quarter, Nortek reported net sales of $512 million, an increase of 5 percent from the $488 million reported a year earlier. Acquisitions contributed approximately $15 million of the increase in net sales. Operating earnings for the quarter were $26 million compared to last year’s $34 million. EBITDA was $40 million compared to $49 million in 1999. Net earnings for the quarter were $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.

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.

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. The results for 2000 are preliminary and subject to completion of an audit by the Company'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.

The Financial Accounting Standards Board's Emerging Issues Task Force reached final consensus with respect to the accounting for shipping and handling fees and costs and the accounting for certain sales incentives. The Company has completed its analysis of the impact of reclassifications between net sales, cost of products sold and selling, general and administrative expenses as a result of these pronouncements and has reflected the necessary reclassifications for all periods presented in the accompanying unaudited condensed consolidated summary of operations. The impact of these reclassifications did not have any effect on operating earnings, EBITDA, net earnings or diluted net earnings per share for fiscal 2000 or any other period.

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

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.

Net sales for the Company's principal segments for the three months and years ended December 31, 2000 and 1999 were as follows:

In the fourth quarter and year ended December 31, 2000, acquisitions contributed approximately $14.8 million and $134.2 million to the increase in net sales, respectively, of which approximately $2.2 million and $20.9 million, respectively, were in the Residential Building Products Segment, approximately $12.6 million and $30.8 million, respectively, were in the Air Conditioning and Heating Products Segment and approximately $82.5 million was in the Windows, Doors and Siding Products Segment for the year ended December 31, 2000.

Operating earnings and depreciation and amortization expense for the Company's principal segments for the three months and the years ended December 31, 2000 and 1999 were as follows:

F.     The following is a summary of selected balance sheet amounts and ratios at December 31, 2000 and 1999: