| Nortek, Inc.                                                                |
|-----------------------------------------------------------------------------|
| (exact name of registrant as specified in its charter)                      |
|                                                                        |   |
| Delaware                                                                    | 05-0314991 |
| (State or other jurisdiction of incorporation or organization)              | (IRS Employer Identification Number) |
|                                                                        |   |
| 50 Kennedy PlazaProvidence, Rhode Island                                    |  02903-2360 |
| (Address of principal executive offices)                                    | (zip code) |
|                                                                        |   |
| Registrant’s Telephone Number, Including Area Code:(401) 751-1600     |
|                                                                        |
| Securities registered pursuant to Section 12(b) of the Act:  None |

| Large accelerated filer [_] | Accelerated filer [_] | Non-accelerated filer [X] | Smaller reporting company [_] |
|-----------------------------|-----------------------|---------------------------|-------------------------------|

|                                                          |   | July 4, |    |   | December 31, |   |
|---------------------------------------------------------------|--------|---------|---------|--------|--------------|--------|
|                                                          |   | 2009    |    |   | 2008         |   |
| Assets                                                        |   |    |    |   |         |   |
| Current Assets:                                               |   |    |    |   |         |   |
| Unrestricted cash and cash equivalents                        |   | $       | 172.0   |   |         | $      | 182.2 |   |
| Restricted cash                                               |   |    | 0.8     |   |         |   | 0.7 |   |
| Accounts receivable, less allowances                          |   |    |    |   |         |   |   |   |
|    of $14.1 and $14.5                               |   |    | 260.8   |   |         |   | 260.3 |   |
| Inventories:                                                  |   |    |    |   |         |   |   |   |
|    Raw materials                                    |   |    | 78.3    |   |         |   | 86.0 |   |
|    Work in process                                  |   |    | 22.8    |   |         |   | 26.9 |   |
|    Finished goods                                   |   |    | 161.1   |   |         |   | 183.4 |   |
|                                                          |   |    | 262.2   |   |         |   | 296.3 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Prepaid expenses                                              |   |    | 12.7    |   |         |   | 12.8 |   |
| Other current assets                                          |   |    | 8.7     |   |         |   | 9.5 |   |
| Prepaid income taxes                                          |   |    | 9.6     |   |         |   | 11.0 |   |
|    Total current assets                             |   |    | 726.8   |   |         |   | 772.8 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Property and Equipment, at Cost:                              |   |    |    |   |         |   |   |   |
| Land                                                          |   |    | 11.1    |   |         |   | 12.1 |   |
| Buildings and improvements                                    |   |    | 102.4   |   |         |   | 103.6 |   |
| Machinery and equipment                                       |   |    | 229.9   |   |         |   | 222.6 |   |
|                                                          |   |    | 343.4   |   |         |   | 338.3 |   |
| Less accumulated depreciation                                 |   |    | 150.1   |   |         |   | 130.6 |   |
|    Total property and equipment, net                |   |    | 193.3   |   |         |   | 207.7 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Other Assets:                                                 |   |    |    |   |         |   |   |   |
| Goodwill                                                      |   |    | 561.5   |   |         |   | 810.8 |   |
| Intangible assets, less accumulated amortization              |   |    |    |   |         |   |   |   |
|    of $119.4 and $107.4                             |   |    | 123.7   |   |         |   | 135.4 |   |
| Deferred debt expense                                         |   |    | 39.4    |   |         |   | 43.8 |   |
| Restricted investments and marketable securities              |   |    | 2.4     |   |         |   | 2.4 |   |
| Other assets                                                  |   |    | 5.2     |   |         |   | 7.4 |   |
|                                                          |   |    | 732.2   |   |         |   | 999.8 |   |
| Total Assets                                                  |   | $       | 1,652.3 |   |         | $      | 1,980.3 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Liabilities and Stockholder’s Deficit                   |   |    |    |   |         |   |   |   |
|                                                          |   |    |    |   |         |   |   |   |
| Current Liabilities:                                          |   |    |    |   |         |   |   |   |
| Notes payable and other short-term obligations                |   | $       | 18.4    |   |         | $      | 32.7 |   |
| Current maturities of long-term debt                          |   |    | 40.1    |   |         |   | 13.1 |   |
| Long-term debt (see Note B)                                   |   |    | 6.1     |   |         |   | 8.1 |   |
| Accounts payable                                              |   |    | 135.7   |   |         |   | 152.3 |   |
| Accrued expenses and taxes, net                               |   |    | 188.3   |   |         |   | 213.9 |   |
|    Total current liabilities                        |   |    | 388.6   |   |         |   | 420.1 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Other Liabilities:                                            |   |    |    |   |         |   |   |   |
| Deferred income taxes                                         |   |    | 25.1    |   |         |   | 30.7 |   |
| Long-term payable to affiliate (see Note A)                   |   |    | 43.0    |   |         |   | 43.1 |   |
| Other                                                         |   |    | 156.4   |   |         |   | 160.7 |   |
|                                                          |   |    | 224.5   |   |         |   | 234.5 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Notes, Mortgage Notes and Obligations                         |   |    |    |   |         |   |   |   |
|    Payable, Less Current Maturities                 |   |    | 1,534.2 |   |         |   | 1,545.5 |   |
|                                                          |   |    |    |   |         |   |   |   |
| Commitments and Contingencies (see Note F)                    |   |    |    |   |         |   |   |   |
|                                                          |   |    |    |   |         |   |   |   |
| Stockholder’s Deficit:                                  |   |    |    |   |         |   |   |   |
| Common stock, $0.01 par value, authorized 3,000 shares;       |   |    |    |   |         |   |   |   |
|    3,000 issued and outstanding at July 4, 2009 and |   |    |    |   |         |   |   |   |
|    December 31, 2008                                |   |    | ---     |   |         |   | --- |   |
| Additional paid-in capital                                    |   |    | 416.8   |   |         |   | 416.7 |   |
| Accumulated deficit                                           |   |    | (890.2  | )      |         |   | (612.1 | ) |
| Accumulated other comprehensive loss                          |   |    | (21.6   | )      |         |   | (24.4 | ) |
|    Total stockholder's deficit                      |   |    | (495.0  | )      |         |   | (219.8 | ) |
| Total Liabilities and Stockholder's Deficit                   |   | $       | 1,652.3 |   |         | $      | 1,980.3 |   |

|                                                                       |   | For the second quarter ended |   |
|----------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                       |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                                       |   | (Dollar amounts in millions) |   |
|                                                                       |   |                         |   |   |   |   |
| Net Sales                                                                  |   | $                            | 487.8  |   |   | $ | 647.1 |   |
|                                                                       |   |                         |   |   |   |   |   |   |
| Costs and Expenses:                                                        |   |                         |   |   |   |   |   |   |
|    Cost of products sold (see Note C)                            |   |                         | 351.7  |   |   |   | 473.3 |   |
|    Selling, general and administrative expense, net (see Note C) |   |                         | 95.8   |   |   |   | 118.5 |   |
|    Goodwill impairment charge (see Note A)                       |   |                         | 250.0  |   |   |   | --- |   |
|    Amortization of intangible assets                             |   |                         | 6.0    |   |   |   | 8.4 |   |
|                                                                       |   |                         | 703.5  |   |   |   | 600.2 |   |
| Operating (loss) earnings                                                  |   |                         | (215.7 | ) |   |   | 46.9 |   |
| Interest expense                                                           |   |                         | (37.7  | ) |   |   | (31.3 | ) |
| Loss from debt retirement                                                  |   |                         | ---    |   |   |   | (9.9 | ) |
| Investment income                                                          |   |                         | 0.1    |   |   |   | 0.2 |   |
| (Loss) earnings before (benefit) provision for income taxes                |   |                         | (253.3 | ) |   |   | 5.9 |   |
| (Benefit) provision for income taxes                                       |   |                         | (7.9   | ) |   |   | 2.2 |   |
| Net (loss) earnings                                                        |   | $                            | (245.4 | ) |   | $ | 3.7 |   |

|                                                                       |   | For the six months ended     |    |
|----------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                       |   | July 4, 2009                 |    |   | June 28, 2008 |   |
|                                                                       |   | (Dollar amounts in millions) |    |
|                                                                       |   |                         |    |   |   |   |
| Net Sales                                                                  |   | $                            | 926.8   |   |   | $ | 1,187.3 |   |
|                                                                       |   |                         |    |   |   |   |   |   |
| Costs and Expenses:                                                        |   |                         |    |   |   |   |   |   |
|    Cost of products sold (see Note C)                            |   |                         | 669.2   |   |   |   | 864.9 |   |
|    Selling, general and administrative expense, net (see Note C) |   |                         | 196.8   |   |   |   | 237.0 |   |
|    Goodwill impairment charge (see Note A)                       |   |                         | 250.0   |   |   |   | --- |   |
|    Amortization of intangible assets                             |   |                         | 11.9    |   |   |   | 15.1 |   |
|                                                                       |   |                         | 1,127.9 |   |   |   | 1,117.0 |   |
| Operating (loss) earnings                                                  |   |                         | (201.1  | ) |   |   | 70.3 |   |
| Interest expense                                                           |   |                         | (76.0   | ) |   |   | (58.7 | ) |
| Loss from debt retirement                                                  |   |                         | ---     |   |   |   | (9.9 | ) |
| Investment income                                                          |   |                         | 0.2     |   |   |   | 0.4 |   |
| (Loss) earnings before provision for income taxes                          |   |                         | (276.9  | ) |   |   | 2.1 |   |
| Provision for income taxes                                                 |   |                         | 1.2     |   |   |   | 2.5 |   |
| Net loss                                                                   |   | $                            | (278.1  | ) |   | $ | (0.4 | ) |

|                                                                                  |   | For the six months ended     |   |
|---------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                  |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                                                  |   | (Dollar amounts in millions) |   |
| Cash Flows from operating activities:                                                 |   |                         |   |   |   |   |
| Net loss                                                                              |   | $                            | (278.1 | ) |   | $ | (0.4 | ) |
|                                                                                  |   |                         |   |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash                                         |   |                         |   |   |   |   |   |   |
|    provided by operating activities:                                        |   |                         |   |   |   |   |   |   |
| Depreciation and amortization expense                                                 |   |                         | 31.6   |   |   |   | 36.0 |   |
| Non-cash interest expense, net                                                        |   |                         | 5.0    |   |   |   | 3.3 |   |
| Non-cash goodwill impairment charge                                                   |   |                         | 250.0  |   |   |   | --- |   |
| Loss from debt retirement                                                             |   |                         | ---    |   |   |   | 9.9 |   |
| Non-cash stock-based compensation expense                                             |   |                         | 0.1    |   |   |   | 0.1 |   |
| Gain on sale of property and equipment                                                |   |                         | (0.3   | ) |   |   | (2.5 | ) |
| Deferred federal income tax benefit                                                   |   |                         | (4.1   | ) |   |   | (4.7 | ) |
| Changes in certain assets and liabilities, net of                                     |   |                         |   |   |   |   |   |   |
|    effects from acquisitions and dispositions:                              |   |                         |   |   |   |   |   |   |
| Accounts receivable, net                                                              |   |                         | (2.4   | ) |   |   | (44.8 | ) |
| Inventories                                                                           |   |                         | 33.3   |   |   |   | (20.4 | ) |
| Prepaids and other current assets                                                     |   |                         | (2.1   | ) |   |   | (4.0 | ) |
| Accounts payable                                                                      |   |                         | (12.4  | ) |   |   | 53.9 |   |
| Accrued expenses and taxes                                                            |   |                         | (11.1  | ) |   |   | 12.3 |   |
| Long-term assets, liabilities and other, net                                          |   |                         | (2.8   | ) |   |   | 5.9 |   |
|    Total adjustments to net loss                                            |   |                         | 284.8  |   |   |   | 45.0 |   |
|    Net cash provided by operating activities                                |   |                         | 6.7    |   |   |   | 44.6 |   |
| Cash Flows from investing activities:                                                 |   |                         |   |   |   |   |   |   |
| Capital expenditures                                                                  |   |                         | (6.4   | ) |   |   | (15.9 | ) |
| Net cash paid for businesses acquired                                                 |   |                         | (14.1  | ) |   |   | (32.7 | ) |
| Proceeds from the sale of property and equipment                                      |   |                         | 1.9    |   |   |   | 6.2 |   |
| Change in restricted cash and marketable securities                                   |   |                         | (0.1   | ) |   |   | --- |   |
| Other, net                                                                            |   |                         | (2.5   | ) |   |   | (1.9 | ) |
|    Net cash used in investing activities                                    |   |                         | (21.2  | ) |   |   | (44.3 | ) |
| Cash Flows from financing activities:                                                 |   |                         |   |   |   |   |   |   |
| Increase in borrowings                                                                |   |                         | 22.0   |   |   |   | 133.0 |   |
| Payment of borrowings                                                                 |   |                         | (17.7  | ) |   |   | (66.7 | ) |
| Net proceeds from the sale of Nortek's 10% Senior Secured    Notes due 2013 |   |                         | ---    |   |   |   | 742.2 |   |
| Redemption of Nortek's senior secured credit facility                                 |   |                         | ---    |   |   |   | (755.5 | ) |
| Fees paid in connection with Nortek's new debt facilities                             |   |                         | ---    |   |   |   | (31.7 | ) |
| Equity investment by THL-Nortek Investors, LLC                                        |   |                         | ---    |   |   |   | 4.2 |   |
| Other, net                                                                            |   |                         | ---    |   |   |   | (0.1 | ) |
|    Net cash provided by financing activities                                |   |                         | 4.3    |   |   |   | 25.4 |   |
| Net change in unrestricted cash and cash equivalents                                  |   |                         | (10.2  | ) |   |   | 25.7 |   |
| Unrestricted cash and cash equivalents at the beginning    of the period    |   |                         | 182.2  |   |   |   | 53.4 |   |
| Unrestricted cash and cash equivalents at the end of the period                       |   | $                            | 172.0  |   |   | $ | 79.1 |   |
|                                                                                  |   |                         |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                     |   |                         |   |   |   |   |   |   |
| Interest paid                                                                         |   | $                            | 72.8   |   |   | $ | 47.4 |   |
|                                                                                  |   |                         |   |   |   |   |   |   |
| Income taxes paid, net                                                                |   | $                            | 10.1   |   |   | $ | 6.8 |   |

|                                         |   |       |   |   | Retained     |   |   | Accumulated   |   |   |          |   |
|----------------------------------------------|--------|------------|--------|--------|--------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                         |   | Additional |   |   | Earnings     |   |   | Other         |   |   |          |   |
|                                         |   | Paid-in    |   |   | (Accumulated |   |   | Comprehensive |   |   | Comprehensive |   |
|                                         |   | Capital    |   |   | Deficit)     |   |   | Income        |   |   | (Loss) Income |   |
|                                         |   |       |   |   |         |   |   |          |   |   |          |   |
| Balance, March 29, 2008                      |   | $          | 412.4  |   |         | $      | 164.5  |          |   | $      | 38.1          |   |   | $ | --- |   |
| Net income                                   |   |       | ---    |   |         |   | 3.7    |          |   |   | ---           |   |   |   | 3.7 |   |
| Other comprehensive income:                  |   |       |   |   |         |   |   |          |   |   |          |   |   |   |   |   |
|    Currency translation adjustment |   |       | ---    |   |         |   | ---    |          |   |   | 0.9           |   |   |   | 0.9 |   |
| Comprehensive loss                           |   |       |   |   |         |   |   |          |   |   |          |   |   | $ | 4.6 |   |
| Capital contribution from parent             |   |       | 4.2    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Stock-based compensation                     |   |       | 0.1    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance, June 28, 2008                       |   | $          | 416.7  |   |         | $      | 168.2  |          |   | $      | 39.0          |   |   |   |   |   |

|                                         |   |       |   |   | Retained     |   |   | Accumulated   |   |   |          |   |
|----------------------------------------------|--------|------------|--------|--------|--------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                         |   | Additional |   |   | Earnings     |   |   | Other         |   |   |          |   |
|                                         |   | Paid-in    |   |   | (Accumulated |   |   | Comprehensive |   |   | Comprehensive |   |
|                                         |   | Capital    |   |   | Deficit)     |   |   | Income        |   |   | (Loss) Income |   |
|                                         |   |       |   |   |         |   |   |          |   |   |          |   |
|                                         |   |       |   |   |         |   |   |          |   |   |          |   |
| Balance, December 31, 2007                   |   | $          | 412.4  |   |         | $      | 168.6  |          |   | $      | 37.7          |   |   | $ | --- |   |
| Net loss                                     |   |       | ---    |   |         |   | (0.4   | )             |   |   | ---           |   |   |   | (0.4 | ) |
| Other comprehensive income:                  |   |       |   |   |         |   |   |          |   |   |          |   |   |   |   |   |
|    Currency translation adjustment |   |       | ---    |   |         |   | ---    |          |   |   | 1.3           |   |   |   | 1.3 |   |
| Comprehensive loss                           |   |       |   |   |         |   |   |          |   |   |          |   |   | $ | 0.9 |   |
| Capital contribution from parent             |   |       | 4.2    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Stock-based compensation                     |   |       | 0.1    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance, June 28, 2008                       |   | $          | 416.7  |   |         | $      | 168.2  |          |   | $      | 39.0          |   |   |   |   |   |

|                                         |   |       |   |   |        |   |   | Accumulated   |   |   |          |   |
|----------------------------------------------|--------|------------|--------|--------|-------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                         |   | Additional |   |   |        |   |   | Other         |   |   |          |   |
|                                         |   | Paid-in    |   |   | Accumulated |   |   | Comprehensive |   |   | Comprehensive |   |
|                                         |   | Capital    |   |   | Deficit     |   |   | (Loss) Income |   |   | (Loss) Income |   |
|                                         |   |       |   |   |        |   |   |          |   |   |          |   |
|                                         |   |       |   |   |        |   |   |          |   |   |          |   |
| Balance, April 4, 2009                       |   | $          | 416.7  |   |        | $      | (644.8 | )             |   | $      | (26.0         | )      |   | $ | --- |   |
| Net loss                                     |   |       | ---    |   |        |   | (245.4 | )             |   |   | ---           |   |   |   | (245.4 | ) |
| Other comprehensive (loss) income:           |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |
|    Currency translation adjustment |   |       | ---    |   |        |   | ---    |          |   |   | 5.5           |   |   |   | 5.5 |   |
|    Pension liability adjustment    |   |       | ---    |   |        |   | ---    |          |   |   | (1.1          | )      |   |   | (1.1 | ) |
| Comprehensive loss                           |   |       |   |   |        |   |   |          |   |   |          |   |   | $ | (241.0 | ) |
| Stock-based compensation                     |   |       | 0.1    |   |        |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance, July 4, 2009                        |   | $          | 416.8  |   |        | $      | (890.2 | )             |   | $      | (21.6         | )      |   |   |   |   |

|                                         |   |       |   |   |        |   |   | Accumulated   |   |   |          |   |
|----------------------------------------------|--------|------------|--------|--------|-------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                         |   | Additional |   |   |        |   |   | Other         |   |   |          |   |
|                                         |   | Paid-in    |   |   | Accumulated |   |   | Comprehensive |   |   | Comprehensive |   |
|                                         |   | Capital    |   |   | Deficit     |   |   | (Loss) Income |   |   | (Loss) Income |   |
|                                         |   |       |   |   |        |   |   |          |   |   |          |   |
|                                         |   |       |   |   |        |   |   |          |   |   |          |   |
| Balance, December 31, 2008                   |   | $          | 416.7  |   |        | $      | (612.1 | )             |   | $      | (24.4         | )      |   | $ | --- |   |
| Net loss                                     |   |       | ---    |   |        |   | (278.1 | )             |   |   | ---           |   |   |   | (278.1 | ) |
| Other comprehensive (loss) income:           |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |
|    Currency translation adjustment |   |       | ---    |   |        |   | ---    |          |   |   | 3.8           |   |   |   | 3.8 |   |
|    Pension liability adjustment    |   |       | ---    |   |        |   | ---    |          |   |   | (1.0          | )      |   |   | (1.0 | ) |
| Comprehensive loss                           |   |       |   |   |        |   |   |          |   |   |          |   |   | $ | (275.3 | ) |
| Stock-based compensation                     |   |       | 0.1    |   |        |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance, July 4, 2009                        |   | $          | 416.8  |   |        | $      | (890.2 | )             |   | $      | (21.6         | )      |   |   |   |   |

| ·   | the Residential Ventilation Products (“RVP”) segment, |
|--------------------|-------------------------------------------------------------------|

| ·   | the Home Technology Products (“HTP”) segment, |
|--------------------|-----------------------------------------------------------|

| ·   | the Residential Air Conditioning and Heating Products (“R-HVAC”) segment, and |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the Commercial Air Conditioning and Heating Products (“C-HVAC”) segment. |
|--------------------|--------------------------------------------------------------------------------------|

|                                  |   | Residential           |   |   | Home       |   |   | Residential |   |   | Commercial |   |   |         |   |
|---------------------------------------|--------|-----------------------|--------|--------|------------|--------|--------|-------------|--------|--------|------------|--------|--------|--------------|--------|
|                                  |   | Ventilation           |   |   | Technology |   |   | HVAC        |   |   | HVAC       |   |   |         |   |
|                                  |   | Products              |   |   | Products   |   |   | Products    |   |   | Products   |   |   | Consolidated |   |
|                                  |   | (Amounts in millions) |   |
|                                  |   |                  |   |   |       |   |   |        |   |   |       |   |   |         |   |
| Balance as of December 31, 2008       |   | $                     | 341.0  |   |       | $      | 351.4  |        |   | $      | 43.0       |   |   | $            | 75.4   |   |   | $ | 810.8 |   |
| Estimated impairment loss             |   |                  | ---    |   |       |   | (250.0 | )           |   |   | ---        |   |   |         | ---    |   |   |   | (250.0 | ) |
| Impact of changes in foreign currency |   |                  |   |   |       |   |   |        |   |   |       |   |   |         |   |   |   |   |   |   |
|    translation and other    |   |                  | 0.6    |   |       |   | 0.3    |        |   |   | (0.1       | )      |   |         | (0.1   | ) |   |   | 0.7 |   |
| Balance as of July 4, 2009            |   | $                     | 341.6  |   |       | $      | 101.7  |        |   | $      | 42.9       |   |   | $            | 75.3   |   |   | $ | 561.5 |   |

| ·   | Finalize appraisals to determine the estimated fair value of property and equipment, and intangible assets within the HTP reporting unit, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalize analyses within the HTP reporting unit to determine the estimated fair value adjustment required to inventory, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalize deferred tax analyses for the HTP reporting unit. |
|--------------------|------------------------------------------------------------|

| ·   | FSP FAS 107-1 and Accounting Principles Board 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1”), which requires disclosures regarding fair value of financial instruments to be reported on an interim, as well as on an annual basis; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | FSP FAS 157-4, “Determining Fair Values When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP FAS 157-4”), which provides additional guidance regarding (1) estimating the fair value of an asset or liability when the volume andlevel of activity for the asset or liability have significantly declined and (2) identifying transactions that are not orderly, as well as requiring disclosures in interim periods of the inputs and valuation techniques used to measure fair value; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | FSP FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary-Impairments” (“FSP FAS 115-2), which modifies the requirements for recognizing other-than-temporary impairments and changes the impairment model for debt securities.  In addition, FSP FAS 115-2 requires additional disclosures relatingto debt and equity securities, both in the interim and annual periods. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     |   |   Fair Value Measurement |   |   | Quoted Prices in Active Markets for Identical Assets(“Level 1”) |   |   | Significant Other Observable Inputs(“Level 2”) |   |   | Significant Unobservable Inputs(“Level 3”) |   |   |  Total Impaired Losses |   |
|----------|--------|------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------|--------|
|     |   | (Amounts in millions)              |   |
|     |   |                               |   |   |                                                                        |   |   |                                                       |   |   |                                                   |   |   |                        |   |
| Goodwill |   | $                                  | 101.7  |   |                                                                        |   | ---    |                                                       |   |   | ---                                                    |   |   | $                           | 101.7  |   |   | $ | 250.0 |   |

“Accounting for Stock-Based Compensation”. 

| (Amounts in millions)                                           |
|-----------------------------------------------------------------|
| Balance at December 31, 2008                                    |   | $ | 43.1 |   |
|    Payment of miscellaneous expenses for NTK Holdings |   |   | (0.1 | ) |
| Balance at July 4, 2009                                         |   | $ | 43.0 |   |

| (B)   | At December 31, 2008, the Company’s Best subsidiary was not in compliance with a maintenance covenant with respect to two loan agreements with aggregate borrowings outstanding of approximately $6.8 million.  Non-compliance with these two long-term debt agreements would have resulted in non-compliance with two other long-term debtagreements totaling approximately $5.3 million at December 31, 2008.  The Company’s Best subsidiary obtained waivers from the bank, which indicated that the Company’s Best subsidiary was not required to comply with the maintenance covenant as of December 31, 2008.  The next measurement date for the maintenance covenant is for the year ended December 31, 2009 and the Company believes that it is probable that its Best subsidiary will not be in compliance with the maintenance covenantwhen their assessment of the required calculation is completed in the first quarter of 2010.  The Company and its Best subsidiary are currently in negotiations to refinance these two loan agreements; however as of July 4, 2009, a definitive agreement was not signed.  As a result, the Company has classified approximately $6.1 million and $8.1 million of outstanding borrowings under such “long-term debt” agreements as a current liability on its consolidated balance sheet at July4, 2009 and December 31, 2008, respectively.  The Company and its Best subsidiary will continue to negotiate the refinancing of these debt obligations; however no assurance can be given that it will be successful in obtaining a refinancing, amendment or waiver on terms acceptable to the Company, or at all.  Accordingly, Nortek could be required to repay the long-term portion of approximately $6.1 million at December 31, 2009 related to these loans in an event of non-compliance. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | During the second quarter of 2009 and second quarter of 2008, the Company’s results of operations include the following expense (income) items recorded in cost of products sold and selling, general and administrative expense, net in the accompanying unaudited condensed consolidated statement of operations: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                                              | For the second quarter of * |   |
|--------|--------|--------|-----------------------------------------------------------------------------------|-----------------------------|--------|
|   |   |   |                                                                              | 2009                        |   |   | 2008 |   |
|   |   |   |                                                                              | (Amounts in millions)       |   |
|   |   |   |                                                                              |                        |   |   |   |   |
|   | (1     | )      | Fees and expenses incurred in the HTP segment in connection with the              |                        |   |   |   |   |   |
|   |   |   |    dispute and settlement with one of its former suppliers              |                        | $      | --- |   |   | $ | 4.5 |   |
|   | (2     | )      | Income from change in estimate of loss on the Company's indemnification           |                        |   |   |   |   |   |   |   |
|   |   |   |    related to a lease guarantee                                    |                        |   | (3.2 | ) |   |   | --- |   |
|   | (3     | )      | Gain from the sale of manufacturing facilities in the RVP segment                 |                        |   | (0.3 | ) |   |   | (2.5 | ) |
|   | (4     | )      | Charges related to reserves for amounts due from customers in                     |                        |   |   |   |   |   |   |   |
|   |   |   |    all four segments                                                    |                        |   | 2.0 |   |   |   | --- |   |
|   | (5     | )      | Net foreign exchange losses (gains) related to transactions, including            |                        |   |   |   |   |   |   |   |
|   |   |   |    intercompany debt not indefinitely invested in Nortek's subsidiaries |                        |   | 1.4 |   |   |   | (1.5 | ) |
|   | (6     | )      | Costs and expenses incurred in the RVP segment in connection with the             |                        |   |   |   |   |   |   |   |
|   |   |   |    start up of a range hood facility in Mexico (a)                      |                        |   | --- |   |   |   | 1.4 |   |
|   | (7     | )      | Severance charges incurred related to certain reduction in workforce              |                        |   |   |   |   |   |   |   |
|   |   |   |    initiatives in the RVP, HTP and R-HVAC segments (b)                  |                        |   | 1.3 |   |   |   | --- |   |
|   | (8     | )      | Advisory fees related to the Company's analysis of its capital structure          |                        |   | 0.9 |   |   |   | --- |   |

|   | * | Unless otherwise indicated, all items noted in the above table have been recorded in selling, general and administrative expense, net in the accompanying consolidated statement of operations. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Recorded in cost of products sold. |
|-----------------|------------------------------------|

| (b)   | Approximately $0.9 million of these severance charges incurred related to certain reduction in workforce initiatives was recorded in cost of products sold. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                                              | For the six months of * |   |
|--------|--------|--------|-----------------------------------------------------------------------------------|-------------------------|--------|
|   |   |   |                                                                              | 2009                    |   |   | 2008 |   |
|   |   |   |                                                                              | (Amounts in millions)   |   |
|   |   |   |                                                                              |                    |   |   |   |   |
|   | (1     | )      | Fees and expenses incurred in the HTP segment in connection with the              |                    |   |   |   |   |   |
|   |   |   |    dispute and settlement with one of its former suppliers              |                    | $      | --- |   |   | $ | 4.7 |   |
|   | (2     | )      | Income from change in estimate of loss on the Company's indemnification           |                    |   |   |   |   |   |   |   |
|   |   |   |    related to a lease guarantee                                         |                    |   | (3.2 | ) |   |   | --- |   |
|   | (3     | )      | Charges related to reserves for amounts due from customers in                     |                    |   |   |   |   |   |   |   |
|   |   |   |    all four segments                                                    |                    |   | 2.8 |   |   |   | --- |   |
|   | (4     | )      | Gain from the sale of manufacturing facilities in the RVP segment                 |                    |   | (0.3 | ) |   |   | (2.5 | ) |
|   | (5     | )      | Severance charges incurred related to certain reduction in workforce              |                    |   |   |   |   |   |   |   |
|   |   |   |    initiatives in the RVP, HTP and R-HVAC segments (b)                  |                    |   | 2.2 |   |   |   | --- |   |
|   | (6     | )      | Net foreign exchange losses (gains) related to transactions, including            |                    |   |   |   |   |   |   |   |
|   |   |   |    intercompany debt not indefinitely invested in Nortek's subsidiaries |                    |   | 1.5 |   |   |   | (1.4 | ) |
|   | (7     | )      | Costs and expenses incurred in the RVP segment in connection with the             |                    |   |   |   |   |   |   |   |
|   |   |   |    start up of a range hood facility in Mexico (a)                      |                    |   | --- |   |   |   | 1.4 |   |
|   | (8     | )      | Advisory fees related to the Company's analysis of its capital structure          |                    |   | 0.9 |   |   |   | --- |   |

|   | * | Unless otherwise indicated, all items noted in the above table have been recorded in selling, general and administrative expense, net in the accompanying consolidated statement of operations. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Recorded in cost of products sold. |
|-----------------|------------------------------------|

| (b)   | Approximately $1.3 million of these severance charges incurred related to certain reduction in workforce initiatives was recorded in cost of products sold. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | The Company is a diversified manufacturer of innovative, branded residential and commercial building products, operating within four reporting segments: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Residential Ventilation Products (“RVP”) segment, |
|--------------------|-------------------------------------------------------------------|

| ·   | the Home Technology Products (“HTP”) segment, |
|--------------------|-----------------------------------------------------------|

| ·   | the Residential Air Conditioning and Heating Products (“R-HVAC“) segment, and |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the Commercial Air Conditioning and Heating Products (“C-HVAC“) segment. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | kitchen range hoods, |
|--------------------|----------------------|

| ·   | exhaust fans (such as bath fans and fan, heater and light combination units), and |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | indoor air quality products. |
|--------------------|------------------------------|

| ·   | audio / video distribution and control equipment, |
|--------------------|---------------------------------------------------|

| ·   | speakers and subwoofers, |
|--------------------|--------------------------|

| ·   | security and access control products, |
|--------------------|---------------------------------------|

| ·   | power conditioners and surge protectors, |
|--------------------|------------------------------------------|

| ·   | audio / video wall mounts and fixtures, |
|--------------------|-----------------------------------------|

| ·   | lighting and home automation controls, and |
|--------------------|--------------------------------------------|

| ·   | structured wiring. |
|--------------------|--------------------|

| ·   | split-system air conditioners, |
|--------------------|--------------------------------|

| ·   | heat pumps, |
|--------------------|-------------|

| ·   | air handlers, and |
|--------------------|-------------------|

| ·   | furnaces and related equipment. |
|--------------------|---------------------------------|

|                                                                     |   | For the second quarter ended |   |
|--------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                     |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                                     |   | (Dollar amounts in millions) |   |
| Net sales:                                                               |   |                         |   |   |   |   |
| Residential ventilation products                                         |   | $                            | 139.4  |   |   | $ | 187.0 |   |
| Home technology products                                                 |   |                         | 99.9   |   |   |   | 131.2 |   |
| Residential air conditioning and heating products                        |   |                         | 137.5  |   |   |   | 177.5 |   |
| Commercial air conditioning and heating products                         |   |                         | 111.0  |   |   |   | 151.4 |   |
|    Consolidated net sales                                      |   | $                            | 487.8  |   |   | $ | 647.1 |   |
|                                                                     |   |                         |   |   |   |   |   |   |
| Operating (loss) earnings:                                               |   |                         |   |   |   |   |   |   |
| Residential ventilation products (1)                                     |   | $                            | 11.9   |   |   | $ | 16.0 |   |
| Home technology products (2)                                             |   |                         | (247.1 | ) |   |   | 7.8 |   |
| Residential air conditioning and heating products (3)                    |   |                         | 10.6   |   |   |   | 14.6 |   |
| Commercial air conditioning and heating products (4)                     |   |                         | 13.7   |   |   |   | 15.3 |   |
|    Subtotal                                                    |   |                         | (210.9 | ) |   |   | 53.7 |   |
| Unallocated:                                                             |   |                         |   |   |   |   |   |   |
| Stock-based compensation charges                                         |   |                         | (0.1   | ) |   |   | (0.1 | ) |
| Income from change in estimate of loss on the Company's                  |   |                         |   |   |   |   |   |   |
|    indemnification related to a lease guarantee                |   |                         | 3.2    |   |   |   | --- |   |
| Advisory fees related to the Company's analysis of                       |   |                         |   |   |   |   |   |   |
|    its capital structure                                       |   |                         | (0.9   | ) |   |   | --- |   |
| Foreign exchange gains on transactions,                                  |   |                         |   |   |   |   |   |   |
|    including intercompany debt                                 |   |                         | 0.4    |   |   |   | --- |   |
| Unallocated, net                                                         |   |                         | (7.4   | ) |   |   | (6.7 | ) |
|    Consolidated operating (loss) earnings                      |   |                         | (215.7 | ) |   |   | 46.9 |   |
| Interest expense                                                         |   |                         | (37.7  | ) |   |   | (31.3 | ) |
| Loss from debt retirement                                                |   |                         | ---    |   |   |   | (9.9 | ) |
| Investment income                                                        |   |                         | 0.1    |   |   |   | 0.2 |   |
|    (Loss) earnings before (benefit) provision for income taxes |   | $                            | (253.3 | ) |   | $ | 5.9 |   |

|   | (1) | The operating results of the RVP segment for the second quarter ended July 4, 2009 include: |
|--------|-----|---------------------------------------------------------------------------------------------|

| ·   | approximately $1.2 million of severance charges incurred related to certain reduction in workforce initiatives, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $0.7 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility, and |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $0.2 million. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility, |
|--------------------|---------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in connection with the start up of a range hood facility in Mexico of approximately $1.4 million, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $1.4 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The operating results of the HTP segment for the second quarter ended July 4, 2009 include an estimated non-cash goodwill impairment charge of approximately $250.0 million and a charge related to reserves for amounts due from customers of approximately $0.6 million. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The operating results of the R-HVAC segment for the second quarter ended July 4, 2009 include approximately $0.1 million of severance charges incurred related to certain reduction in workforce initiatives and a charge related to reserves for amounts due from customers of approximately $0.1 million. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The operating results of the C-HVAC segment for the second quarter ended July 4, 2009 include a charge related to reserves for amounts due from customers of approximately $1.1 million and net foreign exchange losses of approximately $1.1 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   | For the six months ended     |   |
|----------------------------------------------------------------|--------|------------------------------|--------|
|                                                           |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                           |   | (Dollar amounts in millions) |   |
| Net sales:                                                     |   |                         |   |   |   |   |
| Residential ventilation products                               |   | $                            | 289.3  |   |   | $ | 375.2 |   |
| Home technology products                                       |   |                         | 198.3  |   |   |   | 255.3 |   |
| Residential air conditioning and heating products              |   |                         | 219.9  |   |   |   | 297.6 |   |
| Commercial air conditioning and heating products               |   |                         | 219.3  |   |   |   | 259.2 |   |
|    Consolidated net sales                            |   | $                            | 926.8  |   |   | $ | 1,187.3 |   |
|                                                           |   |                         |   |   |   |   |   |   |
| Operating (loss) earnings:                                     |   |                         |   |   |   |   |   |   |
| Residential ventilation products (1)                           |   | $                            | 20.9   |   |   | $ | 31.9 |   |
| Home technology products (2)                                   |   |                         | (246.0 | ) |   |   | 18.1 |   |
| Residential air conditioning and heating products (3)          |   |                         | 5.3    |   |   |   | 15.6 |   |
| Commercial air conditioning and heating products (4)           |   |                         | 29.9   |   |   |   | 19.0 |   |
|    Subtotal                                          |   |                         | (189.9 | ) |   |   | 84.6 |   |
| Unallocated:                                                   |   |                         |   |   |   |   |   |   |
| Stock-based compensation charges                               |   |                         | (0.1   | ) |   |   | (0.1 | ) |
| Income from change in estimate of loss on the Company's        |   |                         |   |   |   |   |   |   |
|    indemnification related to a lease guarantee      |   |                         | 3.2    |   |   |   | --- |   |
| Advisory fees related to the Company's analysis of             |   |                         |   |   |   |   |   |   |
|    its capital structure                             |   |                         | (0.9   | ) |   |   | --- |   |
| Foreign exchange gains on transactions,                        |   |                         |   |   |   |   |   |   |
|    including intercompany debt                       |   |                         | 0.4    |   |   |   | 0.1 |   |
| Unallocated, net                                               |   |                         | (13.8  | ) |   |   | (14.3 | ) |
|    Consolidated operating (loss) earnings            |   |                         | (201.1 | ) |   |   | 70.3 |   |
| Interest expense                                               |   |                         | (76.0  | ) |   |   | (58.7 | ) |
| Loss from debt retirement                                      |   |                         | ---    |   |   |   | (9.9 | ) |
| Investment income                                              |   |                         | 0.2    |   |   |   | 0.4 |   |
|    (Loss) earnings before provision for income taxes |   | $                            | (276.9 | ) |   | $ | 2.1 |   |

|   | (1) | The operating results of the RVP segment for the six months ended July 4, 2009 include: |
|--------|-----|-----------------------------------------------------------------------------------------|

| ·   | approximately $1.5 million of severance charges incurred related to certain reduction in workforce initiatives, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $1.1 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $0.3 million, and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility. |
|--------------------|---------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility |
|--------------------|--------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in connection with the start up of a range hood facility in Mexico of approximately $1.4 million, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $0.9 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The operating results of the HTP segment for the six months ended July 4, 2009 include: |
|--------|-----|-----------------------------------------------------------------------------------------|

| ·   | an estimated non-cash goodwill impairment charge of approximately $250.0 million, |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $1.2 million, |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | approximately $0.4 million of severance charges incurred related to certain reduction in workforce initiatives, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $0.2 million related to transactions. |
|--------------------|------------------------------------------------------------------------------------|

|   | (3) | The operating results of the R-HVAC segment for the first six months ended July 4, 2009 include approximately $0.3 million of severance charges incurred related to certain reduction in workforce initiatives and a charge related to reserves for amounts due from customers of approximately $0.1 million. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The operating results of the C-HVAC segment for the first six months ended July 4, 2009 include a charge related to reserves for amounts due from customers of approximately $1.2 million and net foreign exchange losses of approximately $0.6 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   | For the second quarter ended |   |
|-------------------------------------------------------|--------|------------------------------|--------|
|                                                  |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                  |   | (Dollar amounts in millions) |   |
|                                                  |   |                         |   |   |   |   |
| Depreciation Expense:                                 |   |                         |   |   |   |   |
| Residential ventilation products                      |   | $                            | 3.7    |   |   | $ | 4.1 |   |
| Home technology products                              |   |                         | 1.5    |   |   |   | 1.6 |   |
| Residential air conditioning and heating products     |   |                         | 2.8    |   |   |   | 2.7 |   |
| Commercial air conditioning and heating products      |   |                         | 1.4    |   |   |   | 1.7 |   |
| Other                                                 |   |                         | 0.2    |   |   |   | 0.1 |   |
|    Consolidated depreciation expense        |   | $                            | 9.6    |   |   | $ | 10.2 |   |
|                                                  |   |                         |   |   |   |   |   |   |
| Amortization expense:                                 |   |                         |   |   |   |   |   |   |
| Residential ventilation products (1)                  |   | $                            | 2.1    |   |   | $ | 3.4 |   |
| Home technology products                              |   |                         | 2.9    |   |   |   | 3.3 |   |
| Residential air conditioning and heating products (2) |   |                         | 0.3    |   |   |   | 0.2 |   |
| Commercial air conditioning and heating products      |   |                         | 1.2    |   |   |   | 1.3 |   |
| Other                                                 |   |                         | ---    |   |   |   | 0.2 |   |
|    Consolidated amortization expense        |   | $                            | 6.5    |   |   | $ | 8.4 |   |
|                                                  |   |                         |   |   |   |   |   |   |
| Capital Expenditures:                                 |   |                         |   |   |   |   |   |   |
| Residential ventilation products                      |   | $                            | 1.2    |   |   | $ | 3.3 |   |
| Home technology products                              |   |                         | 0.4    |   |   |   | 0.7 |   |
| Residential air conditioning and heating products     |   |                         | 0.2    |   |   |   | 2.4 |   |
| Commercial air conditioning and heating products      |   |                         | 2.1    |   |   |   | 2.2 |   |
|    Consolidated capital expenditures        |   | $                            | 3.9    |   |   | $ | 8.6 |   |

|   | (1) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.3 million for the second quarter ended July 4, 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.2 million for the second quarter ended July 4, 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   | For the six months ended     |   |
|-------------------------------------------------------|--------|------------------------------|--------|
|                                                  |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                                  |   | (Dollar amounts in millions) |   |
|                                                  |   |                         |   |   |   |   |
| Depreciation Expense:                                 |   |                         |   |   |   |   |
| Residential ventilation products                      |   | $                            | 7.1    |   |   | $ | 8.3 |   |
| Home technology products                              |   |                         | 3.1    |   |   |   | 3.2 |   |
| Residential air conditioning and heating products     |   |                         | 5.6    |   |   |   | 5.7 |   |
| Commercial air conditioning and heating products      |   |                         | 3.1    |   |   |   | 3.4 |   |
| Other                                                 |   |                         | 0.3    |   |   |   | 0.3 |   |
|    Consolidated depreciation expense        |   | $                            | 19.2   |   |   | $ | 20.9 |   |
|                                                  |   |                         |   |   |   |   |   |   |
| Amortization expense:                                 |   |                         |   |   |   |   |   |   |
| Residential ventilation products (1)                  |   | $                            | 3.8    |   |   | $ | 5.3 |   |
| Home technology products                              |   |                         | 5.7    |   |   |   | 6.6 |   |
| Residential air conditioning and heating products (2) |   |                         | 0.5    |   |   |   | 0.3 |   |
| Commercial air conditioning and heating products      |   |                         | 2.4    |   |   |   | 2.6 |   |
| Other                                                 |   |                         | ---    |   |   |   | 0.3 |   |
|    Consolidated amortization expense        |   | $                            | 12.4   |   |   | $ | 15.1 |   |
|                                                  |   |                         |   |   |   |   |   |   |
| Capital Expenditures:                                 |   |                         |   |   |   |   |   |   |
| Residential ventilation products                      |   | $                            | 1.8    |   |   | $ | 7.4 |   |
| Home technology products                              |   |                         | 0.8    |   |   |   | 1.5 |   |
| Residential air conditioning and heating products     |   |                         | 0.9    |   |   |   | 4.1 |   |
| Commercial air conditioning and heating products      |   |                         | 2.9    |   |   |   | 2.9 |   |
|    Consolidated capital expenditures        |   | $                            | 6.4    |   |   | $ | 15.9 |   |

|   | (1) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.3 million for the first six months ended July 4, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.2 million for the first six months ended July 4, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | July 4,                      |    |   | December 31, |   |
|----------------------------------------------------|--------|------------------------------|---------|--------|--------------|--------|
|                                               |   | 2009                         |    |   | 2008         |   |
|                                               |   | (Dollar amounts in millions) |    |
|                                               |   |                         |    |   |         |   |
| Segment Assets:                                    |   |                         |    |   |         |   |
| Residential ventilation products                   |   | $                            | 638.4   |   |         | $      | 671.2 |   |
| Home technology products                           |   |                         | 322.4   |   |         |   | 603.8 |   |
| Residential air conditioning and heating products  |   |                         | 237.4   |   |         |   | 209.1 |   |
| Commercial air conditioning and heating products   |   |                         | 225.1   |   |         |   | 249.0 |   |
|                                               |   |                         | 1,423.3 |   |         |   | 1,733.1 |   |
| Unallocated:                                       |   |                         |    |   |         |   |   |   |
| Cash and cash equivalents, including               |   |                         |    |   |         |   |   |   |
| current restricted cash                            |   |                         | 172.8   |   |         |   | 182.9 |   |
| Prepaid income taxes                               |   |                         | 9.6     |   |         |   | 11.0 |   |
| Other assets, including long-term restricted       |   |                         |    |   |         |   |   |   |
|    investments and marketable securities |   |                         | 46.6    |   |         |   | 53.3 |   |
| Consolidated assets                                |   | $                            | 1,652.3 |   |         | $      | 1,980.3 |   |

| (E) | The Company provided income taxes on an interim basis based upon the estimated annual effective tax rate for 2009 and 2008.  The following reconciles the federal statutory income tax rate to the effective tax rate of approximately (0.4)% and 119.0% for the first six months ended July 4, 2009 and June 28, 2008: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   | For the first six months ended |
|----------------------------------------------------------------|--------|--------------------------------|
|                                                           |   | July 4, 2009                   |   | June 28, 2008 |
| Income tax at the federal statutory rate                       |   |                           | 35.0 | % |   |   | 35.0 | % |
| Net change from federal statutory rate:                        |   |                           |   |   |   |   |   |   |
| Goodwill impairment                                            |   |                           | (29.3 | ) |   |   | --- |   |
| Decrease (increase) in FIN 48 reserves, including interest     |   |                           | 0.4 |   |   |   | 57.4 |   |
| State income tax provision, net of federal income tax effect   |   |                           | (1.1 | ) |   |   | 13.0 |   |
| Tax effect resulting from foreign activities                   |   |                           | (0.2 | ) |   |   | 3.0 |   |
| Non-deductible expenses                                        |   |                           | (0.2 | ) |   |   | 2.8 |   |
| Increase in valuation allowance related to deferred tax assets |   |                           | (5.2 | ) |   |   | --- |   |
| Other, net                                                     |   |                           | 0.2 |   |   |   | 7.8 |   |
| Income tax at effective rate                                   |   |                           | (0.4 | )% |   |   | 119.0 | % |

|                             |   | For the second quarter ended |         |
|----------------------------------|--------|------------------------------|--------------|
|                             |   | July 4, 2009                 |         |   | June 28, 2008 |   |
|                             |   | (Amounts in millions)        |         |
|                             |   |                         |         |   |   |   |
| Balance, beginning of the period |   |                         | $  42.0 |   |   |   | $  35.8 |   |
| Provision during the period      |   |                         | 2.7          |   |   |   | 3.3 |   |
| Payments made during the period  |   |                         | (2.3         | ) |   |   | (1.4 | ) |
| Other adjustments                |   |                         | 0.4          |   |   |   | 0.2 |   |
| Balance, end of the period       |   |                         | $  42.8 |   |   |   | $  37.9 |   |

|                             |   | For the six months ended |         |
|----------------------------------|--------|--------------------------|--------------|
|                             |   | July 4, 2009             |         |   | June 28, 2008 |   |
|                             |   | (Amounts in millions)    |         |
|                             |   |                     |         |   |   |   |
| Balance, beginning of the period |   |                     | $  39.5 |   |   |   | $  35.0 |   |
| Provision during the period      |   |                     | 6.3          |   |   |   | 6.2 |   |
| Payments made during the period  |   |                     | (3.4         | ) |   |   | (3.5 | ) |
| Other adjustments                |   |                     | 0.4          |   |   |   | 0.2 |   |
| Balance, end of the period       |   |                     | $  42.8 |   |   |   | $  37.9 |   |

|                                                 |   | For the second quarter ended |      |
|------------------------------------------------------|--------|------------------------------|-----------|
|                                                 |   | July 4, 2009                 |      |   | June 28, 2008 |   |
|                                                 |   | (Amounts in millions)        |      |
|                                                 |   |                         |      |   |   |   |
| Balance, beginning of the period                     |   | $                            | 51.8      |   |   | $ | 48.7 |   |
| Warranties provided during the period                |   |                         | 7.3       |   |   |   | 8.7 |   |
| Settlements made during the period                   |   |                         | (6.9      | ) |   |   | (7.4 | ) |
| Changes in liability estimate, including expirations |   |                         |  1.2 |   |   |   |  0.6 |   |
| Balance, end of the period                           |   | $                            | 53.4      |   |   | $ | 50.6 |   |

|                                                 |   | For the six months ended |      |
|------------------------------------------------------|--------|--------------------------|-----------|
|                                                 |   | July 4, 2009             |      |   | June 28, 2008 |   |
|                                                 |   | (Amounts in millions)    |      |
|                                                 |   |                     |      |   |   |   |
| Balance, beginning of the period                     |   | $                        | 51.5      |   |   | $ | 47.3 |   |
| Warranties provided during the period                |   |                     | 14.4      |   |   |   | 16.0 |   |
| Settlements made during the period                   |   |                     | (13.3     | ) |   |   | (13.9 | ) |
| Changes in liability estimate, including expirations |   |                     |  0.8 |   |   |   |  1.2 |   |
| Balance, end of the period                           |   | $                        | 53.4      |   |   | $ | 50.6 |   |

| (G) | The Company and its subsidiaries have various pension plans, supplemental retirement plans for certain officers, profit sharing and other post-retirement benefit plans requiring contributions to qualified trusts and union administered funds. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               |   | For the second quarter ended |   |
|------------------------------------|--------|------------------------------|--------|
|                               |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                               |   | (Dollar amounts in millions) |   |
|                               |   |                         |   |   |   |   |
| Service cost                       |   | $                            | 0.2    |   |   | $ | 0.2 |   |
| Interest cost                      |   |                         | 2.3    |   |   |   | 3.4 |   |
| Expected return on plan assets     |   |                         | (1.9   | ) |   |   | (3.7 | ) |
| Recognized actuarial loss          |   |                         | 0.1    |   |   |   | --- |   |
| Net periodic benefit cost (income) |   | $                            | 0.7    |   |   | $ | (0.1 | ) |

|                               |   | For the six months ended     |   |
|------------------------------------|--------|------------------------------|--------|
|                               |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                               |   | (Dollar amounts in millions) |   |
|                               |   |                         |   |   |   |   |
| Service cost                       |   | $                            | 0.3    |   |   | $ | 0.3 |   |
| Interest cost                      |   |                         | 4.6    |   |   |   | 5.9 |   |
| Expected return on plan assets     |   |                         | (3.7   | ) |   |   | (6.4 | ) |
| Recognized actuarial loss          |   |                         | 0.3    |   |   |   | --- |   |
| Net periodic benefit cost (income) |   | $                            | 1.5    |   |   | $ | (0.2 | ) |

|                                     |   | For the second quarter ended |   |
|------------------------------------------|--------|------------------------------|--------|
|                                     |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                     |   | (Dollar amounts in millions) |   |
|                                     |   |                         |   |   |   |   |
| Interest cost                            |   | $                            | 0.1    |   |   | $ | 0.1 |   |
| Net periodic post-retirement health cost |   | $                            | 0.1    |   |   | $ | 0.1 |   |

|                                     |   | For the six months ended     |   |
|------------------------------------------|--------|------------------------------|--------|
|                                     |   | July 4, 2009                 |   |   | June 28, 2008 |   |
|                                     |   | (Dollar amounts in millions) |   |
|                                     |   |                         |   |   |   |   |
| Interest cost                            |   | $                            | 0.2    |   |   | $ | 0.2 |   |
| Amortization of prior service cost       |   |                         | (0.1   | ) |   |   | --- |   |
| Net periodic post-retirement health cost |   | $                            | 0.1    |   |   | $ | 0.2 |   |

| (H) | On August 17, 2009, the Company’s wholly-owned subsidiary Cleanpak International, Inc. announced plans to shut down manufacturing operations at its Clackamas, Oregon plant, including termination of all 163 workers, and to relocate such operations to the Huntair, Inc. plant in Tualatin, Oregon.  The Companywill be meeting with the Sheet Metal Workers Local 16 Union to discuss the effects of the plant shutdown.  It is anticipated that the manufacturing operations at Clackamas will cease by the end of 2009.  The costs of the shutdown, including any severance, relocation expenses and facility lease costs are estimated to be between $3.0 million and $4.0 million and have not been reflected in the Company’s Unaudited Financial Statements as of or for the periods ended July 4, 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (I) | Nortek’s 10% Senior Secured Notes and Nortek’s 8 1/2% Notes are guaranteed by all of Nortek’s current and certain future domestic subsidiaries (the “Guarantors”), as defined, with the exception of certain domestic subsidiaries, as defined, which are excluded from the 10% Senior Secured Note and the 8 1/2% Note guarantees. The Guarantors are wholly-owned either directlyor indirectly by Nortek and jointly and severally guarantee Nortek’s obligations under the 10% Senior Secured Notes and the 8 1/2% Notes.  None of Nortek’s subsidiaries organized outside of the United States guarantee the 10% Senior Secured Notes or the 8 1/2% Notes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                   |   |                         |    |   | Guarantor    |   |    | Non-Guarantor |   |   |         |   |   | Nortek       |   |
|----------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------------|--------|---------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                                                   |   | Parent                       |    |   | Subsidiaries |   |    | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                   |   | (Dollar amounts in millions) |    |
| ASSETS:                                                                                |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |
| Current Assets:                                                                        |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |
| Unrestricted cash and cash equivalents                                                 |   | $                            | 124.1   |   |         | $      | 14.3    |          |   | $      | 33.6         |   |   | $            | ---    |   |   | $ | 172.0 |   |
| Restricted cash                                                                        |   |                         | 0.1     |   |         |   | 0.7     |          |   |   | ---          |   |   |         | ---    |   |   |   | 0.8 |   |
| Accounts receivable, less allowances                                                   |   |                         | ---     |   |         |   | 204.8   |          |   |   | 56.0         |   |   |         | ---    |   |   |   | 260.8 |   |
| Intercompany receivables (payables)                                                    |   |                         | 3.0     |   |         |   | (2.3    | )             |   |   | (0.7         | )      |   |         | ---    |   |   |   | --- |   |
| Inventories                                                                            |   |                         | ---     |   |         |   | 212.4   |          |   |   | 49.8         |   |   |         | ---    |   |   |   | 262.2 |   |
| Prepaid expenses                                                                       |   |                         | 0.8     |   |         |   | 8.4     |          |   |   | 3.5          |   |   |         | ---    |   |   |   | 12.7 |   |
| Other current assets                                                                   |   |                         | 0.4     |   |         |   | 2.0     |          |   |   | 6.3          |   |   |         | ---    |   |   |   | 8.7 |   |
| Prepaid income taxes                                                                   |   |                         | (18.7   | )      |         |   | 25.3    |          |   |   | 3.0          |   |   |         | ---    |   |   |   | 9.6 |   |
|      Total current assets                                     |   |                         | 109.7   |   |         |   | 465.6   |          |   |   | 151.5        |   |   |         | ---    |   |   |   | 726.8 |   |
| Property and Equipment, at Cost:                                                       |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Total property and equipment, net                                                      |   |                         | 0.8     |   |         |   | 121.6   |          |   |   | 70.9         |   |   |         | ---    |   |   |   | 193.3 |   |
| Other Long-term Assets:                                                                |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Investment in subsidiaries and long-term                                               |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    receivable from (to) subsidiaries                                    |   |                         | 1,043.2 |   |         |   | (75.3   | )             |   |   | (65.4        | )      |   |         | (902.5 | ) |   |   | --- |   |
| Goodwill                                                                               |   |                         | ---     |   |         |   | 549.0   |          |   |   | 12.5         |   |   |         | ---    |   |   |   | 561.5 |   |
| Intangible assets, less accumulated amortization                                       |   |                         | ---     |   |         |   | 101.9   |          |   |   | 21.8         |   |   |         | ---    |   |   |   | 123.7 |   |
| Other assets                                                                           |   |                         | 43.7    |   |         |   | 2.7     |          |   |   | 0.6          |   |   |         | ---    |   |   |   | 47.0 |   |
|      Total other long-term assets                             |   |                         | 1,086.9 |   |         |   | 578.3   |          |   |   | (30.5        | )      |   |         | (902.5 | ) |   |   | 732.2 |   |
|      Total assets                                             |   | $                            | 1,197.4 |   |         | $      | 1,165.5 |          |   | $      | 191.9        |   |   | $            | (902.5 | ) |   | $ | 1,652.3 |   |
| LIABILITIES AND STOCKHOLDER'S                                                          |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
|      (DEFICIT) INVESTMENT:                                    |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Current Liabilities:                                                                   |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Notes payable and other short-term obligations                                         |   | $                            | ---     |   |         | $      | ---     |          |   | $      | 18.4         |   |   | $            | ---    |   |   | $ | 18.4 |   |
| Current maturities of long-term debt                                                   |   |                         | 30.0    |   |         |   | 4.8     |          |   |   | 5.3          |   |   |         | ---    |   |   |   | 40.1 |   |
| Long-term debt                                                                         |   |                         | ---     |   |         |   | ---     |          |   |   | 6.1          |   |   |         | ---    |   |   |   | 6.1 |   |
| Accounts payable                                                                       |   |                         | 0.9     |   |         |   | 89.6    |          |   |   | 45.2         |   |   |         | ---    |   |   |   | 135.7 |   |
| Accrued expenses and taxes, net                                                        |   |                         | 37.2    |   |         |   | 112.0   |          |   |   | 39.1         |   |   |         | ---    |   |   |   | 188.3 |   |
|      Total current liabilities                                |   |                         | 68.1    |   |         |   | 206.4   |          |   |   | 114.1        |   |   |         | ---    |   |   |   | 388.6 |   |
| Other Liabilities:                                                                     |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Deferred income taxes                                                                  |   |                         | 18.0    |   |         |   | (6.3    | )             |   |   | 13.4         |   |   |         | ---    |   |   |   | 25.1 |   |
| Long-term payable to affiliate                                                         |   |                         | 43.0    |   |         |   | ---     |          |   |   | ---          |   |   |         | ---    |   |   |   | 43.0 |   |
| Other long-term liabilities                                                            |   |                         | 49.9    |   |         |   | 96.7    |          |   |   | 9.8          |   |   |         | ---    |   |   |   | 156.4 |   |
|                                                                                   |   |                         | 110.9   |   |         |   | 90.4    |          |   |   | 23.2         |   |   |         | ---    |   |   |   | 224.5 |   |
| Notes, Mortgage Notes and Obligations                                                  |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
|      Payable, Less Current Maturities                         |   |                         | 1,513.4 |   |         |   | 19.7    |          |   |   | 1.1          |   |   |         | ---    |   |   |   | 1,534.2 |   |
|                                                                                   |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Stockholder's (deficit) investment                                                     |   |                         | (495.0  | )      |         |   | 849.0   |          |   |   | 53.5         |   |   |         | (902.5 | ) |   |   | (495.0 | ) |
|      Total liabilities and stockholder's (deficit) investment |   | $                            | 1,197.4 |   |         | $      | 1,165.5 |          |   | $      | 191.9        |   |   | $            | (902.5 | ) |   | $ | 1,652.3 |   |

|                                                                                   |   |                         |    |   | Guarantor    |   |    | Non-Guarantor |   |   |         |   |   | Nortek       |     |
|----------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------------|--------|---------|---------------|--------|--------|--------------|--------|--------|--------------|----------|
|                                                                                   |   | Parent                       |    |   | Subsidiaries |   |    | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |     |
|                                                                                   |   | (Dollar amounts in millions) |    |
| ASSETS:                                                                                |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |
| Current Assets:                                                                        |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |
| Unrestricted cash and cash equivalents                                                 |   | $                            | 144.1   |   |         | $      | 7.5     |          |   | $      | 30.6         |   |   | $            | ---      |   |   | $ | 182.2 |   |
| Restricted cash                                                                        |   |                         | ---     |   |         |   | 0.7     |          |   |   | ---          |   |   |         | ---      |   |   |   | 0.7 |   |
| Accounts receivable, less allowances                                                   |   |                         | ---     |   |         |   | 175.9   |          |   |   | 84.4         |   |   |         | ---      |   |   |   | 260.3 |   |
| Intercompany receivables (payables)                                                    |   |                         | 2.4     |   |         |   | (6.1    | )             |   |   | 3.7          |   |   |         | ---      |   |   |   | --- |   |
| Inventories                                                                            |   |                         | ---     |   |         |   | 242.7   |          |   |   | 53.6         |   |   |         | ---      |   |   |   | 296.3 |   |
| Prepaid expenses                                                                       |   |                         | ---     |   |         |   | 8.7     |          |   |   | 4.1          |   |   |         | ---      |   |   |   | 12.8 |   |
| Other current assets                                                                   |   |                         | 0.2     |   |         |   | 1.3     |          |   |   | 8.0          |   |   |         | ---      |   |   |   | 9.5 |   |
| Prepaid income taxes                                                                   |   |                         | (16.3   | )      |         |   | 24.3    |          |   |   | 3.0          |   |   |         | ---      |   |   |   | 11.0 |   |
|      Total current assets                                     |   |                         | 130.4   |   |         |   | 455.0   |          |   |   | 187.4        |   |   |         | ---      |   |   |   | 772.8 |   |
| Property and Equipment, at Cost:                                                       |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Total property and equipment, net                                                      |   |                         | 0.8     |   |         |   | 130.5   |          |   |   | 76.4         |   |   |         | ---      |   |   |   | 207.7 |   |
| Other Long-term Assets:                                                                |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Investment in subsidiaries and long-term                                               |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
|    receivable from (to) subsidiaries                                    |   |                         | 1,276.1 |   |         |   | (82.8   | )             |   |   | (69.8        | )      |   |         | (1,123.5 | ) |   |   | --- |   |
| Goodwill                                                                               |   |                         | ---     |   |         |   | 799.6   |          |   |   | 11.2         |   |   |         | ---      |   |   |   | 810.8 |   |
| Intangible assets, less accumulated amortization                                       |   |                         | ---     |   |         |   | 111.5   |          |   |   | 23.9         |   |   |         | ---      |   |   |   | 135.4 |   |
| Other assets                                                                           |   |                         | 49.7    |   |         |   | 2.8     |          |   |   | 1.1          |   |   |         | ---      |   |   |   | 53.6 |   |
|      Total other long-term assets                             |   |                         | 1,325.8 |   |         |   | 831.1   |          |   |   | (33.6        | )      |   |         | (1,123.5 | ) |   |   | 999.8 |   |
|      Total assets                                             |   | $                            | 1,457.0 |   |         | $      | 1,416.6 |          |   | $      | 230.2        |   |   | $            | (1,123.5 | ) |   | $ | 1,980.3 |   |
| LIABILITIES AND STOCKHOLDER'S                                                          |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
|      (DEFICIT) INVESTMENT:                                    |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Current Liabilities:                                                                   |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Notes payable and other short-term obligations                                         |   | $                            | ---     |   |         | $      | ---     |          |   | $      | 32.7         |   |   | $            | ---      |   |   | $ | 32.7 |   |
| Current maturities of long-term debt                                                   |   |                         | ---     |   |         |   | 7.7     |          |   |   | 5.4          |   |   |         | ---      |   |   |   | 13.1 |   |
| Long-term debt                                                                         |   |                         | ---     |   |         |   | ---     |          |   |   | 8.1          |   |   |         | ---      |   |   |   | 8.1 |   |
| Accounts payable                                                                       |   |                         | 2.9     |   |         |   | 83.4    |          |   |   | 66.0         |   |   |         | ---      |   |   |   | 152.3 |   |
| Accrued expenses and taxes, net                                                        |   |                         | 42.3    |   |         |   | 127.5   |          |   |   | 44.1         |   |   |         | ---      |   |   |   | 213.9 |   |
|      Total current liabilities                                |   |                         | 45.2    |   |         |   | 218.6   |          |   |   | 156.3        |   |   |         | ---      |   |   |   | 420.1 |   |
| Other Liabilities:                                                                     |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Deferred income taxes                                                                  |   |                         | 12.8    |   |         |   | 4.4     |          |   |   | 13.5         |   |   |         | ---      |   |   |   | 30.7 |   |
| Long-term payable to affiliate                                                         |   |                         | 43.1    |   |         |   | ---     |          |   |   | ---          |   |   |         | ---      |   |   |   | 43.1 |   |
| Other long-term liabilities                                                            |   |                         | 52.9    |   |         |   | 99.4    |          |   |   | 8.4          |   |   |         | ---      |   |   |   | 160.7 |   |
|                                                                                   |   |                         | 108.8   |   |         |   | 103.8   |          |   |   | 21.9         |   |   |         | ---      |   |   |   | 234.5 |   |
| Notes, Mortgage Notes and Obligations                                                  |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
|      Payable, Less Current Maturities                         |   |                         | 1,522.8 |   |         |   | 20.7    |          |   |   | 2.0          |   |   |         | ---      |   |   |   | 1,545.5 |   |
|                                                                                   |   |                         |    |   |         |   |    |          |   |   |         |   |   |         |     |   |   |   |   |   |
| Stockholder's (deficit) investment                                                     |   |                         | (219.8  | )      |         |   | 1,073.5 |          |   |   | 50.0         |   |   |         | (1,123.5 | ) |   |   | (219.8 | ) |
|      Total liabilities and stockholder's (deficit) investment |   | $                            | 1,457.0 |   |         | $      | 1,416.6 |          |   | $      | 230.2        |   |   | $            | (1,123.5 | ) |   | $ | 1,980.3 |   |

|                                                           |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   |         |   |   | Nortek       |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                           |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |   |
|                                                           |   | (Dollar amounts in millions) |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |
| Net Sales                                                      |   | $                            | ---    |   |         | $      | 410.6  |          |   | $      | 105.1        |   |   | $            | (27.9  | ) |   | $ | 487.8 |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Costs and expenses:                                            |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    Costs of products sold                            |   |                         | ---    |   |         |   | 292.4  |          |   |   | 87.2         |   |   |         | (27.9  | ) |   |   | 351.7 |   |
|    Selling, general and administrative expenses, net |   |                         | 5.1    |   |         |   | 76.6   |          |   |   | 14.1         |   |   |         | ---    |   |   |   | 95.8 |   |
|    Goodwill impairment charge                        |   |                         | ---    |   |         |   | 250.0  |          |   |   | ---          |   |   |         | ---    |   |   |   | 250.0 |   |
|    Amortization of intangible assets                 |   |                         | ---    |   |         |   | 5.2    |          |   |   | 0.8          |   |   |         | ---    |   |   |   | 6.0 |   |
|                                                           |   |                         | 5.1    |   |         |   | 624.2  |          |   |   | 102.1        |   |   |         | (27.9  | ) |   |   | 703.5 |   |
| Operating (loss) earnings                                      |   |                         | (5.1   | )      |         |   | (213.6 | )             |   |   | 3.0          |   |   |         | ---    |   |   |   | (215.7 | ) |
| Interest expense                                               |   |                         | (36.7  | )      |         |   | (0.4   | )             |   |   | (0.6         | )      |   |         | ---    |   |   |   | (37.7 | ) |
| Investment income                                              |   |                         | 0.1    |   |         |   | ---    |          |   |   | ---          |   |   |         | ---    |   |   |   | 0.1 |   |
| (Loss) income before charges and allocations                   |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    to subsidiaries and equity in subsidiaries'       |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    (loss) earnings before income taxes               |   |                         | (41.7  | )      |         |   | (214.0 | )             |   |   | 2.4          |   |   |         | ---    |   |   |   | (253.3 | ) |
| Charges and allocations to subsidiaries and                    |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    equity in subsidiaries' (loss) earnings           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    before income taxes                               |   |                         | (211.6 | )      |         |   | (1.5   | )             |   |   | 0.7          |   |   |         | 212.4  |   |   |   | --- |   |
| (Loss) earnings before (benefit)                               |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    provision for income taxes                        |   |                         | (253.3 | )      |         |   | (215.5 | )             |   |   | 3.1          |   |   |         | 212.4  |   |   |   | (253.3 | ) |
| (Benefit) provision for income taxes                           |   |                         | (7.9   | )      |         |   | 17.4   |          |   |   | 3.3          |   |   |         | (20.7  | ) |   |   | (7.9 | ) |
|    Net (loss) earnings                               |   | $                            | (245.4 | )      |         | $      | (232.9 | )             |   | $      | (0.2         | )      |   | $            | 233.1  |   |   | $ | (245.4 | ) |

|                                                           |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   |         |   |   | Nortek       |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                           |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |   |
|                                                           |   | (Dollar amounts in millions) |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |
| Net Sales                                                      |   | $                            | ---    |   |         | $      | 533.9  |          |   | $      | 151.8        |   |   | $            | (38.6  | ) |   | $ | 647.1 |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Costs and expenses:                                            |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    Costs of products sold                            |   |                         | ---    |   |         |   | 387.7  |          |   |   | 124.2        |   |   |         | (38.6  | ) |   |   | 473.3 |   |
|    Selling, general and administrative expenses, net |   |                         | 6.5    |   |         |   | 88.9   |          |   |   | 23.1         |   |   |         | ---    |   |   |   | 118.5 |   |
|    Amortization of intangible assets                 |   |                         | 0.2    |   |         |   | 7.0    |          |   |   | 1.2          |   |   |         | ---    |   |   |   | 8.4 |   |
|                                                           |   |                         | 6.7    |   |         |   | 483.6  |          |   |   | 148.5        |   |   |         | (38.6  | ) |   |   | 600.2 |   |
| Operating (loss) earnings                                      |   |                         | (6.7   | )      |         |   | 50.3   |          |   |   | 3.3          |   |   |         | ---    |   |   |   | 46.9 |   |
| Interest expense                                               |   |                         | (29.9  | )      |         |   | (0.7   | )             |   |   | (0.7         | )      |   |         | ---    |   |   |   | (31.3 | ) |
| Loss from debt retirement                                      |   |                         | (9.9   | )      |         |   | ---    |          |   |   | ---          |   |   |         | ---    |   |   |   | (9.9 | ) |
| Investment income                                              |   |                         | ---    |   |         |   | 0.1    |          |   |   | 0.1          |   |   |         | ---    |   |   |   | 0.2 |   |
| (Loss) income before charges and allocations                   |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    to subsidiaries and equity in subsidiaries'       |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    earnings (loss) before income taxes               |   |                         | (46.5  | )      |         |   | 49.7   |          |   |   | 2.7          |   |   |         | ---    |   |   |   | 5.9 |   |
| Charges and allocations to subsidiaries and                    |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    equity in subsidiaries' earnings (loss)           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    before income taxes                               |   |                         | 52.4   |   |         |   | (12.7  | )             |   |   | 0.6          |   |   |         | (40.3  | ) |   |   | --- |   |
| Earnings (loss) before provision                               |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    (benefit) for income taxes                        |   |                         | 5.9    |   |         |   | 37.0   |          |   |   | 3.3          |   |   |         | (40.3  | ) |   |   | 5.9 |   |
| Provision (benefit) for income taxes                           |   |                         | 2.2    |   |         |   | 14.5   |          |   |   | 0.6          |   |   |         | (15.1  | ) |   |   | 2.2 |   |
|    Net earnings (loss)                               |   | $                            | 3.7    |   |         | $      | 22.5   |          |   | $      | 2.7          |   |   | $            | (25.2  | ) |   | $ | 3.7 |   |

|                                                           |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   |         |   |   | Nortek       |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                           |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |   |
|                                                           |   | (Dollar amounts in millions) |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |
| Net Sales                                                      |   | $                            | ---    |   |         | $      | 763.8  |          |   | $      | 218.7        |   |   | $            | (55.7  | ) |   | $ | 926.8 |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Costs and expenses:                                            |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    Costs of products sold                            |   |                         | ---    |   |         |   | 547.2  |          |   |   | 177.7        |   |   |         | (55.7  | ) |   |   | 669.2 |   |
|    Selling, general and administrative expenses, net |   |                         | 11.5   |   |         |   | 151.0  |          |   |   | 34.3         |   |   |         | ---    |   |   |   | 196.8 |   |
|    Goodwill impairment charge                        |   |                         | ---    |   |         |   | 250.0  |          |   |   | ---          |   |   |         | ---    |   |   |   | 250.0 |   |
|    Amortization of intangible assets            |   |                         | ---    |   |         |   | 10.4   |          |   |   | 1.5          |   |   |         | ---    |   |   |   | 11.9 |   |
|                                                           |   |                         | 11.5   |   |         |   | 958.6  |          |   |   | 213.5        |   |   |         | (55.7  | ) |   |   | 1,127.9 |   |
| Operating (loss) earnings                                      |   |                         | (11.5  | )      |         |   | (194.8 | )             |   |   | 5.2          |   |   |         | ---    |   |   |   | (201.1 | ) |
| Interest expense                                               |   |                         | (74.0  | )      |         |   | (0.8   | )             |   |   | (1.2         | )      |   |         | ---    |   |   |   | (76.0 | ) |
| Investment income                                              |   |                         | 0.1    |   |         |   | ---    |          |   |   | 0.1          |   |   |         | ---    |   |   |   | 0.2 |   |
| (Loss) income before charges and allocations                   |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    to subsidiaries and equity in subsidiaries'       |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    (loss) earnings before income taxes               |   |                         | (85.4  | )      |         |   | (195.6 | )             |   |   | 4.1          |   |   |         | ---    |   |   |   | (276.9 | ) |
| Charges and allocations to subsidiaries and                    |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    equity in subsidiaries' (loss) earnings           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    before income taxes                               |   |                         | (191.5 | )      |         |   | (9.6   | )             |   |   | 1.4          |   |   |         | 199.7  |   |   |   | --- |   |
| (Loss) earnings before provision                               |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    (benefit) for income taxes                        |   |                         | (276.9 | )      |         |   | (205.2 | )             |   |   | 5.5          |   |   |         | 199.7  |   |   |   | (276.9 | ) |
| Provision (benefit) for income taxes                           |   |                         | 1.2    |   |         |   | 21.4   |          |   |   | 4.7          |   |   |         | (26.1  | ) |   |   | 1.2 |   |
|    Net (loss) earnings                               |   | $                            | (278.1 | )      |         | $      | (226.6 | )             |   | $      | 0.8          |   |   | $            | 225.8  |   |   | $ | (278.1 | ) |

|                                                           |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   |         |   |   | Nortek       |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                           |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Eliminations |   |   | Consolidated |   |
|                                                           |   | (Dollar amounts in millions) |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |
| Net Sales                                                      |   | $                            | ---    |   |         | $      | 965.4  |          |   | $      | 289.1        |   |   | $            | (67.2  | ) |   | $ | 1,187.3 |   |
|                                                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
| Costs and expenses:                                            |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    Costs of products sold                            |   |                         | ---    |   |         |   | 695.1  |          |   |   | 237.0        |   |   |         | (67.2  | ) |   |   | 864.9 |   |
|    Selling, general and administrative expenses, net |   |                         | 14.0   |   |         |   | 177.8  |          |   |   | 45.2         |   |   |         | ---    |   |   |   | 237.0 |   |
|    Amortization of intangible assets                 |   |                         | 0.3    |   |         |   | 12.8   |          |   |   | 2.0          |   |   |         | ---    |   |   |   | 15.1 |   |
|                                                           |   |                         | 14.3   |   |         |   | 885.7  |          |   |   | 284.2        |   |   |         | (67.2  | ) |   |   | 1,117.0 |   |
| Operating (loss) earnings                                      |   |                         | (14.3  | )      |         |   | 79.7   |          |   |   | 4.9          |   |   |         | ---    |   |   |   | 70.3 |   |
| Interest expense                                               |   |                         | (55.8  | )      |         |   | (1.4   | )             |   |   | (1.5         | )      |   |         | ---    |   |   |   | (58.7 | ) |
| Loss from debt retirement                                      |   |                         | (9.9   | )      |         |   | ---    |          |   |   | ---          |   |   |         | ---    |   |   |   | (9.9 | ) |
| Investment income                                              |   |                         | 0.1    |   |         |   | 0.1    |          |   |   | 0.2          |   |   |         | ---    |   |   |   | 0.4 |   |
| (Loss) income before charges and allocations                   |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    to subsidiaries and equity in subsidiaries'       |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    earnings (loss) before income taxes               |   |                         | (79.9  | )      |         |   | 78.4   |          |   |   | 3.6          |   |   |         | ---    |   |   |   | 2.1 |   |
| Charges and allocations to subsidiaries and                    |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    equity in subsidiaries' earnings (loss)           |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    before income taxes                               |   |                         | 82.0   |   |         |   | (23.2  | )             |   |   | 1.2          |   |   |         | (60.0  | ) |   |   | --- |   |
| Earnings (loss) before provision                               |   |                         |   |   |         |   |   |          |   |   |         |   |   |         |   |   |   |   |   |   |
|    (benefit) for income taxes                        |   |                         | 2.1    |   |         |   | 55.2   |          |   |   | 4.8          |   |   |         | (60.0  | ) |   |   | 2.1 |   |
| Provision (benefit) for income taxes                           |   |                         | 2.5    |   |         |   | 22.2   |          |   |   | 1.9          |   |   |         | (24.1  | ) |   |   | 2.5 |   |
|    Net (loss) earnings                               |   | $                            | (0.4   | )      |         | $      | 33.0   |          |   | $      | 2.9          |   |   | $            | (35.9  | ) |   | $ | (0.4 | ) |

|                                                                              |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   | Nortek       |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|
|                                                                              |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Consolidated |   |
|                                                                              |   | (Dollar amounts in millions) |   |
| Cash Flows from operating activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |
| Net cash (used in) provided by operating activities                               |   | $                            | (95.0  | )      |         | $      | 83.5   |          |   | $      | 18.2         |   |   | $ | 6.7 |   |
| Cash Flows from investing activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
| Capital expenditures                                                              |   |                         | ---    |   |         |   | (4.4   | )             |   |   | (2.0         | )      |   |   | (6.4 | ) |
| Net cash paid for businesses acquired                                             |   |                         | ---    |   |         |   | (14.1  | )             |   |   | ---          |   |   |   | (14.1 | ) |
| Proceeds from the sale of property and equipment                                  |   |                         | 1.4    |   |         |   | 0.5    |          |   |   | ---          |   |   |   | 1.9 |   |
| Change in restricted cash and investments                                         |   |                         | (0.1   | )      |         |   | ---    |          |   |   | ---          |   |   |   | (0.1 | ) |
| Other, net                                                                        |   |                         | (0.2   | )      |         |   | (0.8   | )             |   |   | (1.5         | )      |   |   | (2.5 | ) |
|      Net cash provided by (used in) investing activities |   |                         | 1.1    |   |         |   | (18.8  | )             |   |   | (3.5         | )      |   |   | (21.2 | ) |
| Cash Flows from financing activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
| Increase in borrowings                                                            |   |                         | 20.0   |   |         |   | ---    |          |   |   | 2.0          |   |   |   | 22.0 |   |
| Payment of borrowings                                                             |   |                         | ---    |   |         |   | (4.0   | )             |   |   | (13.7        | )      |   |   | (17.7 | ) |
| Long-term intercompany advance                                                    |   |                         | 53.9   |   |         |   | (53.9  | )             |   |   | ---          |   |   |   | --- |   |
|      Net cash provided by (used in) financing activities      |   |                         | 73.9   |   |         |   | (57.9  | )             |   |   | (11.7        | )      |   |   | 4.3 |   |
| Net change in unrestricted cash and cash equivalents                              |   |                         | (20.0  | )      |         |   | 6.8    |          |   |   | 3.0          |   |   |   | (10.2 | ) |
| Unrestricted cash and cash equivalents at the beginning                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
|      of the period                                            |   |                         | 144.1  |   |         |   | 7.5    |          |   |   | 30.6         |   |   |   | 182.2 |   |
| Unrestricted cash and cash equivalents at the end                                 |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
|      of the period                                            |   | $                            | 124.1  |   |         | $      | 14.3   |          |   | $      | 33.6         |   |   | $ | 172.0 |   |

|                                                                              |   |                         |   |   | Guarantor    |   |   | Non-Guarantor |   |   | Nortek       |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|
|                                                                              |   | Parent                       |   |   | Subsidiaries |   |   | Subsidiaries  |   |   | Consolidated |   |
|                                                                              |   | (Dollar amounts in millions) |   |   |         |   |
| Cash Flows from operating activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |
| Net cash (used in) provided by operating activities                               |   | $                            | (51.5  | )      |         | $      | 79.5   |          |   | $      | 16.6         |   |   | $ | 44.6 |   |
| Cash Flows from investing activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
| Capital expenditures                                                              |   |                         | ---    |   |         |   | (9.7   | )             |   |   | (6.2         | )      |   |   | (15.9 | ) |
| Net cash paid for businesses acquired                                             |   |                         | ---    |   |         |   | (32.7  | )             |   |   | ---          |   |   |   | (32.7 | ) |
| Proceeds from the sale of property and equipment                                  |   |                         | ---    |   |         |   | 6.2    |          |   |   | ---          |   |   |   | 6.2 |   |
| Other, net                                                                        |   |                         | (0.8   | )      |         |   | (0.9   | )             |   |   | (0.2         | )      |   |   | (1.9 | ) |
|      Net cash used in investing activities               |   |                         | (0.8   | )      |         |   | (37.1  | )             |   |   | (6.4         | )      |   |   | (44.3 | ) |
| Cash Flows from financing activities:                                             |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
| Increase in borrowings                                                            |   |                         | 125.0  |   |         |   | ---    |          |   |   | 8.0          |   |   |   | 133.0 |   |
| Payment of borrowings                                                             |   |                         | (46.8  | )      |         |   | (11.0  | )             |   |   | (8.9         | )      |   |   | (66.7 | ) |
| Net proceeds from the sale of the 10% Senior                                      |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
|      Secured Notes due 2013                                   |   |                         | 742.2  |   |         |   | ---    |          |   |   | ---          |   |   |   | 742.2 |   |
| Redemption of Nortek's senior secured credit facility                             |   |                         | (755.5 | )      |         |   | ---    |          |   |   | ---          |   |   |   | (755.5 | ) |
| Fees paid in connection with new debt facilities                                  |   |                         | (31.7  | )      |         |   | ---    |          |   |   | ---          |   |   |   | (31.7 | ) |
| Equity investment by THL-Nortek Investors, LLC                                    |   |                         | 4.2    |   |         |   | ---    |          |   |   | ---          |   |   |   | 4.2 |   |
| Long-term intercompany advance                                                    |   |                         | 33.1   |   |         |   | (33.1  | )             |   |   | ---          |   |   |   | --- |   |
| Other, net                                                                        |   |                         | (0.1   | )      |         |   | ---    |          |   |   | ---          |   |   |   | (0.1 | ) |
|      Net cash provided by (used in) financing activities |   |                         | 70.4   |   |         |   | (44.1  | )             |   |   | (0.9         | )      |   |   | 25.4 |   |
| Net change in unrestricted cash and cash equivalents                              |   |                         | 18.1   |   |         |   | (1.7   | )             |   |   | 9.3          |   |   |   | 25.7 |   |
| Unrestricted cash and cash equivalents at the beginning                           |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
|      of the period                                            |   |                         | 20.5   |   |         |   | 8.9    |          |   |   | 24.0         |   |   |   | 53.4 |   |
| Unrestricted cash and cash equivalents at the end                                 |   |                         |   |   |         |   |   |          |   |   |         |   |   |   |   |   |
|      of the period                                            |   | $                            | 38.6   |   |         | $      | 7.2    |          |   | $      | 33.3         |   |   | $ | 79.1 |   |

| ·   | the Residential Ventilation Products (“RVP”) segment, |
|--------------------|-------------------------------------------------------------------|

| ·   | the Home Technology Products (“HTP”) segment, |
|--------------------|-----------------------------------------------------------|

| ·   | the Residential Air Conditioning and Heating Products (“R-HVAC”) segment, and |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the Commercial Air Conditioning and Heating Products (“C-HVAC”) segment. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | kitchen range hoods, |
|--------------------|----------------------|

| ·   | exhaust fans (such as bath fans and fan, heater and light combination units), and |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | indoor air quality products. |
|--------------------|------------------------------|

| ·   | audio / video distribution and control equipment, |
|--------------------|---------------------------------------------------|

| ·   | speakers and subwoofers, |
|--------------------|--------------------------|

| ·   | security and access control products, |
|--------------------|---------------------------------------|

| ·   | power conditioners and surge protectors, |
|--------------------|------------------------------------------|

| ·   | audio / video wall mounts and fixtures, |
|--------------------|-----------------------------------------|

| ·   | lighting and home automation controls, and |
|--------------------|--------------------------------------------|

| ·   | structured wiring. |
|--------------------|--------------------|

| ·   | split-system air conditioners, |
|--------------------|--------------------------------|

| ·   | heat pumps, |
|--------------------|-------------|

| ·   | air handlers, and |
|--------------------|-------------------|

| ·   | furnaces and related equipment. |
|--------------------|---------------------------------|

| ·   | Revenue Recognition, Accounts Receivable and Related Expenses, |
|--------------------|----------------------------------------------------------------|

| ·   | Inventory Valuation, |
|--------------------|----------------------|

| ·   | Income Taxes, |
|--------------------|---------------|

| ·   | Goodwill and Other Long-Lived Assets, |
|--------------------|---------------------------------------|

| ·   | Pensions and Post-Retirement Health Benefits, |
|--------------------|-----------------------------------------------|

| ·   | Warranty, Product Recalls and Safety Upgrades, |
|--------------------|------------------------------------------------|

| ·   | Insurance Liabilities, including Product Liability, and |
|--------------------|---------------------------------------------------------|

| ·   | Contingencies. |
|--------------------|----------------|

| -   | The Company reviews public information from its competitors and other industry information to determine if there are any significant adverse trends in the competitor’s businesses such as significant declines in market capitalization or significant goodwill impairment charges that could be an indication that the goodwill of the Company’sreporting units are potentially impaired. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company updates its long-term 5-year financial projections and compares the amounts to the prior long-term 5-year projections to determine if there has been a significant adverse change that could materially lower the Company’s prior valuation conclusions for any of the reporting units under both the DCF and EBITDA Multiple Approaches. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company updates its analyses of the WACC rates for each reporting unit in order to determine if there have been any significant increases in the rates, which could materially lower the Company’s prior valuation conclusions for any of the reporting units under the DCF Approach. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company updates its analyses of comparable company EBITDA multiples in order to determine if there have been any significant decreases in the multiples, which could materially lower the Company’s prior valuation conclusions for any of the reporting units under the EBITDA Multiple Approach. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company determines the current carrying value for each reporting unit as of the end of the quarter and compares it the prior quarter amount in order to determine if there has been any significant increase that could impact the Company’s prior goodwill impairment assessments. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company will also, as necessary, run pro forma models substituting the new assumption information derived from the above analyses to determine the impact that such assumption changes would have had on the prior valuations.  These pro forma calculations assist the Company in determining whether or not the new valuation assumptioninformation would have resulted in a significant decrease in the fair value of any of the reporting units. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A risk free rate based on the 20-year Treasury Bond yield. |
|---------------|------------------------------------------------------------|

| -   | A market risk premium of 6% based on the Company’s assessment of the additional risk associated with equity investment that is determined in part through the use of published historical equity risk studies as adjusted for the business risk index for each reporting unit.  The business risk index is derived from comparable companiesand measures the estimated stock price volatility. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Comparable company and market interest rate information are used to determine the cost of debt and the appropriate long-term capital structure in order to weight the cost of debt and the cost of equity into an overall WACC. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A size risk premium based on the value of the reporting unit that is determined through the use of published historical size risk premia data. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A specific risk premium for the cost of equity, as necessary, which factors in overall economic and stock market volatility conditions at the time the WACC is estimated.  The Company used 2% as the specific risk premium as of December 31, 2008 and July 4, 2009 for the WACC rates disclosed below. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Reporting Unit | 7-04-09            | 12-31-08           |
|----------------|--------------------|--------------------|
| RVP            |    11.8% |    12.0% |
| HTP            | 12.4               | 12.8               |
| R-HVAC         | 17.2               | 18.0               |
| C-HVAC         | 17.2               | 18.0               |

| -   | A continued downward outlook for 2009 due to (i) tepid demand from homebuilders, (ii) a challenging environment for existing home sales and (iii) decreased discretionary spending by consumers and businesses. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The Company expects U.S. housing starts, which is a key driver of demand for the Company’s products, to bottom out in 2009 and achieve growth beginning in 2010 and continuing through the forecast period. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Residential fixed investment is expected to resume growth in 2010 while non-residential construction is not expected to increase until 2011 |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalize appraisals to determine the estimated fair value of property and equipment, and intangible assets within the HTP reporting unit, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalize analyses within the HTP reporting unit to determine the estimated fair value adjustment required to inventory, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalize deferred tax analyses for the HTP reporting unit. |
|--------------------|------------------------------------------------------------|

|                                                      |   | For the second quarter ended |   |   | Net Change |
|-----------------------------------------------------------|--------|------------------------------|--------|--------|------------|
|                                                      |   | July 4, 2009                 |   |   |       | June 28, 2008 |   |  $ |   |   |   | % |
|                                                      |   | (Dollar amounts in millions) |   |
| Net sales:                                                |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products                          |   | $                            | 139.4  |   |       |   |   |   | $ | 187.0 |   |   | $ | (47.6 | ) |   |   | (25.5 | )% |
| Home technology products                                  |   |                         | 99.9   |   |       |   |   |   |   | 131.2 |   |   |   | (31.3 | ) |   |   | (23.9 | ) |
| Residential air conditioning and heating products         |   |                         | 137.5  |   |       |   |   |   |   | 177.5 |   |   |   | (40.0 | ) |   |   | (22.5 | ) |
| Commercial air conditioning and heating products          |   |                         | 111.0  |   |       |   |   |   |   | 151.4 |   |   |   | (40.4 | ) |   |   | (26.7 | ) |
|    Consolidated net sales                       |   | $                            | 487.8  |   |       |   |   |   | $ | 647.1 |   |   | $ | (159.3 | ) |   |   | (24.6 | )% |
| Operating (loss) earnings:                                |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (1)                      |   | $                            | 11.9   |   |       |   |   |   | $ | 16.0 |   |   | $ | (4.1 | ) |   |   | (25.6 | )% |
| Home technology products (2)                              |   |                         | (247.1 | )      |       |   |   |   |   | 7.8 |   |   |   | (254.9 | ) |   |   | * |   |
| Residential air conditioning and heating products (3)     |   |                         | 10.6   |   |       |   |   |   |   | 14.6 |   |   |   | (4.0 | ) |   |   | (27.4 | ) |
| Commercial air conditioning and heating products (4)      |   |                         | 13.7   |   |       |   |   |   |   | 15.3 |   |   |   | (1.6 | ) |   |   | (10.5 | ) |
|    Subtotal                                     |   |                         | (210.9 | )      |       |   |   |   |   | 53.7 |   |   |   | (264.6 | ) |   |   | * |   |
| Unallocated:                                              |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation charges                          |   |                         | (0.1   | )      |       |   |   |   |   |   | (0.1 | ) |   |   | --- |   |   |   | --- |   |
| Income from change in estimate of loss on the Company's   |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    indemnification related to a lease guarantee |   |                         | 3.2    |   |       |   |   |   |   |   | --- |   |   |   | 3.2 |   |   |   | * |   |
| Advisory fees related to the Company's analysis of        |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    its capital structure                        |   |                         | (0.9   | )      |       |   |   |   |   |   | --- |   |   |   | (0.9 | ) |   |   | * |   |
| Foreign exchange gains on transactions,                   |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    including intercompany debt                  |   |                         | 0.4    |   |       |   |   |   |   |   | --- |   |   |   | 0.4 |   |   |   | * |   |
| Unallocated, net                                          |   |                         | (7.4   | )      |       |   |   |   |   |   | (6.7 | ) |   |   | (0.7 | ) |   |   | (10.4 | ) |
|    Consolidated operating (loss) earnings       |   | $                            | (215.7 | )      |       |   |   |   |   | $ | 46.9 |   |   | $ | (262.6 | ) |   |   | * | % |
| Depreciation and amortization expense:                    |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (5)                      |   | $                            | 5.8    |   |       |   |   |   |   | $ | 7.5 |   |   | $ | (1.7 | ) |   |   | (22.7 | )% |
| Home technology products                                  |   |                         | 4.4    |   |       |   |   |   |   |   | 4.9 |   |   |   | (0.5 | ) |   |   | (10.2 | ) |
| Residential air conditioning and heating products (6)     |   |                         | 3.1    |   |       |   |   |   |   |   | 2.9 |   |   |   | 0.2 |   |   |   | 6.9 |   |
| Commercial air conditioning and heating products          |   |                         | 2.6    |   |       |   |   |   |   |   | 3.0 |   |   |   | (0.4 | ) |   |   | (13.3 | ) |
| Unallocated                                               |   |                         | 0.2    |   |       |   |   |   |   |   | 0.3 |   |   |   | (0.1 | ) |   |   | (33.3 | ) |
|                                                      |   | $                            | 16.1   |   |       |   |   |   |   | $ | 18.6 |   |   | $ | (2.5 | ) |   |   | (13.4 | )% |
| Operating (loss) earnings margin:                         |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (1)                      |   |                         | 8.5    |   | %          |   |   |   |   | 8.6 | % |   |   |   |   |   |   |   |   |
| Home technology products (2)                              |   |                         | *      |   |       |   |   |   |   |   | 5.9 |   |   |   |   |   |   |   |   |   |
| Residential air conditioning and heating products (3)     |   |                         | 7.7    |   |       |   |   |   |   |   | 8.2 |   |   |   |   |   |   |   |   |   |
| Commercial air conditioning and heating products (4)      |   |                         | 12.3   |   |       |   |   |   |   |   | 10.1 |   |   |   |   |   |   |   |   |   |
|    Consolidated                                 |   |                         | (44.2  | )      | %          |   |   |   |   | 7.2 | % |   |   |   |   |   |   |   |   |
| Depreciation and amortization                             |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   expense as a % of net sales:                  |   |                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (5)                      |   |                         | 4.2    |   | %          |   |   |   |   | 4.0 | % |   |   |   |   |   |   |   |   |
| Home technology products                                  |   |                         | 4.4    |   |       |   |   |   |   |   | 3.7 |   |   |   |   |   |   |   |   |   |
| Residential air conditioning and heating products (6)     |   |                         | 2.3    |   |       |   |   |   |   |   | 1.6 |   |   |   |   |   |   |   |   |   |
| Commercial air conditioning and heating products          |   |                         | 2.3    |   |       |   |   |   |   |   | 2.0 |   |   |   |   |   |   |   |   |   |
|    Consolidated                                 |   |                         | 3.3    |   | %          |   |   |   |   | 2.9 | % |   |   |   |   |   |   |   |   |

| * | not meaningful or not applicable |
|---|----------------------------------|

| (1) | The operating results of the RVP segment for the second quarter ended July 4, 2009 include: |
|-----|---------------------------------------------------------------------------------------------|

| ·   | approximately $1.2 million of severance charges incurred related to certain reduction in workforce initiatives, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $0.7 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility, and |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $0.2 million. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility, |
|--------------------|---------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in connection with the start up of a range hood facility in Mexico of approximately $1.4 million, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $1.4 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The operating results of the HTP segment for the second quarter ended July 4, 2009 include an estimated non-cash goodwill impairment charge of approximately $250.0 million and a charge related to reserves for amounts due from customers of approximately $0.6 million. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The operating results of the R-HVAC segment for the second quarter ended July 4, 2009 include approximately $0.1 million of severance charges incurred related to certain reduction in workforce initiatives and a charge related to reserves for amounts due from customers of approximately $0.1 million. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The operating results of the C-HVAC segment for the second quarter ended July 4, 2009 include a charge related to reserves for amounts due from customers of approximately $1.1 million and net foreign exchange losses of approximately $1.1 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.3 million for the second quarter ended July 4, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes a non-cash amortization of excess purchase price allocated to inventory recorded to cost of products sold of approximately $0.2 million for the second quarter ended July 4, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | For the six months ended     |   |   | Net Change    |
|-----------------------------------------------------------|--------|------------------------------|--------|--------|---------------|
|                                                      |   | July 4, 2009                 |   |   | June 28, 2008 |   |  $ | % |
|                                                      |   | (Dollar amounts in millions) |   |
| Net sales:                                                |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products                          |   | $                            | 289.3  |   |          |   |   |   | $ | 375.2 |   |   | $ | (85.9 | ) |   |   | (22.9 | )% |
| Home technology products                                  |   |                         | 198.3  |   |          |   |   |   |   | 255.3 |   |   |   | (57.0 | ) |   |   | (22.3 | ) |
| Residential air conditioning and heating products         |   |                         | 219.9  |   |          |   |   |   |   | 297.6 |   |   |   | (77.7 | ) |   |   | (26.1 | ) |
| Commercial air conditioning and heating products          |   |                         | 219.3  |   |          |   |   |   |   | 259.2 |   |   |   | (39.9 | ) |   |   | (15.4 | ) |
|    Consolidated net sales                       |   | $                            | 926.8  |   |          |   |   |   | $ | 1,187.3 |   |   | $ | (260.5 | ) |   |   | (21.9 | )% |
| Operating (loss) earnings:                                |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (1)                      |   | $                            | 20.9   |   |          |   |   |   | $ | 31.9 |   |   | $ | (11.0 | ) |   |   | (34.5 | )% |
| Home technology products (2)                              |   |                         | (246.0 | )      |          |   |   |   |   | 18.1 |   |   |   | (264.1 | ) |   |   | * |   |
| Residential air conditioning and heating products (3)     |   |                         | 5.3    |   |          |   |   |   |   | 15.6 |   |   |   | (10.3 | ) |   |   | (66.0 | ) |
| Commercial air conditioning and heating products (4)      |   |                         | 29.9   |   |          |   |   |   |   | 19.0 |   |   |   | 10.9 |   |   |   | 57.4 |   |
|    Subtotal                                     |   |                         | (189.9 | )      |          |   |   |   |   | 84.6 |   |   |   | (274.5 | ) |   |   | * |   |
| Unallocated:                                              |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation charges                          |   |                         | (0.1   | )      |          |   |   |   |   |   | (0.1 | ) |   |   | --- |   |   |   | --- |   |
| Income from change in estimate of loss on the Company's   |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    indemnification related to a lease guarantee |   |                         | 3.2    |   |          |   |   |   |   |   | --- |   |   |   | 3.2 |   |   |   | * |   |
| Advisory fees related to the Company's analysis of        |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    its capital structure                        |   |                         | (0.9   | )      |          |   |   |   |   |   | --- |   |   |   | (0.9 | ) |   |   | * |   |
| Foreign exchange gains on transactions,                   |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    including intercompany debt                  |   |                         | 0.4    |   |          |   |   |   |   |   | 0.1 |   |   |   | 0.3 |   |   |   | * |   |
| Unallocated, net                                          |   |                         | (13.8  | )      |          |   |   |   |   |   | (14.3 | ) |   |   | 0.5 |   |   |   | 3.5 |   |
|    Consolidated operating (loss) earnings       |   | $                            | (201.1 | )      |          |   |   |   |   | $ | 70.3 |   |   | $ | (271.4 | ) |   |   | * | % |
| Depreciation and amortization expense:                    |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (5)                      |   | $                            | 10.9   |   |          |   |   |   |   | $ | 13.6 |   |   | $ | (2.7 | ) |   |   | (19.9 | )% |
| Home technology products                                  |   |                         | 8.8    |   |          |   |   |   |   |   | 9.8 |   |   |   | (1.0 | ) |   |   | (10.2 | ) |
| Residential air conditioning and heating products (6)     |   |                         | 6.1    |   |          |   |   |   |   |   | 6.0 |   |   |   | 0.1 |   |   |   | 1.7 |   |
| Commercial air conditioning and heating products          |   |                         | 5.5    |   |          |   |   |   |   |   | 6.0 |   |   |   | (0.5 | ) |   |   | (8.3 | ) |
| Unallocated                                               |   |                         | 0.3    |   |          |   |   |   |   |   | 0.6 |   |   |   | (0.3 | ) |   |   | (50.0 | ) |
|                                                      |   | $                            | 31.6   |   |          |   |   |   |   | $ | 36.0 |   |   | $ | (4.4 | ) |   |   | (12.2 | )% |
| Operating (loss) earnings margin:                         |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (1)                      |   |                         | 7.2    |   | %             |   |   |   |   | 8.5 | % |   |   |   |   |   |   |   |   |
| Home technology products (2)                              |   |                         | *      |   |          |   |   |   |   |   | 7.1 |   |   |   |   |   |   |   |   |   |
| Residential air conditioning and heating products (3)     |   |                         | 2.4    |   |          |   |   |   |   |   | 5.2 |   |   |   |   |   |   |   |   |   |
| Commercial air conditioning and heating products (4)      |   |                         | 13.6   |   |          |   |   |   |   |   | 7.3 |   |   |   |   |   |   |   |   |   |
|    Consolidated                                 |   |                         | (21.7  | )      | %             |   |   |   |   | 5.9 | % |   |   |   |   |   |   |   |   |
| Depreciation and amortization                             |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   expense as a % of net sales:                  |   |                         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential ventilation products (5)                      |   |                         | 3.8    |   | %             |   |   |   |   | 3.6 | % |   |   |   |   |   |   |   |   |
| Home technology products                                  |   |                         | 4.4    |   |          |   |   |   |   |   | 3.8 |   |   |   |   |   |   |   |   |   |
| Residential air conditioning and heating products (6)     |   |                         | 2.8    |   |          |   |   |   |   |   | 2.0 |   |   |   |   |   |   |   |   |   |
| Commercial air conditioning and heating products          |   |                         | 2.5    |   |          |   |   |   |   |   | 2.3 |   |   |   |   |   |   |   |   |   |
|    Consolidated                                 |   |                         | 3.4    |   | %             |   |   |   |   | 3.0 | % |   |   |   |   |   |   |   |   |

| * | not meaningful or not applicable |
|---|----------------------------------|

| (1) | The operating results of the RVP segment for the six months ended July 4, 2009 include: |
|-----|-----------------------------------------------------------------------------------------|

| ·   | approximately $1.5 million of severance charges incurred related to certain reduction in workforce initiatives, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $1.1 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $0.3 million, and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility. |
|--------------------|---------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility |
|--------------------|--------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in connection with the start up of a range hood facility in Mexico of approximately $1.4 million, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $0.9 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The operating results of the HTP segment for the six months ended July 4, 2009 include: |
|-----|-----------------------------------------------------------------------------------------|

| ·   | an estimated non-cash goodwill impairment charge of approximately $250.0 million, |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | a charge related to reserves for amounts due from customers of approximately $1.2 million, |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | approximately $0.4 million of severance charges incurred related to certain reduction in workforce initiatives, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $0.2 million related to transactions. |
|--------------------|------------------------------------------------------------------------------------|

|                                                 |   |                         |   |   |                   |   |   | Change in earnings in      |
|------------------------------------------------------|--------|------------------------------|--------|--------|------------------------|--------|--------|----------------------------|
|                                                 |   |                         |   |   |                   |   |   | the second quarter of 2009 |
|                                                 |   |                         |   |   |                   |   |   | as compared to the         |
|                                                 |   | For the second quarter ended |   |   | second quarter of 2008 |
|                                                 |   | July 4, 2009                 |   |   | June 28, 2008          |   |   |  $                    | % |
|                                                 |   | (Dollar amounts in millions) |   |
|                                                 |   |                         |   |   |                   |   |   |                       |   |   |   |   |   |
| Net sales                                            |   | $                            | 487.8  |   |                   | $      | 647.1  |                       |   | $ | (159.3 | ) |   |   | (24.6 | )% |
| Cost of products sold (1)                            |   |                         | 351.7  |   |                   |   | 473.3  |                       |   |   | 121.6 |   |   |   | 25.7 |   |
| Selling, general and administrative expense, net (1) |   |                         | 95.8   |   |                   |   | 118.5  |                       |   |   | 22.7 |   |   |   | 19.2 |   |
| Goodwill impairment charge (2)                       |   |                         | 250.0  |   |                   |   | ---    |                       |   |   | (250.0 | ) |   |   | * |   |
| Amortization of intangible assets                    |   |                         | 6.0    |   |                   |   | 8.4    |                       |   |   | 2.4 |   |   |   | 28.6 |   |
| Operating (loss) earnings                            |   |                         | (215.7 | )      |                   |   | 46.9   |                       |   |   | (262.6 | ) |   |   | * |   |
| Interest expense                                     |   |                         | (37.7  | )      |                   |   | (31.3  | )                          |   |   | (6.4 | ) |   |   | (20.4 | ) |
| Loss from debt retirement                            |   |                         | ---    |   |                   |   | (9.9   | )                          |   |   | 9.9 |   |   |   | 100.0 |   |
| Investment income                                    |   |                         | 0.1    |   |                   |   | 0.2    |                       |   |   | (0.1 | ) |   |   | (50.0 | ) |
| (Loss) earnings before (benefit) provision           |   |                         |   |   |                   |   |   |                       |   |   |   |   |   |   |   |   |
|    for income taxes                        |   |                         | (253.3 | )      |                   |   | 5.9    |                       |   |   | (259.2 | ) |   |   | * |   |
| (Benefit) provision for income taxes                 |   |                         | (7.9   | )      |                   |   | 2.2    |                       |   |   | 10.1 |   |   |   | * |   |
| Net (loss) earnings                                  |   | $                            | (245.4 | )      |                   | $      | 3.7    |                       |   | $ | (249.1 | ) |   |   | * | % |

|                                                 |   |                        |   |                       |   |                   |   | Change in percentage for |
|------------------------------------------------------|--------|-----------------------------|--------|----------------------------|--------|------------------------|--------|--------------------------|
|                                                 |   | Percentage of net sales for |   | the second quarter of 2009 |
|                                                 |   | the second quarter ended    |   | as compared to the         |
|                                                 |   | July 4, 2009                |   | June 28, 2008              |   | second quarter of 2008 |
|                                                 |   |                        |   |                       |   |                   |   |                     |   |
| Net sales                                            |   |                        | 100.0  | %                          |   |                   | 100.0  | %                        |   |   | --- | % |
| Cost of products sold (1)                            |   |                        | 72.1   |                       |   |                   | 73.2   |                     |   |   | 1.1 |   |
| Selling, general and administrative expense, net (1) |   |                        | 19.6   |                       |   |                   | 18.3   |                     |   |   | (1.3 | ) |
| Goodwill impairment charge (2)                       |   |                        | 51.3   |                       |   |                   | ---    |                     |   |   | (51.3 | ) |
| Amortization of intangible assets                    |   |                        | 1.2    |                       |   |                   | 1.3    |                     |   |   | 0.1 |   |
| Operating (loss) earnings                            |   |                        | (44.2  | )                          |   |                   | 7.2    |                     |   |   | (51.4 | ) |
| Interest expense                                     |   |                        | (7.7   | )                          |   |                   | (4.8   | )                        |   |   | (2.9 | ) |
| Loss from debt retirement                            |   |                        | ---    |                       |   |                   | (1.5   | )                        |   |   | 1.5 |   |
| Investment income                                    |   |                        | ---    |                       |   |                   | ---    |                     |   |   | --- |   |
| (Loss) earnings before (benefit) provision           |   |                        |   |                       |   |                   |   |                     |   |   |   |   |
|  for income taxes                               |   |                        | (51.9  | )                          |   |                   | 0.9    |                     |   |   | (52.8 | ) |
| (Benefit) provision for income taxes                 |   |                        | (1.6   | )                          |   |                   | 0.3    |                     |   |   | 1.9 |   |
| Net (loss) earnings                                  |   |                        | (50.3  | ) %                        |   |                   | 0.6    | %                        |   |   | (50.9 | )  % |

| (1) | See Note C of the Notes to the Unaudited Financial Statements included elsewhere herein. |
|-----|------------------------------------------------------------------------------------------|

| (2) | See Note A of the Notes to the Unaudited Financial Statements included elsewhere herein. |
|-----|------------------------------------------------------------------------------------------|

| * | not meaningful or not applicable |
|---|----------------------------------|

|                                                 |   |                         |   |                     |   |    |    | Change in earnings in        |
|------------------------------------------------------|--------|------------------------------|--------|--------------------------|--------|---------|---------|------------------------------|
|                                                 |   |                         |   |                     |   |    |    | the first six months of 2009 |
|                                                 |   |                         |   |                     |   |    |    | as compared to the           |
|                                                 |   | For the six months ended     |   | first six months of 2008 |
|                                                 |   | July 4, 2009                 |   | June 28, 2008            |   |  $ |    |                         | % |
|                                                 |   | (Dollar amounts in millions) |   |
|                                                 |   |                         |   |                     |   |    |    |                         |   |   |   |   |   |
| Net sales                                            |   | $                            | 926.8  |                     |   | $       | 1,187.3 |                         |   | $ | (260.5 | ) |   |   | (21.9 | )% |
| Cost of products sold (1)                            |   |                         | 669.2  |                     |   |    | 864.9   |                         |   |   | 195.7 |   |   |   | 22.6 |   |
| Selling, general and administrative expense, net (1) |   |                         | 196.8  |                     |   |    | 237.0   |                         |   |   | 40.2 |   |   |   | 17.0 |   |
| Goodwill impairment charge (2)                       |   |                         | 250.0  |                     |   |    | ---     |                         |   |   | (250.0 | ) |   |   | * |   |
| Amortization of intangible assets                    |   |                         | 11.9   |                     |   |    | 15.1    |                         |   |   | 3.2 |   |   |   | 21.2 |   |
| Operating (loss) earnings                            |   |                         | (201.1 | )                        |   |    | 70.3    |                         |   |   | (271.4 | ) |   |   | * |   |
| Interest expense                                     |   |                         | (76.0  | )                        |   |    | (58.7   | )                            |   |   | (17.3 | ) |   |   | (29.5 | ) |
| Loss from debt retirement                            |   |                         | ---    |                     |   |    | (9.9    | )                            |   |   | 9.9 |   |   |   | 100.0 |   |
| Investment income                                    |   |                         | 0.2    |                     |   |    | 0.4     |                         |   |   | (0.2 | ) |   |   | (50.0 | ) |
| (Loss) earnings before provision for income taxes    |   |                         | (276.9 | )                        |   |    | 2.1     |                         |   |   | (279.0 | ) |   |   | * |   |
| Provision for income taxes                           |   |                         | 1.2    |                     |   |    | 2.5     |                         |   |   | 1.3 |   |   |   | 52.0 |   |
| Net loss                                             |   | $                            | (278.1 | )                        |   | $       | (0.4    | )                            |   | $ | (277.7 | ) |   |   | * | % |

|                                                 |   |                        |   |                         |   |                     |   | Change in percentage for |
|------------------------------------------------------|--------|-----------------------------|--------|------------------------------|--------|--------------------------|--------|--------------------------|
|                                                 |   | Percentage of net sales for |   | the first six months of 2009 |
|                                                 |   | the first six months ended  |   | as compared to the           |
|                                                 |   | July 4, 2009                |   | June 28, 2008                |   | first six months of 2008 |
|                                                 |   |                        |   |                         |   |                     |   |                     |   |
| Net sales                                            |   |                        | 100.0  | %                            |   |                     | 100.0  | %                        |   |   | --- | % |
| Cost of products sold (1)                            |   |                        | 72.2   |                         |   |                     | 72.8   |                     |   |   | 0.6 |   |
| Selling, general and administrative expense, net (1) |   |                        | 21.2   |                         |   |                     | 20.0   |                     |   |   | (1.2 | ) |
| Goodwill impairment charge (2)                       |   |                        | 27.0   |                         |   |                     | ---    |                     |   |   | (27.0 | ) |
| Amortization of intangible assets                    |   |                        | 1.3    |                         |   |                     | 1.3    |                     |   |   | --- |   |
| Operating (loss) earnings                            |   |                        | (21.7  | )                            |   |                     | 5.9    |                     |   |   | (27.6 | ) |
| Interest expense                                     |   |                        | (8.2   | )                            |   |                     | (4.9   | )                        |   |   | (3.3 | ) |
| Loss from debt retirement                            |   |                        | ---    |                         |   |                     | (0.8   | )                        |   |   | 0.8 |   |
| Investment income                                    |   |                        | ---    |                         |   |                     | ---    |                     |   |   | --- |   |
| (Loss) earnings before provision for income taxes    |   |                        | (29.9  | )                            |   |                     | 0.2    |                     |   |   | (30.1 | ) |
| Provision for income taxes                           |   |                        | 0.1    |                         |   |                     | 0.2    |                     |   |   | 0.1 |   |
| Net loss                                             |   |                        | (30.0  | ) %                          |   |                     | ---    | %                        |   |   | (30.0 | )  % |

| (1) | See Note C of the Notes to the Unaudited Financial Statements included elsewhere herein. |
|-----|------------------------------------------------------------------------------------------|

| (2) | See Note A of the Notes to the Unaudited Financial Statements included elsewhere herein. |
|-----|------------------------------------------------------------------------------------------|

| * | not meaningful or not applicable |
|---|----------------------------------|

|                                             |   % Increase / (Decrease) |
|--------------------------------------------------|--------------------------------|
|                                             | Sources                        | 2nd Quarter | Six Months | 4th Quarter | Full Year |
|                                             | of Data                        | 2009 | 2009 | 2008 | 2008 |
| Private residential construction spending        | 1                              | (31)% | (33)% | (28)% | (29)% |
| Total housing starts                             | 1                              | (46)% | (48)% | (44)% | (33)% |
| New home sales                                   | 1                              | (29)% | (35)% | (42)% | (38)% |
| Existing home sales                              | 3                              |   (3)% |   (5)% |    (6)% | (13)% |
| Residential improvement spending                 | 1                              |     3 % |   (2)% |    (3)% | (14)% |
| Central air conditioning and heat pump shipments | 2                              | (15)% | (18)% |  (26)% |    (9)% |
| Private non-residential construction spending    | 1                              |   (5)% |   (4)% |       4  % |  13% |
| Manufactured housing shipments                   | 1                              | (44)% | (45)% |   (28)% |  (15)% |
| Residential fixed investment spending            | 4                              | (27)% | (26)% |   (20)% |  (23)% |

|   | Source of data: |
|--------|-----------------|

| (1)   | U.S. Census Bureau |
|-----------------|--------------------|

| (2)   | Air Conditioning and Refrigeration Institute |
|-----------------|----------------------------------------------|

| (3)   | National Association of Realtors |
|-----------------|----------------------------------|

| (4)   | U.S. Bureau of Economic Analysis |
|-----------------|----------------------------------|

|   |   |   |                                                                                                                                              | For the second quarter of |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------|
|   |   |   |                                                                                                                                              | 2009                      |   |   | 2008 |   |
|   |   |   |                                                                                                                                              | (Amounts in millions)     |   |
|   |   |   |                                                                                                                                              |                      |   |   |   |   |
|   | (1     | )      | Fees and expenses recorded within the HTP segment in connection with the settlement of a dispute with one of its former suppliers                 |                      | $      |  --- |   |   | $ |  4.5 |   |
|   | (2     | )      | Effect of changes in foreign currency exchange rates                                                                                              |                      |   | (3.2 | ) |   |   | --- |   |
|   | (3     | )      | Income from change in estimate of loss on the Company's indemnification related to a lease guarantee                                              |                      |   | (3.2 | ) |   |   |  --- |   |
|   | (4     | )      | Gain from the sale of manufacturing facilities within the RVP segment                                                                             |                      |   | (0.3 | ) |   |   | (2.5 | ) |
|   | (5     | )      | Charges related to reserves for amounts due from customers in all four segments                                                                   |                      |   |  2.0 |   |   |   |  --- |   |
|   | (6     | )      | Net foreign exchange losses (gains) related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries |                      |   |  1.4 |   |   |   | (1.5 | ) |
|   | (7     | )      | Income from a change in estimate related to a product liability matter in the C-HVAC segment                                                      |                      |   | (1.0 | ) |   |   |  --- |   |
|   | (8     | )      | Advisory fees related to the Company's analysis of its capital structure                                                                          |                      |   |  0.9 |   |   |   |  --- |   |
|   | (9     | )      | Severance charges incurred related to certain reduction in workforce initiatives in the RVP segment                                               |                      |   |  0.4 |   |   |   |  --- |   |
|   | (10    | )      | Decrease in display expense in the RVP segment                                                                                                    |                      |   | (0.3 | ) |   |   | --- |   |

|   |   |   |                                                                                                                                              | For the six months of |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
|   |   |   |                                                                                                                                              | 2009                  |   |   | 2008 |   |
|   |   |   |                                                                                                                                              | (Amounts in millions) |   |
|   |   |   |                                                                                                                                              |                  |   |   |   |   |
|   | (1     | )      | Effect of changes in foreign currency exchange rates                                                                                              |                  | $      | (7.0 | ) |   | $ | --- |   |
|   | (2     | )      | Fees and expenses recorded within the HTP segment in connection with the settlement of a dispute with one of its former suppliers                 |                  |   |  --- |   |   |   |  4.7 |   |
|   | (3     | )      | Income from change in estimate of loss on the Company's indemnification related to a lease guarantee                                              |                  |   | (3.2 | ) |   |   |  --- |   |
|   | (4     | )      | Charges related to reserves for amounts due from customers in all four segments                                                                   |                  |   |  2.8 |   |   |   |  --- |   |
|   | (5     | )      | Gain from the sale of manufacturing facilities within the RVP segment                                                                             |                  |   | (0.3 | ) |   |   | (2.5 | ) |
|   | (6     | )      | Net foreign exchange losses (gains) related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries |                  |   |  1.5 |   |   |   | (1.4 | ) |
|   | (7     | )      | Income from a change in estimate related to a product liability matter in the C-HVAC segment                                                      |                  |   | (1.0 | ) |   |   |  --- |   |
|   | (8     | )      | Severance charges incurred related to certain reduction in workforce initiatives in the RVP, HTP and R-HVAC segments                              |                  |   |  0.9 |   |   |   |  --- |   |
|   | (9     | )      | Advisory fees related to the Company's analysis of its capital structure                                                                          |                  |   |  0.9 |   |   |   |  --- |   |
|   | (10    | )      | Decrease in display expense within the RVP segment                                                                                                |                  |   | (0.6 | ) |   |   | --- |   |

|   |   |   |                                                                                                                                              | Second quarter of     |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
|   |   |   |                                                                                                                                              | 2009                  |   |   | 2008 |   |
|   |   |   |                                                                                                                                              | (Amounts in millions) |   |
|   |   |   |                                                                                                                                              |                  |   |   |   |   |
|   | (1     | )      | Gain from the sale of manufacturing facilities                                                                                                    |                  | $      | (0.3 | ) |   | $ | (2.5 | ) |
|   | (2     | )      | Net foreign exchange losses (gains) related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries |                  |   |  0.7 |   |   |   | (1.4 | ) |
|   | (3     | )      | Costs and expenses incurred in connection with the start up of a range hood facility in Mexico                                                    |                  |   |  --- |   |   |   |  1.4 |   |
|   | (4     | )      | Decreased amortization of intangible assets                                                                                                       |                  |   | (1.3 | ) |   |   | --- |   |
|   | (5     | )      | Severance charges incurred related to certain reduction in workforce initiatives                                                                  |                  |   | 1.2 |   |   |   | --- |   |
|   | (6     | )      | Decreased depreciation expense of property and equipment                                                                                          |                  |   | (0.4 | ) |   |   | --- |   |
|   | (7     | )      | Decrease in display expense                                                                                                                       |                  |   | (0.3 | ) |   |   | --- |   |
|   | (8     | )      | Increase in product liability expense as compared to the same period of 2008                                                                      |                  |   | 0.3 |   |   |   | --- |   |
|   | (9     | )      | A charge related to reserves for amounts due from customers                                                                                       |                  |   | 0.2 |   |   |   | --- |   |
|   | (10    | )      | Effect of changes in foreign currency exchange rates                                                                                              |                  |   | (0.1 | ) |   |   | --- |   |

|   |   |   |                                                                                                                                              | Six months of         |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
|   |   |   |                                                                                                                                              | 2009                  |   |   | 2008 |   |
|   |   |   |                                                                                                                                              | (Amounts in millions) |   |
|   |   |   |                                                                                                                                              |                  |   |   |   |   |
|   | (1     | )      | Gain from the sale of manufacturing facilities                                                                                                    |                  | $      | (0.3 | ) |   | $ | (2.5 | ) |
|   | (2     | )      | Decreased amortization of intangible assets                                                                                                       |                  |   | (1.5 | ) |   |   | --- |   |
|   | (3     | )      | Severance charges incurred related to certain reduction in workforce initiatives                                                                  |                  |   | 1.5 |   |   |   | --- |   |
|   | (4     | )      | Costs and expenses incurred in connection with the start up of a range hood facility in Mexico                                                    |                  |   |  --- |   |   |   |  1.4 |   |
|   | (5     | )      | Decreased depreciation expense of property and equipment                                                                                          |                  |   | (1.2 | ) |   |   | --- |   |
|   | (6     | )      | Net foreign exchange losses (gains) related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries |                  |   |  1.1 |   |   |   | (0.9 | ) |
|   | (7     | )      | Increase in product liability expense as compared to the same period of 2008                                                                      |                  |   | 1.0 |   |   |   | --- |   |
|   | (8     | )      | Decrease in display expense                                                                                                                       |                  |   | (0.6 | ) |   |   | --- |   |
|   | (9     | )      | A charge related to reserves for amounts due from customers                                                                                       |                  |   | 0.3 |   |   |   | --- |   |
|   | (10    | )      | Effect of changes in foreign currency exchange rates                                                                                              |                  |   | (0.1 | ) |   |   | --- |   |

|                                              |   | For the second quarter of    |           |
|---------------------------------------------------|--------|------------------------------|----------------|
|                                              |   | 2009                         |           |   | 2008 |   |
|                                              |   | (Dollar amounts in millions) |           |
|                                              |   |                         |           |   |   |   |
| Net (loss) earnings (1), (2)                      |   |                         | $  (245.4 | ) |   |   | $  3.7 |   |
|    (Benefit) provision for income taxes |   |                         | (7.9           | ) |   |   | 2.2 |   |
|    Interest expense  (3)      |   |                         | 37.7           |   |   |   | 31.3 |   |
|    Investment income                    |   |                         | (0.1           | ) |   |   | (0.2 | ) |
|    Depreciation expense                 |   |                         | 9.6            |   |   |   | 10.2 |   |
|    Amortization expense                 |   |                         | 6.5            |   |   |   | 8.4 |   |
| EBITDA                                            |   |                         | $  (199.6 | ) |   |   | $  55.6 |   |

|   | (1) | Net loss and EBITDA for the second quarter of 2009 includes: |
|--------|-----|--------------------------------------------------------------|

| ·   | an estimated non-cash goodwill impairment charge of approximately $250.0 million recorded in the HTP segment, |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | income from change in estimate of loss on the Company’s indemnification related to a lease guarantee of approximately $3.2 million, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | charges related to reserves for amounts due from customers of approximately $2.0 million in all four segments, |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $1.4 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately $1.3 million of severance charges incurred related to certain reduction in workforce initiatives in the RVP, HTP and R-HVAC segments, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | advisory fees related to the Company’s analysis of its capital structure of approximately $0.9 million, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility in the RVP segment. |
|--------------------|----------------------------------------------------------------------------------------------------|

|   | (2) | Net earnings and EBITDA for the second quarter of 2008 includes: |
|--------|-----|------------------------------------------------------------------|

| ·   | fees and expenses recorded in connection with the settlement of a dispute with one of its former suppliers of approximately $4.5 million in the HTP segment, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility in the RVP segment, |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $1.5 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in the RVP segment in connection with the start up of a range hood facility in Mexico of approximately $1.4 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Interest expense for the second quarter of 2009 includes cash interest of approximately $35.2 million and non-cash interest of approximately $2.5 million.  Interest expense for the second quarter of 2008 includes cash interest of approximately $29.4 million and non-cash interest of approximately $1.9 million. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | For the six months of        |   |
|----------------------------------------------|--------|------------------------------|--------|
|                                         |   | 2009                         |   |   | 2008 |   |
|                                         |   | (Dollar amounts in millions) |   |
|                                         |   |                         |   |   |   |   |
| Net loss (1), (2)                            |   | $                            | (278.1 | ) |   | $ | (0.4 | ) |
|    Provision for income taxes      |   |                         | 1.2    |   |   |   | 2.5 |   |
|    Interest expense  (3) |   |                         | 76.0   |   |   |   | 58.7 |   |
|    Investment income               |   |                         | (0.2   | ) |   |   | (0.4 | ) |
|    Depreciation expense            |   |                         | 19.2   |   |   |   | 20.9 |   |
|    Amortization expense            |   |                         | 12.4   |   |   |   | 15.1 |   |
| EBITDA                                       |   | $                            | (169.5 | ) |   | $ | 96.4 |   |

|   | (1) | Net loss and EBITDA for the six months of 2009 includes: |
|--------|-----|----------------------------------------------------------|

| ·   | an estimated non-cash goodwill impairment charge of approximately $250.0 million recorded in the HTP segment, |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | income from change in estimate of loss on the Company’s indemnification related to a lease guarantee of approximately $3.2 million, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | charges related to reserves for amounts due from customers of approximately $2.8 million in all four segments, |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | approximately $2.2 million of severance charges incurred related to certain reduction in workforce initiatives in the RVP, HTP and R-HVAC segments, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $1.5 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | advisory fees related to the Company’s analysis of its capital structure of approximately $0.9 million, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility in the RVP segment. |
|--------------------|----------------------------------------------------------------------------------------------------|

|   | (2) | Net loss and EBITDA for the six months of 2008 includes: |
|--------|-----|----------------------------------------------------------|

| ·   | fees and expenses recorded in connection with the settlement of a dispute with one of its former suppliers of approximately $4.7 million in the HTP segment, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility in the RVP segment, |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $1.4 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in the RVP segment in connection with the start up of a range hood facility in Mexico of approximately $1.4 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Interest expense for the six months of 2009 includes cash interest of approximately $71.0 million and non-cash interest of approximately $5.0 million.  Interest expense for the six months of 2008 includes cash interest of approximately $55.4 million and non-cash interest of approximately $3.3 million. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                        | (Amounts in millions) |
|-------------------------------------------------------------------------------------------------------------|-----------------------|
| Nortek’s 10% Senior Secured Notes due 2013, net of unamortized discount of approximately $6.5 million |                  | $ |  743.5 |   |
| Nortek’s 8 1/2% Senior Subordinated Notes due 2014 (“8 1/2% Notes”)                       |                  |   |  625.0 |   |
| Nortek’s ABL Facility                                                                                 |                  |   | 165.0 |   |
| Nortek’s long-term notes, mortgage notes and other indebtedness                                       |                  |   |  36.9 |   |
| Nortek’s short-term bank obligations                                                                  |                  |   | 18.4 |   |
| Nortek’s 9 7/8% Senior Subordinated Notes due 2011, including unamortized premium                     |                  |   |  10.0 |   |
|        Consolidated debt at July 4, 2009                                      |                  | $ | 1,598.8 |   |

|                           | (Amounts in millions) |
|--------------------------------|-----------------------|
| Non-cash interest activity (1) |                  | $ | 0.6 |   |
| Other debt activity (2)        |                  |   | (1.2 | ) |
|                           |                  | $ | (0.6 | ) |

| (1)   | Debt activity related to non-cash interest activity is comprised of the following: |
|-----------------|------------------------------------------------------------------------------------|

| (Amounts in millions)                                                                  |
|----------------------------------------------------------------------------------------|
| Amortization of debt discount, net relating to Nortek’s 10% Senior Secured Notes |   | $ |  0.6 |   |

| (2)   | Other debt activity is comprised of the following: |
|-----------------|----------------------------------------------------|

| (Amounts in millions)                                                |
|----------------------------------------------------------------------|
| Borrowings made under Nortek’s ABL Facility                    |   | $ | 20.0 |   |
| Principal payments                                                   |   |   | (17.7 | ) |
| Changes in foreign currency exchange rates and other                 |   |   | (5.5 | ) |
| Additional borrowings related to Nortek’s foreign subsidiaries |   |   |  2.0 |   |
|                                                                 |   | $ | (1.2 | ) |

|                                                      |   | Condensed Consolidated       |   |
|-----------------------------------------------------------|--------|------------------------------|--------|
|                                                      |   | Cash Flows (1)               |   |
|                                                      |   | For the six months of        |   |
|                                                      |   | 2009                         |   |   | 2008 |   |
|                                                      |   | (Dollar amounts in millions) |   |
| Operating Activities:                                     |   |                         |   |   |   |   |
| Cash flow from operations, net                            |   | $                            | 4.2    |   |   | $ | 41.7 |   |
| Change in accounts receivable, net                        |   |                         | (2.4   | ) |   |   | (44.8 | ) |
| Change in inventories                                     |   |                         | 33.3   |   |   |   | (20.4 | ) |
| Change in prepaids and other current assets               |   |                         | (2.1   | ) |   |   | (4.0 | ) |
| Change in accounts payable                                |   |                         | (12.4  | ) |   |   | 53.9 |   |
| Change in accrued expenses and taxes                      |   |                         | (11.1  | ) |   |   | 12.3 |   |
| Investing Activities:                                     |   |                         |   |   |   |   |   |   |
| Capital expenditures                                      |   |                         | (6.4   | ) |   |   | (15.9 | ) |
| Net cash paid for businesses acquired                     |   |                         | (14.1  | ) |   |   | (32.7 | ) |
| Proceeds from the sale of property and equipment          |   |                         | 1.9    |   |   |   | 6.2 |   |
| Change in restricted cash and marketable securities       |   |                         | (0.1   | ) |   |   | --- |   |
| Financing Activities:                                     |   |                         |   |   |   |   |   |   |
| Change in borrowings, net                                 |   |                         | 4.3    |   |   |   | 66.3 |   |
| Net proceeds from the sale of Nortek's 10% Senior         |   |                         |   |   |   |   |   |   |
|    Secured Notes due 2013                       |   |                         | ---    |   |   |   | 742.2 |   |
| Redemption of Nortek's senior secured credit facility     |   |                         | ---    |   |   |   | (755.5 | ) |
| Fees paid in connection with Nortek's new debt facilities |   |                         | ---    |   |   |   | (31.7 | ) |
| Equity investment by THL-Nortek Investors, LLC            |   |                         | ---    |   |   |   | 4.2 |   |
| Other, net                                                |   |                         | (5.3   | ) |   |   | 3.9 |   |
|                                                      |   | $                            | (10.2  | ) |   | $ | 25.7 |   |

|   | (1) | Summarized from the Company’s unaudited condensed consolidated statement of cash flows for the six months of 2009 and 2008 (see the Unaudited Financial Statements included elsewhere herein). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | For the six months of        |   |
|---------------------------------------------------------------|--------|------------------------------|--------|
|                                                          |   | 2009                         |   |   | 2008 |   |
|                                                          |   | (Dollar amounts in millions) |   |
|                                                          |   |                         |   |   |   |   |
|    Net cash provided by operating activities        |   | $                            | 6.7    |   |   | $ | 44.6 |   |
|    Cash used by working capital and other long-term |   |                         |   |   |   |   |   |   |
|       asset and liability changes    |   |                         | (2.5   | ) |   |   | (2.9 | ) |
|    Non-cash interest expense, net                   |   |                         | (5.0   | ) |   |   | (3.3 | ) |
|    Non-cash goodwill impairment charge              |   |                         | (250.0 | ) |   |   | --- |   |
|    Deferred federal income tax benefit              |   |                         | 4.1    |   |   |   | 4.7 |   |
|    Loss from debt retirement                        |   |                         | ---    |   |   |   | (9.9 | ) |
|    Gain on sale of property and equipment           |   |                         | 0.3    |   |   |   | 2.5 |   |
|    Non-cash stock-based compensation expense        |   |                         | (0.1   | ) |   |   | (0.1 | ) |
|    Provision for income taxes                       |   |                         | 1.2    |   |   |   | 2.5 |   |
|    Interest expense (3)                             |   |                         | 76.0   |   |   |   | 58.7 |   |
|    Investment income                                |   |                         | (0.2   | ) |   |   | (0.4 | ) |
| EBITDA (1), (2)                                               |   | $                            | (169.5 | ) |   | $ | 96.4 |   |

|   | (1) | EBITDA for the six months of 2009 includes: |
|--------|-----|---------------------------------------------|

| ·   | an estimated non-cash goodwill impairment charge of approximately $250.0 million recorded in the HTP segment, |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | income from change in estimate of loss on the Company’s indemnification related to a lease guarantee of approximately $3.2 million, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | charges related to reserves for amounts due from customers of approximately $2.8 million in all four segments, |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | approximately $2.2 million of severance charges incurred related to certain reduction in workforce initiatives in the RVP, HTP and R-HVAC segments, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange losses of approximately $1.5 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | advisory fees related to the Company’s analysis of its capital structure of approximately $0.9 million, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $0.3 million from the sale of a manufacturing facility in the RVP segment. |
|--------------------|----------------------------------------------------------------------------------------------------|

|   | (2) | EBITDA for the six months of 2008 includes: |
|--------|-----|---------------------------------------------|

| ·   | fees and expenses recorded in connection with the settlement of a dispute with one of its former suppliers of approximately $4.7 million in the HTP segment, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of approximately $2.5 million from the sale of a manufacturing facility in the RVP segment, |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | net foreign exchange gains of approximately $1.4 million related to transactions, including intercompany debt not indefinitely invested in Nortek’s subsidiaries, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs and expenses incurred in the RVP segment in connection with the start up of a range hood facility in Mexico of approximately $1.4 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Interest expense for the six months of 2009 includes cash interest of approximately $71.0 million and non-cash interest of approximately $5.0 million.  Interest expense for the six months of 2008 includes cash interest of approximately $55.4 million and non-cash interest of approximately $3.3 million. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1    | Amended and Restated Certificate of Incorporation of Nortek, Inc. (Exhibit 3.1 to Nortek Form S-4 filed October 22, 2004).                                                                                                                                                                                                                                                                                                      |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | 3.2    | By-Laws of Nortek, Inc. (Exhibit 3.2 to Nortek Form S-4 filed October 22, 2004).                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | 3.3    | Certificate of Incorporation of NTK Holdings (Exhibit 3.1 to NTK Holdings S-4 filed July 5, 2005).                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | 3.4    | By-Laws of NTK Holdings, Inc. (Exhibit 3.2 to NTK Holdings S-4 filed July 5, 2005).                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| *      | 10.1   | Collateral Agreement dated as of May 20, 2008 among Nortek, Inc., the Guarantors and U.S. Bank National Association, as Collateral Agent.                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| *      | 10.2   | Lien Subordination and Intercreditor Agreement dated as of May 20, 2008, among Bank of America, N.A., as Collateral Agent, U.S. Bank National Association, as Trustee and Noteholder Collateral Agent, Nortek, Inc. and the Subsidiaries of Nortek, Inc. named therein.                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| *      | 10.3   | U.S. Guaranty dated as of May 20, 2008 from the Guarantors named therein and the Additional Guarantors referred to therein as Guarantors in favor of the Secured Parties referred to in the Credit Agreement referred to therein.                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| *      | 10.4   | U.S. Security Agreement dated as of May 20, 2008 by Nortek, Inc., the other Persons listed on the signatures pages thereof and the Additional Guarantors, to Bank of America, N.A., as administrative agent.                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| *      | 10.5   | Amendment No. 1 to the Credit Agreement, dated as of August 21, 2009, among Nortek, Inc., Ventrol Air Handling Systems, Inc., the other borrowers named therein, Bank of America, N.A., as Administrative Agent, Collateral Agent, U.S. Swing Line Lender and U.S. L/C Issuer, Bank of America, N.A. (acting through its Canada Branch), asCanadian Swing Line Lender and Canadian L/C Issuer, the other Lenders Party thereto. |

| *      | 31.1   | Certificate of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                           |
| *      | 31.2   | Certificate of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                              |
|   |   |                                                                                                                                                                                                           |
| *      | 32     | Certificate of Chief Executive Officer and Chief Financial Officer Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|   |   |   /s/ Almon C. Hall |
|--------|--------|--------------------------|