Nortek, Inc. Announces Delay In Filing Of 2007 Form 10-K

PROVIDENCE, R.I., March 31 /PRNewswire-FirstCall/ -- 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. Nortek 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.
Nortek has dedicated significant resources to the completion of management's
assessment of the effectiveness of Nortek's 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 Nortek to reevaluate certain of its accounting and financial
statement disclosure requirements. These matters have negatively impacted
Nortek's 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.
Nortek 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 Nortek's
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 Nortek's business. Although Nortek
anticipates reporting an increase in net sales for the fiscal year ended
December 31, 2007 compared to the year ended December 31, 2006, Nortek's
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, Nortek will report a significant decline in operating
earnings for 2007 as compared to the level of 2006.
Nortek 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.
Nortek* (a wholly owned subsidiary of Nortek Holdings, Inc., which is a
wholly owned subsidiary of NTK Holdings, Inc.) is a leading diversified global
manufacturer of innovative, branded residential and commercial ventilation,
HVAC and home technology convenience and security products. Nortek offers 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 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 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
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 Nortek, Inc.

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