NTK Holdings, Inc. Announces Delay in Filing of 2007 Form 10-K

PROVIDENCE, R.I., March 31 /PRNewswire-FirstCall/ -- NTK Holdings, Inc.
("NTK Holdings"), the parent company of Nortek Holdings, Inc. ("Nortek
Holdings") and Nortek, Inc. ("Nortek"), a leading diversified global
manufacturer of innovative, branded residential and commercial ventilation,
HVAC and home technology convenience and security products, today announced
that it has delayed the filing with the Securities and Exchange Commission
("SEC") of its report on Form 10-K for the year ended December 31, 2007. NTK
Holdings is unable to complete and file its Annual Report on Form 10-K for the
year ended December 31, 2007 (the "Form 10-K") by the prescribed filing date
without unreasonable effort and expense. NTK Holdings has dedicated
significant resources to the completion of management's assessment of the
effectiveness of NTK Holdings' internal control over financial reporting, as
required under Section 404 of the Sarbanes Oxley Act of 2002. In addition,
the recent continued downturn in the economy and the financial markets caused
NTK Holdings to reevaluate certain of its accounting and financial statement
disclosure requirements. These matters have negatively impacted NTK Holdings'
ability to timely finalize its accounting documentation and analysis and
prepare its financial statements which are to be included in its Annual Report
on Form 10-K for the year ended December 31, 2007 (the "Form 10-K") by the
prescribed filing date.
NTK Holdings anticipates a significant change in operating earnings for
the year ended December 31, 2007 as compared to the year ended December 31,
2006 will be reflected in the consolidated statement of operations to be
included in its Form 10-K. Reduced levels of home sales and housing starts
and other softening in the housing markets in 2007 negatively affected NTK
Holdings' operating earnings in 2007. In addition, uncertainties due to the
significant instability in the mortgage markets and the resultant impact on
the overall credit market adversely impacted NTK Holdings' business. Although
NTK Holdings anticipates reporting an increase in net sales for the fiscal
year ended December 31, 2007 compared to the year ended December 31, 2006, NTK
Holdings' margins decreased due, in part, to increased material costs, the
effect of certain non-cash gains in 2006 and certain charges and expenses in
2007 in connection with manufacturing realignments. As a result of the
substantial margin reduction, NTK Holdings will report a significant decline
in operating earnings for 2007 as compared to the level of 2006.
NTK Holdings plans to file today a Form 12b-25 with the SEC in order to
obtain a 15-calendar day extension for filing its Form 10-K for the year ended
December 31, 2007, and currently anticipates the filing of the Form 10-K on or
prior to such extended due date, although there can be no assurance in this
regard.
NTK Holdings*, the parent company of Nortek Holdings* and Nortek*, is a
leading diversified global manufacturer of innovative, branded residential and
commercial ventilation, HVAC and home technology convenience and security
products. NTK Holdings and Nortek offer a broad array of products including:
range hoods, bath fans, indoor air quality systems, medicine cabinets and
central vacuums, heating and air conditioning systems, and home technology
offerings, including audio, video, access control, security and other
products.
*As used herein, the terms "NTK Holdings," "Nortek Holdings" or "Nortek"
refers to NTK Holdings, Inc., together with its subsidiaries, unless the
context indicates otherwise. These terms are used for convenience only and are
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 Nortek'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. Nortek 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 reports and filings of
NTK Holdings and Nortek with the Securities and Exchange Commission.
CONTACT: Richard L. Bready, Chairman and CEO or Edward J. Cooney, Vice
President and Treasurer, of Nortek, Inc., 401-751-1600
SOURCE NTK Holdings, Inc.

Richard L. Bready, Chairman and CEO, or Edward J. Cooney, Vice President and
Treasurer, +1-401-751-1600, both of Nortek, Inc.