**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Form      10-Q**

**For      the quarterly period ended September 29, 2007**

**333-119902**

| **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 Plaza****Providence,                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] |
|--------------------------------------------|--------------------------------------|------------------------------------------|

**PART      I – FINANCIAL INFORMATION**

**Item      1.  Financial Statements**

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEET**

*(Dollar      amounts in millions)*

|                                                                                      |   | **September                  29,** |    |   | **December                  31,** |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------|---------|--------|-----------------------------------|--------|
|                                                                                      |   | **2007**                           |    |   | **2006**                          |   |
| **Assets**                                                                                |   |                               |    |   |                              |   |
| **Current                  Assets:**                                                      |   |                               |    |   |                              |   |
| Unrestricted                  cash and cash equivalents                                   |   | $                                  | 66.6    |   |                              | $      | 57.4 |   |
| Restricted                  cash                                                          |   |                               | 1.0     |   |                              |   | 1.2 |   |
| Accounts                  receivable, less allowances                                     |   |                               |    |   |                              |   |   |   |
|                     of $12.5 and $9.4                                           |   |                               | 356.5   |   |                              |   | 328.9 |   |
| Inventories:                                                                              |   |                               |    |   |                              |   |   |   |
|                     Raw materials                                               |   |                               | 97.2    |   |                              |   | 83.1 |   |
|                     Work in process                                             |   |                               | 36.3    |   |                              |   | 28.7 |   |
|                     Finished goods                                              |   |                               | 196.4   |   |                              |   | 166.8 |   |
|                                                                                      |   |                               | 329.9   |   |                              |   | 278.6 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| Prepaid                  expenses                                                         |   |                               | 13.2    |   |                              |   | 13.7 |   |
| Other                  current                  assets                                    |   |                               | 16.9    |   |                              |   | 24.4 |   |
| Prepaid                  income taxes                                                     |   |                               | 30.5    |   |                              |   | 21.2 |   |
|                     Total current assets                                        |   |                               | 814.6   |   |                              |   | 725.4 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Property                  and Equipment, at Cost:**                                     |   |                               |    |   |                              |   |   |   |
| Land                                                                                      |   |                               | 10.2    |   |                              |   | 9.5 |   |
| Buildings                  and                  improvements                              |   |                               | 108.0   |   |                              |   | 101.9 |   |
| Machinery                  and                  equipment                                 |   |                               | 208.5   |   |                              |   | 177.2 |   |
|                                                                                      |   |                               | 326.7   |   |                              |   | 288.6 |   |
| Less                  accumulated depreciation                                            |   |                               | 94.3    |   |                              |   | 66.1 |   |
|                     Total property and equipment, net                           |   |                               | 232.4   |   |                              |   | 222.5 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Other                  Assets:**                                                        |   |                               |    |   |                              |   |   |   |
| Goodwill                                                                                  |   |                               | 1,515.6 |   |                              |   | 1,481.4 |   |
| Intangible                  assets, less accumulated amortization                         |   |                               |    |   |                              |
|                     of $72.1 and $52.4                                          |   |                               | 152.1   |   |                              |   | 150.4 |   |
| Deferred                  debt                  expense                                   |   |                               | 28.8    |   |                              |   | 33.1 |   |
| Restricted                  investments and marketable securities                         |   |                               | 2.0     |   |                              |   | 3.3 |   |
| Other                  assets                                                             |   |                               | 9.8     |   |                              |   | 11.2 |   |
|                                                                                      |   |                               | 1,708.3 |   |                              |   | 1,679.4 |   |
| **Total                  Assets**                                                         |   | $                                  | 2,755.3 |   |                              | $      | 2,627.3 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Liabilities                  and Stockholder’s Investment**                       |   |                               |    |   |                              |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Current                  Liabilities:**                                                 |   |                               |    |   |                              |   |   |   |
| Notes                  payable                  and other short-term obligations          |   | $                                  | 112.8   |   |                              | $      | 23.3 |   |
| Current                  maturities of long-term debt                                     |   |                               | 27.0    |   |                              |   | 20.0 |   |
| Accounts                  payable                                                         |   |                               | 216.4   |   |                              |   | 188.2 |   |
| Accrued                  expenses and taxes, net                                          |   |                               | 233.7   |   |                              |   | 282.8 |   |
| Total                  current                  liabilities                               |   |                               | 589.9   |   |                              |   | 514.3 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Other                  Liabilities:**                                                   |   |                               |    |   |                              |   |   |   |
| Deferred                  income taxes                                                    |   |                               | 31.5    |   |                              |   | 33.9 |   |
| Long-term                  payable to affiliate                                           |   |                               | 35.0    |   |                              |   | 24.9 |   |
| Other                                                                                     |   |                               | 140.0   |   |                              |   | 128.8 |   |
|                                                                                      |   |                               | 206.5   |   |                              |   | 187.6 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Notes,                  Mortgage Notes and Obligations**                                |   |                               |    |   |                              |   |   |   |
| **                    Payable, Less Current Maturities**                        |   |                               | 1,352.9 |   |                              |   | 1,362.3 |   |
|                                                                                      |   |                               |    |   |                              |   |   |   |
| **Stockholder’s                  Investment:**                                      |   |                               |    |   |                              |   |   |   |
| Common                  stock,                  $0.01 par value, authorized 3,000 shares; |   |
|                     3,000 issued and outstanding at September 29, 2007 and      |   |
|                     December 31, 2006                                           |   |                               | ---     |   |                              |   | --- |   |
| Additional                  paid-in capital                                               |   |                               | 412.4   |   |                              |   | 412.1 |   |
| Retained                  earnings                                                        |   |                               | 165.5   |   |                              |   | 139.4 |   |
| Accumulated                  other comprehensive income                                   |   |                               | 28.1    |   |                              |   | 11.6 |   |
|                     Total stockholder's investment                              |   |                               | 606.0   |   |                              |   | 563.1 |   |
| **Total                  Liabilities and Stockholder's Investment**                       |   | $                                  | 2,755.3 |   |                              | $      | 2,627.3 |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

|                                                                                                               |   | **For                  the third quarter ended** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                               |   | **Sept.                  29, 2007**              |   |   | **Sept.                  30, 2006** |   |
|                                                                                                               |   | *(Dollar                  amounts in millions)*  |   |
|                                                                                                               |   |                                             |   |   |   |   |
| **Net                  Sales**                                                                                     |   | $                                                | 602.2  |   |   | $ | 579.0 |   |
|                                                                                                               |   |                                             |   |   |   |   |   |   |
| **Costs                  and Expenses:**                                                                           |   |                                             |   |   |   |   |   |   |
|                      Cost of products sold (see Note D)                                             |   |                                             | 433.0  |   |   |   | 404.2 |   |
|                      Selling, general and administrative expense, net (see Note                  D) |   |                                             | 125.1  |   |   |   | 100.9 |   |
|                      Amortization of intangible assets                                              |   |                                             | 6.5    |   |   |   | 6.2 |   |
|                                                                                                               |   |                                             | 564.6  |   |   |   | 511.3 |   |
| Operating                  earnings                                                                                |   |                                             | 37.6   |   |   |   | 67.7 |   |
| Interest                  expense                                                                                  |   |                                             | (31.3  | ) |   |   | (29.9 | ) |
| Investment                  income                                                                                 |   |                                             | 0.6    |   |   |   | 0.4 |   |
| Earnings                  before provision for income taxes                                                        |   |                                             | 6.9    |   |   |   | 38.2 |   |
| Provision                  for                  income taxes                                                       |   |                                             | 5.5    |   |   |   | 15.1 |   |
| **Net                  earnings**                                                                                  |   | $                                                | 1.4    |   |   | $ | 23.1 |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

|                                                                                                               |   | **For                  the first nine months ended** |    |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|
|                                                                                                               |   | **Sept.                  29, 2007**                  |    |   | **Sept.                  30, 2006** |   |
|                                                                                                               |   | *(Dollar                  amounts in millions)*      |    |
|                                                                                                               |   |                                                 |    |   |   |   |
| **Net                  Sales**                                                                                     |   | $                                                    | 1,799.0 |   |   | $ | 1,677.3 |   |
|                                                                                                               |   |                                                 |    |   |   |   |   |   |
| **Costs                  and Expenses:**                                                                           |   |                                                 |    |   |   |   |   |   |
|                      Cost of products sold (see Note D)                                             |   |                                                 | 1,269.7 |   |   |   | 1,168.4 |   |
|                      Selling, general and administrative expense, net (see Note                  D) |   |                                                 | 363.2   |   |   |   | 263.3 |   |
|                      Amortization of intangible assets                                              |   |                                                 | 18.9    |   |   |   | 16.2 |   |
|                                                                                                               |   |                                                 | 1,651.8 |   |   |   | 1,447.9 |   |
| Operating                  earnings                                                                                |   |                                                 | 147.2   |   |   |   | 229.4 |   |
| Interest                  expense                                                                                  |   |                                                 | (91.3   | ) |   |   | (85.9 | ) |
| Investment                  income                                                                                 |   |                                                 | 1.5     |   |   |   | 1.6 |   |
| Earnings                  before provision for income taxes                                                        |   |                                                 | 57.4    |   |   |   | 145.1 |   |
| Provision                  for                  income taxes                                                       |   |                                                 | 28.1    |   |   |   | 55.7 |   |
| **Net                  earnings**                                                                                  |   | $                                                    | 29.3    |   |   | $ | 89.4 |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS**

|                                                                                                                                   |   | **For                the first nine months ended** |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                                                   |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
|                                                                                                                                   |   | *(Dollar                amounts in millions)*      |   |
| **Cash                Flows from operating activities:**                                                                               |   |                                               |   |   |   |   |
| Net                earnings                                                                                                            |   | $                                                  | 29.3   |   |   | $ | 89.4 |   |
|                                                                                                                                   |   |                                               |   |   |   |   |   |   |
| **Adjustments                to reconcile net earnings to net cash**                                                                   |   |                                               |   |   |   |   |   |   |
| **                  provided by operating activities:**                                                                      |   |                                               |   |   |   |   |   |   |
| Depreciation                and amortization expense                                                                                   |   |                                               | 46.9   |   |   |   | 44.2 |   |
| Non-cash                interest expense, net                                                                                          |   |                                               | 4.2    |   |   |   | 3.9 |   |
| Non-cash                stock-based compensation expense                                                                               |   |                                               | 0.3    |   |   |   | 0.3 |   |
| Gain                from                curtailment of post-retirement medical benefits                                                |   |                                               | ---    |   |   |   | (35.9 | ) |
| Loss                on                property and equipment                                                                           |   |                                               | 1.0    |   |   |   | 1.4 |   |
| Deferred                federal income tax (benefit) provision                                                                         |   |                                               | (8.6   | ) |   |   | 10.0 |   |
| **Changes                in certain assets and liabilities, net of**                                                                   |   |                                               |   |   |   |   |   |   |
| **                  effects from acquisitions and dispositions:**                                                            |   |                                               |   |   |   |   |   |   |
| Accounts                receivable, net                                                                                                |   |                                               | (12.6  | ) |   |   | (43.4 | ) |
| Inventories                                                                                                                            |   |                                               | (36.7  | ) |   |   | (37.9 | ) |
| Prepaids                and                other current assets                                                                        |   |                                               | 1.4    |   |   |   | 5.1 |   |
| Accounts                payable                                                                                                        |   |                                               | 16.3   |   |   |   | 9.2 |   |
| Accrued                expenses and taxes                                                                                              |   |                                               | 12.4   |   |   |   | 31.7 |   |
| Long-term                assets, liabilities and other, net                                                                            |   |                                               | 4.1    |   |   |   | (4.7 | ) |
|                   Total adjustments to net earnings                                                                          |   |                                               | 28.7   |   |   |   | (16.1 | ) |
|                   Net cash provided by operating activities                                                                  |   |                                               | 58.0   |   |   |   | 73.3 |   |
| **Cash                Flows from investing activities:**                                                                               |   |                                               |   |   |   |   |   |   |
| Capital                expenditures                                                                                                    |   |                                               | (24.1  | ) |   |   | (33.0 | ) |
| Net                cash paid                for businesses acquired                                                                    |   |                                               | (93.5  | ) |   |   | (67.0 | ) |
| Payment                in                connection with NTK Holdings senior unsecured loan                facility rollover |   |                                               | (4.5   | ) |   |   | --- |   |
| Payment                of                IPO expenses for NTK Holdings                                                                 |   |                                               | ---    |   |   |   | (2.4 | ) |
| Proceeds                from                the sale of property and equipment                                                         |   |                                               | 0.6    |   |   |   | 3.4 |   |
| Change                in                restricted cash and marketable securities                                                      |   |                                               | 1.5    |   |   |   | 0.4 |   |
| Other,                net                                                                                                              |   |                                               | (1.4   | ) |   |   | (3.1 | ) |
|                   Net cash used in investing activities                                                                      |   |                                               | (121.4 | ) |   |   | (101.7 | ) |
| **Cash                Flows from financing activities:**                                                                               |   |                                               |   |   |   |   |   |   |
| Increase                in                borrowings                                                                                   |   |                                               | 112.8  |   |   |   | 83.9 |   |
| Payment                of                borrowings                                                                                    |   |                                               | (40.2  | ) |   |   | (46.8 | ) |
| Dividends                                                                                                                              |   |                                               | ---    |   |   |   | (28.1 | ) |
| Other,                net                                                                                                              |   |                                               | ---    |   |   |   | (1.6 | ) |
|                   Net cash provided by financing activities                                                                  |   |                                               | 72.6   |   |   |   | 7.4 |   |
| Net                change in                unrestricted cash and cash equivalents                                                     |   |                                               | 9.2    |   |   |   | (21.0 | ) |
| Unrestricted                cash and cash equivalents at the beginning of the period                                                   |   |                                               | 57.4   |   |   |   | 77.2 |   |
| Unrestricted                cash and cash equivalents at the end of the period                                                         |   | $                                                  | 66.6   |   |   | $ | 56.2 |   |
|                                                                                                                                   |   |                                               |   |   |   |   |   |   |
| **Supplemental                disclosure of cash flow information:**                                                                   |   |                                               |   |   |   |   |   |   |
|                                                                                                                                   |   |                                               |   |   |   |   |   |   |
| Interest                paid                                                                                                           |   | $                                                  | 95.4   |   |   | $ | 90.9 |   |
|                                                                                                                                   |   |                                               |   |   |   |   |   |   |
| Income                taxes                paid, net                                                                                   |   | $                                                  | 4.7    |   |   | $ | 17.1 |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER’S      INVESTMENT**

**FOR      THE THIRD QUARTER ENDED SEPTEMBER 30, 2006**

*(Dollar      amounts in millions)*

|                                                          |   |           |   |   |         |   |   | **Accumulated**                    |   |   |                               |   |
|---------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|
|                                                          |   | **Additional** |   |   |         |   |   | **Other**                          |   |   |                               |   |
|                                                          |   | **Paid-in**    |   |   | **Retained** |   |   | **Comprehensive**                  |   |   | **Comprehensive**                  |   |
|                                                          |   | **Capital**    |   |   | **Earnings** |   |   | **Income                  (Loss)** |   |   | **Income                  (Loss)** |   |
|                                                          |   |           |   |   |         |   |   |                               |   |   |                               |   |
|                                                          |   |           |   |   |         |   |   |                               |   |   |                               |   |
| **Balance,                  July 1, 2006**                    |   | $              | 412.0  |   |         | $      | 116.0  |                               |   | $      | 14.4                               |   |   | $ | --- |   |
| Net                  earnings                                 |   |           | ---    |   |         |   | 23.1   |                               |   |   | ---                                |   |   |   | 23.1 |   |
| Other                  comprehensive income (loss):           |   |           |   |   |         |   |   |                               |   |   |                               |   |   |   |   |   |
|                     Currency translation adjustment |   |           | ---    |   |         |   | ---    |                               |   |   | (0.2                               | )      |   |   | (0.2 | ) |
| Comprehensive                  income                         |   |           |   |   |         |   |   |                               |   |   |                               |   |   | $ | 22.9 |   |
| Stock-based                  compensation                     |   |           | 0.1    |   |         |   | ---    |                               |   |   | ---                                |   |   |   |   |   |
| **Balance,                  September 30, 2006**              |   | $              | 412.1  |   |         | $      | 139.1  |                               |   | $      | 14.2                               |   |   |   |   |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER’S      INVESTMENT**

**FOR      THE FIRST NINE MONTHS ENDED SEPTEMBER 30, 2006**

*(Dollar      amounts in millions)*

|                                                                          |   |           |   |   |         |   |   | **Accumulated**   |   |   |              |   |
|-------------------------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                          |   | **Additional** |   |   |         |   |   | **Other**         |   |   |              |   |
|                                                                          |   | **Paid-in**    |   |   | **Retained** |   |   | **Comprehensive** |   |   | **Comprehensive** |   |
|                                                                          |   | **Capital**    |   |   | **Earnings** |   |   | **Income**        |   |   | **Income**        |   |
|                                                                          |   |           |   |   |         |   |   |              |   |   |              |   |
|                                                                          |   |           |   |   |         |   |   |              |   |   |              |   |
| **Balance,                  December 31, 2005**                               |   | $              | 415.0  |   |         | $      | 77.8   |              |   | $      | 7.5               |   |   | $ | --- |   |
| Net                  earnings                                                 |   |           | ---    |   |         |   | 89.4   |              |   |   | ---               |   |   |   | 89.4 |   |
| Other                  comprehensive income:                                  |   |           |   |   |         |   |   |              |   |   |              |   |   |   |   |   |
|                     Currency translation adjustment                 |   |           | ---    |   |         |   | ---    |              |   |   | 6.7               |   |   |   | 6.7 |   |
| Comprehensive                  income                                         |   |           |   |   |         |   |   |              |   |   |              |   |   | $ | 96.1 |   |
| Capital                  contribution from (dividend to) parent               |   |           | 1.7    |   |         |   | (28.1  | )                 |   |   | ---               |   |   |   |   |   |
| Adjustment                  of                  carryover basis of continuing |   |           |   |   |         |   |   |              |   |   |              |   |   |   |   |   |
|                     management investors in the THL Transaction     |   |           | (4.9   | )      |         |   | ---    |              |   |   | ---               |   |   |   |   |   |
| Stock-based                  compensation                                     |   |           | 0.3    |   |         |   | ---    |              |   |   | ---               |   |   |   |   |   |
| **Balance,                  September 30, 2006**                              |   | $              | 412.1  |   |         | $      | 139.1  |              |   | $      | 14.2              |   |   |   |   |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER’S      INVESTMENT**

**FOR      THE THIRD QUARTER ENDED SEPTEMBER 29, 2007**

*(Dollar      amounts in millions)*

|                                                          |   |           |   |   |         |   |   | **Accumulated**                    |   |   |                               |   |
|---------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|
|                                                          |   | **Additional** |   |   |         |   |   | **Other**                          |   |   |                               |   |
|                                                          |   | **Paid-in**    |   |   | **Retained** |   |   | **Comprehensive**                  |   |   | **Comprehensive**                  |   |
|                                                          |   | **Capital**    |   |   | **Earnings** |   |   | **Income                  (Loss)** |   |   | **Income                  (Loss)** |   |
|                                                          |   |           |   |   |         |   |   |                               |   |   |                               |   |
|                                                          |   |           |   |   |         |   |   |                               |   |   |                               |   |
| **Balance,                  June 30, 2007**                   |   | $              | 412.3  |   |         | $      | 164.1  |                               |   | $      | 20.1                               |   |   | $ | --- |   |
| Net                  earnings                                 |   |           | ---    |   |         |   | 1.4    |                               |   |   | ---                                |   |   |   | 1.4 |   |
| Other                  comprehensive income (loss):           |   |           |   |   |         |   |   |                               |   |   |                               |   |   |   |   |   |
|                     Currency translation adjustment |   |           | ---    |   |         |   | ---    |                               |   |   | 8.1                                |   |   |   | 8.1 |   |
|                     Pension liability adjustment    |   |           | ---    |   |         |   | ---    |                               |   |   | (0.1                               | )      |   |   | (0.1 | ) |
| Comprehensive                  income                         |   |           |   |   |         |   |   |                               |   |   |                               |   |   | $ | 9.4 |   |
| Stock-based                  compensation                     |   |           | 0.1    |   |         |   | ---    |                               |   |   | ---                                |   |   |   |   |   |
| **Balance,                  September 29, 2007**              |   | $              | 412.4  |   |         | $      | 165.5  |                               |   | $      | 28.1                               |   |   |   |   |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER’S      INVESTMENT**

**FOR      THE FIRST NINE MONTHS ENDED SEPTEMBER 29, 2007**

*(Dollar      amounts in millions)*

|                                                              |   |           |   |   |         |   |   | **Accumulated**                    |   |   |                               |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|
|                                                              |   | **Additional** |   |   |         |   |   | **Other**                          |   |   |                               |   |
|                                                              |   | **Paid-in**    |   |   | **Retained** |   |   | **Comprehensive**                  |   |   | **Comprehensive**                  |   |
|                                                              |   | **Capital**    |   |   | **Earnings** |   |   | **Income                  (Loss)** |   |   | **Income                  (Loss)** |   |
|                                                              |   |           |   |   |         |   |   |                               |   |   |                               |   |
|                                                              |   |           |   |   |         |   |   |                               |   |   |                               |   |
| **Balance,                  December 31, 2006**                   |   | $              | 412.1  |   |         | $      | 139.4  |                               |   | $      | 11.6                               |   |   | $ | --- |   |
| Net                  earnings                                     |   |           | ---    |   |         |   | 29.3   |                               |   |   | ---                                |   |   |   | 29.3 |   |
| Other                  comprehensive income (loss):               |   |           |   |   |         |   |   |                               |   |   |                               |   |   |   |   |   |
|                     Currency translation adjustment     |   |           | ---    |   |         |   | ---    |                               |   |   | 16.7                               |   |   |   | 16.7 |   |
|                     Pension liability adjustment        |   |           | ---    |   |         |   | ---    |                               |   |   | (0.2                               | )      |   |   | (0.2 | ) |
| Comprehensive                  income                             |   |           |   |   |         |   |   |                               |   |   |                               |   |   | $ | 45.8 |   |
| Adoption                  of                  FIN 48 (see Note F) |   |           | ---    |   |         |   | (3.2   | )                                  |   |   | ---                                |   |   |   |   |   |
| Stock-based                  compensation                         |   |           | 0.3    |   |         |   | ---    |                               |   |   | ---                                |   |   |   |   |   |
| **Balance,                  September 29, 2007**                  |   | $              | 412.4  |   |         | $      | 165.5  |                               |   | $      | 28.1                               |   |   |   |   |   |

*The      accompanying notes are an integral part of these unaudited condensed      consolidated financial statements.*

**NORTEK,        INC. AND SUBSIDIARIES**

**NOTES        TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER        29, 2007 AND SEPTEMBER 30, 2006**

| (A)   | The                unaudited condensed consolidated financial statements presented herein                (the “Unaudited Financial Statements”) reflect the financial position,                results of operations and cash flows of Nortek, Inc. (the “Company” or                “Nortek”) and all of its wholly-owned subsidiaries.  The                Unaudited Financial Statements include the accounts of Nortek, as                appropriate, and all of its wholly-owned subsidiaries, after elimination                of intercompany accounts and transactions, without audit and, in                the                opinion of management, reflect all adjustments of a normal recurring                nature necessary for a fair statement of the interim periods                presented.  Although certain information and footnote                disclosures normally included in financial statements prepared in                accordance with U.S. generally accepted accounting principles have                been                omitted, the Company believes that the disclosures included are adequate                to make the information presented not misleading.  Certain                amounts in the prior year’s Unaudited Financial Statements have been                reclassified to conform to the current year presentation.  It is                suggested that these Unaudited Financial Statements be read in conjunction                with the consolidated financial statements and the notes included                in the                Company’s latest annual report on Form 10-K and its latest Current Reports                on Form 8-K as filed with the Securities and Exchange Commission                (“SEC”). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Stock-Based      Compensation of Employees, Officers and Directors**

**Income      Taxes**

**Goodwill**

|                                                                              |  *(Amounts              in millions)*  |
|-----------------------------------------------------------------------------------|--------------------------------------------------|
|                                                                              |                                             |   |   |
| **Balance                at December 31, 2006**                                   |                                             | **$** | **1,481.4** |   |
| Acquisitions                during the first nine months ended September 29, 2007 |                                             |   | 37.2 |   |
| Adoption                of FIN 48 (see Note F)                                    |                                             |   | 3.8 |   |
| Realization                of FIN 48 reserves                                     |                                             |   | (1.4 | ) |
| Purchase                accounting adjustments                                    |                                             |   | (7.4 | ) |
| Impact                of foreign currency translation                             |                                             |   | 2.0 |   |
| **Balance                at September 29, 2007**                                  |                                             | **$** | **1,515.6** |   |

|                                                   |  (*Amounts              in millions)*  |
|--------------------------------------------------------|--------------------------------------------------|
| Segment:                                               |                                             |   |   |
| Residential                Ventilation Products        |                                             | $ | 801.2 |   |
| Home                Technology Products                |                                             |   | 398.2 |   |
| Air                Conditioning and Heating Products * |                                             |   | 316.2 |   |
|                                                   |                                             | $ | 1,515.6 |   |

|   | * | Mostly                relates to residential HVAC                products. |
|--------|---|----------------------------------------------------------------------------|

**Other      Long-Lived Assets**

**Long-term      payable to affiliate**

|                                                                                                   |  *(Amounts              in millions)*  |
|--------------------------------------------------------------------------------------------------------|--------------------------------------------------|
|                                                                                                   |                                             |   |   |
| **Balance                at December 31, 2006**                                                        |                                             | **$** | **24.9** |   |
| Deferred                taxes transferred to Nortek                                                    |                                             |   | 14.7 |   |
| Payment                in connection with NTK Holdings                  Bridge Loan Rollover |                                             |   | (4.5 | ) |
| Payment                of miscellaneous expenses for                  NTK Holdings           |                                             |   | (0.1 | ) |
| **Balance                at September 29, 2007**                                                       |                                             | **$** | **35.0** |   |

**New      Accounting Pronouncements**

| (B) | At                September 29, 2007, the Company had approximately $89.0 million                outstanding and approximately $79.5 million of available borrowing                capacity under the U.S. revolving portion of its senior secured credit                facility, with approximately $21.5 million in outstanding letters                of                credit.  Borrowings under the revolving portion of the senior                secured credit facility are used for general working capital                purposes.  Under the Canadian revolving portion of its senior                secured credit facility, the Company had no outstanding borrowings                and                approximately $10.0 million of available borrowing                capacity.  Letters of credit have been issued under the                Company’s revolving credit facility as additional security for (1)                approximately $17.2 million relating to certain of the Company’s insurance                programs, (2) approximately $3.6 million relating to leases outstanding                for certain of the Company’s manufacturing facilities and (3)                approximately $0.7 million relating to certain of the subsidiaries’                purchases and other requirements.  Letters of credit reduce                borrowing availability under the Company’s revolving credit facility on a                dollar for dollar basis.  Subsequent to September 29, 2007, the                Company repaid approximately $29.0 million of outstanding borrowings                under                the U.S. revolving portion of its senior secured credit                facility. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | On                September 18, 2007, the Company acquired all the capital stock of                Stilpol                SP. Zo.O. (“Stilpol”) and certain assets and liabilities of Metaltecnica                S.r.l. (“Metaltecnica”) for approximately $7.9 million in cash and the                assumption of indebtedness (estimated to be approximately $4.5 million                at                September 29, 2007) through its kitchen range hood subsidiaries,                based in                Italy and Poland (“Best Subsidiaries”).  The Company’s Best                subsidiaries borrowed the cash portion of the purchase price from                banks in                Italy.  These acquisitions supply various fabricated material                components and sub-assemblies used by the Company’s Best subsidiaries in                the manufacture of kitchen range                hoods. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D)   | During                the third quarter ended September 29, 2007 and September 30, 2006,                the                Company’s results of operations include the following (income) and expense                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 third quarter ended *** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                                                                                                         |   | **Sept.                29, 2007**                |   |   | **Sept.                30, 2006** |
|                                                                                                                                                         |   | *(Amounts                in millions)*           |
|                                                                                                                                                         |   |                                             |   |   |   |
| Charges                related to the closure of the Company’s NuTone, Inc. Cincinnati, OH                facility (1)                                 |   | $                                                | 0.4 |   |   | $ | 0.3 |   |
| Charges                related to the closure of the Company’s Mammoth, Inc. Chaska, MN                facility                                        |   |                                             | 2.3 |   |   |   | --- |   |
| Charges                related to the closure of the Company’s Jensen, Inc. Vernon, CA                facility                                         |   |                                             | 0.2 |   |   |   | --- |   |
| Legal              and              other professional fees and expenses incurred in connection with matters              related to certain subsidiaries    |   |                                             |   |   |   |   |   |   |
|                   based in Italy and Poland                                                                                                        |   |                                             | 0.9 |   |   |   | --- |   |
| Increase              in              product liability expense for the third quarter of 2007 as compared              to the              same period  |   |                                             |   |   |   |   |   |   |
|                   of 2006 in the RVP segment (2)                                                                                                   |   |                                             | 5.5 |   |   |   | --- |   |
| Product                safety upgrade reserves in the RVP and HTP segments (3)                                                                               |   |                                             | 0.8 |   |   |   | --- |   |
| Loss                on settlement of litigation in the RVP segment                                                                                           |   |                                             | 1.9 |   |   |   | --- |   |
| Gain                on settlement of litigation in the HVAC segment                                                                                          |   |                                             | --- |   |   |   | (1.2 | ) |
| Foreign              exchange losses (gains) related to transactions, including intercompany              debt not indefinitely invested in the              |   |                                             |   |   |   |   |   |   |
|                   Company’s subsidiaries                                                                                                     |   |                                             | 1.4 |   |   |   | (0.1 | ) |
|                                                                                                                                                         |   | $                                                | 13.4 |   |   | $ | (1.0 | ) |

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

| (1)   | For                the third quarter ended September 29, 2007, all charges related to                the                closure of NuTone were recorded in selling, general and administrative                expense, net.  For the third quarter ended September 30, 2006,                all charges related to the closure of NuTone were recorded in cost                of                products sold (see Note H). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                RVP segment recorded the increase in product liability expense in                cost of                products sold (see Note G). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The                RVP and HTP segments recorded these product safety upgrade reserves                in                cost of products sold (see Note G). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                               |   | **For                the first nine months ended *** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                                                               |   | **Sept.                29, 2007**                    |   |   | **Sept.                30, 2006** |   |
|                                                                                                                                                               |   | *(Amounts                in millions)*               |   |
|                                                                                                                                                               |   |                                                 |   |   |   |   |
| Gain                from curtailment of post-retirement medical and life insurance benefits                (see Note I)                                            |   | $                                                    | ---    |   |   | $ | (35.9 | ) |
| Charges                related to the closure of the Company’s NuTone, Inc. Cincinnati, OH                facility (1)                                       |   |                                                 | 1.8    |   |   |   | 4.1 |   |
| Charges                related to the closure of the Company’s Mammoth, Inc. Chaska, MN                facility                                              |   |                                                 | 2.6    |   |   |   | --- |   |
| Charges                related to the closure of the Company’s Jensen, Inc. Vernon, CA                facility                                               |   |                                                 | 0.2    |   |   |   | --- |   |
| Legal              and              other professional fees and expenses incurred in connection with matters              related to certain subsidiaries          |   |                                                 |   |   |   |   |   |   |
|                   based in Italy and Poland                                                                                                              |   |                                                 | 2.2    |   |   |   | --- |   |
| Increase              in              product liability expense for the first nine months of 2007 as compared              to              the same period of 2006 |   |                                                 |   |   |   |   |   |   |
|                   in the RVP segment (2)                                                                                                                 |   |                                                 | 7.3    |   |   |   | --- |   |
| Product                safety upgrade reserves in the RVP and HTP segments (3)                                                                                     |   |                                                 | 0.6    |   |   |   | 5.5 |   |
| Reserve                for amounts due from customers in the HTP and HVAC                segments                                                                  |   |                                                 | 2.3    |   |   |   | --- |   |
| Loss                on settlement of litigation in the RVP segment                                                                                                 |   |                                                 | 1.9    |   |   |   | --- |   |
| Gain                on settlement of litigation in the HVAC segment                                                                                                |   |                                                 | ---    |   |   |   | (1.6 | ) |
| Foreign              exchange losses related to transactions, including intercompany debt              not              indefinitely invested in the               |   |                                                 |   |   |   |   |   |   |
|                   Company’s subsidiaries                                                                                                           |   |                                                 | 3.4    |   |   |   | --- |   |
|                                                                                                                                                               |   | $                                                    | 22.3   |   |   | $ | (27.9 | ) |

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

| (1)   | For                the first nine months ended September 29, 2007, all charges related                to the                closure of NuTone were recorded in selling, general and administrative                expense, net.  For the first nine months ended September 30,                2006, approximately $1.7 million of the charges related to the closure                of                NuTone was recorded in cost of products sold and approximately $2.4                million was charged to selling, general and administrative expense,                net                (see Note H). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                RVP segment recorded the increase in product liability expense in                cost of                products sold (see Note G). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The                RVP and HTP segments recorded these product safety upgrade reserves                in                cost of products sold (see Note G). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (E) | The                Company is a leading diversified manufacturer of innovative, branded                residential and commercial products, which is organized within three                reporting segments: the Residential Ventilation Products (“RVP”) segment,                the Home Technology Products (“HTP”) segment and the Air Conditioning and                Heating Products (“HVAC”) segment.  The HVAC segment combines                the results of the Company’s residential and commercial heating,                ventilating and air conditioning businesses.  In the tables                below, Unallocated includes corporate related items, intersegment                eliminations and certain income and expense items not allocated to                reportable segments. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   | **For                  the third quarter ended** |   |
|--------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                     |   | **Sept.                  29, 2007**              |   |   | **Sept.                  30, 2006** |   |
|                                                                     |   | *(Dollar                  amounts in millions)*  |   |
| **Net                  sales:**                                          |   |                                             |   |   |   |   |
| Residential                  ventilation products                        |   | $                                                | 203.9  |   |   | $ | 200.4 |   |
| Home                  technology products                                |   |                                             | 148.7  |   |   |   | 127.4 |   |
| Air                  conditioning and heating products                   |   |                                             | 249.6  |   |   |   | 251.2 |   |
|                     Consolidated net sales                     |   | $                                                | 602.2  |   |   | $ | 579.0 |   |
|                                                                     |   |                                             |   |   |   |   |   |   |
| **Operating                  earnings:**                                 |   |                                             |   |   |   |   |   |   |
| Residential                  ventilation products (1)                    |   | $                                                | 19.4   |   |   | $ | 30.7 |   |
| Home                  technology products (2)                            |   |                                             | 19.2   |   |   |   | 24.1 |   |
| Air                  conditioning and heating products (3)               |   |                                             | 6.2    |   |   |   | 19.1 |   |
|                     Subtotal                                   |   |                                             | 44.8   |   |   |   | 73.9 |   |
| **Unallocated:**                                                         |   |                                             |   |   |   |   |   |   |
| Stock-based                  compensation charges                        |   |                                             | (0.1   | ) |   |   | (0.1 | ) |
| Foreign                  exchange gains on transactions,                 |   |                                             |   |   |   |   |   |   |
|                     including intercompany debt                |   |                                             | 0.1    |   |   |   | 0.1 |   |
| Unallocated,                  net                                        |   |                                             | (7.2   | ) |   |   | (6.2 | ) |
|                     Consolidated operating earnings            |   |                                             | 37.6   |   |   |   | 67.7 |   |
| Interest                  expense                                        |   |                                             | (31.3  | ) |   |   | (29.9 | ) |
| Investment                  income                                       |   |                                             | 0.6    |   |   |   | 0.4 |   |
|                     Earnings before provision for income taxes |   | $                                                | 6.9    |   |   | $ | 38.2 |   |

|   | (1) | The                operating results of the RVP segment for the third quarter ended                September                29, 2007 include an increase in product liability expense of approximately                $5.5 million as compared to the third quarter ended September 30,                2006, a                charge to warranty expense of approximately $0.5 million related                to a                product safety upgrade, an approximate $0.4 million charge related                to the                closure of the Company’s NuTone, Inc. Cincinnati, Ohio facility (see Note                H), an approximate $0.2 million charge related to the closure of                the                Company’s Jensen, Inc. Vernon, California facility (see Note H), legal and                other professional fees and expenses incurred in connection with                matters                related to certain subsidiaries based in Italy and Poland of approximately                $0.9 million (see Note G), an approximate $1.9 million loss related                to the                settlement of litigation and foreign exchange losses of approximately                $0.6                million related to transactions, including intercompany debt not                indefinitely invested in the Company’s subsidiaries.  The                operating results of the RVP segment for the third quarter ended                September                30, 2006 include an approximate $0.3 million charge related to the                planned                closure of the Company’s NuTone, Inc. Cincinnati, Ohio facility (see Note                H). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                operating results of the HTP segment for the third quarter ended                September                29, 2007 include a charge to warranty expense of approximately $0.3                million related to a product safety upgrade and foreign exchange                gains of                approximately $0.1 million related to                transactions. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The                operating results of the HVAC segment for the third quarter ended                September 29, 2007 include a charge of approximately $2.3 million                related                to the planned closure of the Company’s Mammoth, Inc. Chaska, Minnesota                manufacturing facility (see Note H) and foreign exchange losses of                approximately $1.0 million related to transactions, including intercompany                debt not indefinitely invested in the Company’s                subsidiaries.  The operating results of the HVAC segment for the                third quarter ended September 30, 2006 include an approximate $1.2                million                gain related to the settlement of                litigation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   | **For                  the first nine months ended** |    |
|--------------------------------------------------------------------------|--------|------------------------------------------------------|---------|
|                                                                     |   | **Sept.                  29, 2007**                  |    |   | **Sept.                  30, 2006** |   |
|                                                                     |   | *(Dollar                  amounts in millions)*      |    |
| **Net                  sales:**                                          |   |                                                 |    |   |   |   |
| Residential                  ventilation products                        |   | $                                                    | 618.7   |   |   | $ | 619.3 |   |
| Home                  technology products                                |   |                                                 | 415.8   |   |   |   | 350.0 |   |
| Air                  conditioning and heating products                   |   |                                                 | 764.5   |   |   |   | 708.0 |   |
|                     Consolidated net sales                     |   | $                                                    | 1,799.0 |   |   | $ | 1,677.3 |   |
|                                                                     |   |                                                 |    |   |   |   |   |   |
| **Operating                  earnings:**                                 |   |                                                 |    |   |   |   |   |   |
| Residential                  ventilation products (1)                    |   | $                                                    | 70.6    |   |   | $ | 136.6 |   |
| Home                  technology products (2)                            |   |                                                 | 59.0    |   |   |   | 55.8 |   |
| Air                  conditioning and heating products (3)               |   |                                                 | 38.7    |   |   |   | 56.3 |   |
|                     Subtotal                                   |   |                                                 | 168.3   |   |   |   | 248.7 |   |
| **Unallocated:**                                                         |   |                                                 |    |   |   |   |   |   |
| Stock-based                  compensation charges                        |   |                                                 | (0.3    | ) |   |   | (0.3 | ) |
| Foreign                  exchange gains on transactions,                 |   |                                                 |    |   |   |   |   |   |
|                     including intercompany debt                |   |                                                 | 0.3     |   |   |   | 0.3 |   |
| Unallocated,                  net                                        |   |                                                 | (21.1   | ) |   |   | (19.3 | ) |
| Consolidated                  operating earnings                         |   |                                                 | 147.2   |   |   |   | 229.4 |   |
| Interest                  expense                                        |   |                                                 | (91.3   | ) |   |   | (85.9 | ) |
| Investment                  income                                       |   |                                                 | 1.5     |   |   |   | 1.6 |   |
|                     Earnings before provision for income taxes |   | $                                                    | 57.4    |   |   | $ | 145.1 |   |

|   | (1) | The                operating results of the RVP segment for the first nine months ended                September 29, 2007 include an increase in product liability expense                of                approximately $7.3 million as compared to the first nine months ended                September 30, 2006, a charge to warranty expense of approximately                $0.5                million related to a product safety upgrade, an approximate $1.8                million                charge related to the closure of the Company’s NuTone, Inc. Cincinnati,                Ohio facility (see Note H), an approximate $0.2 million charge related                to                the closure of the Company’s Jensen, Inc. Vernon, California facility (see                Note H), legal and other professional fees and expenses incurred                in                connection with matters related to certain subsidiaries based in                Italy and                Poland of approximately $2.2 million (see Note G), an approximate                $1.9                million loss related to the settlement of litigation and foreign                exchange                losses of approximately $1.5 million related to transactions, including                intercompany debt not indefinitely invested in the Company’s                subsidiaries.  The operating results of the RVP segment for the                first nine months ended September 30, 2006 include an approximate                $35.9                million curtailment gain related to post-retirement medical benefits,                an                approximate $4.1 million charge related to the planned closure of                the                Company’s NuTone, Inc. Cincinnati, Ohio facility (see Note H), a charge to                warranty expense of approximately $1.5 million related to a product                safety                upgrade and foreign exchange losses of approximately $0.2 million                related                to transactions, including intercompany debt not indefinitely invested                in                the Company’s subsidiaries. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                operating results of the HTP segment for the first nine months ended                September 29, 2007 include a charge of approximately $0.5 million                related                to a reserve for amounts due from a customer, a charge to warranty                expense                of approximately $0.1 million related to a product safety upgrade                and                foreign exchange gains of approximately $0.2 million related to                transactions.  The operating results of the HTP segment for the                first nine months ended September 30, 2006 include a charge to warranty                expense of approximately $4.0 million related to a product safety                upgrade                and foreign exchange gains of approximately $0.1 million related                to                transactions. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The                operating results of the HVAC segment for the first nine months ended                September 29, 2007 include a charge of approximately $2.6 million                related                to the planned closure of the Company’s Mammoth, Inc. Chaska, Minnesota                manufacturing facility (see Note H), a charge of approximately $1.8                million related to reserves for amounts due from customers and foreign                exchange losses of approximately $2.4 million related to transactions,                including intercompany debt not indefinitely invested in the Company’s                subsidiaries.  The operating results of the HVAC segment for the                first nine months ended September 30, 2006 include an approximate                $1.6                million gain related to the settlement of litigation and foreign                exchange                losses of approximately $0.2 million related to transactions, including                intercompany debt not indefinitely invested in the Company’s                subsidiaries. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | **For                  the third quarter ended** |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                            |   | **Sept.                  29, 2007**              |   |   | **Sept.                  30, 2006** |   |
|                                                            |   | *(Dollar                  amounts in millions)*  |   |
|                                                            |   |                                             |   |   |   |   |
| **Depreciation                  Expense:**                      |   |                                             |   |   |   |   |
| Residential                  ventilation products               |   | $                                                | 3.5    |   |   | $ | 3.2 |   |
| Home                  technology products                       |   |                                             | 1.5    |   |   |   | 1.1 |   |
| Air                  conditioning and heating products          |   |                                             | 4.1    |   |   |   | 4.2 |   |
| Other                                                           |   |                                             | 0.2    |   |   |   | 0.2 |   |
|                     Consolidated depreciation expense |   | $                                                | 9.3    |   |   | $ | 8.7 |   |
|                                                            |   |                                             |   |   |   |   |   |   |
| **Amortization                  expense:**                      |   |                                             |   |   |   |   |   |   |
| Residential                  ventilation products (1)           |   | $                                                | 1.8    |   |   | $ | 1.8 |   |
| Home                  technology products                       |   |                                             | 2.7    |   |   |   | 2.5 |   |
| Air                  conditioning and heating products (2)      |   |                                             | 1.8    |   |   |   | 2.8 |   |
| Other                                                           |   |                                             | 0.2    |   |   |   | 0.1 |   |
|                     Consolidated amortization expense |   | $                                                | 6.5    |   |   | $ | 7.2 |   |
|                                                            |   |                                             |   |   |   |   |   |   |
| **Capital                  Expenditures:**                      |   |                                             |   |   |   |   |   |   |
| Residential                  ventilation products               |   | $                                                | 4.1    |   |   | $ | 5.3 |   |
| Home                  technology products                       |   |                                             | 1.6    |   |   |   | 1.8 |   |
| Air                  conditioning and heating products          |   |                                             | 4.2    |   |   |   | 3.2 |   |
| Other                                                           |   |                                             | 0.1    |   |   |   | --- |   |
|                     Consolidated capital expenditures |   | $                                                | 10.0   |   |   | $ | 10.3 |   |

| (1)   | Includes                amortization of approximately $0.3 million for the third quarter                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes                amortization of approximately $0.7 million for the third quarter                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | **For                  the first nine months ended** |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                            |   | **Sept.                  29, 2007**                  |   |   | **Sept.                  30, 2006** |   |
|                                                            |   | *(Dollar                  amounts in millions)*      |   |
|                                                            |   |                                                 |   |   |   |   |
| **Depreciation                  Expense:**                      |   |                                                 |   |   |   |   |
| Residential                  ventilation products               |   | $                                                    | 10.6   |   |   | $ | 9.7 |   |
| Home                  technology products                       |   |                                                 | 4.2    |   |   |   | 2.9 |   |
| Air                  conditioning and heating products          |   |                                                 | 12.7   |   |   |   | 11.7 |   |
| Other                                                           |   |                                                 | 0.5    |   |   |   | 0.5 |   |
|                     Consolidated depreciation expense |   | $                                                    | 28.0   |   |   | $ | 24.8 |   |
|                                                            |   |                                                 |   |   |   |   |   |   |
| **Amortization                  expense:**                      |   |                                                 |   |   |   |   |   |   |
| Residential                  ventilation products (1)           |   | $                                                    | 4.4    |   |   | $ | 4.8 |   |
| Home                  technology products (2)                   |   |                                                 | 8.6    |   |   |   | 6.9 |   |
| Air                  conditioning and heating products (3)      |   |                                                 | 5.5    |   |   |   | 7.3 |   |
| Other                                                           |   |                                                 | 0.4    |   |   |   | 0.4 |   |
|                     Consolidated amortization expense |   | $                                                    | 18.9   |   |   | $ | 19.4 |   |
|                                                            |   |                                                 |   |   |   |   |   |   |
| **Capital                  Expenditures:**                      |   |                                                 |   |   |   |   |   |   |
| Residential                  ventilation products               |   | $                                                    | 9.8    |   |   | $ | 14.7 |   |
| Home                  technology products                       |   |                                                 | 4.2    |   |   |   | 5.2 |   |
| Air                  conditioning and heating products          |   |                                                 | 10.0   |   |   |   | 13.0 |   |
| Other                                                           |   |                                                 | 0.1    |   |   |   | 0.1 |   |
|                     Consolidated capital expenditures |   | $                                                    | 24.1   |   |   | $ | 33.0 |   |

| (1)   | Includes                amortization of approximately $0.3 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes                amortization of approximately $0.1 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes                amortization of approximately $2.8 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (F) | The                Company provided income taxes on an interim basis based upon the                actual                effective tax rate through September 29, 2007.  The following                reconciles the federal statutory income tax rate to the actual effective                tax rate of approximately 49.0% and 38.4% for the first nine months                ended                September 29, 2007 and September 30,                2006: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                        |   | **For                the first nine months ended** |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                        |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
| Income                tax provision at the federal statutory rate                                           |   |                                               | 35.0   | % |   |   | 35.0 | % |
| Net                change from federal statutory rate:                                                      |   |                                               |   |   |   |   |   |   |
| Interest                related to uncertain tax positions, net of federal income tax                effect |   |                                               | 2.7    |   |   |   | --- |   |
|    State              income              tax provision, net of federal income tax effect    |   |                                               |   |   |   |   |   |   |
| Tax                effect resulting from foreign activities                                                 |   |                                               | 6.6    |   |   |   | 1.0 |   |
| Non-deductible                expenses                                                                      |   |                                               | 1.6    |   |   |   | 0.5 |   |
| Other,                net                                                                                   |   |                                               | ---    |   |   |   | 0.3 |   |
| Income                tax provision at actual effective rate                                                |   |                                               | 49.0   | % |   |   | 38.4 | % |

| (G) | At                September 29, 2007, the Company’s former subsidiary, Ply Gem, has                guaranteed approximately $19.9 million of third party obligations                relating                to rental payments through June 30, 2016 under a facility leased                by a                former subsidiary, which was sold on September 21, 2001.  The                Company has indemnified these guarantees in connection with the sale                of                Ply Gem on February 12, 2004 and has recorded an estimated liability                related to this indemnified guarantee of approximately $0.8 million                at                September 29, 2007 in accordance with Interpretation No. 45, “Guarantor’s                Accounting and Disclosure Requirements for Guarantees, Including                Indirect                Guarantees of Indebtedness of Others” (“FIN 45”).  The buyer of                the former subsidiary has provided certain indemnifications and other                rights to Nortek for any payments that it might be required to make                pursuant to this guarantee.  Should the buyer of the former                subsidiary cease making payments then the Company may be required                to make                payments on its indemnification. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | **For                the third quarter ended** |   |
|-------------------------------------------------|--------|------------------------------------------------|--------|
|                                            |   | **Sept.                29, 2007**              |   |   | **Sept.                30, 2006** |   |
|                                            |   | *(Amounts                in millions)*         |   |
|                                            |   |                                           |   |   |   |   |
| Balance,                beginning of the period |   | $                                              | 29.6   |   |   | $ | 18.0 |   |
| Provision                during the period      |   |                                           | 7.4    |   |   |   | 1.8 |   |
| Payments                made during the period  |   |                                           | (1.7   | ) |   |   | (1.4 | ) |
| Other                adjustments                |   |                                           | (0.3   | ) |   |   | --- |   |
| Balance,                end of the period       |   | $                                              | 35.0   |   |   | $ | 18.4 |   |

|                                            |   | **For                the first nine months ended** |   |
|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                            |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
|                                            |   | *(Amounts                in millions)*             |   |
|                                            |   |                                               |   |   |   |   |
| Balance,                beginning of the period |   | $                                                  | 26.8   |   |   | $ | 18.1 |   |
| Provision                during the period      |   |                                               | 12.6   |   |   |   | 5.6 |   |
| Payments                made during the period  |   |                                               | (4.8   | ) |   |   | (4.3 | ) |
| Other                adjustments                |   |                                               | 0.4    |   |   |   | (1.0 | ) |
| Balance,                end of the period       |   | $                                                  | 35.0   |   |   | $ | 18.4 |   |

|                                                                                                |   | **For                the third quarter ended** |   |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                                                |   | **Sept.                29, 2007**              |   |   | **Sept.                30, 2006** |   |
|                                                                                                |   | *(Amounts                in millions)*         |   |
|                                                                                                |   |                                           |   |   |   |   |
| Balance,                beginning of the period                                                     |   | $                                              | 43.4   |   |   | $ | 43.4 |   |
| Warranties                provided during the period                                                |   |                                           | 7.9    |   |   |   | 5.0 |   |
| Settlements                made during the period                                                   |   |                                           | (8.0   | ) |   |   | (6.9 | ) |
| Changes                in liability estimate, including expirations and                acquisitions |   |                                           | 0.7    |   |   |   | 0.2 |   |
| Balance,                end of the period                                                           |   | $                                              | 44.0   |   |   | $ | 41.7 |   |

|                                                                                                |   | **For                the first nine months ended** |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
|                                                                                                |   | *(Amounts                in millions)*             |   |
|                                                                                                |   |                                               |   |   |   |   |
| Balance,                beginning of the period                                                     |   | $                                                  | 41.2   |   |   | $ | 34.8 |   |
| Warranties                provided during the period                                                |   |                                               | 21.2   |   |   |   | 22.5 |   |
| Settlements                made during the period                                                   |   |                                               | (20.6  | ) |   |   | (16.9 | ) |
| Changes                in liability estimate, including expirations and                acquisitions |   |                                               | 2.2    |   |   |   | 1.3 |   |
| Balance,                end of the period                                                           |   | $                                                  | 44.0   |   |   | $ | 41.7 |   |

| (H) | The                Company records restructuring costs primarily in connection with                operations acquired or facility closings which management plans to                eliminate in order to improve future operating results of the                Company. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | **Employee                Separation Expenses** |    |   | **Other** |       |    | **Total****Restructuring****Costs** |   |
|--------------------------------------------------|--------|-------------------------------------------------|---------|--------|-----------|------------|---------|-------------------------------------|--------|
|                                             |   | *(Dollar                amounts in millions)*   |    |
|                                             |   |                                            |    |   |      |       |    |                                |   |
| **Balance                at December 31, 2006**  |   | **$**                                           | **---** |   |      | **$**      | **0.1** |                                |   | **$** | **0.1** |   |
| Provision                                        |   |                                            | 0.6     |   |      |       | 0.1     |                                |   |   | 0.7 |   |
| Payments                and asset write downs    |   |                                            | ---     |   |      |       | (0.1    | )                                   |   |   | (0.1 | ) |
| **Balance                at March 31, 2007**     |   | ** **                                      | **0.6** |   |      | ** ** | **0.1** |                                |   | ** ** | **0.7** |   |
| Provision                                        |   |                                            | 1.1     |   |      |       | ---     |                                |   |   | 1.1 |   |
| Payments                                         |   |                                            | (0.3    | )      |      |       | ---     |                                |   |   | (0.3 | ) |
| **Balance                at June 30, 2007**      |   | ** **                                      | **1.4** |   |      | ** ** | **0.1** |                                |   | ** ** | **1.5** |   |
| Provision                                        |   |                                            | 0.6     |   |      |       | 2.6     |                                |   |   | 3.2 |   |
| Payments                and asset write downs    |   |                                            | (0.2    | )      |      |       | (1.4    | )                                   |   |   | (1.6 | ) |
| **Balance                at September 29, 2007** |   | **$**                                           | **1.8** |   |      | **$**      | **1.3** |                                |   | **$** | **3.1** |   |
|                                             |   |                                            |    |   |      |       |    |                                |   |   |   |   |

| (I) | 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 third quarter ended** |   |
|-----------------------------------------------|--------|------------------------------------------------|--------|
|                                          |   | **Sept.                29, 2007**              |   |   | **Sept.                30, 2006** |   |
|                                          |   | *(Dollar                amounts in millions)*  |   |
|                                          |   |                                           |   |   |   |   |
| Service                cost                   |   | $                                              | 0.1    |   |   | $ | 0.2 |   |
| Interest                cost                  |   |                                           | 2.4    |   |   |   | 2.3 |   |
| Expected                return on plan assets |   |                                           | (2.5   | ) |   |   | (2.3 | ) |
| Net                periodic benefit cost      |   | $                                              | ---    |   |   | $ | 0.2 |   |

|                                          |   | **For                the first nine months ended** |   |
|-----------------------------------------------|--------|----------------------------------------------------|--------|
|                                          |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
|                                          |   | *(Dollar                amounts in millions)*      |   |
|                                          |   |                                               |   |   |   |   |
| Service                cost                   |   | $                                                  | 0.4    |   |   | $ | 0.8 |   |
| Interest                cost                  |   |                                               | 7.2    |   |   |   | 6.8 |   |
| Expected                return on plan assets |   |                                               | (7.5   | ) |   |   | (6.8 | ) |
| Net                periodic benefit cost      |   | $                                                  | 0.1    |   |   | $ | 0.8 |   |

|                                                    |   | **For                the third quarter ended** |   |
|---------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                    |   | **Sept.                29, 2007**              |   |   | **Sept.                30, 2006** |   |
|                                                    |   | *(Dollar                amounts in millions)*  |   |
|                                                    |   |                                           |   |   |   |   |
| Interest                cost                            |   | $                                              | 0.1    |   |   | $ | 0.1 |   |
| Net                periodic post-retirement health cost |   | $                                              | 0.1    |   |   | $ | 0.1 |   |

|                                                                  |   | **For                the first nine months ended** |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                  |   | **Sept.                29, 2007**                  |   |   | **Sept.                30, 2006** |   |
|                                                                  |   | *(Dollar                amounts in millions)*      |   |
|                                                                  |   |                                               |   |   |   |   |
| Service                cost                                           |   | $                                                  | ---    |   |   | $ | 0.1 |   |
| Interest                cost                                          |   |                                               | 0.2    |   |   |   | 0.6 |   |
| Amortization                of prior service cost                     |   |                                               | (0.1   | ) |   |   | (1.4 | ) |
| Curtailment                gain                                       |   |                                               | ---    |   |   |   | (35.9 | ) |
| Net                periodic post-retirement health cost (income) |   | $                                                  | 0.1    |   |   | $ | (36.6 | ) |

| (J)   | The                Company’s 8 1/2% Notes are guaranteed by all of the Company’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 8 1/2% Note guarantee. The Guarantors are wholly-owned                either directly or indirectly by the Company and jointly and severally                guarantee the Company’s obligations under the 8 1/2% Notes. None of the                Company’s subsidiaries organized outside of the United States guarantee                the 8 1/2% Notes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Unaudited      Condensed Consolidating Balance Sheet**

**As      of September 29, 2007**

|                                                                                          |   |                                                                                |    |   | **Guarantor**    |   |    | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |     |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|------------------|----------|
|                                                                                          |   | **Parent**                                                                          |    |   | **Subsidiaries** |   |    | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |     |
|                                                                                          |   | *(Dollar                  amounts in millions)*       |    |
| **ASSETS:**                                                                                   |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |
| **Current                  Assets:**                                                          |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |
| Unrestricted                  cash and cash equivalents                                       |   | $                                                                                   | 26.1    |   |             | $      | 7.9     |              |   | $      | 32.6             |   |   | $                | ---      |   |   | $ | 66.6 |   |
| Restricted                  cash                                                              |   |                                                                                | ---     |   |             |   | 1.0     |              |   |   | ---              |   |   |             | ---      |   |   |   | 1.0 |   |
| Accounts                  receivable, less allowances                                         |   |                                                                                | ---     |   |             |   | 250.8   |              |   |   | 105.7            |   |   |             | ---      |   |   |   | 356.5 |   |
| Intercompany                  receivables (payables)                                          |   |                                                                                | 2.5     |   |             |   | (3.3    | )                 |   |   | 0.8              |   |   |             | ---      |   |   |   | --- |   |
| Inventories                                                                                   |   |                                                                                | ---     |   |             |   | 257.0   |              |   |   | 72.9             |   |   |             | ---      |   |   |   | 329.9 |   |
| Prepaid                  expenses                                                             |   |                                                                                | 1.6     |   |             |   | 7.3     |              |   |   | 4.3              |   |   |             | ---      |   |   |   | 13.2 |   |
| Other                  current                  assets                                        |   |                                                                                | 0.9     |   |             |   | 5.2     |              |   |   | 10.8             |   |   |             | ---      |   |   |   | 16.9 |   |
| Prepaid                  income                  taxes                                        |   |                                                                                | 7.9     |   |             |   | 21.6    |              |   |   | 1.0              |   |   |             | ---      |   |   |   | 30.5 |   |
|      Total                  current assets                           |   |                                                                                | 39.0    |   |             |   | 547.5   |              |   |   | 228.1            |   |   |             | ---      |   |   |   | 814.6 |   |
| **Property                  and Equipment, at Cost:**                                         |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| Total                  property                  and equipment, net                           |   |                                                                                | 1.1     |   |             |   | 141.1   |              |   |   | 90.2             |   |   |             | ---      |   |   |   | 232.4 |   |
| **Other                  Long-term Assets:**                                                  |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Investment                  in                  subsidiaries and long-term                    |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |
|    receivable                  from (to) subsidiaries                          |   |                                                                                | 2,048.2 |   |             |   | (147.4  | )                 |   |   | (70.9            | )      |   |             | (1,829.9 | ) |   |   | --- |   |
| Goodwill                                                                                      |   |                                                                                | ---     |   |             |   | 1,479.8 |              |   |   | 35.8             |   |   |             | ---      |   |   |   | 1,515.6 |   |
| Intangible                  assets, less accumulated amortization                             |   |                                                                                | 0.5     |   |             |   | 129.0   |              |   |   | 22.6             |   |   |             | ---      |   |   |   | 152.1 |   |
| Other                  assets                                                                 |   |                                                                                | 36.6    |   |             |   | 3.2     |              |   |   | 0.8              |   |   |             | ---      |   |   |   | 40.6 |   |
|      Total                  other long-term assets                   |   |                                                                                | 2,085.3 |   |             |   | 1,464.6 |              |   |   | (11.7            | )      |   |             | (1,829.9 | ) |   |   | 1,708.3 |   |
|      Total                  assets                                   |   | $                                                                                   | 2,125.4 |   |             | $      | 2,153.2 |              |   | $      | 306.6            |   |   | $                | (1,829.9 | ) |   | $ | 2,755.3 |   |
| **LIABILITIES                  AND STOCKHOLDER'S**                                            |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| **     INVESTMENT:**                                                 |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| **Current                  Liabilities:**                                                     |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Notes                  payable                  and other short-term obligations              |   | $                                                                                   | 89.0    |   |             | $      | ---     |              |   | $      | 23.8             |   |   | $                | ---      |   |   | $ | 112.8 |   |
| Current                  maturities of long-term debt                                         |   |                                                                                | 9.5     |   |             |   | 12.5    |              |   |   | 5.0              |   |   |             | ---      |   |   |   | 27.0 |   |
| Accounts                  payable                                                             |   |                                                                                | 1.0     |   |             |   | 122.5   |              |   |   | 92.9             |   |   |             | ---      |   |   |   | 216.4 |   |
| Accrued                  expenses and taxes, net                                              |   |                                                                                | 9.9     |   |             |   | 164.1   |              |   |   | 59.7             |   |   |             | ---      |   |   |   | 233.7 |   |
|      Total                  current liabilities                      |   |                                                                                | 109.4   |   |             |   | 299.1   |              |   |   | 181.4            |   |   |             | ---      |   |   |   | 589.9 |   |
| **Other                  Liabilities:**                                                       |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Deferred                  income taxes                                                        |   |                                                                                | (11.5   | )      |             |   | 26.2    |              |   |   | 16.8             |   |   |             | ---      |   |   |   | 31.5 |   |
| Long-term                  payable to affiliate                                               |   |                                                                                | 35.0    |   |             |   | ---     |              |   |   | ---              |   |   |             | ---      |   |   |   | 35.0 |   |
| Other                  long-term liabilities                                                  |   |                                                                                | 79.5    |   |             |   | 45.3    |              |   |   | 15.2             |   |   |             | ---      |   |   |   | 140.0 |   |
|                                                                                          |   |                                                                                | 103.0   |   |             |   | 71.5    |              |   |   | 32.0             |   |   |             | ---      |   |   |   | 206.5 |   |
| **Notes,                  Mortgage Notes and Obligations**                                    |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| **     Payable,                  Less Current Maturities**           |   |                                                                                | 1,307.0 |   |             |   | 33.3    |              |   |   | 12.6             |   |   |             | ---      |   |   |   | 1,352.9 |   |
|                                                                                          |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Stockholder's                  investment                                                     |   |                                                                                | 606.0   |   |             |   | 1,749.3 |              |   |   | 80.6             |   |   |             | (1,829.9 | ) |   |   | 606.0 |   |
|      Total                  liabilities and stockholder's investment |   | $                                                                                   | 2,125.4 |   |             | $      | 2,153.2 |              |   | $      | 306.6            |   |   | $                | (1,829.9 | ) |   | $ | 2,755.3 |   |

**Unaudited      Condensed Consolidating Balance Sheet**

**As      of December 31, 2006**

|                                                                                          |   |                                                                                |    |   | **Guarantor**    |   |    | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |     |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|------------------|----------|
|                                                                                          |   | **Parent**                                                                          |    |   | **Subsidiaries** |   |    | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |     |
|                                                                                          |   | *(Dollar                  amounts in millions)*       |    |
| **ASSETS:**                                                                                   |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |
| **Current                  Assets:**                                                          |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |
| Unrestricted                  cash and cash equivalents                                       |   | $                                                                                   | 11.5    |   |             | $      | 5.1     |              |   | $      | 40.8             |   |   | $                | ---      |   |   | $ | 57.4 |   |
| Restricted                  cash                                                              |   |                                                                                | ---     |   |             |   | 1.2     |              |   |   | ---              |   |   |             | ---      |   |   |   | 1.2 |   |
| Accounts                  receivable, less allowances                                         |   |                                                                                | ---     |   |             |   | 237.0   |              |   |   | 91.9             |   |   |             | ---      |   |   |   | 328.9 |   |
| Intercompany                  receivables (payables)                                          |   |                                                                                | 1.6     |   |             |   | (1.5    | )                 |   |   | (0.1             | )      |   |             | ---      |   |   |   | --- |   |
| Inventories                                                                                   |   |                                                                                | ---     |   |             |   | 225.6   |              |   |   | 53.0             |   |   |             | ---      |   |   |   | 278.6 |   |
| Prepaid                  expenses                                                             |   |                                                                                | 2.0     |   |             |   | 8.2     |              |   |   | 3.5              |   |   |             | ---      |   |   |   | 13.7 |   |
| Other                  current                  assets                                        |   |                                                                                | 10.3    |   |             |   | 2.8     |              |   |   | 11.3             |   |   |             | ---      |   |   |   | 24.4 |   |
| Prepaid                  income                  taxes                                        |   |                                                                                | 0.4     |   |             |   | 19.8    |              |   |   | 1.0              |   |   |             | ---      |   |   |   | 21.2 |   |
|      Total                  current assets                           |   |                                                                                | 25.8    |   |             |   | 498.2   |              |   |   | 201.4            |   |   |             | ---      |   |   |   | 725.4 |   |
| **Property                  and Equipment, at Cost:**                                         |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| Total                  property                  and equipment, net                           |   |                                                                                | 1.4     |   |             |   | 144.0   |              |   |   | 77.1             |   |   |             | ---      |   |   |   | 222.5 |   |
| **Other                  Long-term Assets:**                                                  |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Investment                  in                  subsidiaries and long-term                    |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |
|    receivable                  from (to) subsidiaries                          |   |                                                                                | 1,937.9 |   |             |   | (96.9   | )                 |   |   | (61.1            | )      |   |             | (1,779.9 | ) |   |   | --- |   |
| Goodwill                                                                                      |   |                                                                                | ---     |   |             |   | 1,455.9 |              |   |   | 25.5             |   |   |             | ---      |   |   |   | 1,481.4 |   |
| Intangible                  assets, less accumulated amortization                             |   |                                                                                | 0.8     |   |             |   | 127.3   |              |   |   | 22.3             |   |   |             | ---      |   |   |   | 150.4 |   |
| Other                  assets                                                                 |   |                                                                                | 40.1    |   |             |   | 6.7     |              |   |   | 0.8              |   |   |             | ---      |   |   |   | 47.6 |   |
|      Total                  other long-term assets                   |   |                                                                                | 1,978.8 |   |             |   | 1,493.0 |              |   |   | (12.5            | )      |   |             | (1,779.9 | ) |   |   | 1,679.4 |   |
|      Total                  assets                                   |   | $                                                                                   | 2,006.0 |   |             | $      | 2,135.2 |              |   | $      | 266.0            |   |   | $                | (1,779.9 | ) |   | $ | 2,627.3 |   |
| **LIABILITIES                  AND STOCKHOLDER'S**                                            |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| **     INVESTMENT:**                                                 |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| **Current                  Liabilities:**                                                     |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Notes                  payable                  and other short-term obligations              |   | $                                                                                   | 10.0    |   |             |   | ---     |              |   | $      | 13.3             |   |   | $                | ---      |   |   | $ | 23.3 |   |
| Current                  maturities of long-term debt                                         |   |                                                                                | 7.9     |   |             |   | 9.4     |              |   |   | 2.7              |   |   |             | ---      |   |   |   | 20.0 |   |
| Accounts                  payable                                                             |   |                                                                                | 2.9     |   |             |   | 110.8   |              |   |   | 74.5             |   |   |             | ---      |   |   |   | 188.2 |   |
| Accrued                  expenses and taxes, net                                              |   |                                                                                | 14.9    |   |             |   | 216.0   |              |   |   | 51.9             |   |   |             | ---      |   |   |   | 282.8 |   |
|      Total                  current liabilities                      |   |                                                                                | 35.7    |   |             |   | 336.2   |              |   |   | 142.4            |   |   |             | ---      |   |   |   | 514.3 |   |
| **Other                  Liabilities:**                                                       |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Deferred                  income taxes                                                        |   |                                                                                | (9.5    | )      |             |   | 26.6    |              |   |   | 16.8             |   |   |             | ---      |   |   |   | 33.9 |   |
| Long-term                  payable to affiliate                                               |   |                                                                                | 24.9    |   |             |   | ---     |              |   |   | ---              |   |   |             | ---      |   |   |   | 24.9 |   |
| Other                  long-term liabilities                                                  |   |                                                                                | 67.1    |   |             |   | 46.4    |              |   |   | 15.3             |   |   |             | ---      |   |   |   | 128.8 |   |
|                                                                                          |   |                                                                                | 82.5    |   |             |   | 73.0    |              |   |   | 32.1             |   |   |             | ---      |   |   |   | 187.6 |   |
| **Notes,                  Mortgage Notes and Obligations**                                    |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |
| **     Payable,                  Less Current Maturities**           |   |                                                                                | 1,324.7 |   |             |   | 28.5    |              |   |   | 9.1              |   |   |             | ---      |   |   |   | 1,362.3 |   |
|                                                                                          |   |                                                                                |    |   |             |   |    |              |   |   |             |   |   |             |     |   |   |   |   |   |
| Stockholder's                  investment                                                     |   |                                                                                | 563.1   |   |             |   | 1,697.5 |              |   |   | 82.4             |   |   |             | (1,779.9 | ) |   |   | 563.1 |   |
|      Total                  liabilities and stockholder's investment |   | $                                                                                   | 2,006.0 |   |             | $      | 2,135.2 |              |   | $      | 266.0            |   |   | $                | (1,779.9 | ) |   | $ | 2,627.3 |   |

**Unaudited      Condensed Consolidating Statement of Operations**

**For      the third quarter ended September 29, 2007**

|                                                                            |   |                                                                                |   |   | **Guarantor**    |   |   | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                                            |   | **Parent**                                                                          |   |   | **Subsidiaries** |   |   | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                            |   | *(Dollar                  amounts in millions)*       |   |
|                                                                            |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |
| **Net                  Sales**                                                  |   | $                                                                                   | ---    |   |             | $      | 489.8  |              |   | $      | 150.9            |   |   | $                | (38.5  | ) |   | $ | 602.2 |   |
|                                                                            |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
| **Costs                  and expenses:**                                        |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     Costs of products sold                            |   |                                                                                | ---    |   |             |   | 349.6  |              |   |   | 121.9            |   |   |             | (38.5  | ) |   |   | 433.0 |   |
|                     Selling, general and administrative expenses, net |   |                                                                                | 7.1    |   |             |   | 94.2   |              |   |   | 23.8             |   |   |             | ---    |   |   |   | 125.1 |   |
|                     Amortization of intangible assets                 |   |                                                                                | 0.1    |   |             |   | 5.8    |              |   |   | 0.6              |   |   |             | ---    |   |   |   | 6.5 |   |
|                                                                            |   |                                                                                | 7.2    |   |             |   | 449.6  |              |   |   | 146.3            |   |   |             | (38.5  | ) |   |   | 564.6 |   |
| Operating                  (loss) earnings                                      |   |                                                                                | (7.2   | )      |             |   | 40.2   |              |   |   | 4.6              |   |   |             | ---    |   |   |   | 37.6 |   |
| Interest                  expense                                               |   |                                                                                | (30.0  | )      |             |   | (0.8   | )                 |   |   | (0.5             | )      |   |             | ---    |   |   |   | (31.3 | ) |
| Investment                  income                                              |   |                                                                                | 0.2    |   |             |   | ---    |              |   |   | 0.4              |   |   |             | ---    |   |   |   | 0.6 |   |
| (Loss)                  income                  before charges and allocations  |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     to subsidiaries and equity in subsidiaries'       |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     earnings (loss) before income taxes               |   |                                                                                | (37.0  | )      |             |   | 39.4   |              |   |   | 4.5              |   |   |             | ---    |   |   |   | 6.9 |   |
| Charges                  and                  allocations to subsidiaries and   |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     equity in subsidiaries' earnings (loss)           |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     before income taxes                               |   |                                                                                | 43.9   |   |             |   | (14.1  | )                 |   |   | 0.3              |   |   |             | (30.1  | ) |   |   | --- |   |
| Earnings                  (loss) before provision                               |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     (benefit) for income taxes                        |   |                                                                                | 6.9    |   |             |   | 25.3   |              |   |   | 4.8              |   |   |             | (30.1  | ) |   |   | 6.9 |   |
| Provision                  (benefit) for income taxes                           |   |                                                                                | 5.5    |   |             |   | 9.5    |              |   |   | 3.1              |   |   |             | (12.6  | ) |   |   | 5.5 |   |
|                      Net earnings (loss)                         |   | $                                                                                   | 1.4    |   |             | $      | 15.8   |              |   | $      | 1.7              |   |   | $                | (17.5  | ) |   | $ | 1.4 |   |

**Unaudited      Condensed Consolidating Statement of Operations**

**For      the third quarter ended September 30, 2006**

|                                                                            |   |                                                                                |   |   | **Guarantor**    |   |   | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                                            |   | **Parent**                                                                          |   |   | **Subsidiaries** |   |   | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                            |   | *(Dollar                  amounts in millions)*       |   |
|                                                                            |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |
| **Net                  Sales**                                                  |   | $                                                                                   | ---    |   |             | $      | 476.9  |              |   | $      | 138.3            |   |   | $                | (36.2  | ) |   | $ | 579.0 |   |
|                                                                            |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
| **Costs                  and expenses:**                                        |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     Costs of products sold                            |   |                                                                                | ---    |   |             |   | 329.5  |              |   |   | 110.9            |   |   |             | (36.2  | ) |   |   | 404.2 |   |
|                     Selling, general and administrative expenses, net |   |                                                                                | 6.2    |   |             |   | 77.5   |              |   |   | 17.2             |   |   |             | ---    |   |   |   | 100.9 |   |
|                     Amortization of intangible assets                 |   |                                                                                | 0.1    |   |             |   | 5.4    |              |   |   | 0.7              |   |   |             | ---    |   |   |   | 6.2 |   |
|                                                                            |   |                                                                                | 6.3    |   |             |   | 412.4  |              |   |   | 128.8            |   |   |             | (36.2  | ) |   |   | 511.3 |   |
| Operating                  (loss) earnings                                      |   |                                                                                | (6.3   | )      |             |   | 64.5   |              |   |   | 9.5              |   |   |             | ---    |   |   |   | 67.7 |   |
| Interest                  expense                                               |   |                                                                                | (28.9  | )      |             |   | (0.6   | )                 |   |   | (0.4             | )      |   |             | ---    |   |   |   | (29.9 | ) |
| Investment                  income                                              |   |                                                                                | 0.2    |   |             |   | ---    |              |   |   | 0.2              |   |   |             | ---    |   |   |   | 0.4 |   |
| (Loss)                  income                  before charges and allocations  |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     to subsidiaries and equity in subsidiaries'       |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     earnings (loss) before income taxes               |   |                                                                                | (35.0  | )      |             |   | 63.9   |              |   |   | 9.3              |   |   |             | ---    |   |   |   | 38.2 |   |
| Charges                  and                  allocations to subsidiaries and   |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |
|                     equity in subsidiaries' earnings (loss)           |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     before income taxes                               |   |                                                                                | 73.2   |   |             |   | (14.6  | )                 |   |   | 0.4              |   |   |             | (59.0  | ) |   |   | --- |   |
| Earnings                  (loss) before provision                               |   |                                                                                |   |   |             |   |   |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                     (benefit) for income taxes                        |   |                                                                                | 38.2   |   |             |   | 49.3   |              |   |   | 9.7              |   |   |             | (59.0  | ) |   |   | 38.2 |   |
| Provision                  (benefit) for income taxes                           |   |                                                                                | 15.1   |   |             |   | 18.2   |              |   |   | 4.1              |   |   |             | (22.3  | ) |   |   | 15.1 |   |
|                      Net earnings (loss)                         |   | $                                                                                   | 23.1   |   |             | $      | 31.1   |              |   | $      | 5.6              |   |   | $                | (36.7  | ) |   | $ | 23.1 |   |

**Unaudited      Condensed Consolidating Statement of Operations**

**For      the first nine months ended September 29, 2007**

|                                                                          |   |                                                                              |   |   | **Guarantor**    |   |    | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                                          |   | **Parent**                                                                        |   |   | **Subsidiaries** |   |    | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                          |   | *(Dollar                amounts in millions)*       |   |
|                                                                          |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |
| **Net                Sales**                                                  |   | $                                                                                 | ---    |   |             | $      | 1,465.1 |              |   | $      | 455.0            |   |   | $                | (121.1 | ) |   | $ | 1,799.0 |   |
|                                                                          |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
| **Costs                and expenses:**                                        |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   Costs of products sold                            |   |                                                                              | ---    |   |             |   | 1,027.0 |              |   |   | 363.8            |   |   |             | (121.1 | ) |   |   | 1,269.7 |   |
|                   Selling, general and administrative expenses, net |   |                                                                              | 20.8   |   |             |   | 274.9   |              |   |   | 67.5             |   |   |             | ---    |   |   |   | 363.2 |   |
|                   Amortization of intangible assets                 |   |                                                                              | 0.3    |   |             |   | 16.8    |              |   |   | 1.8              |   |   |             | ---    |   |   |   | 18.9 |   |
|                                                                          |   |                                                                              | 21.1   |   |             |   | 1,318.7 |              |   |   | 433.1            |   |   |             | (121.1 | ) |   |   | 1,651.8 |   |
| Operating                (loss) earnings                                      |   |                                                                              | (21.1  | )      |             |   | 146.4   |              |   |   | 21.9             |   |   |             | ---    |   |   |   | 147.2 |   |
| Interest                expense                                               |   |                                                                              | (87.5  | )      |             |   | (2.4    | )                 |   |   | (1.4             | )      |   |             | ---    |   |   |   | (91.3 | ) |
| Investment                income                                              |   |                                                                              | 0.5    |   |             |   | 0.1     |              |   |   | 0.9              |   |   |             | ---    |   |   |   | 1.5 |   |
| (Loss)                income                before charges and allocations    |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |
|                   to subsidiaries and equity in subsidiaries'       |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |
|                   earnings (loss) before income taxes               |   |                                                                              | (108.1 | )      |             |   | 144.1   |              |   |   | 21.4             |   |   |             | ---    |   |   |   | 57.4 |   |
| Charges                and                allocations to subsidiaries and     |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |
|                   equity in subsidiaries' earnings (loss)           |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |
|                   before income taxes                               |   |                                                                              | 165.5  |   |             |   | (42.3   | )                 |   |   | 1.5              |   |   |             | (124.7 | ) |   |   | --- |   |
| Earnings                (loss) before provision                               |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   (benefit) for income taxes                        |   |                                                                              | 57.4   |   |             |   | 101.8   |              |   |   | 22.9             |   |   |             | (124.7 | ) |   |   | 57.4 |   |
| Provision                (benefit) for income taxes                           |   |                                                                              | 28.1   |   |             |   | 38.0    |              |   |   | 11.1             |   |   |             | (49.1  | ) |   |   | 28.1 |   |
|                     Net earnings (loss)                   |   | $                                                                                 | 29.3   |   |             | $      | 63.8    |              |   | $      | 11.8             |   |   | $                | (75.6  | ) |   | $ | 29.3 |   |

**Unaudited      Condensed Consolidating Statement of Operations**

**For      the first nine months ended September 30, 2006**

|                                                                          |   |                                                                              |   |   | **Guarantor**    |   |    | **Non-Guarantor** |   |   |             |   |   | **Nortek**       |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                                          |   | **Parent**                                                                        |   |   | **Subsidiaries** |   |    | **Subsidiaries**  |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                                          |   | *(Dollar                amounts in millions)*       |   |
|                                                                          |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |
| **Net                Sales**                                                  |   | $                                                                                 | ---    |   |             | $      | 1,384.2 |              |   | $      | 406.9            |   |   | $                | (113.8 | ) |   | $ | 1,677.3 |   |
|                                                                          |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
| **Costs                and expenses:**                                        |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   Costs of products sold                            |   |                                                                              | ---    |   |             |   | 957.1   |              |   |   | 325.1            |   |   |             | (113.8 | ) |   |   | 1,168.4 |   |
|                   Selling, general and administrative expenses, net |   |                                                                              | 19.0   |   |             |   | 192.0   |              |   |   | 52.3             |   |   |             | ---    |   |   |   | 263.3 |   |
|                   Amortization of intangible assets                 |   |                                                                              | 0.4    |   |             |   | 13.9    |              |   |   | 1.9              |   |   |             | ---    |   |   |   | 16.2 |   |
|                                                                          |   |                                                                              | 19.4   |   |             |   | 1,163.0 |              |   |   | 379.3            |   |   |             | (113.8 | ) |   |   | 1,447.9 |   |
| Operating                (loss) earnings                                      |   |                                                                              | (19.4  | )      |             |   | 221.2   |              |   |   | 27.6             |   |   |             | ---    |   |   |   | 229.4 |   |
| Interest                expense                                               |   |                                                                              | (83.2  | )      |             |   | (1.7    | )                 |   |   | (1.0             | )      |   |             | ---    |   |   |   | (85.9 | ) |
| Investment                income                                              |   |                                                                              | 1.2    |   |             |   | ---     |              |   |   | 0.4              |   |   |             | ---    |   |   |   | 1.6 |   |
| (Loss)                income                before charges and allocations    |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |
|                   to subsidiaries and equity in subsidiaries'       |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   earnings (loss) before income taxes               |   |                                                                              | (101.4 | )      |             |   | 219.5   |              |   |   | 27.0             |   |   |             | ---    |   |   |   | 145.1 |   |
| Charges                and                allocations to subsidiaries and     |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |
|                   equity in subsidiaries' earnings (loss)           |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   before income taxes                               |   |                                                                              | 246.5  |   |             |   | (48.8   | )                 |   |   | 0.6              |   |   |             | (198.3 | ) |   |   | --- |   |
| Earnings                (loss) before provision                               |   |                                                                              |   |   |             |   |    |              |   |   |             |   |   |             |   |   |   |   |   |   |
|                   (benefit) for income taxes                        |   |                                                                              | 145.1  |   |             |   | 170.7   |              |   |   | 27.6             |   |   |             | (198.3 | ) |   |   | 145.1 |   |
| Provision                (benefit) for income taxes                           |   |                                                                              | 55.7   |   |             |   | 62.6    |              |   |   | 11.0             |   |   |             | (73.6  | ) |   |   | 55.7 |   |
|                    Net earnings (loss)                         |   | $                                                                                 | 89.4   |   |             | $      | 108.1   |              |   | $      | 16.6             |   |   | $                | (124.7 | ) |   | $ | 89.4 |   |

**Unaudited      Condensed Consolidating Cash Flow Statement**

**For      the first nine months ended September 29, 2007**

|                                                                                             |   |                                                            |   |   | **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                |   | $                                                               | (52.3  | )      |             | $      | 111.9  |              |   | $      | (1.6             | )      |   | $ | 58.0 |   |
| **Cash                Flows from investing activities:**                                         |   |                                                            |   |   |             |   |   |              |   |   |             |   |   |   |   |   |
| Capital                expenditures                                                              |   |                                                            | (0.1   | )      |             |   | (15.9  | )                 |   |   | (8.1             | )      |   |   | (24.1 | ) |
| Net                cash paid                for businesses acquired                              |   |                                                            | ---    |   |             |   | (85.6  | )                 |   |   | (7.9             | )      |   |   | (93.5 | ) |
| Payment                in                connection with NTK Holdings senior                     |   |                                                            |   |   |             |   |   |              |   |   |             |   |   |
|                   unsecured loan facility rollover                                     |   |                                                            | (4.5   | )      |             |   | ---    |              |   |   | ---              |   |   |   | (4.5 | ) |
| Proceeds                from                the sale of property and equipment                   |   |                                                            | ---    |   |             |   | 0.3    |              |   |   | 0.3              |   |   |   | 0.6 |   |
| Change                in                restricted cash and marketable securities                |   |                                                            | 0.1    |   |             |   | 1.4    |              |   |   | ---              |   |   |   | 1.5 |   |
| Other,                net                                                                        |   |                                                            | (0.8   | )      |             |   | (0.3   | )                 |   |   | (0.3             | )      |   |   | (1.4 | ) |
|      Net                cash used in investing activities               |   |                                                            | (5.3   | )      |             |   | (100.1 | )                 |   |   | (16.0            | )      |   |   | (121.4 | ) |
| **Cash                Flows from financing activities:**                                         |   |                                                            |   |   |             |   |   |              |   |   |             |   |   |   |   |   |
| Increase                in                borrowings                                             |   |                                                            | 94.0   |   |             |   | ---    |              |   |   | 18.8             |   |   |   | 112.8 |   |
| Payment                of                borrowings                                              |   |                                                            | (21.8  | )      |             |   | (9.0   | )                 |   |   | (9.4             | )      |   |   | (40.2 | ) |
|      Net                cash provided by (used in) financing activities |   |                                                            | 72.2   |   |             |   | (9.0   | )                 |   |   | 9.4              |   |   |   | 72.6 |   |
| Net                change in                unrestricted cash and cash equivalents               |   |                                                            | 14.6   |   |             |   | 2.8    |              |   |   | (8.2             | )      |   |   | 9.2 |   |
| Unrestricted                cash and cash equivalents at the beginning                           |   |                                                            |   |   |             |   |   |              |   |
|   of                the period                                                         |   |                                                            | 11.5   |   |             |   | 5.1    |              |   |   | 40.8             |   |   |   | 57.4 |   |
| Unrestricted                cash and cash equivalents at the end                                 |   |                                                            |   |   |             |   |   |              |   |   |             |   |   |
|   of                the period                                                         |   | $                                                               | 26.1   |   |             | $      | 7.9    |              |   | $      | 32.6             |   |   | $ | 66.6 |   |

**Unaudited      Condensed Consolidating Cash Flow Statement**

**For      the first nine months ended September 30, 2006**

|                                                                                               |   |                                                              |   |   | **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              |   | $                                                                 | (38.2  | )      |             | $      | 85.8   |              |   | $      | 25.7             |   |   | $ | 73.3 |   |
| **Cash                  Flows from investing activities:**                                         |   |                                                              |   |   |             |   |   |              |   |   |             |   |   |   |   |   |
| Capital                  expenditures                                                              |   |                                                              | (0.2   | )      |             |   | (16.0  | )                 |   |   | (16.8            | )      |   |   | (33.0 | ) |
| Net                  cash paid                  for businesses acquired                            |   |                                                              | ---    |   |             |   | (67.0  | )                 |   |   | ---              |   |   |   | (67.0 | ) |
| Payment                  of                  IPO expenses for NTK Holdings                         |   |                                                              | (2.4   | )      |             |   | ---    |              |   |   | ---              |   |   |   | (2.4 | ) |
| Proceeds                  from                  the sale of property and equipment                 |   |                                                              | 1.9    |   |             |   | 1.3    |              |   |   | 0.2              |   |   |   | 3.4 |   |
| Change                  in                  restricted cash and marketable securities              |   |                                                              | ---    |   |             |   | 0.4    |              |   |   | ---              |   |   |   | 0.4 |   |
| Other,                  net                                                                        |   |                                                              | (0.7   | )      |             |   | (2.1   | )                 |   |   | (0.3             | )      |   |   | (3.1 | ) |
|      Net                  cash provided by (used in) investing activities |   |                                                              | (1.4   | )      |             |   | (83.4  | )                 |   |   | (16.9            | )      |   |   | (101.7 | ) |
| **Cash                  Flows from financing activities:**                                         |   |                                                              |   |   |             |   |   |              |   |   |             |   |   |   |   |   |
| Increase                  in                  borrowings                                           |   |                                                              | 65.0   |   |             |   | 0.1    |              |   |   | 18.8             |   |   |   | 83.9 |   |
| Payment                  of                  borrowings                                            |   |                                                              | (35.7  | )      |             |   | (1.5   | )                 |   |   | (9.6             | )      |   |   | (46.8 | ) |
| Dividends                                                                                          |   |                                                              | (28.1  | )      |             |   | ---    |              |   |   | ---              |   |   |   | (28.1 | ) |
| Other,                  net                                                                        |   |                                                              | (1.6   | )      |             |   | ---    |              |   |   | ---              |   |   |   | (1.6 | ) |
|      Net                  cash (used in) provided by financing activities |   |                                                              | (0.4   | )      |             |   | (1.4   | )                 |   |   | 9.2              |   |   |   | 7.4 |   |
| Net                  change in                  unrestricted cash and cash equivalents             |   |                                                              | (40.0  | )      |             |   | 1.0    |              |   |   | 18.0             |   |   |   | (21.0 | ) |
| Unrestricted                  cash and cash equivalents at the beginning                           |   |                                                              |   |   |             |   |   |              |   |
|   of                  the period                                                         |   |                                                              | 57.2   |   |             |   | 3.6    |              |   |   | 16.4             |   |   |   | 77.2 |   |
| Unrestricted                  cash and cash equivalents at the end                                 |   |                                                              |   |   |             |   |   |              |   |   |             |   |   |
|   of                  the period                                                         |   | $                                                                 | 17.2   |   |             | $      | 4.6    |              |   | $      | 34.4             |   |   | $ | 56.2 |   |

|   | **NORTEK,                  INC. AND SUBSIDIARIES** |
|--------|----------------------------------------------------|

**MANAGEMENT’S        DISCUSSION AND ANALYSIS**

**OF        THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THIRD QUARTER AND FIRST NINE MONTHS ENDED SEPTEMBER 29,        2007**

**AND        THE THIRD QUARTER AND FIRST NINE MONTHS ENDED SEPTEMBER 30,        2006**

**Item      2.    Management’s      Discussion and Analysis of Financial Condition and Results of      Operations**

| ·   | the                Residential Ventilation Products, or RVP,                segment, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | the                Home Technology Products, or HTP, segment,                and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | the                Air Conditioning and Heating Products, or 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                controls, and |
|--------------------|---------------------------------------|

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

| ·   | split                system air conditioners and heat                pumps, |
|--------------------|-----------------------------------------------------------------------------|

| ·   | furnaces                and related equipment, |
|--------------------|------------------------------------------------|

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

| ·   | large                custom roof top cooling and heating                products. |
|--------------------|-----------------------------------------------------------------------------------|

***Financial      Statement Presentation***

***Acquisitions***

|  Acquired                Company                          | Date                ofAcquisition | Primary                Businessof                Acquired Company                                                                                                                                                                                                                | ReportingSegment |
|----------------------------------------------------------------|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Stilpol                SP. Zo.O.                               | September                18, 2007 | Supply                various fabricated material components and sub-assemblies used by                the                Company’s Best subsidiaries in the manufacture of kitchen range                hoods.                                                            | RVP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Metaltecnica                S.r.l.                             | September                18, 2007 | Supply                various fabricated material components and sub-assemblies used by                the                Company’s Best subsidiaries in the manufacture of kitchen range                hoods.                                                            | RVP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Triangle                                                       | August                1, 2007     | Manufacture,                marketing and distribution of bath cabinets and related                products.                                                                                                                                                                     | RVP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Home                Logic, LLC                                 | July                27, 2007      | Design                and sale of software and hardware that facilitates the control of                third                party residential subsystems such as home theatre, whole-house audio,                climate control, lighting, security and irrigation.             | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Aigis                Mechtronics, Inc.                         | July                23, 2007      | Manufacture                and sale of equipment, such as camera housings, into the close-circuit                television portion of the global security market.                                                                                                               | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| International                Electronics, Inc.                 | June                25, 2007      | Design                and sale of security and access control components and systems for                use in                residential and light commercial applications.                                                                                                     | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| c.p.                All Star Corporation                       | April                10, 2007     | Manufacture                and distribution of residential, commercial and industrial gate operators,                garage door openers, radio controls and accessory products for the                garage                door and fence industry.                            | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| LiteTouch,                Inc.                                 | March                2, 2007      | Design,                manufacture and sale of automated lighting controls for a variety                of uses                including residential, commercial, new construction and retro-fit                applications.                                                    | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Gefen,                Inc.                                     | December                12, 2006  | Design                and sale of audio and video products which extend, switch, distribute                and                convert signals in a variety of formats, including high definition,                for                both the residential and commercial markets. | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Zephyr                Corporation                              | November                17, 2006  | Design                and sale of upscale range hoods.                                                                                                                                                                                                                           | RVP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Pacific                Zephyr Range Hood, Inc.                 | November                17, 2006  | Design,                sale and installation of range hoods and other kitchen products for                Asian                cooking markets in the United States.                                                                                                             | RVP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Magenta                Research, Ltd.                          | July                18, 2006      | Design                and sale of products that distribute audio and video signals over                Category                5 and fiber optic cable to multiple display screens.                                                                                              | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Secure                Wireless, Inc.                           | June                26, 2006      | Design                and sale of wireless security products for the residential and commercial                markets.                                                                                                                                                          | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Advanced                Bridging Technologies, Inc.            | June                26, 2006      | Design                and sale of innovative radio frequency control products and                accessories.                                                                                                                                                                    | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Huntair,                Inc.                                   | April                14, 2006     | Design,                manufacture and sale of custom air handlers and related products                for                commercial and clean room applications.                                                                                                                | HVAC             |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Cleanpak                International, LLC                     | April                14, 2006     | Design,                manufacture and sale of custom air handlers and related products                for                commercial and clean room applications.                                                                                                                | HVAC             |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Furman                Sound, Inc.                              | February                22, 2006  | Design                and sale of audio and video signal processors and innovative power                conditioning and surge protection products.                                                                                                                              | HTP              |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Mammoth                (Zhejiang) EG Air Conditioning Ltd. (1) | January                25, 2006   | Design,                manufacture and sale of commercial HVAC products, including water                source                heat pumps.                                                                                                                                        | HVAC             |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |
| Shanghai                Mammoth Air Conditioning Co., Ltd. (1) | January                25, 2006   | Design,                manufacture and sale of commercial HVAC products, including water                source                heat pumps.                                                                                                                                        | HVAC             |
|                                                           |                              |                                                                                                                                                                                                                                                                             |             |

|   | (1)                 On January 25, 2006, the Company increased its ownership to                60%.  On June 15, 2007, the Company increased this ownership                from 60% to 75%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Critical      Accounting Policies***

| ·   | 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 |
|--------------------|---------------|

**Results      of Operations**

|                                                          |   | **For                  the third quarter ended**                                                            |   |   | **Net                  Change**     |   |
|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|
|                                                          |   | **Sept.                  29, 2007**                                                                         |   |   | **Sept.                  30, 2006** |   |   |  **$** |   |   | **%** |   |
|                                                          |   | *(Dollar                  amounts in millions)*           |   |
| **Net                  sales:**                               |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |
| Residential                  ventilation products             |   | $                                                                                                           | 203.9  |   |                                | $      | 200.4 |   |   | $ | 3.5 |   |   |   | 1.7 | % |
| Home                  technology products                     |   |                                                                                                        | 148.7  |   |                                |   | 127.4 |   |   |   | 21.3 |   |   |   | 16.7 |   |
| Air                  conditioning and heating products        |   |                                                                                                        | 249.6  |   |                                |   | 251.2 |   |   |   | (1.6 | ) |   |   | (0.6 | ) |
|                     Consolidated net sales          |   | $                                                                                                           | 602.2  |   |                                | $      | 579.0 |   |   | $ | 23.2 |   |   |   | 4.0 | % |
| **Operating                  earnings:**                      |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (1)         |   | $                                                                                                           | 19.4   |   |                                | $      | 30.7 |   |   | $ | (11.3 | ) |   |   | (36.8 | )% |
| Home                  technology products (2)                 |   |                                                                                                        | 19.2   |   |                                |   | 24.1 |   |   |   | (4.9 | ) |   |   | (20.3 | ) |
| Air                  conditioning and heating products (3)    |   |                                                                                                        | 6.2    |   |                                |   | 19.1 |   |   |   | (12.9 | ) |   |   | (67.5 | ) |
|                     Subtotal                        |   |                                                                                                        | 44.8   |   |                                |   | 73.9 |   |   |   | (29.1 | ) |   |   | (39.4 | ) |
| **Unallocated:**                                              |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based                  compensation charges             |   |                                                                                                        | (0.1   | )      |                                |   | (0.1 | ) |   |   | --- |   |   |   | --- |   |
| Foreign                  exchange gains on transactions,      |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|                     including intercompany debt     |   |                                                                                                        | 0.1    |   |                                |   | 0.1 |   |   |   | --- |   |   |   | --- |   |
| Unallocated,                  net                             |   |                                                                                                        | (7.2   | )      |                                |   | (6.2 | ) |   |   | (1.0 | ) |   |   | (16.1 | ) |
|                     Consolidated operating earnings |   | $                                                                                                           | 37.6   |   |                                | $      | 67.7 |   |   | $ | (30.1 | ) |   |   | (44.5 | )% |
| **Depreciation                  and amortization expense:**   |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (4)         |   | $                                                                                                           | 5.3    |   |                                | $      | 5.0 |   |   | $ | 0.3 |   |   |   | 6.0 | % |
| Home                  technology products                     |   |                                                                                                        | 4.2    |   |                                |   | 3.6 |   |   |   | 0.6 |   |   |   | 16.7 |   |
| Air                  conditioning and heating products (5)    |   |                                                                                                        | 5.9    |   |                                |   | 7.0 |   |   |   | (1.1 | ) |   |   | (15.7 | ) |
| Unallocated                                                   |   |                                                                                                        | 0.4    |   |                                |   | 0.3 |   |   |   | 0.1 |   |   |   | 33.3 |   |
|                                                          |   | $                                                                                                           | 15.8   |   |                                | $      | 15.9 |   |   | $ | (0.1 | ) |   |   | (0.6 | )% |
| **Operating                  earnings margin:**               |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (1)         |   |                                                                                                        | 9.5    | %      |                                |   | 15.3 | % |   |   |   |   |   |   |   |   |
| Home                  technology products (2)                 |   |                                                                                                        | 12.9   |   |                                |   | 18.9 |   |   |   |   |   |   |   |   |   |
| Air                  conditioning and heating products (3)    |   |                                                                                                        | 2.5    |   |                                |   | 7.6 |   |   |   |   |   |   |   |   |   |
|                     Consolidated                    |   |                                                                                                        | 6.2    | %      |                                |   | 11.7 | % |   |   |   |   |   |   |   |   |
| **Depreciation                  and amortization**            |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **  expense                  as a % of net sales:** |   |                                                                                                        |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (4)         |   |                                                                                                        | 2.6    | %      |                                |   | 2.5 | % |   |   |   |   |   |   |   |   |
| Home                  technology products                     |   |                                                                                                        | 2.8    |   |                                |   | 2.8 |   |   |   |   |   |   |   |   |   |
| Air                  conditioning and heating products (5)    |   |                                                                                                        | 2.4    |   |                                |   | 2.8 |   |   |   |   |   |   |   |   |   |
|                     Consolidated                    |   |                                                                                                        | 2.6    | %      |                                |   | 2.7 | % |   |   |   |   |   |   |   |   |

|  | (1) | The                operating results of the RVP segment for the third quarter ended                September                29, 2007 include an increase in product liability expense of approximately                $5.5 million as compared to the third quarter ended September 30,                2006, a                charge to warranty expense of approximately $0.5 million related                to a                product safety upgrade, an approximate $0.4 million charge related                to the                closure of the Company’s NuTone, Inc. Cincinnati, Ohio facility (see Note                H of the Notes to the Unaudited Financial Statements included elsewhere                herein), an approximate $0.2 million charge related to the closure                of the                Company’s Jensen, Inc. Vernon, California facility (see Note H of the                Notes to the Unaudited Financial Statements included elsewhere herein),                legal and other professional fees and expenses incurred in connection                with                matters related to certain subsidiaries based in Italy and Poland                of                approximately $0.9 million (see Note G of the Notes to the Unaudited                Financial Statements included elsewhere herein), an approximate $1.9                million loss related to the settlement of litigation and foreign                exchange                losses of approximately $0.6 million related to transactions, including                intercompany debt not indefinitely invested in the Company’s                subsidiaries. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | The                operating results of the HTP segment for the third quarter ended                September                29, 2007 include a charge to warranty expense of approximately $0.3                million related to a product safety upgrade and foreign exchange                gains of                approximately $0.1 million related to                transactions. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | **For                  the first nine months ended**                                                        |    |   | **Net                  Change**    |   |
|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------|--------|
|                                                          |   | **Sept.                  29, 2007**                                                                         |    |   | **Sept.                  30, 2006**               |   |   | **$**  |   |   |   | **%** |   |
|                                                          |   | *(Dollar                  amounts in millions)*           |    |
| **Net                  sales:**                               |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |
| Residential                  ventilation products             |   | $                                                                                                           | 618.7   |   |                                              | $      | 619.3 |   |   | $ | (0.6 | ) |   |   | (0.1 | )% |
| Home                  technology products                     |   |                                                                                                        | 415.8   |   |                                              |   | 350.0 |   |   |   | 65.8 |   |   |   | 18.8 |   |
| Air                  conditioning and heating products        |   |                                                                                                        | 764.5   |   |                                              |   | 708.0 |   |   |   | 56.5 |   |   |   | 8.0 |   |
|                     Consolidated net sales          |   | $                                                                                                           | 1,799.0 |   |                                              | $      | 1,677.3 |   |   | $ | 121.7 |   |   |   | 7.3 | % |
| **Operating                  earnings:**                      |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (1)         |   | $                                                                                                           | 70.6    |   |                                              | $      | 136.6 |   |   | $ | (66.0 | ) |   |   | (48.3 | )% |
| Home                  technology products (2)                 |   |                                                                                                        | 59.0    |   |                                              |   | 55.8 |   |   |   | 3.2 |   |   |   | 5.7 |   |
| Air                  conditioning and heating products (3)    |   |                                                                                                        | 38.7    |   |                                              |   | 56.3 |   |   |   | (17.6 | ) |   |   | (31.3 | ) |
|                     Subtotal                        |   |                                                                                                        | 168.3   |   |                                              |   | 248.7 |   |   |   | (80.4 | ) |   |   | (32.3 | ) |
| **Unallocated:**                                              |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based                  compensation charges             |   |                                                                                                        | (0.3    | )      |                                              |   | (0.3 | ) |   |   | --- |   |   |   | --- |   |
| Foreign                  exchange gains on transactions,      |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
|                     including intercompany debt     |   |                                                                                                        | 0.3     |   |                                              |   | 0.3 |   |   |   | --- |   |   |   | --- |   |
| Unallocated,                  net                             |   |                                                                                                        | (21.1   | )      |                                              |   | (19.3 | ) |   |   | (1.8 | ) |   |   | (9.3 | ) |
|                     Consolidated operating earnings |   | $                                                                                                           | 147.2   |   |                                              | $      | 229.4 |   |   | $ | (82.2 | ) |   |   | (35.8 | )% |
| **Depreciation                  and amortization expense:**   |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (4)         |   | $                                                                                                           | 15.0    |   |                                              | $      | 14.5 |   |   | $ | 0.5 |   |   |   | 3.4 | % |
| Home                  technology products (5)                 |   |                                                                                                        | 12.8    |   |                                              |   | 9.8 |   |   |   | 3.0 |   |   |   | 30.6 |   |
| Air                  conditioning and heating products (6)    |   |                                                                                                        | 18.2    |   |                                              |   | 19.0 |   |   |   | (0.8 | ) |   |   | (4.2 | ) |
| Unallocated                                                   |   |                                                                                                        | 0.9     |   |                                              |   | 0.9 |   |   |   | --- |   |   |   | --- |   |
|                                                          |   | $                                                                                                           | 46.9    |   |                                              | $      | 44.2 |   |   | $ | 2.7 |   |   |   | 6.1 | % |
| **Operating                  earnings margin:**               |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (1)         |   |                                                                                                        | 11.4    | %      |                                              |   | 22.1 | % |   |   |   |   |   |   |   |   |
| Home                  technology products (2)                 |   |                                                                                                        | 14.2    |   |                                              |   | 15.9 |   |   |   |   |   |   |   |   |   |
| Air                  conditioning and heating products (3)    |   |                                                                                                        | 5.1     |   |                                              |   | 8.0 |   |   |   |   |   |   |   |   |   |
|                     Consolidated                    |   |                                                                                                        | 8.2     | %      |                                              |   | 13.7 | % |   |   |   |   |   |   |   |   |
| **Depreciation                  and amortization**            |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| **  expense                  as a % of net sales:** |   |                                                                                                        |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  ventilation products (4)         |   |                                                                                                        | 2.4     | %      |                                              |   | 2.3 | % |   |   |   |   |   |   |   |   |
| Home                  technology products (5)                 |   |                                                                                                        | 3.1     |   |                                              |   | 2.8 |   |   |   |   |   |   |   |   |   |
| Air                  conditioning and heating products (6)    |   |                                                                                                        | 2.4     |   |                                              |   | 2.7 |   |   |   |   |   |   |   |   |   |
|                     Consolidated                    |   |                                                                                                        | 2.6     | %      |                                              |   | 2.6 | % |   |   |   |   |   |   |   |   |

|  | (1) | The                operating results of the RVP segment for the first nine months ended                September 29, 2007 include an increase in product liability expense                of                approximately $7.3 million as compared to the first nine months ended                September 30, 2006, a charge to warranty expense of approximately                $0.5                million related to a product safety upgrade, an approximate $1.8                million                charge related to the closure of the Company’s NuTone, Inc. Cincinnati,                Ohio facility (see Note H of the Notes to the Unaudited Financial                Statements included elsewhere herein), an approximate $0.2 million                charge                related to the closure of the Company’s Jensen, Inc. Vernon, California                facility (see Note H of the Notes to the Unaudited Financial Statements                included elsewhere herein), legal and other professional fees and                expenses                incurred in connection with matters related to certain subsidiaries                based                in Italy and Poland of approximately $2.2 million (see Note G of                the Notes                to the Unaudited Financial Statements included elsewhere herein),                an                approximate $1.9 million loss related to the settlement of litigation                and                foreign exchange losses of approximately $1.5 million related to                transactions, including intercompany debt not indefinitely invested                in the                Company’s subsidiaries. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | The                operating results of the HTP segment for the first nine months ended                September 29, 2007 include a charge of approximately $0.5 million                related                to a reserve for amounts due from a customer, a charge to warranty                expense                of approximately $0.1 million related to a product safety upgrade                and                foreign exchange gains of approximately $0.2 million related to                transactions. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | The                operating results of the HVAC segment for the first nine months ended                September 29, 2007 include a charge of approximately $2.6 million                related                to the planned closure of the Company’s Mammoth, Inc. Chaska, Minnesota                manufacturing facility (see Note H of the Notes to the Unaudited                Financial                Statements included elsewhere herein), a charge of approximately                $1.8                million related to reserves for amounts due from customers and foreign                exchange losses of approximately $2.4 million related to transactions,                including intercompany debt not indefinitely invested in the Company’s                subsidiaries. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            (4)   | Includes                amortization of approximately $0.3 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            (5)   | Includes                amortization of approximately $0.1 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            (6)   | Includes                amortization of approximately $2.8 million for the first nine months                ended                September 30, 2006 of excess purchase price allocated to inventory                recorded as a non-cash charge to cost of products                sold. |
|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                              |   |                                                                                      |   |   |                                          |   |   | **Change                  in earnings in**   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------------------------------|
|                                                              |   |                                                                                      |   |   |                                          |   |   | **the                  third quarter 2007**  |
|                                                              |   |                                                                                      |   |   |                                          |   |   | **as                  compared to the**      |
|                                                              |   | **For                  the third quarter ended**                                          |   |   | **third                  quarter 2006**  |
|                                                              |   | **Sept.                  29, 2007**                                                       |   |   | **Sept.                  30, 2006**           |   |   |  **$**                                       |   |   |   | **%** |
|                                                              |   | *(Dollar                  amounts in millions)*        |   |
|                                                              |   |                                                                                      |   |   |                                          |   |   |                                              |   |   |   |   |   |
| Net                  sales                                        |   | $                                                                                         | 602.2  |   |                                          | $      | 579.0  |                                              |   | $ | 23.2 |   |   |   | 4.0 | % |
| Cost                  of                  products sold           |   |                                                                                      | 433.0  |   |                                          |   | 404.2  |                                              |   |   | (28.8 | ) |   |   | (7.1 | ) |
| Selling,                  general and administrative expense, net |   |                                                                                      | 125.1  |   |                                          |   | 100.9  |                                              |   |   | (24.2 | ) |   |   | (24.0 | ) |
| Amortization                  of intangible assets                |   |                                                                                      | 6.5    |   |                                          |   | 6.2    |                                              |   |   | (0.3 | ) |   |   | (4.8 | ) |
| Operating                  earnings                               |   |                                                                                      | 37.6   |   |                                          |   | 67.7   |                                              |   |   | (30.1 | ) |   |   | (44.5 | ) |
| Interest                  expense                                 |   |                                                                                      | (31.3  | )      |                                          |   | (29.9  | )                                                 |   |   | (1.4 | ) |   |   | (4.7 | ) |
| Investment                  income                                |   |                                                                                      | 0.6    |   |                                          |   | 0.4    |                                              |   |   | 0.2 |   |   |   | 50.0 |   |
| Earnings                  before provision for income taxes       |   |                                                                                      | 6.9    |   |                                          |   | 38.2   |                                              |   |   | (31.3 | ) |   |   | (81.9 | ) |
| Provision                  for                  income taxes      |   |                                                                                      | 5.5    |   |                                          |   | 15.1   |                                              |   |   | 9.6 |   |   |   | 63.6 |   |
| Net                  earnings                                     |   | $                                                                                         | 1.4    |   |                                          | $      | 23.1   |                                              |   | $ | (21.7 | ) |   |   | (93.9 | )% |

|                                                                |   |                                           |   |   |                                                |   |   | **Change                    in percentage for**  |
|---------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------------------|
|                                                                |   | **Percentage                    of net sales** |   |   | **the                    third quarter 2007**  |
|                                                                |   | **third                    quarter ended**     |   |   | **as                    compared to the**      |
|                                                                |   | **Sept.                    29, 2007**          |   |   | **Sept.                    30, 2006**               |   |   | **third                    quarter 2006**        |
|                                                                |   |                                           |   |   |                                                |   |   |                                                  |   |
| Net                    sales                                        |   |                                           | 100.0  | %      |                                                |   | 100.0  | %                                                     |   |   | --- | % |
| Cost                    of                    products sold         |   |                                           | 71.9   |   |                                                |   | 69.8   |                                                  |   |   | (2.1 | ) |
| Selling,                    general and administrative expense, net |   |                                           | 20.8   |   |                                                |   | 17.4   |                                                  |   |   | (3.4 | ) |
| Amortization                    of intangible assets                |   |                                           | 1.1    |   |                                                |   | 1.1    |                                                  |   |   | --- |   |
| Operating                    earnings                               |   |                                           | 6.2    |   |                                                |   | 11.7   |                                                  |   |   | (5.5 | ) |
| Interest                    expense                                 |   |                                           | (5.2   | )      |                                                |   | (5.2   | )                                                     |   |   | --- |   |
| Investment                    income                                |   |                                           | 0.1    |   |                                                |   | 0.1    |                                                  |   |   | --- |   |
| Earnings                    before provision for income taxes       |   |                                           | 1.1    |   |                                                |   | 6.6    |                                                  |   |   | (5.5 | ) |
| Provision                    for                    income taxes    |   |                                           | 0.9    |   |                                                |   | 2.6    |                                                  |   |   | 1.7 |   |
| Net                    earnings                                     |   |                                           | 0.2    | %      |                                                |   | 4.0    | %                                                     |   |   | (3.8 | )% |

|                                                              |   |                                                                                      |    |   |                                        |   |    | **Change                  in earnings in**      |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------|--------|---------|-------------------------------------------------|--------|
|                                                              |   |                                                                                      |    |   |                                        |   |    | **the                  first nine months 2007** |   |
|                                                              |   |                                                                                      |    |   |                                        |   |    | **as                  compared to the**         |   |
|                                                              |   | **For                  the first nine months ended**                                      |    |   | **first                  nine months 2006** |   |
|                                                              |   | **Sept.                  29, 2007**                                                       |    |   | **Sept.                  30, 2006**         |   |    |  **$**                                     |   |   |   | **%** |   |
|                                                              |   | *(Dollar                  amounts in millions)*        |    |
|                                                              |   |                                                                                      |    |   |                                        |   |    |                                            |   |   |   |   |   |
| Net                  sales                                        |   | $                                                                                         | 1,799.0 |   |                                        | $      | 1,677.3 |                                            |   | $ | 121.7 |   |   |   | 7.3 | % |
| Cost                  of                  products sold           |   |                                                                                      | 1,269.7 |   |                                        |   | 1,168.4 |                                            |   |   | (101.3 | ) |   |   | (8.7 | ) |
| Selling,                  general and administrative expense, net |   |                                                                                      | 363.2   |   |                                        |   | 263.3   |                                            |   |   | (99.9 | ) |   |   | (37.9 | ) |
| Amortization                  of intangible assets                |   |                                                                                      | 18.9    |   |                                        |   | 16.2    |                                            |   |   | (2.7 | ) |   |   | (16.7 | ) |
| Operating                  earnings                               |   |                                                                                      | 147.2   |   |                                        |   | 229.4   |                                            |   |   | (82.2 | ) |   |   | (35.8 | ) |
| Interest                  expense                                 |   |                                                                                      | (91.3   | )      |                                        |   | (85.9   | )                                               |   |   | (5.4 | ) |   |   | (6.3 | ) |
| Investment                  income                                |   |                                                                                      | 1.5     |   |                                        |   | 1.6     |                                            |   |   | (0.1 | ) |   |   | (6.3 | ) |
| Earnings                  before provision for income taxes       |   |                                                                                      | 57.4    |   |                                        |   | 145.1   |                                            |   |   | (87.7 | ) |   |   | (60.4 | ) |
| Provision                  for                  income taxes      |   |                                                                                      | 28.1    |   |                                        |   | 55.7    |                                            |   |   | 27.6 |   |   |   | 49.6 |   |
| Net                  earnings                                     |   | $                                                                                         | 29.3    |   |                                        | $      | 89.4    |                                            |   | $ | (60.1 | ) |   |   | (67.2 | )% |

|                                                                |   |                                           |   |   |                                                    |   |   | **Change                    in percentage for**  |
|---------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------------|
|                                                                |   | **Percentage                    of net sales** |   |   | **the                    first nine months 2007**  |
|                                                                |   | **first                    nine months ended** |   |   | **as                    compared to the**          |
|                                                                |   | **Sept.                    29, 2007**          |   |   | **Sept.                    30, 2006**                   |   |   | **first                    nine months 2006**    |
|                                                                |   |                                           |   |   |                                                    |   |   |                                                  |   |
| Net                    sales                                        |   |                                           | 100.0  | %      |                                                    |   | 100.0  | %                                                     |   |   | --- | % |
| Cost                    of                    products sold         |   |                                           | 70.6   |   |                                                    |   | 69.6   |                                                  |   |   | (1.0 | ) |
| Selling,                    general and administrative expense, net |   |                                           | 20.2   |   |                                                    |   | 15.7   |                                                  |   |   | (4.5 | ) |
| Amortization                    of intangible assets                |   |                                           | 1.0    |   |                                                    |   | 1.0    |                                                  |   |   | --- |   |
| Operating                    earnings                               |   |                                           | 8.2    |   |                                                    |   | 13.7   |                                                  |   |   | (5.5 | ) |
| Interest                    expense                                 |   |                                           | (5.1   | )      |                                                    |   | (5.1   | )                                                     |   |   | --- |   |
| Investment                    income                                |   |                                           | 0.1    |   |                                                    |   | 0.1    |                                                  |   |   | --- |   |
| Earnings                    before provision for income taxes       |   |                                           | 3.2    |   |                                                    |   | 8.7    |                                                  |   |   | (5.5 | ) |
| Provision                    for                    income taxes    |   |                                           | 1.6    |   |                                                    |   | 3.3    |                                                  |   |   | 1.7 |   |
| Net                    earnings                                     |   |                                           | 1.6    | %      |                                                    |   | 5.4    | %                                                     |   |   | (3.8 | )% |

*Net      Sales.  *

*Cost      of Products Sold.  *

** **

*Selling,      General and Administrative Expense, Net.  *

|   |      |    |                                                                                                                                       | **Third                Quarter**              |   |   | **First                Nine Months** |   |
|--------|-----------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|--------|--------|--------------------------------------|--------|
|   |      |    |                                                                                                                                       | **Ended                September 29, 2007**   |   |
|   |      |    |                                                                                                                                       | *(Dollar                amounts in millions)* |   |
|   |      |    |                                                                                                                                       |                                          |   |   |                                 |   |
|   | (1        | )       | SG&A                related to acquisitions                                                                                            |                                          | $      | 8.9    |                                 |   | $ | 28.1 |   |
|   | (2        | )       | Effect                of changes in foreign currency exchange rates                                                                        |                                          |   | 1.6    |                                 |   |   | 3.4 |   |
|   | (3        | )       | Charges                related to the closure of the Company’s NuTone, Inc. Cincinnati, OH                facility                   |                                          |   | 0.4    |                                 |   |   | 1.8 |   |
|   | (4        | )       | Charges                related to the closure of the Company’s Mammoth, Inc. Chaska, MN                facility                      |                                          |   | 2.3    |                                 |   |   | 2.6 |   |
|   | (5        | )       | Charges                related to the closure of the Company’s Jensen, Inc. Vernon, CA                facility                       |                                          |   | 0.2    |                                 |   |   | 0.2 |   |
|   | (6        | )       | Legal              and              other professional fees and expenses incurred in connection with matters              related          |                                          |   |   |                                 |   |   |   |   |
|   |      |    |                   to certain subsidiaries based in Italy and Poland                                                              |                                          |   | 0.9    |                                 |   |   | 2.2 |   |
|   | (7        | )       | Charges                related to reserves for amounts due from customers in the HTP and                HVAC                segments       |                                          |   | ---    |                                 |   |   | 2.3 |   |
|   | (8        | )       | Loss                on settlement of litigation in the RVP segment                                                                         |                                          |   | 1.9    |                                 |   |   | 1.9 |   |
|   | (9        | )       | (Decrease)/increase                in displays expense in the RVP segment                                                                  |                                          |   | (0.2   | )                                    |   |   | 4.5 |   |
|   |  (10 | )  | Foreign              exchange losses related to transactions, including intercompany debt              not              indefinitely  |                                          |   |   |                                 |   |   |   |   |
|   |      |    |                   invested in the Company’s subsidiaries                                                                   |                                          |   | 1.4    |                                 |   |   | 3.4 |   |
|   | (11       | )       | Stock-based                compensation expense                                                                                            |                                          |   | 0.1    |                                 |   |   | 0.3 |   |

*Amortization      of Intangible Assets.  *

*Depreciation      Expense.  *

*Operating      Earnings.  *

*Interest      Expense.  *

*Investment      Income.  *

*Provision      for Income Taxes.  *

*Net      Earnings.*

*EBITDA.  *

|                                                          |   | **For                  the third quarter ended** |   |
|---------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                          |   | **Sept.                  29, 2007**              |   |   | **Sept.                  30, 2006** |   |
|                                                          |   | *(Dollar                  amounts in millions)*  |   |
|                                                          |   |                                             |   |   |   |   |
| Net                  earnings                  (1), (2)       |   | $                                                | 1.4    |   |   | $ | 23.1 |   |
|                     Provision for income taxes      |   |                                             | 5.5    |   |   |   | 15.1 |   |
|                     Interest expense  (3) |   |                                             | 31.3   |   |   |   | 29.9 |   |
|                     Investment income               |   |                                             | (0.6   | ) |   |   | (0.4 | ) |
|                     Depreciation expense            |   |                                             | 9.3    |   |   |   | 8.7 |   |
|                     Amortization expense            |   |                                             | 6.5    |   |   |   | 7.2 |   |
| EBITDA                                                        |   | $                                                | 53.4   |   |   | $ | 83.6 |   |

|  | (1) | In                the RVP segment, net earnings for the third quarter ended September                29,                2007 include an increase in product liability expense of approximately                $5.5 million as compared to the third quarter ended September 30,                2006, a                pre-tax charge to warranty expense of approximately $0.5 million                related                to a product safety upgrade, an approximate $0.4 million pre-tax                charge                related to the closure of the Company’s NuTone, Inc. Cincinnati, Ohio                facility (see Note H of the Notes to the Unaudited Financial Statements                included elsewhere herein), an approximate $0.2 million pre-tax charge                related to the closure of the Company’s Jensen, Inc. Vernon, California                facility (see Note H of the Notes to the Unaudited Financial Statements                included elsewhere herein), legal and other professional fees and                expenses                incurred in connection with matters related to certain subsidiaries                based                in Italy and Poland of approximately $0.9 million (see Note G of                the Notes                to the Unaudited Financial Statements included elsewhere herein),                an                approximate $1.9 million pre-tax loss related to the settlement of                litigation and foreign exchange losses of approximately $0.6 million                related to transactions, including intercompany debt not indefinitely                invested in the Company’s                subsidiaries. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | In                the RVP segment, net earnings for the third quarter ended September                30,                2006 include an approximate $0.3 million pre-tax charge related to                the                planned closure of the Company’s NuTone, Inc. Cincinnati, Ohio facility                (see Note H of the Notes to the Unaudited Financial Statements included                elsewhere herein). |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Interest                expense for the third quarter of 2007 includes cash interest of                approximately $29.9 million and non-cash interest of approximately                $1.4                million.  Interest expense for the third quarter of 2006                includes cash interest of approximately $28.5 million and non-cash                interest of approximately $1.4                million. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | **For                  the first nine months ended** |   |
|---------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                          |   | **Sept.                  29, 2007**                  |   |   | **Sept.                  30, 2006** |   |
|                                                          |   | *(Dollar                  amounts in millions)*      |   |
|                                                          |   |                                                 |   |   |   |   |
| Net                  earnings                  (1), (2)       |   | $                                                    | 29.3   |   |   | $ | 89.4 |   |
|                     Provision for income taxes      |   |                                                 | 28.1   |   |   |   | 55.7 |   |
|                     Interest expense  (3) |   |                                                 | 91.3   |   |   |   | 85.9 |   |
|                     Investment income               |   |                                                 | (1.5   | ) |   |   | (1.6 | ) |
|                     Depreciation expense            |   |                                                 | 28.0   |   |   |   | 24.8 |   |
|                     Amortization expense            |   |                                                 | 18.9   |   |   |   | 19.4 |   |
| EBITDA                                                        |   | $                                                    | 194.1  |   |   | $ | 273.6 |   |

|  | (1) | In                the RVP segment, net earnings for the first nine months ended September                29, 2007 include an increase in product liability expense of approximately                $7.3 million as compared to the first nine months ended September                30,                2006, a pre-tax charge to warranty expense of approximately $0.5                million                related to a product safety upgrade, an approximate $1.8 million                pre-tax                charge related to the closure of the Company’s NuTone, Inc. Cincinnati,                Ohio facility (see Note H of the Notes to the Unaudited Financial                Statements included elsewhere herein), an approximate $0.2 million                pre-tax                charge related to the closure of the Company’s Jensen, Inc. Vernon,                California facility (see Note H of the Notes to the Unaudited Financial                Statements included elsewhere herein), legal and other professional                fees                and expenses incurred in connection with matters related to certain                subsidiaries based in Italy and Poland of approximately $2.2 million                (see                Note G of the Notes to the Unaudited Financial Statements included                elsewhere herein), an approximate $1.9 million pre-tax loss related                to the                settlement of litigation and foreign exchange losses of approximately                $1.5                million related to transactions, including intercompany debt not                indefinitely invested in the Company’s                subsidiaries. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | In                the RVP segment, net earnings for the first nine months ended September                30, 2006 include an approximate $35.9 million pre-tax curtailment                gain                related to post-retirement medical benefits, an approximate $4.1                million                pre-tax charge related to the planned closure of the Company’s NuTone,                Inc. Cincinnati, Ohio facility (see Note H of the Notes to the Unaudited                Financial Statements included elsewhere herein), a pre-tax charge                to                warranty expense of approximately $1.5 million related to a product                safety                upgrade and foreign exchange losses of approximately $0.2 million                related                to transactions, including intercompany debt not indefinitely invested                in                the Company’s subsidiaries. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Interest                expense for the first nine months of 2007 includes cash interest                of                approximately $87.1 million and non-cash interest of approximately                $4.2                million.  Interest expense for the first nine months of 2006                includes cash interest of approximately $82.0 million and non-cash                interest of approximately $3.9                million. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liquidity      and Capital Resources**

| ·   | On                September 18, 2007, the Company acquired all the capital stock of                Stilpol                and certain assets and liabilities of Metaltecnica for approximately                $7.9                million in cash and the assumption of indebtedness (estimated to                be                approximately $4.5 million at September 29, 2007) through its kitchen                range hood subsidiaries, based in Italy and Poland (“Best                Subsidiaries”).  The Company’s Best subsidiaries borrowed the                cash portion of the purchase price from banks in                Italy. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                August 1, 2007, the Company, through its wholly-owned subsidiary                Jensen,                Inc., acquired certain assets of Triangle for approximately $1.7                million                of cash. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 27, 2007, the Company acquired all of the ownership units of                HomeLogic for an initial purchase price of approximately $5.1 million                (utilizing approximately $3.1 million of cash and issuing unsecured                6%                subordinated notes totaling approximately $2.0 million due July 2011)                plus                contingent consideration, which may be payable in future                years. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                July 23, 2007, the Company, through Linear, acquired the assets and                certain liabilities of Aigis for an initial purchase price of                approximately $2.8 million (utilizing approximately $2.2 million                of cash                and issuing unsecured 6% subordinated notes totaling approximately                $0.6                million due July 2011). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                June 25, 2007, the Company, through Linear, acquired IEI through                a cash                tender offer to purchase all of the outstanding shares of common                stock of                IEI at a price of $6.65 per share.  The total purchase price was                approximately $13.8 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 10, 2007, the Company, through Linear, acquired the assets                and                certain liabilities of All Star for an initial purchase price of                approximately $2.8 million (utilizing approximately $2.3 million                of cash                and issuing unsecured 6% subordinated notes totaling $0.5 million                due                April 2009). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                March 2, 2007, the Company, through Linear, acquired the stock of                LiteTouch for approximately $10.5 million (utilizing approximately                $8.0                million of cash and issuing unsecured 6% subordinated notes totaling                $2.5                million due March 2009) plus contingent consideration, which may                be                payable in future years. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                June 26, 2006, the Company, through Linear, acquired the stock of                Secure                Wireless and ABT through two mergers for approximately $10.5 million,                plus                contingent consideration of approximately $18.1 million that was                earned by                Secure Wireless in 2006 and was paid in April 2007.  Additional                contingent consideration may be payable in future                years. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 14, 2006, the Company, through two newly formed subsidiaries                of its                HVAC segment, acquired the assets and certain liabilities of Huntair                and                Cleanpak, for approximately $48.4 million (utilizing approximately                $38.4                million of cash and issuing unsecured 6% subordinated notes totaling                $10.0                million due April 2008) plus contingent consideration of approximately                $30.0 million which was earned in 2006 and was paid in April                2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During                the first half of 2007, additional purchase price of approximately                $1.5                million was paid related to the acquisition of Gefen,                Inc. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Contingent                consideration of approximately $7.5 million related to the acquisition                of                OmniMount, which was accrued for at December 31, 2006, was paid in                the                first quarter of 2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                               |  *(Amounts              in millions)*  |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|
|                                                                                                                                               |                                             |   |   |
| Borrowings                under the revolving portion of the Company’s senior secured credit                facility                         |                                             | $ | 94.0 |   |
|                                                                                                                                               |                                             |   |   |   |
| Payments                made related the revolving portion of the Company’s senior secured credit                facility                    |                                             |   | (15.0 | ) |
|                                                                                                                                               |                                             |   |   |   |
| Additional                borrowings related primarily to the Company’s foreign                subsidiaries                                  |                                             |   | 15.6 |   |
|                                                                                                                                               |                                             |   |   |   |
| Issuance                of unsecured notes and debt assumed related to acquisitions in the                first                nine months of 2007 |                                             |   | 11.4 |   |
|                                                                                                                                               |                                             |   |   |   |
| Foreign                currency translation                                                                                                        |                                             |   | 2.6 |   |
|                                                                                                                                               |                                             |   |   |   |
| Principal                payments                                                                                                                  |                                             |   | (21.5 | ) |
|                                                                                                                                               |                                             |   |   |   |
| Net                change in consolidated debt                                                                                                     |                                             | $ | 87.1 |   |

|                                                                                                                                     |   | **Condensed                  Consolidated**           |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                                                                                     |   | **Cash                  Flows (1)**    |   |
|                                                                                                                                     |   | **For                  the first nine months ended**  |   |
|                                                                                                                                     |   | **Sept.                  29, 2007**                   |   |   | **Sept.                  30, 2006** |   |
|                                                                                                                                     |   | *(Dollar                  amounts in millions)*       |   |
| **Operating                  Activities:**                                                                                               |   |                                                  |   |   |   |   |
|                     Cash flow from operations, net                                                                             |   | $                                                     | 73.1   |   |   | $ | 113.3 |   |
|                     Change in accounts receivable, net                                                                         |   |                                                  | (12.6  | ) |   |   | (43.4 | ) |
|                     Change in inventories                                                                                      |   |                                                  | (36.7  | ) |   |   | (37.9 | ) |
|                     Change in prepaids and other current assets                                                                |   |                                                  | 1.4    |   |   |   | 5.1 |   |
|                     Change in accounts payable                                                                                 |   |                                                  | 16.3   |   |   |   | 9.2 |   |
|                     Change in accrued expenses and taxes                                                                       |   |                                                  | 12.4   |   |   |   | 31.7 |   |
| **Investing                  Activities:**                                                                                               |   |                                                  |   |   |   |   |   |   |
|                     Capital expenditures                                                                                       |   |                                                  | (24.1  | ) |   |   | (33.0 | ) |
|                     Net cash paid for businesses acquired                                                                      |   |                                                  | (93.5  | ) |   |   | (67.0 | ) |
|                     Payment in connection with NTK Holdings senior unsecured loan                  facility rollover |   |                                                  | (4.5   | ) |   |   | --- |   |
|                     Payment of IPO expenses for NTK Holdings                                                                   |   |                                                  | ---    |   |   |   | (2.4 | ) |
|                     Proceeds from the sale of property and equipment                                                           |   |                                                  | 0.6    |   |   |   | 3.4 |   |
|                     Change in restricted cash and marketable securities                                                        |   |                                                  | 1.5    |   |   |   | 0.4 |   |
| **Financing                  Activities:**                                                                                               |   |                                                  |   |   |   |   |   |   |
|                     Change in borrowings, net                                                                                  |   |                                                  | 72.6   |   |   |   | 37.1 |   |
|                     Dividends                                                                                                  |   |                                                  | ---    |   |   |   | (28.1 | ) |
| Other,                  net                                                                                                              |   |                                                  | 2.7    |   |   |   | (9.4 | ) |
|                                                                                                                                     |   | $                                                     | 9.2    |   |   | $ | (21.0 | ) |

|  | (1) | Summarized                from the Company’s Unaudited Condensed Consolidated Statement of Cash                Flows for the first nine months ended September 29, 2007 and September                30,                2006 (see the Unaudited Financial Statements included elsewhere                herein). |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                    |   | **For                  the first nine months ended** |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                    |   | **Sept.                  29, 2007**                  |   |   | **Sept.                  30, 2006** |   |
|                                                                                    |   | *(Dollar                  amounts in millions)*      |   |
|                                                                                    |   |                                                 |   |   |   |   |
|                     Net cash provided by operating activities                 |   | $                                                    | 58.0   |   |   | $ | 73.3 |   |
|                     Cash used by working capital and other long-term          |   |                                                 |   |   |   |   |   |   |
|                        asset and liability changes             |   |                                                 | 15.1   |   |   |   | 40.0 |   |
|                     Deferred federal income tax benefit (provision)           |   |                                                 | 8.6    |   |   |   | (10.0 | ) |
|                     Loss on property and equipment                            |   |                                                 | (1.0   | ) |   |   | (1.4 | ) |
|                     Non-cash interest expense, net                            |   |                                                 | (4.2   | ) |   |   | (3.9 | ) |
|                     Non-cash stock-based compensation expense                 |   |                                                 | (0.3   | ) |   |   | (0.3 | ) |
|                     Gain from curtailment of post-retirement medical benefits |   |                                                 | ---    |   |   |   | 35.9 |   |
|                     Provision for income taxes                                |   |                                                 | 28.1   |   |   |   | 55.7 |   |
|                     Interest expense (1)                                      |   |                                                 | 91.3   |   |   |   | 85.9 |   |
|                     Investment income                                         |   |                                                 | (1.5   | ) |   |   | (1.6 | ) |
| EBITDA                  (2),                  (3)                                       |   | $                                                    | 194.1  |   |   | $ | 273.6 |   |

|  | (1) | Interest                expense for the first nine months of 2007 includes cash interest                of                approximately $87.1 million and non-cash interest of approximately                $4.2                million.  Interest expense for the first nine months of 2006                includes cash interest of approximately $82.0 million and non-cash                interest of approximately $3.9                million. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | In                the RVP segment, EBITDA for the first nine months ended September                29, 2007                includes an increase in product liability expense of approximately                $7.3                million as compared to the first nine months ended September 30,                2006, a                pre-tax charge to warranty expense of approximately $0.5 million                related                to a product safety upgrade, an approximate $1.8 million pre-tax                charge                related to the closure of the Company’s NuTone, Inc. Cincinnati, Ohio                facility (see Note H of the Notes to the Unaudited Financial Statements                included elsewhere herein), an approximate $0.2 million pre-tax charge                related to the closure of the Company’s Jensen, Inc. Vernon, California                facility (see Note H of the Notes to the Unaudited Financial Statements                included elsewhere herein), legal and other professional fees and                expenses                incurred in connection with matters related to certain subsidiaries                based                in Italy and Poland of approximately $2.2 million (see Note G of                the Notes                to the Unaudited Financial Statements included elsewhere herein),                an                approximate $1.9 million pre-tax loss related to the settlement of                litigation and foreign exchange losses of approximately $1.5 million                related to transactions, including intercompany debt not indefinitely                invested in the Company’s                subsidiaries. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | In                the RVP segment, EBITDA for the first nine months ended September                30, 2006                include an approximate $35.9 million pre-tax curtailment gain related                to                post-retirement medical benefits, an approximate $4.1 million pre-tax                charge related to the planned closure of the Company’s NuTone, Inc.                Cincinnati, Ohio facility (see Note H of the Notes to the Unaudited                Financial Statements included elsewhere herein), a pre-tax charge                to                warranty expense of approximately $1.5 million related to a product                safety                upgrade and foreign exchange losses of approximately $0.2 million                related                to transactions, including intercompany debt not indefinitely invested                in                the Company’s subsidiaries. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Inflation,      Trends and General Considerations**

**Market      Risk**

**A.      **
**Interest      Rate Risk**

**B.           Foreign      Currency Risk**

**C.           Commodity      Pricing Risk**

**Forward-Looking      Statements**

**Item      3.               Quantitative      and Qualitative Disclosures about Market Risk**

**Item      4.                Controls      and Procedures**

**PART      II.  OTHER INFORMATION**

**Item      2.                      Unregistered      Sales of Equity Securities and Use of Proceeds**

**Item      6.                      Exhibits**

| *  | 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. |
|    |   |                                                                                                                            |

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