| NTK      Holdings, Inc.                                                           |
|-----------------------------------------------------------------------------------|
| (exact name      of registrant as specified in its charter)                       |
|                                                                              |   |
| Delaware                                                                          | 20-1934298 |
| (State or      other jurisdiction of incorporation or organization)               | (IRS Employer      Identification Number) |
|                                                                              |   |
| 50      Kennedy PlazaProvidence,      Rhode Island                                |  02903-2360 |
| (Address of      principal executive offices)                                     | (zip      code) |
|                                                                              |   |
| Registrant’s      Telephone Number, Including Area Code:(401)      751-1600 |
|                                                                              |
| Securities      registered pursuant to Section 12(b) of the Act:  None  |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| ·   | the      difficulty and expense that the Company incurs in connection with the      acquisition; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | the      difficulty and expense that the Company incurs in the subsequent      assimilation of the operations of the acquired company into the Company’s      operations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse      accounting consequences of conforming the acquired company's accounting      policies to the Company’s; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | the      difficulties and expense of developing, implementing and monitoring      systems of internal controls at acquired companies, including disclosure      controls and procedures and internal controls over financial      reporting; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      difficulty in operating acquiredbusinesses; |
|--------------------|------------------------------------------------------|

| ·   | the diversion      of management's attention from the Company’s other business      concerns; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | the potential      loss of customers or key employees of acquired  companies; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | the impact on      the Company’s financial condition due to the timing of the acquisition or      the failure to meet operating expectations for the acquired business;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      assumption of unknown liabilities of the acquired  company. |
|--------------------|----------------------------------------------------------------------|

| ·   | foreign      governments may impose limitations on the Company’s ability to repatriate      funds; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | foreign      governments may impose withholding or other taxes on remittances and other      payments to the Company, or the amount of any such taxes may      increase; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an outbreak      or escalation of any insurrection, armed conflict or act of terrorism, or      another form of political instability, may  occur; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | natural      disasters may occur, and local governments may have difficulties in      responding to these events; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | foreign      governments may nationalize foreign assets or engage in other forms of      governmental protectionism; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | foreign      governments may impose or increase investment barriers, customs or      tariffs, or other restrictions affecting the Company’s business;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | development,      implementation and monitoring of systems of internal controls of the      Company’s international operations, including disclosure controls and      procedures and internal controls over financial reporting, may be      difficult and expensive. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s ability to obtain      additional financing for working capital, capital expenditures,      acquisitions, refinancing indebtedness, or other purposes is  impaired; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a substantial portion of the      Company’s cash flow from operations will be dedicated to paying principal      and interest on its debt, thereby reducing funds available for expansion      or other purposes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company is more leveraged than some of its      competitors, which may result in a competitive      disadvantage; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | the Company is vulnerable to interest rate      increases, as certain of its borrowings, including those under Nortek’s      ABL Facility, are at variablerates; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s failure to comply      with the restrictions      in its financing agreements would have a material adverse      effect on it; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company’s significant amount      of debt makes it more vulnerable to changes in      general economicconditions; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company faces limitations on its ability      to make strategic      acquisitions, invest in new products or capital assets or take advantage of business      opportunities; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company is limited in its flexibility in      planning for, or reacting to, changes in its business and the industries      in which it operates. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | incur additional      indebtedness; |
|--------------------|-------------------------------------|

| ·   | pay dividends or make other      distributions; |
|--------------------|-------------------------------------------------|

| ·   | make loans or      investments; |
|--------------------|---------------------------------|

| ·   | incur certain      liens; |
|--------------------|---------------------------|

| ·   | enter into transactions with      affiliates; and |
|--------------------|---------------------------------------------------|

| ·   | consolidate, merge or sell      assets. |
|--------------------|-----------------------------------------|

|                                           |                                         | Approximate |   |
|------------------------------------------------|----------------------------------------------|-------------|--------|
| Location (1)                                   | Description                                  | Square Feet |   |
|                                           |                                         |        |   |
| Residential      Ventilation Products Segment: |                                         |        |   |
| Hartford,      WI                              | Manufacturing/Warehouse/Administrative       | 538,000     | (3)    |
| Hartford,      WI                              | Warehouse                                    | 130,000     | *      |
| Mississauga,      ONT, Canada                  | Manufacturing/Warehouse/Administrative       | 110,000     |   |
| Fabriano,      Italy                           | Manufacturing/Warehouse/Administrative       | 178,000     |   |
| Cerreto      D’Esi, Italy                | Manufacturing/Warehouse/Administrative       | 174,000     |   |
| Montefano,      Italy                          | Manufacturing/Warehouse/Administrative       | 93,000      | (2)    |
| Cleburne,      TX                              | Manufacturing/Warehouse/Administrative       | 215,000     | (3)    |
| Drummondville,      QUE, Canada                | Manufacturing/Warehouse/Administrative       | 126,000     |   |
| Drummondville,      QUE, Canada                | Manufacturing/Warehouse/Administrative       | 44,000      | *      |
| Chenjian,      Huizhou, PRC                    | Manufacturing/Warehouse/Administrative/Other | 198,000     |   |
| San      Francisco, CA                         | Warehouse/Administrative                     | 35,000      | *      |
| Gliwice,      Poland                           | Manufacturing/Warehouse/Administrative       | 162,000     | (2)    |
| Tecate,      Mexico                            | Manufacturing/Warehouse/Administrative       | 204,000     | *      |
|                                           |                                         |        |   |
| Home      Technology Products Segment:         |                                         |        |   |
| Sylmar,      CA                                | Administrative                               | 18,000      | *      |
| Xiang, Bao An      County, Shenzhen, PRC       | Manufacturing/Warehouse/Administrative/Other | 410,000     | *      |
| Chaiwan, Hong      Kong                        | Administrative                               | 13,000      | *      |
| Lexington,      KY                             | Warehouse/Administrative                     | 73,000      | *      |
| Carlsbad,      CA                              | Warehouse/Administrative                     | 64,000      | *      |
| Vista,      CA                                 | Warehouse                                    | 69,000      | *      |
| Riverside,      CA                             | Administrative                               | 82,000      | *      |
| Casnovia,      MI                              | Manufacturing/Warehouse/Administrative       | 28,000      | *      |
| Phoenix,      AZ                               | Manufacturing/Warehouse/Administrative       | 51,000      | *      |
| Petaluma,      CA                              | Warehouse/Administrative                     | 26,000      | *      |
| Miami,      FL                                 | Warehouse/Administrative                     | 43,000      | *      |
| Cambridge,      U.K.                           | Warehouse/Administrative                     | 11,000      | *      |
| Tallahassee,      FL                           | Manufacturing/Warehouse/Administrative       | 71,000      | (3)    |
| Summerville,      SC                           | Warehouse/Administrative                     | 162,000     | *      |
| New Milford,      CT                           | Manufacturing/Warehouse/Administrative       | 17,000      | **     |
| Los Angeles,      CA                           | Warehouse/Administrative                     | 28,000      | *      |
| Salt Lake      City, UT                        | Manufacturing/Warehouse/Administrative       | 25,000      | *      |
| Winston-Salem,      NC                         | Manufacturing/Warehouse/Administrative       | 47,000      | *      |
| Canton,      MA                                | Warehouse/Administrative                     | 21,000      | *      |

| Residential      Air Conditioning and Heating Products Segment: |                                   |    |   |
|-----------------------------------------------------------------|----------------------------------------|---------|--------|
| O’Fallon,      MO                                         | Warehouse/Administrative               | 70,000  | *      |
| St. Louis,      MO                                              | Warehouse                              | 103,000 | *      |
| Boonville,      MO                                              | Manufacturing                          | 250,000 | (3)    |
| Boonville,      MO                                              | Warehouse/Administrative               | 150,000 | (2)    |
| Tipton,      MO                                                 | Manufacturing                          | 50,000  | (3)    |
| Poplar Bluff,      MO                                           | Manufacturing/Warehouse                | 725,000 | **     |
| Dyersburg,      TN                                              | Manufacturing/Warehouse                | 368,000 | **     |
| Miami,      FL                                                  | Manufacturing/Warehouse/Administrative | 111,000 | *      |
| Catano,      Puerto Rico                                        | Warehouse                              | 17,000  | *      |
|                                                            |                                   |    |   |
| Commercial      Air Conditioning and Heating Products Segment:  |                                   |    |   |
| St. Leonard      d’Aston, QUE, Canada                     | Manufacturing/Administrative           | 95,000  | *      |
| Saskatoon,      Saskatchewan, Canada                            | Manufacturing/Administrative           | 49,000  | *      |
| Holland,      MI                                                | Manufacturing/Administrative           | 45,000  | *      |
| Oklahoma      City, OK                                          | Manufacturing/Administrative           | 127,000 | (3)    |
| Okarche,      OK                                                | Manufacturing/Warehouse/Administrative | 228,000 | (3)    |
| Springfield,      MO                                            | Manufacturing/Warehouse/Administrative | 113,000 | *      |
| Anjou, QUE,      Canada                                         | Manufacturing/Administrative           | 122,000 | *      |
| Edenbridge,      Kent, U.K.                                     | Manufacturing/Administrative           | 92,000  | *      |
| Fenton,      Stoke-on-Trent, U.K.                               | Manufacturing/Administrative           | 104,000 | *      |
| Anji County,      Zhejiang, PRC                                 | Manufacturing/Warehouse/Administrative | 202,000 | (2)    |
| Clackamas,      OR                                              | Manufacturing/Warehouse/Administrative | 165,000 | *      |
| Tualatin,      OR                                               | Manufacturing/Warehouse/Administrative | 176,000 | *      |
| Chaska,      MN                                                 | Administrative                         | 25,000  | *      |
|                                                            |                                   |    |   |
| Other:                                                          |                                   |    |   |
| Providence,      RI                                             | Administrative                         | 23,000  | *      |

|                                                |   | For the    Periods                    |    |
|-----------------------------------------------------|--------|---------------------------------------|---------|
|                                                |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | Post-Acquisition                      |    |   | Pre-Acquisition |   |
|                                                |   | For the Years Ended December      31, |    |   | Aug. 28, 2004    - |   |   | Jan.1, 2004    - |   |
|                                                |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | Dec. 31,    2004 |   |   | Aug. 27,    2004 |   |
|                                                |   | (In millions except      ratios)      |    |
|                                                |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Summary of      Operations:            |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                           |   | $                                     | 2,269.7 |   |   | $ | 2,368.2 |   |   | $ | 2,218.4 |   |   | $ | 1,959.2 |   |   | $ | 561.0 |   |   | $ | 1,117.9 |   |
| Goodwill impairment charge      (1)                 |   |                                  | (710.0  | ) |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Operating (loss) earnings      (2)                  |   |                                  | (610.1  | ) |   |   | 185.3 |   |   |   | 264.5 |   |   |   | 236.9 |   |   |   | 42.1 |   |   |   | 32.6 |   |
| (Loss) earnings from continuing      operations     |   |                                  | (844.5  | ) |   |   | (7.0 | ) |   |   | 57.7 |   |   |   | 56.9 |   |   |   | (3.6 | ) |   |   | (111.3 | ) |
| (Loss) earnings from discontinued      operations   |   |                                  | ---     |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | (0.5 | ) |   |   | 67.4 |   |
| Net (loss)      earnings                            |   |                                  | (844.5  | ) |   |   | (7.0 | ) |   |   | 57.7 |   |   |   | 56.9 |   |   |   | (4.1 | ) |   |   | (43.9 | ) |
|                                                |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Position:                            |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrestricted cash, investments      and             |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     marketable      securities       |   | $                                     | 182.2   |   |   | $ | 53.4 |   |   | $ | 57.4 |   |   | $ | 77.2 |   |   | $ | 95.0 |   |   | $ | 202.0 |   |
| Working    capital                                  |   |                                  | 348.3   |   |   |   | 205.7 |   |   |   | 210.2 |   |   |   | 283.6 |   |   |   | 215.8 |   |   |   | (645.2 | ) |
| Totalassets                                         |   |                                  | 1,983.6 |   |   |   | 2,710.8 |   |   |   | 2,635.9 |   |   |   | 2,404.6 |   |   |   | 2,264.6 |   |   |   | 1,730.3 |   |
| Total debt    --                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Current                     |   |                                  | 53.9    |   |   |   | 96.4 |   |   |   | 43.3 |   |   |   | 19.7 |   |   |   | 19.8 |   |   |   | 13.4 |   |
|          Long-term                   |   |                                  | 2,179.9 |   |   |   | 1,921.5 |   |   |   | 1,883.2 |   |   |   | 1,628.7 |   |   |   | 1,350.2 |   |   |   | 30.4 |   |
| Current    ratio                                    |   | 1.8:1                                 |    |   | 1.4:1 |   |   | 1.4:1 |   |   | 1.8:1 |   |   | 1.6:1 |   |   | 0.5:1 |   |
| Debt to equity      ratio                           |   |                                  | ---     |   |   | 22.7:1 |   |   | 26.5:1 |   |   | 8.7:1 |   |   | 4.3:1 |   |   | 0.4:1 |   |
| Depreciation and amortization      expense,         |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     including      non-cash interest |   |                                  | 142.3   |   |   |   | 132.4 |   |   |   | 108.8 |   |   |   | 75.8 |   |   |   | 26.6 |   |   |   | 50.5 |   |
| Capital expenditures      (3)                       |   |                                  | 25.4    |   |   |   | 36.4 |   |   |   | 42.3 |   |   |   | 33.7 |   |   |   | 15.1 |   |   |   | 12.7 |   |
| Stockholder's (deficit)      investment             |   |                                  | (813.3  | ) |   |   | 89.0 |   |   |   | 72.8 |   |   |   | 190.5 |   |   |   | 321.9 |   |   |   | 114.6 |   |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

|  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,      market and distribute 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 theater, 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              |
|                                      |                    |                                                                                                                                                                                                                    |             |
| Par Safe /      Litewatch                 | March 26,      2007     | Design and      sale of home safes and solar LED security lawn signs.                                                                                                                                                   | HTP              |
|                                      |                    |                                                                                                                                                                                                                    |             |
| LiteTouch,      Inc.                      | March 2,      2007      | Design,      manufacture and sale of automated lighting control for a variety of      applications including residential, commercial, new construction and      retro-fit.                                              | 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%.  Prior to January 25, 2006, the Company did not have a      controlling interest and accounted for these investments under the equity      method of accounting.  The Company is currently in negotiations      for the sale of its ownership interest in MEG and MSH.  The sale      of MEG and MSH could occur as early as the second quarter of      2009. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      detailed appraisals used to determine the estimated fair value of      intangible assets, real estate and machinery and equipment for the RVP,      HTP and Residential HVAC reporting units in accordance with methodologies      for valuing assets under SFAS No.141. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      allocation of the estimated fair value of pension liabilities determined      in accordance with the Company’s consolidated financial statement      requirements to the RVP and Residential HVAC reporting units based on the      actuarially determined pension benefit obligations and an allocation of      plan assets as of September 27, 2008 for the plans associated with these      reporting units. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      analysis to determine the estimated fair value adjustment required to      inventory for the RVP, HTP and Residential HVAC reporting      units. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      deferred tax analysis for the RVP, HTP and Residential HVAC reporting      units, which included allocating estimated deferred tax requirements as of      September 27, 2008 to the specific reporting units and calculating the      deferred tax consequences of the theoretical purchase price adjustments      required by the Step 2 test. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

|                                                  | Source  | % Increase      (Decrease) |
|-------------------------------------------------------|---------|----------------------------|
|                                                  | of Data | 2008                       | 2007 | 2006 |
| Private      residential construction spending        | 1       | (28)%                      | (20)% | ---% |
| Private      non-residential construction spending    | 1       | 15%                        | 19% | 15% |
| Total housing      starts                             | 1       | (33)%                      | (25)% | (13)% |
| New home      sales                                   | 1       | (38)%                      | (26)% | (18)% |
| Existing home      sales                              | 3       | (13)%                      | (13)% | (8)% |
| Residential      improvement spending                 | 1       | (10)%                      | (4)% | 7% |
| Central air      conditioning and heat pump shipments | 2       | (9)%                       | (9)% | (18)% |
| Manufactured      housing shipments                   | 1       | (14)%                      | (18)% | (20)% |

|                    | For the year ended December    31, |
|-------------------------|------------------------------------|
|                    | 2008                               | 2007 | 2006 |
|                    |                               |   |   |
| Steel                   | 6%                                 | 6% | 6% |
| Motors                  | 4%                                 | 5% | 5% |
| Compressors             | 3%                                 | 3% | 3% |
| Copper                  | 3%                                 | 2% | 2% |
| Electrical              | 2%                                 | 2% | 2% |
| Plastics                | 1%                                 | 1% | 1% |
| Aluminum                | 1%                                 | 1% | 1% |
| Packaging               | 1%                                 | 1% | 1% |
| Fans &      Blowers | 1%                                 | 1% | 1% |

| ·   | a non-cash      goodwill impairment charge of approximately $710.0 million in      2008, |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | a troubled      housing market together with a difficult mortgage industry that resulted      in the significant industry wide decline in new housing activity and      consumer spending on home remodeling andrepair, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | acquisitions      in three reporting segments, |
|--------------------|------------------------------------------------|

| ·   | higher      material costs, |
|--------------------|-----------------------------|

| ·   | closures of      certain facilities in the RVP and Commercial HVAC  segments, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | start-up      costs and production inefficiencies related to the relocation of certain      manufacturing operations in the RVPsegment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | product      safety upgrades in the RVP and HTPsegments, |
|--------------------|----------------------------------------------------------|

| ·   | changes in      foreign currency exchange rates, |
|--------------------|--------------------------------------------------|

| ·   | a curtailment      gain related to the NuTone, Inc. post-retirement medical and life insurance benefits      in 2006, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | gains and      losses as a result of      certain suppliers to our kitchen range hood subsidiaries based in      Italy and Poland being unable to repay advances      and amounts due under otherarrangements, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the favorable      settlement of litigation in the HTPsegment, |
|--------------------|----------------------------------------------------------------|

| ·   | gains from      the sale of certain manufacturing facilities no longer required in the RVP      segment, |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | an estimated      loss contingency on a lease guarantee in2008, |
|--------------------|-----------------------------------------------------------------|

| ·   | a non-cash      write-down of a foreign subsidiary in the Commercial HVAC segment,      and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | severance      charges incurred related to certain reduction in workforce initiatives      implemented in all four segments. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

|                                                                         |                                                                        |   |                                                                              |   |                                                                        |   | Net Change                                                                  |                                                          |
|------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------------------------------------------------------------|
|                                                                         | For the Years Ended December      31,                                       |   | 2008 to2007                                                                       |   | 2007 to2006                                                                 |   |
|                                                                         | 2008                                                                        |   | 2007                                                                              |   | 2006                                                                        |   | $                                                                           | %                                                             |   | $ | % |   |
| Net sales:                                                                   |        (Dollar amounts in      millions)                               |   |
| Residential ventilation      products                                        |  $    715.9                                        |   |  $     828.8                                        |   |  $    821.0                                        |   |  $  (112.9)                                                  |      (13.6)                          | % |  $      7.8 |          1.0 | % |
| Home technology      products                                                |        514.1                             |   |         570.2                             |   |         484.5                       |   |         (56.1)                      |         (9.8)         |   |        85.7 |        17.7 |   |
| Residential HVAC      products                                               |        524.5                             |   |         515.3                             |   |         518.5                       |   |             9.2 |          1.8     |   |         (3.2) |         (0.6) |   |
| Commerical HVAC      products                                                |        515.2                             |   |         453.9                             |   |         394.4                       |   |          61.3                  |        13.5                |   |        59.5 |        15.1 |   |
|      Consolidated      net sales                    |  $    2,269.7                                                          |   |  $    2,368.2                                                                |   |  $    2,218.4                                                          |   |  $    (98.5)                                       |         (4.2)         | % |  $    149.8 |          6.8 | % |
| Operating earnings      (loss):                                              |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Residential ventilation products      (1)                                    |  $  (391.9)                                                  |   |  $     102.9                                        |   |  $    139.5                                        |   |  $  (494.8)                                                  |           * | % |  $  (36.6) |      (26.2) | % |
| Home technology products      (2)                                            |         (39.2)                      |   |           76.3                  |   |           83.9            |   |      (115.5)                                       |           * |   |         (7.6) |         (9.1) |   |
| Residential HVAC products      (3)                                           |       (176.8)                                 |   |           10.8                  |   |           37.7            |   |      (187.6)                                       |           * |   |      (26.9) |      (71.4) |   |
| Commerical HVAC products      (4)                                            |           34.2            |   |           20.3                  |   |           27.2            |   |          13.9                  |        68.5                |   |         (6.9) |      (25.4) |   |
|           Subtotal                                       |       (573.7)                                 |   |         210.3                             |   |         288.3                       |   |      (784.0)                                       |           * |   |      (78.0) |      (27.1) |   |
| Unallocated:                                                                 |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Stock-based compensation      charges                                        |           (0.1)           |   |            (0.3)           |   |            (0.3)     |   |             0.2 |        66.7                |   |  --- |  --- |   |
| Foreign exchange (losses) gains      on                                      |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
|      transactions,      including intercompany debt |           (1.0)           |   |              0.4 |   |             1.2 |   |           (1.4)           |           * |   |         (0.8) |      (66.7) |   |
| Estimated loss contingency on      lease guarantee                           |           (6.4)           |   |  ---                                                                         |   |  ---                                                                   |   |           (6.4)           |           * |   |  --- |  --- |   |
| Expenses of a terminated      IPO                                            |  ---                                                                   |   |  ---                                                                         |   |            (2.5)     |   |  ---                                                                   |  ---                                                     |   |          2.5 |      100.0 |   |
| Compensation reserve      adjustment                                         |  ---                                                                   |   |  ---                                                                         |   |             3.5 |   |  ---                                                                   |  ---                                                     |   |         (3.5) |    (100.0) |   |
| Unallocated,      net                                                        |         (28.9)                      |   |          (25.1)                      |   |         (25.7)                      |   |           (3.8)           |      (15.1)                          |   |          0.6 |          2.3 |   |
| Consolidated operating (loss)      earnings                                  |  $  (610.1)                                                  |   |  $     185.3                                        |   |  $    264.5                                        |   |  $  (795.4)                                                  |           * | % |  $  (79.2) |      (29.9) | % |
|                                                                         |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Non-cash goodwill impairment      charge (5):                                |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |
| Residential ventilation      products                                        |  $    444.0                                        |   |  $         ---                  |   |  $         ---            |   |  $    444.0                                        |           * | % |  $        --- |  --- | % |
| Home technology      products                                                |           77.0            |   |  ---                                                                         |   |  ---                                                                   |   |          77.0                  |           * |   |  --- |  --- |   |
| Residential HVAC      products                                               |        189.0                             |   |  ---                                                                         |   |  ---                                                                   |   |        189.0                             |           * |   |  --- |  --- |   |
|                                                                         |  $    710.0                                        |   |  $         ---                  |   |  $         ---            |   |  $    710.0                                        |           * | % |  $        --- |  --- | % |
| Depreciation and amortization      expense:                                  |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Residential ventilation products      (6)                                    |  $      25.0                             |   |  $       20.6                             |   |  $       19.3                       |   |  $        4.4                  |        21.4                | % |  $      1.3 |          6.7 | % |
| Home technology products      (7)                                            |           19.3            |   |           19.1                  |   |           15.8            |   |             0.2 |          1.0     |   |          3.3 |        20.9 |   |
| Residential HVAC products      (8)                                           |           11.3            |   |           11.0                  |   |           10.5            |   |             0.3 |          2.7     |   |          0.5 |          4.8 |   |
| Commerical HVAC products      (9)                                            |           12.1            |   |           13.2                  |   |           14.4            |   |           (1.1)           |         (8.3)         |   |         (1.2) |         (8.3) |   |
| Unallocated                                                                  |             0.9 |   |              1.2 |   |             1.2 |   |           (0.3)           |      (25.0)                          |   |  --- |  --- |   |
|                                                                         |  $      68.6                             |   |  $       65.1                             |   |  $       61.2                       |   |  $        3.5                  |          5.4     | % |  $      3.9 |          6.4 | % |
| Operating (loss) earnings      margin:                                       |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Residential ventilation products      (1)                                    |         (54.7)                      | %      |           12.4                  | %      |           17.0            | %      |                                                                        |                                                          |   |   |   |   |
| Home technology products      (2)                                            |           (7.6)           |   |           13.4                  |   |           17.3            |   |                                                                        |                                                          |   |   |   |   |
| Residential HVAC products      (3)                                           |         (33.7)                      |   |              2.1 |   |             7.3 |   |                                                                        |                                                          |   |   |   |   |
| Commerical HVAC products      (4)                                            |             6.6 |   |              4.5 |   |             6.9 |   |                                                                        |                                                          |   |   |   |   |
|           Consolidated                                   |         (26.9)                      | %      |              7.8 | %      |           11.9            | %      |                                                                        |                                                          |   |   |   |   |
| Non-cash goodwill impairment      charge                                     |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
|      as a      % of net sales:                      |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Residential ventilation      products                                        |           62.0            | %      |  ---                                                                         | %      |  ---                                                                   | %      |                                                                        |                                                          |   |   |   |   |
| Home technology      products                                                |           15.0            |   |  ---                                                                         |   |  ---                                                                   |   |                                                                        |                                                          |   |   |   |   |
| Residential HVAC      products                                               |           36.0            |   |  ---                                                                         |   |  ---                                                                   |   |                                                                        |                                                          |   |   |   |   |
|           Consolidated                                   |           31.3            | %      |  ---                                                                         | %      |  ---                                                                   | %      |                                                                        |                                                          |   |   |   |   |
| Depreciation and amortization      expense                                   |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
|      as a % of      net sales:                           |                                                                        |   |                                                                              |   |                                                                        |   |                                                                        |                                                          |   |   |   |   |
| Residential ventilation products      (6)                                    |             3.5 | %      |              2.5 | %      |             2.4 | %      |                                                                        |                                                          |   |   |   |   |
| Home technology products      (7)                                            |             3.8 |   |              3.3 |   |             3.3 |   |                                                                        |                                                          |   |   |   |   |
| Residential HVAC products      (8)                                           |             2.2 |   |              2.1 |   |             2.0 |   |                                                                        |                                                          |   |   |   |   |
| Commerical HVAC products      (9)                                            |             2.3 |   |              2.9 |   |             3.7 |   |                                                                        |                                                          |   |   |   |   |
|           Consolidated                                   |             3.0 | %      |              2.7 | %      |             2.8 | %      |                                                                        |                                                          |   |   |   |   |

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

| (1)   | The operating      results of the RVP segment for the year ended December 31, 2008      include: |
|-----------------|--------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $444.0  million, |
|--------------------|------------------------------------------------------------------------------|

| ·   | costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico of approximately $4.5million, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of      approximately $2.7 million from the sale of certain segment manufacturing      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.2 million of estimated inefficient production costs and expenses      associated with the relocation of certain manufacturing      operations, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in the social liability reserve related to one of the segment’s foreign      subsidiaries of approximately $2.0million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.9 million related to the discontinuance of certain range      hood products within the U.S.market, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $1.8 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during2008, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.7 million in net charges related to the closure of certain segment      facilities and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.4 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The operating      results of the RVP segment for the year ended December 31, 2007      include: |
|--------|--------------------------------------------------------------------------------------------------|

| ·   | a favorable      adjustment to selling, general and administrative expense, net based upon      the Company’s revised estimate of reserves provided in 2006 for certain      suppliers in Italy and Poland of approximately $6.7    million, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.9 million in charges related to the closure of certain segment      facilities, |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | legal and      other professional fees and expenses incurred in connection with matters      related to certain subsidiaries based in Italy and Poland of approximately      $2.1 million, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $1.9 million loss related to the settlement of      litigation, |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $1.0 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge to      warranty expense of approximately $0.5 million related to a product safety      upgrade and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $0.4 million related to a reserve for amounts due from a      customer. |
|--------------------|--------------------------------------------------------------------------------------------------------|

|   | The operating      results of the RVP segment for the year ended December 31, 2006      include: |
|--------|--------------------------------------------------------------------------------------------------|

| ·   | an      approximately $35.9 million curtailment gain related to post-retirement      medical and life insurancebenefits, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | reserves of      approximately $16.0 million related to estimated losses as a result of the      unlikelihood that certain suppliers to the segment’s kitchen range hood      subsidiaries based in Italy and Poland will be able to repay advances and      amounts due under otherarrangements, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.5 million charge related to the closure of certain      segment facilities and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | an increase      in warranty expense in the first quarter of 2006 of approximately $1.5      million related to a product safetyupgrade. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The operating      results of the HTP segment for the year ended December 31, 2008      include: |
|-----------------|--------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $77.0  million, |
|--------------------|-----------------------------------------------------------------------------|

| ·   | approximately      $4.9 million of fees and expenses recorded in connection with the      settlement of a dispute with one of its former  suppliers, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $2.7 million related to a reserve for amounts due from      customers, |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.8 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during2008, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $0.7 million related to transactions      and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | an      approximately $0.1 million charge related to the closure of certain      facilities. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | approximately      $2.0 million of fees and expenses incurred in connection with a dispute      with a supplier, |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in warranty expense of approximately $0.7 million related to a product      safety upgrade and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $0.5 million related to a reserve for amounts due from      customers. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| (4)   | The operating      results of the Commercial HVAC segment for the year ended December 31,      2008 include: |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.3 million non-cash write-down of a foreign      subsidiary, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $2.1 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a lease      termination fee of approximately $1.9 million related to the closure of      the segment’s Mammoth, Inc. Chaska, Minnesota manufacturing      facility, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $1.5 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during 2008,  and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain on the      settlement of litigation of approximately $1.2 million resulting from a      prior bad debt write-off. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $3.7 million related to the closure of the segment’s      Mammoth, Inc. Chaska, Minnesota manufacturing  facility, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $2.5 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.8 million related to a reserve for amounts due from      customers. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.2 million, net of minority interest of approximately $0.8      million, related to a reserve for amounts due from a customer in China      related to a Chinese construction projectand |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.4 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   |                                  |    |   |    |   |    |    |   |   | Percentage      Change |   |
|-----------------------------------------------------------|--------|---------------------------------------|---------|--------|---------|--------|---------|---------|--------|--------|------------------------|--------|
|                                                      |   | For the Years Ended December      31, |    |   | 2008 to |   |    | 2007 to |   |
|                                                      |   | 2008                                  |    |   | 2007    |   |    | 2006    |   |   | 2007                   |   |   | 2006 |   |
|                                                      |   | (Dollar amounts in      millions)     |    |   |    |   |    |
|                                                      |   |                                  |    |   |    |   |    |    |   |   |                   |   |   |   |   |
| Net Sales                                                 |   | $                                     | 2,269.7 |   |    | $      | 2,368.2 |    |   | $      | 2,218.4                |   |   |   | (4.2 | )      % |   |   | 6.8 | % |
| Cost of products sold      (1)                            |   |                                  | 1,673.5 |   |    |   | 1,679.9 |    |   |   | 1,547.3                |   |   |   | 0.4 |   |   |   | (8.6 | ) |
| Selling, general and      administrative expense, net (1) |   |                                  | 468.1   |   |    |   | 475.5   |    |   |   | 381.7                  |   |   |   | 1.6 |   |   |   | (24.6 | ) |
| Goodwill impairment charge      (2)                       |   |                                  | 710.0   |   |    |   | ---     |    |   |   | ---                    |   |   |   | * |   |   |   | --- |   |
| Amortization of intangible      assets                    |   |                                  | 28.2    |   |    |   | 27.5    |    |   |   | 24.9                   |   |   |   | (2.5 | ) |   |   | (10.4 | ) |
| Operating (loss)      earnings                            |   |                                  | (610.1  | )      |    |   | 185.3   |    |   |   | 264.5                  |   |   |   | * |   |   |   | (29.9 | ) |
| Interest      expense                                     |   |                                  | (200.2  | )      |    |   | (183.7  | )       |   |   | (162.9                 | )      |   |   | (9.0 | ) |   |   | (12.8 | ) |
| Loss from debt retirement      (3)                        |   |                                  | (9.9    | )      |    |   | ---     |    |   |   | ---                    |   |   |   | * |   |   |   | --- |   |
| Investment      income                                    |   |                                  | 0.8     |   |    |   | 2.0     |    |   |   | 2.2                    |   |   |   | (60.0 | ) |   |   | (9.1 | ) |
| (Loss) earnings before provision      for income taxes    |   |                                  | (819.4  | )      |    |   | 3.6     |    |   |   | 103.8                  |   |   |   | * |   |   |   | (96.5 | ) |
| Provision for income      taxes                           |   |                                  | 25.1    |   |    |   | 10.6    |    |   |   | 46.1                   |   |   |   | * |   |   |   | 77.0 |   |
| Net (loss)      earnings                                  |   | $                                     | (844.5  | )      |    | $      | (7.0    | )       |   | $      | 57.7                   |   |   |   | * | % |   |   | * | % |

|                                                      |   | Percentage of Net      Sales          |   |     | Change in      Percentage |   |
|-----------------------------------------------------------|--------|---------------------------------------|--------|----------|---------------------------|--------|
|                                                      |   | For the Years Ended December      31, |   |     | 2008 to                   |   |   | 2007 to |   |
|                                                      |   | 2008                                  |   |     | 2007                      |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|                                                      |   |                                  |   |     |                      |   |   |   |   |   |   |   |   |   |   |
| Net Sales                                                 |   |                                  | 100.0  | %        |                      |   | 100.0 | % |   |   | 100.0 | % |   |   | --- | % |   |   | --- | % |
| Cost of products sold      (1)                            |   |                                  | 73.7   |     |                      |   | 70.9 |   |   |   | 69.8 |   |   |   | (2.8 | ) |   |   | (1.1 | ) |
| Selling, general and      administrative expense, net (1) |   |                                  | 20.6   |     |                      |   | 20.1 |   |   |   | 17.2 |   |   |   | (0.5 | ) |   |   | (2.9 | ) |
| Goodwill impairment charge      (2)                       |   |                                  | 31.3   |     |                      |   | --- |   |   |   | --- |   |   |   | (31.3 | ) |   |   | --- |   |
| Amortization of intangible      assets                    |   |                                  | 1.3    |     |                      |   | 1.2 |   |   |   | 1.1 |   |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Operating (loss)      earnings                            |   |                                  | (26.9  | )        |                      |   | 7.8 |   |   |   | 11.9 |   |   |   | (34.7 | ) |   |   | (4.1 | ) |
| Interest      expense                                     |   |                                  | (8.8   | )        |                      |   | (7.8 | ) |   |   | (7.3 | ) |   |   | (1.0 | ) |   |   | (0.5 | ) |
| Loss from debt retirement      (3)                        |   |                                  | (0.4   | )        |                      |   | --- |   |   |   | --- |   |   |   | (0.4 | ) |   |   | --- |   |
| Investment      income                                    |   |                                  | ---    |     |                      |   | 0.1 |   |   |   | 0.1 |   |   |   | (0.1 | ) |   |   | --- |   |
| (Loss) earnings before provision      for income taxes    |   |                                  | (36.1  | )        |                      |   | 0.1 |   |   |   | 4.7 |   |   |   | (36.2 | ) |   |   | (4.6 | ) |
| Provision for income      taxes                           |   |                                  | 1.1    |     |                      |   | 0.4 |   |   |   | 2.1 |   |   |   | (0.7 | ) |   |   | 1.7 |   |
| Net (loss)      earnings                                  |   |                                  | (37.2  | )      % |                      |   | (0.3 | )      % |   |   | 2.6 | % |   |   | (36.9 | )       % |   |   | (2.9 | )      % |

|   |   |   |                                                                                                                                   | Fourth      Quarter Ended |   |       | YearEnded |   |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|------------|-----------|--------|
|   |   |   |                                                                                                                                   | December 31, 2008              |   |
|   |   |   |                                                                                                                                   | (Amounts      in millions)     |   |
|   |   |   |                                                                                                                                   |                           |   |       |      |   |
|   | (1     | )      | (Decrease)      increase related to the effect of changes in foreign currency exchange      rates                                      |                           | $      | (8.2       | )         |   | $ | 7.9 |   |
|   | (2     | )      | Costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico                               |                           |   | 1.3        |      |   |   | 4.5 |   |
|   | (3     | )      | Charges      related to the discontinuance of certain range hood products within the      U.S. market                                  |                           |   | 1.9        |      |   |   | 1.9 |   |
|   | (4     | )      | Estimated      inefficient production costs associated with the relocation of certain      manufacturing operations within the segment |                           |   |   0.2 |      |   |   |   1.8 |   |
|   | (5     | )      | Increase due      to the impact of acquisitions                                                                                        |                           |   | ---        |      |   |   | 1.6 |   |
|   | (6     | )      | Increase      (decrease) in product liability expense as compared to the same periods of      2007                                     |                           |   | 1.7        |      |   |   | (1.6 | ) |
|   | (7     | )      | Severance      charges related to the closure of certain segment    facilities                                                         |                           |   | 0.1        |      |   |   | 0.8 |   |
|   | (8     | )      | Severance      charges incurred related to certain reduction in workforce initiatives      implemented during 2008                     |                           |   | 0.7        |      |   |   | 0.7 |   |

|   |   |   |                                                                      | Fourth      Quarter Ended |   |   | YearEnded |   |
|--------|--------|--------|---------------------------------------------------------------------------|--------------------------------|--------|--------|-----------|--------|
|   |   |   |                                                                      | December      31, 2007         |   |
|   |   |   |                                                                      | (Amounts      in millions)     |   |
|   |   |   |                                                                      |                           |   |   |      |   |
|   | (1     | )      | Charge to      warranty expense related to a product safety upgrade       |                           |   | ---    |      |   |   | 0.5 |   |
|   | (2     | )      | Net charges      related to the closure of certain RVP segment facilities |                           |   | 0.2    |      |   |   | 0.3 |   |

|   |   |   |                                                                                                                                                        | Fourth                     |   |   |   |   |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|--------|--------|
|   |   |   |                                                                                                                                                        | Quarter                    |   |   | Year   |   |
|   |   |   |                                                                                                                                                        | Ended                      |   |   | Ended  |   |
|   |   |   |                                                                                                                                                        | December 31, 2008          |   |
|   |   |   |                                                                                                                                                        | (Amounts      in millions) |   |
|   |   |   |                                                                                                                                                        |                       |   |   |   |   |
|   | (1     | )      | Increase in      SG&A due to the impact of acquisitions                                                                                                 |                       | $      | ---    |   |   | $ | 8.4 |   |
|   | (2     | )      | Estimated      loss contingency on lease guarantee                                                                                                          |                       |   | ---    |   |   |   | 6.4 |   |
|   | (3     | )      | Decrease in      display expense in the RVP segment                                                                                                         |                       |   | (0.3   | )      |   |   | (5.6 | ) |
|   | (4     | )      | Fees and      expenses recorded in the HTP segment in connection with the settlement of      a dispute with one of its former suppliers                     |                       |   | ---    |   |   |   | 4.9 |   |
|   | (5     | )      | Fees and      expenses incurred related to certain reduction in workforce initiatives      implemented in all four segments                                 |                       |   | 3.7    |   |   |   | 3.7 |   |
|   | (6     | )      | Non-cash      write-down of a foreign subsidiary in the Commercial HVAC      segment                                                                        |                       |   | 3.3    |   |   |   | 3.3 |   |
|   | (7     | )      | Net foreign      exchange losses (gains) related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries |                       |   | 0.1    |   |   |   | (0.8 | ) |
|   | (8     | )      | Charges      related to reserves for amounts due from customers in the RVP, HTP and      Commercial HVAC segments                                           |                       |   | 1.2    |   |   |   | 2.7 |   |
|   | (9     | )      | Gain from the      sale of certain manufacturing facilities in the RVPsegment                                                                               |                       |   | (0.2   | )      |   |   | (2.7 | ) |
|   | (10    | )      | Net charges      related to the closure of certain RVP segment facilities                                                                                   |                       |   | ---    |   |   |   | (0.1 | ) |
|   | (11    | )      | Reduction in      social liability reserve related to one of the Company’s foreign      subsidiaries in the RVP segment                               |                       |   | (0.1   | )      |   |   | (2.0 | ) |
|   | (12    | )      | Lease      termination fee related to the closure of the Commercial HVAC segment’s      Mammoth, Inc. Chaska, MN manufacturing facility               |                       |   | 1.9    |   |   |   | 1.9 |   |
|   | (13    | )      | Gain on the      settlement of litigation in the Commercial HVAC segment resulting from a      prior bad debt write-off                                     |                       |   | ---    |   |   |   | (1.2 | ) |
|   | (14    | )      | Estimated      inefficient production costs and expenses associated with the relocation      of certain manufacturing operations                            |                       |   | ---    |   |   |   | 0.4 |   |
|   | (15    | )      | (Decrease)      increase related to the effect of changes in foreign currency exchange      rates                                                           |                       |   | (3.6   | )      |   |   | 0.5 |   |
|   | (16    | )      | Net charges      related to the closure of certain HTP segment facilities                                                                                   |                       |   | 0.1    |   |   |   | 0.1 |   |

|   |   |   |                                                                                                                                                                                 | Fourth                     |   |   |   |   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|--------|--------|
|   |   |   |                                                                                                                                                                                 | Quarter                    |   |   | Year   |   |
|   |   |   |                                                                                                                                                                                 | Ended                      |   |   | Ended  |   |
|   |   |   |                                                                                                                                                                                 | December 31, 2007          |   |
|   |   |   |                                                                                                                                                                                 | (Amounts      in millions) |   |
|   |   |   |                                                                                                                                                                                 |                       |   |   |   |   |
|   | (1     | )      | Favorable      adjustment based upon the Company’s revised estimate of reserves provided      in 2006 related to certain suppliers in Italy and Poland in the RVP      segment |                       | $      | (6.7   | )      |   | $ | (6.7 | ) |
|   | (2     | )      | Fees and      expenses recorded in the HTP segment in connection with the settlement of      a dispute with one of its former suppliers                                              |                       |   | 1.2    |   |   |   | 2.0 |   |
|   | (3     | )      | Charges      related to the closure of the Commercial HVAC segment’s Mammoth, Inc.      Chaska, MN facility                                                                    |                       |   | 1.1    |   |   |   | 3.7 |   |
|   | (4     | )      | Net foreign      exchange (gains) losses related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries                          |                       |   | (0.3   | )      |   |   | 3.1 |   |
|   | (5     | )      | Charges      related to reserves for amounts due from customers in the RVP, HTP and      Commercial HVAC segments                                                                    |                       |   | ---    |   |   |   | 2.7 |   |
|   | (6     | )      | Net charges      related to the closure of certain RVP segment facilities                                                                                                            |                       |   | 0.7    |   |   |   | 2.6 |   |
|   | (7     | )      | Legal and      other professional fees and expenses incurred in connection with matters      related to certain subsidiaries based in Italy and Poland in the RVP      segment       |                       |   | (0.1   | )      |   |   |   2.1 |   |
|   | (8     | )      | Loss on      settlement of litigation in the RVP segment                                                                                                                             |                       |   | ---    |   |   |   | 1.9 |   |

|   |   |   |                                                                                                                                                        | Fourth                     |   |   |   |   |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|--------|--------|
|   |   |   |                                                                                                                                                        | Quarter                    |   |   | Year   |   |
|   |   |   |                                                                                                                                                        | Ended                      |   |   | Ended  |   |
|   |   |   |                                                                                                                                                        | December 31, 2008          |   |
|   |   |   |                                                                                                                                                        | (Amounts      in millions) |   |
|   |   |   |                                                                                                                                                        |                       |   |   |   |   |
|   | (1     | )      | Decrease in      displays expense                                                                                                                           |                       | $      | (0.3   | )      |   | $ | (5.6 | ) |
|   | (2     | )      | Costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico                                                    |                       |   | 1.3    |   |   |   | 4.5 |   |
|   | (3     | )      | (Decreased)      increased amortization of intangible assets                                                                                                |                       |   | (0.3   | )      |   |   | 2.7 |   |
|   | (4     | )      | Gain from the      sale of certain manufacturing facilities                                                                                                 |                       |   | (0.2   | )      |   |   | (2.7 | ) |
|   | (5     | )      | Fees and      expenses incurred related to certain reduction in workforce initiatives      implemented within the segment                                   |                       |   | 1.8    |   |   |   | 1.8 |   |
|   | (6     | )      | (Decreased)      increased depreciation expense of property and equipment                                                                                   |                       |   | (0.4   | )      |   |   | 1.7 |   |
|   | (7     | )      | Reduction in      social liability reserve related to one of the segment’s foreign      subsidiaries                                                  |                       |   | (0.1   | )      |   |   | (2.0 | ) |
|   | (8     | )      | Increase in      operating loss due to the impact of acquisitions                                                                                           |                       |   | ---    |   |   |   | 1.4 |   |
|   | (9     | )      | Net foreign      exchange losses (gains) related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries |                       |   | 0.5    |   |   |   | (0.4 | ) |
|   | (10    | )      | Increase in      operating loss related to effect of changes in foreign currency exchange      rates                                                        |                       |   | 1.3    |   |   |   | 0.4 |   |
|   | (11    | )      | Net charges      related to the closure of certain segment facilities                                                                                       |                       |   | 0.1    |   |   |   | 0.7 |   |
|   | (12    | )      | Estimated      inefficient production costs and expenses associated with the relocation      of certain segment manufacturing operations                    |                       |   | 0.2    |   |   |   | 2.2 |   |
|   | (13    | )      | Charges      related to the discontinuance of certain range hood products within the      U.S. market                                                       |                       |   | 1.9    |   |   |   | 1.9 |   |
|   | (14    | )      | Increase      (decrease) in product liability expense as compared to the same periods of      2007                                                          |                       |   | 1.7    |   |   |   | (1.6 | ) |

|   |   |   |                                                                                                                                                         | Fourth      Quarter Ended |   |   | YearEnded |   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|-----------|--------|
|   |   |   |                                                                                                                                                         | December 31, 2007              |   |
|   |   |   |                                                                                                                                                         | (Amounts      in millions)     |   |
|   |   |   |                                                                                                                                                         |                           |   |   |      |   |
|   | (1     | )      | Favorable      adjustment based upon the Company’s revised estimate of reserves provided      in 2006 related to certain suppliers in Italy and Poland |                           | $      | (6.7   | )         |   | $ | (6.7 | ) |
|   | (2     | )      | Legal and      other professional fees and expenses incurred in connection with matters      related to certain subsidiaries based in Italy and Poland       |                           |   | (0.1   | )         |   |   | 2.1 |   |
|   | (3     | )      | Loss on      settlement of litigation                                                                                                                        |                           |   | ---    |      |   |   | 1.9 |   |
|   | (4     | )      | Net charges      related to the closure of certain segment facilities                                                                                        |                           |   | 0.9    |      |   |   | 2.9 |   |
|   | (5     | )      | Net foreign      exchange (gains) losses related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries  |                           |   | (0.5   | )         |   |   | 1.0 |   |
|   | (6     | )      | Charge to      warranty expense related to a product safety upgrade                                                                                          |                           |   | ---    |      |   |   | 0.5 |   |
|   | (7     | )      | Charges      related to reserves for amounts due from customers                                                                                              |                           |   | ---    |      |   |   | 0.4 |   |

|                            |   | For the Years Ended December      31, |   |
|---------------------------------|--------|---------------------------------------|--------|
|                            |   | 2008                                  |   |   | 2007 |   |
|                            |   | (Amounts in      millions)            |   |
|                            |   |                                  |   |   |   |   |
| Net loss (1),      (2)          |   | $                                     | (844.5 | ) |   | $ | (7.0 | ) |
| Provision for income      taxes |   |                                  | 25.1   |   |   |   | 10.6 |   |
| Interest expense      (3)       |   |                                  | 200.2  |   |   |   | 183.7 |   |
| Investment      income          |   |                                  | (0.8   | ) |   |   | (2.0 | ) |
| Depreciation      expense       |   |                                  | 40.2   |   |   |   | 37.6 |   |
| Amortization      expense       |   |                                  | 28.4   |   |   |   | 27.5 |   |
| EBITDA (1),    (2)              |   | $                                     | (551.4 | ) |   | $ | 250.4 |   |

| (1) | Net loss and      EBITDA for the year ended December 31, 2008 includes the following other      income and expense items: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $710.0  million, |
|--------------------|------------------------------------------------------------------------------|

| ·   | a pre-tax      loss from debt retirement of approximately $9.9 million, primarily as a      result of writing off unamortized deferred debt expense related to      Nortek’s senior secured creditfacility, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $6.4 million related to an estimated loss contingency on a      lease guarantee, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $5.0 million of severance charges incurred related to certain reduction in      workforce initiatives implemented in all four  segments, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $4.9 million of fees and expenses recorded in connection with the      settlement of a dispute with one of its former suppliers in the HTP      segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico of approximately $4.5 million in the RVP  segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.3 million non-cash write-down of a foreign subsidiary in      the Commercial HVAC segment, |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of      approximately $2.7 million from the sale of certain RVP segment      manufacturing facilities, |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $2.7 million related to a reserve for amounts due from      customers in the HTP segment, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.2 million of estimated inefficient production costs and expenses      associated with the relocation of certain manufacturing operations in the      RVP segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in the social liability reserve related to one of the RVP segment’s      foreign subsidiaries of approximately $2.0  million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.9 million related to the discontinuance of certain range      hood products within the U.S. market in the RVP  segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a lease      termination fee of approximately $1.9 million related to the closure of      the Commercial HVAC segment’s Mammoth, Inc. Chaska, Minnesota      manufacturing facility, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain on the      settlement of litigation in the Commercial HVAC segment resulting from a      prior bad debt write-off of approximately $1.2  million, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.8 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.7 million in net charges related to the closure of certain RVP segment      facilities, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $0.1 million charge related to the closure of certain HTP      segment facilities. |
|--------------------|----------------------------------------------------------------------------------------------------------|

| (2) | Net loss and      EBITDA for the year ended December 31, 2007 includes the following other      income and expense items: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| ·   | a favorable      adjustment to selling, general and administrative expense, net based upon      the Company’s revised estimate of reserves provided in 2006 for certain      suppliers in Italy and Poland of approximately $6.7 million in the RVP      segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $3.7 million related to the planned closure of the      Commercial HVAC segment’s Mammoth, Inc. Chaska, Minnesota manufacturing      facility, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $3.1 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.9 million in charges related to the closure of certain RVP segment      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | charges of      approximately $2.7 million related to reserves for amounts due from      customers in the RVP, HTP and Commercial HVAC  segments, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legal and      other professional fees and expenses incurred in connection with matters      related to certain RVP segment subsidiaries based in Italy and Poland of      approximately $2.1 million, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.0 million of fees and expenses incurred in connection with a dispute      with a supplier in the HTP segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a loss on      settlement of litigation in the RVP segment of approximately $1.9 million,      and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | a net      reduction to warranty expense of approximately $0.2 million related to      product safety upgrades in the RVP and HTP  segments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                                                   | Fourth      Quarter Ended |   |   | YearEnded |   |
|--------|--------|--------|----------------------------------------------------------------------------------------|--------------------------------|--------|--------|-----------|--------|
|   |   |   |                                                                                   | December      31, 2007         |   |
|   |   |   |                                                                                   | (Amounts      in millions)     |   |
|   |   |   |                                                                                   |                           |   |   |      |   |
|   | (1     | )      | Decrease in      product liability expense as compared to the same period of      2006 |                           | $      | (9.1   | )         |   | $ | (1.8 | ) |
|   | (2     | )      | Charge to      warranty expense related to a product safety upgrade                    |                           |   | ---    |      |   |   | 0.5 |   |
|   | (3     | )      | Increase      related to the effect of changes in foreign currency exchange      rates |                           |   | 6.8    |      |   |   | 16.0 |   |
|   | (4     | )      | Increase in      cost of products sold due to the impact of acquisitions               |                           |   | 3.2    |      |   |   | 16.3 |   |
|   | (5     | )      | Net charges      related to the closure of certain RVP segment facilities              |                           |   | 0.2    |      |   |   | 0.3 |   |

|   |   |   |                                                                                                    | Fourth      Quarter Ended  |   |   | YearEnded |   |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|-----------|--------|
|   |   |   |                                                                                                    | December      31, 2006     |   |
|   |   |   |                                                                                                    | (Amounts      in millions) |   |
|   |   |   |                                                                                                    |                       |   |   |      |   |
|   | (1     | )      | Net charges      related to the closure of certain RVP segment facilities                               |                       | $      | 0.1    |      |   | $ | 1.8 |   |
|   | (2     | )      | Charge to      warranty expense related to a product safety upgrade                                     |                       |   | ---    |      |   |   | 1.5 |   |
|   | (3     | )      | Non-cash      charge recorded related to the amortization of purchase price allocated to      inventory |                       |   | ---    |      |   |   | 0.3 |   |

|   |   |   |                                                                                                                                                                          | Fourth      Quarter Ended |   |   | YearEnded |   |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|-----------|--------|
|   |   |   |                                                                                                                                                                          | December      31, 2007         |   |
|   |   |   |                                                                                                                                                                          | (Amounts      in millions)     |   |
|   |   |   |                                                                                                                                                                          |                           |   |   |      |   |
|   | (1     | )      | Increase in      SG&A due to the impact of acquisitions                                                                                                                   |                           | $      | 8.2    |      |   | $ | 36.3 |   |
|   | (2     | )      | Effect of      changes in foreign currency exchange rates                                                                                                                     |                           |   | 3.2    |      |   |   | 6.6 |   |
|   | (3     | )      | Net charges      related to the closure of certain RVP segment facilities                                                                                                     |                           |   | 0.7    |      |   |   | 2.6 |   |
|   | (4     | )      | Charges      related to the closure of the Commercial HVAC segment’s Mammoth, Inc.      Chaska, MN facility                                                             |                           |   | 1.1    |      |   |   | 3.7 |   |
|   | (5     | )      | Legal and      other professional fees and expenses incurred in connection with matters      related to certain RVP segment subsidiaries based in Italy and      Poland       |                           |   | (0.1   | )         |   |   |   2.1 |   |
|   | (6     | )      | Charges      related to reserves for amounts due from customers in the RVP, HTP and      HVAC segments                                                                        |                           |   | ---    |      |   |   | 2.7 |   |
|   | (7     | )      | Loss on      settlement of litigation in the RVP segment                                                                                                                      |                           |   | ---    |      |   |   | 1.9 |   |
|   | (8     | )      | (Decrease)      increase in displays expense in the RVP segment                                                                                                               |                           |   | (2.3   | )         |   |   | 2.2 |   |
|   | (9     | )      | Net foreign      exchange (gains) losses related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries                   |                           |   | (0.3   | )         |   |   | 3.1 |   |
|   | (10    | )      | Stock-based      compensation expense                                                                                                                                         |                           |   | ---    |      |   |   | 0.3 |   |
|   | (11    | )      | Favorable      adjustment based upon the Company’s revised estimate of reserves provided      in 2006 related to certain RVP segment suppliers in Italy and      Poland |                           |   | (6.7   | )         |   |   | (6.7 | ) |
|   | (12    | )      | Legal fees      and expenses incurred in the HTP segment in connection with a dispute with      a supplier                                                                    |                           |   | 1.2    |      |   |   | 2.0 |   |

|   |   |   |                                                                                                                                                                               | Fourth                     |   |   |   |   |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|--------|--------|
|   |   |   |                                                                                                                                                                               | Quarter                    |   |   | Year   |   |
|   |   |   |                                                                                                                                                                               | Ended                      |   |   | Ended  |   |
|   |   |   |                                                                                                                                                                               | December 31,      2006     |   |
|   |   |   |                                                                                                                                                                               | (Amounts in      millions) |   |
|   | (1     | )      | Gain from curtailment of      post-retirement medical and life insurance benefits in the RVP      segment                                                                          |                       | $      | ---    |   |   |   | (35.9 | ) |
|   | (2     | )      | Losses related to certain RVP      segment suppliers in Italy and Poland                                                                                                           |                       |   | 16.0   |   |   |   | 16.0 |   |
|   | (3     | )      | Compensation reserve      adjustment                                                                                                                                               |                       |   | (3.5   | )      |   |   | (3.5 | ) |
|   | (4     | )      | Write-off of expenses related to      NTK Holdings' initial public offering                                                                                                        |                       |   | 2.5    |   |   |   | 2.5 |   |
|   | (5     | )      | Net charges related to the closure      of certain RVP segment facilities                                                                                                          |                       |   | (0.7   | )      |   |   | 1.7 |   |
|   | (6     | )      | Gain on settlement of litigation      in the Residential HVAC segment                                                                                                              |                       |   | ---    |   |   |   | (1.6 | ) |
|   | (7     | )      | Reserve for amounts due from a      customer in China related to a Chinese construction project, net of      minority interest of $0.8 million in the Commercial HVAC      segment |                       |   | 1.2    |   |   |   | 1.2 |   |
|   | (8     | )      | Net foreign exchange gains related      to transactions, including intercompany debt not indefinitely invested in      Nortek's subsidiaries                                       |                       |   | (1.7   | )      |   |   | (1.7 | ) |
|   | (9     | )      | Stock-based compensation      expense                                                                                                                                              |                       |   | ---    |   |   |   | 0.3 |   |

|   |   |   |                                                                                                                                                         | Fourth      Quarter Ended |   |       | YearEnded |   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|------------|-----------|--------|
|   |   |   |                                                                                                                                                         | December 31, 2007              |   |
|   |   |   |                                                                                                                                                         | (Amounts      in millions)     |   |
|   |   |   |                                                                                                                                                         |                           |   |       |      |   |
|   | (1     | )      | Favorable      adjustment based upon the Company’s revised estimate of reserves provided      in 2006 related to certain suppliers in Italy and Poland |                           | $      |  6.7  |      |   | $ |  6.7 |   |
|   | (2     | )      | Decrease in      product liability expense as compared to the same period of      2006                                                                       |                           |   | 9.1        |      |   |   | 1.8 |   |
|   | (3     | )      | Decrease      (increase) in displays expense                                                                                                                 |                           |   | 2.3        |      |   |   | (2.2 | ) |
|   | (4     | )      | Legal and      other professional fees and expenses incurred in connection with matters      related to certain subsidiaries based in Italy and Poland       |                           |   |   0.1 |      |   |   | (2.1 | ) |
|   | (5     | )      | Loss on      settlement of litigation                                                                                                                        |                           |   | ---        |      |   |   | (1.9 | ) |
|   | (6     | )      | Increased      depreciation expense of property and equipment                                                                                                |                           |   | (0.5       | )         |   |   | (1.4 | ) |
|   | (7     | )      | Net charges      related to the closure of certain segment facilities                                                                                        |                           |   | (0.9       | )         |   |   | (2.9 | ) |
|   | (8     | )      | Net foreign      exchange gains (losses) related to transactions, including intercompany      debt not indefinitely invested in Nortek’s subsidiaries  |                           |   | 0.5        |      |   |   | (1.0 | ) |
|   | (9     | )      | Increase in      operating earnings related to effect of changes in foreign currency      exchange rates                                                     |                           |   | 0.1        |      |   |   | 0.6 |   |
|   | (10    | )      | Charge to      warranty expense related to a product safety upgrade                                                                                          |                           |   | ---        |      |   |   | (0.5 | ) |
|   | (11    | )      | Charges      related to reserves for amounts due from customers                                                                                              |                           |   | ---        |      |   |   | (0.4 | ) |
|   | (12    | )      | Increase in      operating earnings due to the impact of acquisitions                                                                                        |                           |   | ---        |      |   |   | 0.3 |   |
|   | (13    | )      | (Increased)      decreased amortization of intangible assets                                                                                                 |                           |   | (0.3       | )         |   |   | 0.1 |   |

|   |   |   |                                                                                                                                                                                                                                                               | Fourth                     |   |   |   |   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|--------|--------|--------|
|   |   |   |                                                                                                                                                                                                                                                               | Quarter                    |   |   | Year   |   |
|   |   |   |                                                                                                                                                                                                                                                               | Ended                      |   |   | Ended  |   |
|   |   |   |                                                                                                                                                                                                                                                               | December 31,      2006     |   |
|   |   |   |                                                                                                                                                                                                                                                               | (Amounts in      millions) |   |
|   |   |   |                                                                                                                                                                                                                                                               |                       |   |   |   |   |
|   | (1     | )      | Gain from curtailment of      post-retirement medical and life insurance benefits                                                                                                                                                                                  |                       | $      | ---    |   |   | $ | 35.9 |   |
|   | (2     | )      | Reserves related to estimated      losses as a result of the unlikelihood that certain suppliers to the      segment's kitchen range hood subsidiaries based in Italy and Poland will      be able to repay advances and amounts due under other      arrangements |                       |   | (16.0  | )      |   |   | (16.0 | ) |
|   | (3     | )      | Net charges related to the closure      of certain segment facilities                                                                                                                                                                                              |                       |   | 0.6    |   |   |   | (3.5 | ) |
|   | (4     | )      | Charge to warranty expense related      to a product safety upgrade                                                                                                                                                                                                |                       |   | ---    |   |   |   | (1.5 | ) |
|   | (5     | )      | Net foreign exchange gains related      to transactions, including intercompany debt not indefinitely invested in      Nortek's subsidiaries                                                                                                                       |                       |   | 0.2    |   |   |   | --- |   |
|   | (6     | )      | Non-cash charge related to the      amortization of purchase price allocated to    inventory                                                                                                                                                                       |                       |   | ---    |   |   |   | (0.3 | ) |

|                              |   | For the Years      Ended December      31, |   |
|-----------------------------------|--------|-------------------------------------------------|--------|
|                              |   | 2007                                            |   |   | 2006 |   |
|                              |   | (Amounts in      millions)                      |   |
|                              |   |                                            |   |   |   |   |
| Net (loss) earnings (1),      (2) |   | $                                               | (7.0   | ) |   | $ | 57.7 |   |
| Provision for income      taxes   |   |                                            | 10.6   |   |   |   | 46.1 |   |
| Interest expense      (3)         |   |                                            | 183.7  |   |   |   | 162.9 |   |
| Investment      income            |   |                                            | (2.0   | ) |   |   | (2.2 | ) |
| Depreciation      expense         |   |                                            | 37.6   |   |   |   | 33.0 |   |
| Amortization      expense         |   |                                            | 27.5   |   |   |   | 28.2 |   |
| EBITDA (1),    (2)                |   | $                                               | 250.4  |   |   | $ | 325.7 |   |

| (1) | Net loss and      EBITDA for the year ended December 31, 2007 includes the following other      income and expense items: |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| ·   | a favorable      adjustment to selling, general and administrative expense, net based upon      the Company’s revised estimate of reserves provided in 2006 for certain      RVP segment suppliers in Italy and Poland of approximately $6.7      million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $3.7 million related to the planned closure of the      Commercial HVAC segment’s Mammoth, Inc. Chaska, Minnesota manufacturing      facility, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $3.1 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.9 million in charges related to the closure of certain RVP segment      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | charges of      approximately $2.7 million related to reserves for amounts due from      customers in the RVP, HTP and Commercial HVAC  segments, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legal and      other professional fees and expenses incurred in connection with matters      related to certain RVP segment subsidiaries based in Italy and Poland of      approximately $2.1 million, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.0 million of fees and expenses incurred in connection with a dispute      with a supplier in the HTP segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a loss on      settlement of litigation in the RVP segment of approximately $1.9 million,      and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | a net      reduction to warranty expense of approximately $0.2 million related to      product safety upgrades in the RVP and HTP  segments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net earnings      and EBITDA for the year ended December 31, 2006 includes the following      other income and expense items: |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | reserves of      approximately $16.0 million related to estimated losses as a result of the      unlikelihood that certain suppliers to the RVP segment’s kitchen range      hood subsidiaries based in Italy and Poland will be able to repay advances      and amounts due under otherarrangements, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase      in warranty expense of approximately $3.8 million related to product      safety upgrades in the RVP and HTPsegments, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $3.5 million in charges related to the closure of certain RVP segment      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.5 million of costs incurred in connection with NTK Holdings’ initial      public offering, |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $1.7 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $1.6 million gain related to the favorable settlement of      litigation in the Residential HVAC segment,and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.2 million, net of minority interest of approximately $0.8      million related to a reserve for amounts due from a customer in China      related to a Chinese construction project in the Commercial HVAC      segment. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 85% of the      net amount of eligible accountsreceivable; |
|--------------------|------------------------------------------------------------|

| ·   | 85% of the      net orderly liquidation value of eligible inventory;  and |
|--------------------|---------------------------------------------------------------------------|

| ·   | available      cash subject to certain limitations as specified in the ABL      Facility. |
|--------------------|-------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                             | (Amounts      in millions) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| NTK Holdings’      10 3/4% Senior Discount Notes due 2014, net of unamortized               discount of approximately $27.1 million                                |                       | $ |  375.9 |   |
| NTK Holdings’      senior unsecured loan facility due 2014, including approximately $57.0      million               of debt accretion related to the PIK option * |                       |   |   258.5 |   |
| Nortek’s 10%      Senior Secured Notes due 2013, net of unamortized discount of              approximately $7.1 million                                            |                       |   | 742.9 |   |
| Nortek’s 8      1/2% Senior Subordinated Notes due 2014 (“8 1/2% Notes”)                                                                                                                       |                       |   | 625.0 |   |
| Nortek’s ABL      Facility                                                                                                                                                                                 |                       |   | 145.0 |   |
| Nortek’s      long-term notes, mortgage notes and other indebtedness                                                                                                                                       |                       |   | 22.6 |   |
| Nortek’s 9      7/8% Senior Subordinated Notes due 2011, including unamortized      premium                                                                                                                |                       |   |  10.0 |   |
| Subtotal                                                                                                                                                                                                         |                       |   | 2,179.9 |   |
| Nortek’s      short-term borrowings, current maturities of long-term debt and long-term      debt               classified as current                              |                       |   |  53.9 |   |
|                                                                                                                                                                                                             |                       | $ | 2,233.8 |   |

|   | * | Also net of      approximately $3.5 million of unamortized debt discount at December 31,      2008. |
|--------|---|-----------------------------------------------------------------------------------------------------|

|                                                           | (Amounts      in millions) |
|----------------------------------------------------------------|----------------------------|
|                                                           |                       |   |   |
| Net increases      due to the debt refinancing in May 2008 (1) |                       | $ | 36.7 |   |
| Non-cash      interest activity (2)                            |                       |   | 62.6 |   |
| Other debt      activity (3)                                   |                       |   | 116.6 |   |
|                                                           |                       |   |   |   |
|                                                           |                       | $ | 215.9 |   |

| (Amounts      in millions)                                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| Issuance of      Nortek’s 10% Senior Secured Notes, net of original debt           discount of approximately $7.8 million |   | $ |  742.2 |   |
| Borrowings      under Nortek’s ABL Facility                                                                                                   |   |   | 50.0 |   |
| Repayment of      outstanding borrowings under Nortek’s senior          secured credit facility                                |   |   | (755.5 | ) |
|                                                                                                                                                |   | $ | 36.7 |   |

| (Amounts      in millions)                                                                                                              |
|-----------------------------------------------------------------------------------------------------------------------------------------|
| Debt      accretion relating to NTK Holdings’10 3⁄4% Senior      Discount Notes                                                |   | $ | 37.3 |   |
| Debt      accretion relating to the PIK option on NTK Holdings’ senior unsecured      loan facility                               |   |   | 24.0 |   |
| Debt      discount, net relating to NTK Holdings’ senior unsecured loan facility and      Nortek’s 10% Senior Secured Notes |   |   |    1.3 |   |
|                                                                                                                                    |   | $ | 62.6 |   |

| (Amounts      in millions)                                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------|
| Net      borrowings under the revolving portion of Nortek’s senior secured credit      facility prior to the May 2008 debt refinancing |   | $ |  45.0 |   |
| Borrowings      made under Nortek’s ABL Facility                                                                                       |   |   | 140.0 |   |
| Additional      borrowings related primarily to Nortek's foreign      subsidiaries                                                      |   |   | 14.4 |   |
| Payments made      related to Nortek’s ABL Facility                                                                                    |   |   | (45.0 | ) |
| Other      principal payments                                                                                                                |   |   | (36.0 | ) |
| Changes in      foreign currency exchange rates and other                                                                                    |   |   | (1.8 | ) |
|                                                                                                                                         |   | $ | 116.6 |   |

|                                                        |   | Payments      due by period |   |
|-------------------------------------------------------------|--------|-----------------------------|--------|
|                                                        |   | 2009                        |   |   | 2010 & 2011 |   |   | 2012 & 2013 |   |   | 2014      &Thereafter |   |   | Total |   |
|                                                        |   | (Amounts      in millions)  |   |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NTK      Holdings:                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes,      mortgage notes and obligations payable (2)      |   | $                           | ---    |   |   | $ | 240.3 |   |   | $ | --- |   |   | $ | 500.9 |   |   | $ | 741.2 |   |
| Interest      payments (3)                                  |   |                        | ---    |   |   |   | 82.0 |   |   |   | 109.4 |   |   |   | 22.4 |   |   |   | 213.8 |   |
| Subtotal                                                    |   |                        | ---    |   |   |   | 322.3 |   |   |   | 109.4 |   |   |   | 523.3 |   |   |   | 955.0 |   |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nortek      and subsidiaries:                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes,      mortgage notes and obligations payable (1), (2) |   | $                           | 18.9   |   |   | $ | 14.4 |   |   | $ | 895.8 |   |   | $ | 626.8 |   |   | $ | 1,555.9 |   |
| Interest      payments (3), (4), (5)                        |   |                        | 143.3  |   |   |   | 285.6 |   |   |   | 283.0 |   |   |   | 66.6 |   |   |   | 778.5 |   |
| Capital lease      obligations                              |   |                        | 2.3    |   |   |   | 4.7 |   |   |   | 6.8 |   |   |   | 4.1 |   |   |   | 17.9 |   |
| Operating      lease obligations                            |   |                        | 21.0   |   |   |   | 29.8 |   |   |   | 18.0 |   |   |   | 11.6 |   |   |   | 80.4 |   |
| Future      contingent consideration                        |   |                        | 14.1   |   |   |   | 6.9 |   |   |   | --- |   |   |   | --- |   |   |   | 21.0 |   |
| Other      purchase obligations                             |   |                        | 4.4    |   |   |   | 1.1 |   |   |   | --- |   |   |   | --- |   |   |   | 5.5 |   |
| Other      liabilities (6)                                  |   |                        | ---    |   |   |   | 20.8 |   |   |   | 21.4 |   |   |   | 118.5 |   |   |   | 160.7 |   |
|                                                        |   |                        | 204.0  |   |   |   | 363.3 |   |   |   | 1,225.0 |   |   |   | 827.6 |   |   |   | 2,619.9 |   |
| Total                                                       |   | $                           | 204.0  |   |   | $ | 685.6 |   |   | $ | 1,334.4 |   |   | $ | 1,350.9 |   |   | $ | 3,574.9 |   |

|   | (1) | Excludes      notes payable and other short-term obligations of approximately $32.7      million. |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (2) | Excludes      unamortized debt discount of approximately $7.1 million and $3.5 million      related to Nortek’s 10% Senior Secured Notes and NTK Holdings senior      unsecured loan facility,respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Based upon      interest rates in effect at December 31,2008. |
|--------|-----|---------------------------------------------------------------|

|   | (4) | Subsidiary      debt used for working capital purposes such as lines of credit are      estimated to continue through December 31, 2017 in the above      table. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Includes      interest payments on Nortek’s ABL Facility which are estimated to continue      through May 20, 2013 in the abovetable. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Includes      pension, profit sharing and other post-retirement benefits (see Note 7 of      the Notes to the Consolidated Financial Statements included elsewhere      herein). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                              |   | For the year ended December    31, |   |
|-------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                              |   | 2009                               |   |   | 2008 |   |
|                                                              |   | (Amounts      in millions)         |   |
|                                                              |   |                               |   |   |   |   |
| Interest      payments, net                                       |   | $                                  | 143.3  |   |   | $ | 118.5 |   |
| Principal      payments, net (1)                                  |   |                               | 18.9   |   |   |   | 108.6 |   |
| Capital lease      obligations                                    |   |                               | 2.3    |   |   |   | 2.4 |   |
| Completed      acquisitions and contingent earn out      payments |   |                               | 14.1   |   |   |   | 32.7 |   |
| Capital      expenditures                                         |   |                               | 20.0   |   |   |   | 25.4 |   |
| Operating      lease and other rental payments                    |   |                               | 29.5   |   |   |   | 32.2 |   |
| Defined      benefit pension plan contributions                   |   |                               | 1.7    |   |   |   | 3.1 |   |

|   | (1) | The amount of      payments for 2009 excludes the repayment of outstanding borrowings at      December 31, 2008 under Nortek’s ABL Facility and excludes the repayment in 2008 of outstanding borrowings under      Nortek’s senior secured credit facility that was refinanced in May  2008. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                    |   | Condensed Consolidated Cash Flows      (1) |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                    |   | For the Years Ended December      31,      |   |
|                                                                                    |   | 2008                                       |   |   | 2007 |   |   | 2006 |   |
| Operating      Activities:                                                              |   |  (Amounts      in millions)           |   |
|          Cash flow from operations, net                                  |   | $                                          | 27.7   |   |   | $ | 122.1 |   |   | $ | 155.5 |   |
|          Change in accounts receivable, net                              |   |                                       | 47.4   |   |   |   | 23.7 |   |   |   | (19.6 | ) |
|          Change in inventories                                           |   |                                       | 5.6    |   |   |   | (16.6 | ) |   |   | (14.0 | ) |
|          Change in prepaids and other current assets                     |   |                                       | 1.1    |   |   |   | (2.0 | ) |   |   | 13.1 |   |
|          Change in accounts payable                                      |   |                                       | (33.7  | ) |   |   | (8.4 | ) |   |   | (0.7 | ) |
|          Change in accrued expenses and taxes                            |   |                                       | 1.7    |   |   |   | (16.5 | ) |   |   | 18.5 |   |
|          Change in long-term deferred compensation                       |   |                                       | ---    |   |   |   | --- |   |   |   | (54.0 | ) |
| Investing      Activities:                                                              |   |                                       |   |   |   |   |   |   |   |   |   |   |
|          Capital expenditures                                            |   |                                       | (25.4  | ) |   |   | (36.4 | ) |   |   | (42.3 | ) |
|          Net cash paid for businesses acquired                           |   |                                       | (32.7  | ) |   |   | (93.5 | ) |   |   | (106.2 | ) |
|          Proceeds from the sale of property and equipment                |   |                                       | 8.5    |   |   |   | 0.5 |   |   |   | 5.1 |   |
|          Change in restricted cash and investments                       |   |                                       | 0.3    |   |   |   | 1.2 |   |   |   | 0.4 |   |
| Financing      Activities:                                                              |   |                                       |   |   |   |   |   |   |   |   |   |   |
|          Change in borrowings, net                                       |   |                                       | 168.4  |   |   |   | 24.1 |   |   |   | 8.2 |   |
|          Net proceeds from the sale of Nortek's 10% Senior Secured       |   |                                       |   |   |   |   |   |   |   |   |   |   |
|               Notes due 2013                    |   |                                       | 742.2  |   |   |   | --- |   |   |   | --- |   |
|          Redemption of Nortek's senior secured credit facility           |   |                                       | (755.5 | ) |   |   | --- |   |   |   | --- |   |
|          Fees paid in connection with Nortek's new debt facilities       |   |                                       | (33.8  | ) |   |   | --- |   |   |   | --- |   |
|          Equity investment by THL-Nortek Investors, LLC                  |   |                                       | 4.2    |   |   |   | --- |   |   |   | --- |   |
|          Payment in connection with NTK Holdings' senior unsecured       |   |                                       |   |   |   |   |   |   |   |   |   |   |
|               loan facility rollover            |   |                                       | ---    |   |   |   | (4.5 | ) |   |   | --- |   |
|          Borrowings under NTK Holdings senior unsecured loan    facility |   |                                       | ---    |   |   |   | --- |   |   |   | 200.8 |   |
|          Dividends                                                       |   |                                       | ---    |   |   |   | --- |   |   |   | (174.9 | ) |
| Other,      net                                                                         |   |                                       | 2.8    |   |   |   | 2.3 |   |   |   | (9.7 | ) |
|                                                                                    |   | $                                          | 128.8  |   |   | $ | (4.0 | ) |   | $ | (19.8 | ) |

|                                                           |   | For the Years Ended December      31, |   |
|----------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                           |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                           |   | (Amounts      in millions)            |   |
|                                                           |   |                                  |   |   |   |   |   |   |   |
| Net      cash provided by operating activities                 |   | $                                     | 54.3   |   |   | $ | 106.3 |   |   | $ | 94.0 |   |
| Cash      (provided) used by working capital and               |   |                                  |   |   |   |   |   |   |   |   |   |   |
|         other long-term asset and liability changes  |   |                                  | (26.6  | ) |   |   | 15.8 |   |   |   | 61.5 |   |
| Non-cash      interest expense, net                            |   |                                  | (73.7  | ) |   |   | (67.3 | ) |   |   | (47.6 | ) |
| Non-cash      goodwill impairment charge                       |   |                                  | (710.0 | ) |   |   | --- |   |   |   | --- |   |
| Non-cash      write-down of a foreign subsidiary               |   |                                  | (3.3   | ) |   |   | --- |   |   |   | --- |   |
| Loss from      debt retirement                                 |   |                                  | (9.9   | ) |   |   | --- |   |   |   | --- |   |
| Gain from      curtailment of post-retirement medical benefits |   |                                  | ---    |   |   |   | --- |   |   |   | 35.9 |   |
| Compensation      reserve adjustment                           |   |                                  | ---    |   |   |   | --- |   |   |   | 3.5 |   |
| Non-cash      stock-based compensation                         |   |                                  | (0.1   | ) |   |   | (0.3 | ) |   |   | (0.3 | ) |
| Gain (loss)      on sale of property and equipment             |   |                                  | 2.7    |   |   |   | (2.4 | ) |   |   | (1.3 | ) |
| Deferred      federal income tax (provision) benefit           |   |                                  | (9.3   | ) |   |   | 6.0 |   |   |   | (26.8 | ) |
| Provision for      income taxes                                |   |                                  | 25.1   |   |   |   | 10.6 |   |   |   | 46.1 |   |
| Interest      expense (4)                                      |   |                                  | 200.2  |   |   |   | 183.7 |   |   |   | 162.9 |   |
| Investment      income                                         |   |                                  | (0.8   | ) |   |   | (2.0 | ) |   |   | (2.2 | ) |
| EBITDA      (1), (2), (3)                                      |   | $                                     | (551.4 | ) |   | $ | 250.4 |   |   | $ | 325.7 |   |

| (1) | EBITDA for      the year ended December 31, 2008 includes the following other income and      expense items: |
|-----|--------------------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $710.0  million, |
|--------------------|------------------------------------------------------------------------------|

| ·   | a pre-tax      loss from debt retirement of approximately $9.9 million, primarily as a      result of writing off unamortized deferred debt expense related to      Nortek’s senior secured creditfacility, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $6.4 million related to an estimated loss contingency on a      lease guarantee, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $5.0 million of severance charges incurred related to certain reduction in      workforce initiatives implemented in all four  segments, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $4.9 million of fees and expenses recorded in connection with the      settlement of a dispute with one of its former suppliers in the HTP      segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico of approximately $4.5 million in the RVP  segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.3 million non-cash write-down of a foreign subsidiary in      the Commercial HVAC segment, |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of      approximately $2.7 million from the sale of certain RVP segment      manufacturing facilities, |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $2.7 million related to a reserve for amounts due from      customers in the HTP segment, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.2 million of estimated inefficient production costs and expenses      associated with the relocation of certain manufacturing operations in the      RVP segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in the social liability reserve related to one of the RVP segment’s      foreign subsidiaries of approximately $2.0  million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.9 million related to the discontinuance of certain range      hood products within the U.S. market in the RVP  segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a lease      termination fee of approximately $1.9 million related to the closure of      the Commercial HVAC segment’s Mammoth, Inc. Chaska, Minnesota      manufacturing facility, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain on the      settlement of litigation in the Commercial HVAC segment resulting from a      prior bad debt write-off of approximately $1.2  million, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.8 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.7 million in net charges related to the closure of certain RVP segment      facilities, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $0.1 million charge related to the closure of certain HTP      segment facilities. |
|--------------------|----------------------------------------------------------------------------------------------------------|

|  (2) | EBITDA for      the year ended December 31, 2007 includes the following other income and      expense items: |
|-----------|--------------------------------------------------------------------------------------------------------------|

| ·   | a favorable      adjustment to selling, general and administrative expense, net based upon      the Company’s revised estimate of reserves provided in 2006 for certain      RVP segment suppliers in Italy and Poland of approximately $6.7      million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $3.7 million related to the planned closure of the      Commercial HVAC segment’s Mammoth, Inc. Chaska, Minnesota manufacturing      facility, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $3.1 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.9 million in charges related to the closure of certain RVP segment      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | charges of      approximately $2.7 million related to reserves for amounts due from      customers in the RVP, HTP and Commercial HVAC  segments, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legal and      other professional fees and expenses incurred in connection with matters      related to certain RVP segment subsidiaries based in Italy and Poland of      approximately $2.1 million, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.0 million of fees and expenses incurred in connection with a dispute      with a supplier in the HTP segment, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a loss on      settlement of litigation in the RVP segment of approximately $1.9 million,      and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | a net      reduction to warranty expense of approximately $0.2 million related to      product safety upgrades in the RVP and HTP  segments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | EBITDA for      the year ended December 31, 2006 includes the following other income and      expense items: |
|-----|--------------------------------------------------------------------------------------------------------------|

| ·   | reserves of      approximately $16.0 million related to estimated losses as a result of the      unlikelihood that certain suppliers to the RVP segment’s kitchen range      hood subsidiaries based in Italy and Poland will be able to repay advances      and amounts due under otherarrangements, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase      in warranty expense of approximately $3.8 million related to product      safety upgrades in the RVP and HTPsegments, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $3.5 million in charges related to the closure of certain RVP segment      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.5 million of costs incurred in connection with NTK Holdings’ initial      public offering, |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $1.7 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $1.6 million gain related to the favorable settlement of      litigation in the Residential HVAC segment,and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.2 million, net of minority interest of approximately $0.8      million related to a reserve for amounts due from a customer in China      related to a Chinese construction project in the Commercial HVAC      segment. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | Scheduled Maturity                |    |   | Average Interest Rate |
|---------------------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------|
|                                                          |   | Fixed                             |    |   | Variable              |   |   |   |   |   | Fixed |   | Variable |   |   |
| Year-ending                                                   |   | Rate                              |    |   | Rate                  |   |   | Total |   |   | Rate |   | Rate |   | Total |
|                                                          |   | (Dollar      amounts in millions) |    |   |                  |   |   |   |   |   |   |   |
|                                                          |   |                              |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31,    2009                 |   | $                                 | 8.0     |   |                  | $ | 13.2 |   |   | $ | 21.2 |   |   |   | 6.2 | % |   |   | 3.7 | % |   |   | 4.6 | % |
| 2010                                                          |   |                              | 128.3   |   |                  |   | 0.9 |   |   |   | 129.2 |   |   |   | 10.7 |   |   |   | 3.8 |   |   |   | 10.6 |   |
| 2011                                                          |   |                              | 15.1    |   |                  |   | 115.1 |   |   |   | 130.2 |   |   |   | 8.7 |   |   |   | 9.8 |   |   |   | 9.6 |   |
| 2012                                                          |   |                              | 2.2     |   |                  |   | 0.4 |   |   |   | 2.6 |   |   |   | 7.1 |   |   |   | 2.6 |   |   |   | 6.3 |   |
| 2013                                                          |   |                              | 754.7   |   |                  |   | 145.3 |   |   |   | 900.0 |   |   |   | 10.0 |   |   |   | 5.6 |   |   |   | 9.3 |   |
| Thereafter                                                    |   |                              | 906.5   |   |                  |   | 225.3 |   |   |   | 1,131.8 |   |   |   | 9.2 |   |   |   | 9.7 |   |   |   | 9.3 |   |
| Total      Long-term Debt at December 31, 2008 (1)            |   | $                                 | 1,814.8 |   |                  | $ | 500.2 |   |   | $ | 2,315.0 |   |   |   | 9.6 | % |   |   | 8.4 | % |   |   | 9.3 | % |
| Fair Market      Value of Long-term Debt at December 31, 2008 |   | $                                 | 777.2   |   |                  | $ | 288.9 |   |   | $ | 1,066.1 |   |   |   |   |   |   |   |   |   |   |   |   |   |

|  Name                |  Principal Occupation                                                |  Age | NTK      HoldingsDirector Since | NortekDirector Since |
|---------------------------|---------------------------------------------------------------------------|-----------|---------------------------------|----------------------|
|                      |                                                                      |      |                            |                 |
| Richard L.      Bready    | Chairman,      President and Chief Executive Officer of      NTK Holdings | 64        | 2004                            | 1976                 |
|                      |                                                                      |      |                            |                 |
| Jeffrey C.      Bloomberg | Director                                                                  | 61        | 2005                            | 2005                 |
|                      |                                                                      |      |                            |                 |
| Joseph M.      Cianciolo  | Director                                                                  | 70        | 2005                            | 2003                 |
|                      |                                                                      |      |                            |                 |
| Anthony J.      DiNovi    | Director                                                                  | 46        | 2005                            | 2004                 |
|                      |                                                                      |      |                            |                 |
| David V.      Harkins     | Director                                                                  | 68        | 2005                            | 2004                 |
|                      |                                                                      |      |                            |                 |
| David B.      Hiley       | Director                                                                  | 70        | 2005                            | 2003                 |
|                      |                                                                      |      |                            |                 |
| Kent R.      Weldon       | Director                                                                  | 41        | 2005                            | 2004                 |

| Name                   | Age    | Position                                             |
|------------------------|--------|------------------------------------------------------|
|                   |   |                                                 |
| Richard L.      Bready | 64     | Chairman,      President and Chief Executive Officer |
|                   |   |                                                 |
| Almon C.      Hall     | 62     | Vice      President and Chief Financial Officer      |
|                   |   |                                                 |
| Kevin W.      Donnelly | 54     | Vice      President, General Counsel and Secretary   |
|                   |   |                                                 |
| Edward J.      Cooney  | 61     | Vice      President andTreasurer                     |

| ·   | overseeing      management's maintenance of the reliability and integrity of NTK Holdings’      accounting policies and financial reporting and NTK Holdings’ disclosure      practices; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | overseeing      management's establishment and maintenance of processes to assure that an      adequate system of internal control is  functioning; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | overseeing      management's establishment and maintenance of processes to assure NTK      Holdings’ compliance with all applicable laws, regulations and corporate      policy; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reviewing NTK      Holdings’ annual and quarterly financial statements prior to their filing      or prior to the release of earnings;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | appointing,      compensating, terminating, retaining and overseeing the work of the      independent registered public accounting firm and considering and      approving any non-audit services proposed to be performed by the      independent registered public accountingfirm. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reviewing key      employee compensation policies, plans and programs, including those for      the executive officers, other than Mr.Bready; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | monitoring      performance and compensation of NTK Holding’s employee-directors, officers      and other key employees; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | preparing      recommendations and periodic reports to the board of directors concerning      these matters; and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | administering      the incentive programs referred to in “Executive Compensation”      below. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| Mr.      Bready   |   |   | 23,586.66 |   |
|-------------------|--------|--------|-----------|--------|
| Mr.      Hall     |   |   | 4,246.02  |   |
| Mr.      Donnelly |   |   | 2,830.68  |   |
| Mr.      Cooney   |   |   | 2,123.01  |   |
| Mr.      Kelln    |   |   | 1,500.00  |   |

|     Name      andPrincipal Position(a)                         |   |     Year(b) |                     |   |     Salary(c) |   |                              |     Bonus(d) |   |   |   (1)StockAwards(e)     |   |   |    OptionAwards(f) |                         |   |   Non-EquityIncentive      PlanCompensation(g) |   | Change      in PensionValue      and NonqualifiedDeferredCompensationEarnings (6)(h) |   |   (2)      (3)All      OtherCompensation (i) |   |                              |    TotalCompensation(j) |   |
|------------------------------------------------------------------------------------|--------|---------------------------------|--------------------------|--------|-----------------------------------|--------|-----------------------------------|----------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------|------------------------------|--------|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|-----------------------------------|----------------------------------------|--------|
|                                                                               |   |                            |                     |   |                              |   |                              |                             |   |   |                              |   |   |                              |                         |   |                                                     |   |                                                                                 |   |                                                   |   |                              |                                   |   |   |
| Richard L.      Bready (4)Chairman,      President andChief      Executive Officer |   |                            | 2008 2007 2006 |   |                              | $      | 3,500,0003,500,0003,500,000       |                             |   | $      | ---  ---  --- |   |   | $                                 | ---  75,843115,994 |   |                                                     | $      | --- --- ---                                                                |   |                                                   | $      | ---  ---  --- |                                   |   | $ | 163,00066,000 18,000 |   | $ | 376,336 363,890 458,233 |   |   | $ | 4,039,336 4,005,733 4,092,227 |   |
|                                                                               |   |                            |                     |   |                              |   |                              |                             |   |   |                              |   |   |                              |                         |   |                                                     |   |                                                                                 |   |                                                   |   |                              |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Almon C. Hall      (4)Vice      President andChief      Financial Officer          |   |                            | 2008 2007 2006 |   |                              | $      | 500,000 472,500 450,000 |                             |   | $      | 150,000 500,000 725,000 |   |   | $                                 | --- 13,65220,881        |   |                                                     |   | --- --- ---                                                                |   |                                                   |   | --- --- ---             |                                   |   | $ | 22,000 50,000(1,000 | )  | $ | 58,677 64,462 67,487 |   |   | $ | 730,677 1,100,614 1,262,368 |   |
|                                                                               |   |                            |                     |   |                              |   |                              |                             |   |   |                              |   |   |                              |                         |   |                                                     |   |                                                                                 |   |                                                   |   |                              |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Kevin W.      Donnelly (4)Vice      President, GeneralCounsel and      Secretary   |   |                            | 2008 2007 2006 |   |                              | $      | 375,000 315,000 300,000 |                             |   | $      | 150,000 300,000 400,000 |   |   | $                                 | --- 9,10213,921         |   |                                                     |   | --- --- ---                                                                |   |                                                   |   | --- --- ---             |                                   |   | $ | 3,000 8,000(3,000 | )  | $ | 43,419 129,749 50,612 |   |   | $ | 571,419 761,851 761,533 |   |
|                                                                               |   |                            |                     |   |                              |   |                              |                             |   |   |                              |   |   |                              |                         |   |                                                     |   |                                                                                 |   |                                                   |   |                              |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Edward J.      CooneyVice      President andTreasurer                              |   |                            | 2008 2007 2006 |   |                              | $      | 300,000 283,500 270,000 |                             |   | $      | 150,000 250,000 300,000 |   |   | $                                 | --- 6,82610,440         |   |                                                     |   | --- --- ---                                                                |   |                                                   |   | --- --- ---             |                                   |   |   | --- --- --- |   | $ | 32,052 40,471 39,560 |   |   | $ | 482,052 580,797 620,000 |   |
|                                                                               |   |                            |                     |   |                              |   |                              |                             |   |   |                              |   |   |                              |                         |   |                                                     |   |                                                                                 |   |                                                   |   |                              |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Bryan L.      Kelln (5)Senior Vice      President and Chief Operating Officer      |   |                            | 2008 2007 2006 |   |                              | $      | 346,667420,000400,000             |                             |   | $      | --- 350,000 450,000     |   |   | $                                 | 11,06622,13222,130           |   |                                                     |   | --- --- ---                                                                |   |                                                   |   | --- --- ---             |                                   |   |   | --- --- --- |   | $ | 19,631 42,308 63,409 |   |   | $ | 377,364 834,440 935,539 |   |

|                               |   | Stock      Awards                                                           |   |
|------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|      Name |   |   Number      of C-1 Units (time-vesting) thatHave Not Vested (#) |   |   |   Market      Value of C-1 Units (time-vesting) that Have      Not Vested ($) (1) |   |   | Equity      Incentive Plan Awards: Number of C-2 Units (performance-vesting)      thatHave Not Vested (#) |   |   | Equity      Incentive Plan Awards: Market or Payout Value of C-2 Units      (performance-vesting) thatHave Not Vested ($) (1) |   |
|                               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |
| Richard L.      Bready             |   |                                                                        | ---    |   |   | $ | --- |   |   |   | 15,724.44 |   |   | $ | 11,479 |   |
|                               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Almon C.      Hall                 |   |                                                                        | ---    |   |   |   | --- |   |   |   | 2,830.68 |   |   |   | 2,066 |   |
|                               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kevin W.      Donnelly             |   |                                                                        | ---    |   |   |   | --- |   |   |   | 1,887.12 |   |   |   | 1,378 |   |
|                               |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Edward J.      Cooney              |   |                                                                        | ---    |   |   |   | --- |   |   |   | 1,415.34 |   |   |   | 1,033 |   |

|                |   | Class C Unit Awards                |   |
|---------------------|--------|------------------------------------|--------|
|   Name    |   | Number      of Vested C-1Units (#) |   |   | Estimated      Value Realized on Vesting ($)      (2) |   |
|                |   |                               |   |   |   |   |
| Bryan L.      Kelln |   |                               | 250.00 |   |   | $ | 6,105 |   |

|                   |   | Years      of |   |   | Annual  |   |    | Estimated             |   |   | Payments         |   |
|------------------------|--------|---------------|--------|--------|---------|--------|---------|-----------------------|--------|--------|------------------|--------|
|                   |   | Credited      |   |   | Accrued |   |    | Present      Value of |   |   | During      Last |   |
| Name                   |   | Service       |   |   | Benefit |   |    | Accrued Benefit       |   |   | Fiscal Year      |   |
|                   |   |          |   |   |    |   |    |                  |   |   |             |   |
| Richard L.      Bready |   |          | 21     |   |    | $      | 182,141 |                  |   | $      | 1,770,000        |   |   |   | --- |   |
| Almon C.      Hall     |   |          | 19     |   |    |   | 60,303  |                  |   |   | 509,000          |   |   |   | --- |   |
| Kevin W.      Donnelly |   |          | 8      |   |    |   | 17,342  |                  |   |   | 88,000           |   |   |   | --- |   |

|                   |   | Annual      Accrued Benefit |
|------------------------|--------|-----------------------------|
|                   |   | Payable      at Age 65      |
| Name                   |   | 50% Joint & Survivor    |
|                   |   |                        |   |
| Richard L.      Bready |   | $                           | 160,922 |   |
| Almon C.      Hall     |   |                        | 52,163 |   |
| Kevin W.      Donnelly |   |                        | 15,574 |   |

| ·   | by Nortek and      Nortek Holdings without “cause”, as defined in the amended and restated      employment agreement, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | by Mr. Bready      for “good reason”, as defined in the amended and restated employment      agreement, |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | as a result      of any notice from Nortek and Nortek Holdings not to renew his employment      as described above, or |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | as a result      of his disability or death, |
|--------------------|----------------------------------------------|

| ·   | by Nortek and      Nortek Holdings without “cause”, as defined in the amended and restated      employment agreement, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | by the      employee for “good reason”, as defined in the amended and restated      employment agreement, or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | as a result      of the employee’s death ordisability |
|--------------------|-------------------------------------------------------------|

|   Name          |   | Fees      Earned or Paid in Cash      ($) |   |   | Stock      Awards ($) |   | Option      Awards ($) |   | Non-Equity      Incentive Plan Compensation      ($) |   | Change      in Pension Value and Nonqualified Deferred      Compensation Earnings ($) |   | All      Other Compensation($) |   |   |  Total ($) |   |
|---------------------------|--------|-------------------------------------------|--------|--------|-----------------------|--------|------------------------|--------|------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-----------------|--------|
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |
| Jeffrey C.      Bloomberg |   | $                                         | 62,500 |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   | $ | --- |   |   | $ | 62,500 |   |
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Joseph M.      Cianciolo  |   |                                      | 63,500 |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   |   | --- |   |   |   | 63,500 |   |
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Anthony J.      DiNovi    |   |                                      | ---    |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   |   | --- |   |   |   | --- |   |
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| David V.      Harkins     |   |                                      | ---    |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   |   | --- |   |   |   | --- |   |
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| David B.      Hiley (1)   |   |                                      | 61,750 |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   |   | 7,542 |   |   |   | 69,292 |   |
|                      |   |                                      |   |   |                  |   |                   |   |                                                 |   |                                                                                  |   |                           |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Kent R.      Weldon       |   |                                      | ---    |   |                  |   | ---                    |   |                                                 |   | ---                                                                                   |   |                           |   | ---    |            |   |   | --- |   |   |   | --- |   |   |   | --- |   |

| (1)   | In 2008 for      Mr. Hiley, includes amounts related to personal use of company      car. |
|-----------------|-------------------------------------------------------------------------------------------|

|                                                                                      |   |           |                    |   |               |   |   | Number      of |   |   | Percentage              |   |   | Number      of |   |   | Percentage      |   |
|-------------------------------------------------------------------------------------------|--------|----------------|-------------------------|--------|--------------------|--------|--------|----------------|--------|--------|-------------------------|--------|--------|----------------|--------|--------|-----------------|--------|
|                                                                                      |   | Number      of |                    |   | Percentage      of |   |   | Class      C   |   |   | of      Class C         |   |   | Class      D   |   |   | of      Class D |   |
| Name and Address                                                                          |   | Class B Units  |                    |   | Class B Units      |   |   | Units (1)      |   |   | Units (2)               |   |   | Units          |   |   | Units           |   |
|                                                                                      |   |           |                    |   |               |   |   |           |   |   |                    |   |   |           |   |   |            |   |
| Principal      Security Holders:                                                          |   |           |                    |   |               |   |   |           |   |   |                    |   |   |           |   |   |            |   |
| Thomas H. Lee      Partners L.P. and affiliates (3)                                       |   |           | 360,800.02              |   |               |   | 76.18  | %              |   |   | ---                     |   |   |           | ---    |   |            |   | 3,282.98 |   |   |   | 77.65 | % |
| Management      Committee Members and Named Executive Officers                            |   |           |                    |   |               |   |   |           |   |   |                    |   |   |           |   |   |            |   |   |   |   |   |   |   |
| Jeffrey C.      Bloomberg ^                                                               |   |           | 538.58                  |   |               |   | *      |           |   |   | ---                     |   |   |           | ---    |   |            |   | 4.90 |   |   |   | * |   |
| Richard L.      Bready ^ +                                                        |   |           | 78,150.21               |   |               |   | 16.50  | %              |   |   | 23,586.66               |   |   |           | 36.85  | %      |            |   | 711.10 |   |   |   | 16.82 | % |
| Joseph M.      Cianciolo ^                                                                |   |           | 359.05                  |   |               |   | *      |           |   |   | 530.75                  |   |   |           | *      |   |            |   | 3.27 |   |   |   | * |   |
| Edward J.      Cooney +                                                                   |   |           | 1,527.84                |   |               |   | *      |           |   |   | 2,123.01                |   |   |           | 3.32   | %      |            |   | 13.90 |   |   |   | * |   |
| Anthony J.      DiNovi (3) ^                                                              |   |           | ---                     |   |               |   | ---    |           |   |   | ---                     |   |   |           | ---    |   |            |   | --- |   |   |   | --- |   |
| Kevin W.      Donnelly +                                                                  |   |           | 3,697.42                |   |               |   | *      |           |   |   | 2,830.68                |   |   |           | 4.42   | %      |            |   | 33.64 |   |   |   | * |   |
| Almon C. Hall      +                                                                      |   |           | 6,031.21                |   |               |   | 1.27   | %              |   |   | 4,246.02                |   |   |           | 6.63   | %      |            |   | 54.88 |   |   |   | 1.30 | % |
| David V.      Harkins (3) ^                                                               |   |           | ---                     |   |               |   | ---    |           |   |   | ---                     |   |   |           | ---    |   |            |   | --- |   |   |   | --- |   |
| David B.      Hiley ^                                                                     |   |           | 988.01                  |   |               |   | *      |           |   |   | 1,061.51                |   |   |           | 1.66   | %      |            |   | 8.99 |   |   |   | * |   |
| Bryan L.      Kelln (4) +                                                                 |   |           | ---                     |   |               |   | ---    |           |   |   | 1,500.00                |   |   |           | 2.34   | %      |            |   | --- |   |   |   | --- |   |
| Kent R.      Weldon (3) ^                                                                 |   |           | ---                     |   |               |   | ---    |           |   |   | ---                     |   |   |           | ---    |   |            |   | --- |   |   |   | --- |   |
| All      management committee members and executive officers as a group (11      persons) |   |           |     91,292.32 |   |               |   | 19.28  | %              |   |   |     35,878.63 |   |   |           | 56.05  | %      |            |   |     830.68 |   |   |   | 19.65 | % |

| ·   | Investors LLC      has sold 90% of the capital stock of NTK Holdings held by it in exchange      for cash or marketable securities,or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | following an      initial public offering of equity securities of Investors LLC or its      subsidiaries, Investors LLC has distributed 90% of the capital stock of      NTK Holdings to the unit holders of Investors LLC and the unit holders of      Investors LLC that are affiliated with Thomas H. Lee Equity Fund V, L.P.      have distributed such shares of capital stock to their limited partners or      members. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Governance.  Under      the securityholders agreement, the management committee of Investors LLC      consists of not less than five and not more than eleven managers, as from      time to time determined by Thomas H. Lee Equity Fund V, L.P. and its      affiliates.  The management committee initially consists of six      managers.  Under the terms of the securityholders agreement, for      so long as Richard L. Bready is the holder of 5% or more of the      outstanding Class B units and Class C units of Investors LLC or the fully      diluted equity of any successor entity, Mr. Bready is entitled to      designate two managers to serve on the management      committee.  This securityholders agreement also governs the      election of directors to the boards of directors of NTK Holdings, Nortek      Holdings and Nortek and requires that such boards be identical to the      management committee of InvestorsLLC. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transfers.  Under      the securityholders agreement, transfers of equity securities of Investors      LLC by securityholders are permitted only to specified types of related      parties who agree to sign the securityholders agreement.  The      securityholders agreement provides for customary tag-along rights and      drag-along rights. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Preemptive      Rights.  Under the securityholders agreement, Thomas H.      Lee Equity Fund V, L.P. and its affiliates and any members of Nortek's      management that hold at least 5% of the fully diluted equity of Investors      LLC will be granted the right to participate in any future equity      financings by Investors LLC, subject to customary exceptions, in an amount      necessary to maintain the investor's fully diluted ownership interest in      Investors LLC or any successorcompany. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Affiliate      Transactions.  Certain transactions between Investors      LLC, NTK Holdings, Nortek Holdings, Nortek or its subsidiaries, on the one      hand, and Thomas H. Lee Fund V, L.P. and its affiliates, on the other      hand, require the approval of Mr. Bready or a majority of the independent      managers of the management committee, if any, of Investors      LLC. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Registration      Rights.  Registration rights apply to shares of capital      stock of NTK Holdings that are distributed to the holders of Investors LLC      membership units. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $2,000,000      per annum, or |
|--------------------|-------------------------------|

| ·   | an amount      equal to 0.75% of Nortek’s consolidated earnings before interest, taxes,      depreciation and amortization, before deduction for such    fee, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Financial      Statements |
|----------------|---------------------------|

| 2.   | Financial      Statement Schedules |
|----------------|------------------------------------|

| 3.   | The exhibits      are listed in the Exhibit Index, which is incorporated herein by      reference |
|----------------|---------------------------------------------------------------------------------------------------|

|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  /s/      Richard L. Bready                          |  /s/      Joseph M. Cianciolo                                                                                                                                                                                                                                                                                                                                                                                                   |
| Richard L.      Bready                                         |  Joseph M. Cianciolo                                                                                                                                                                                                                                                                                                                                                                                                            |
| Chairman, President and Chief      Executive Officer |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  /s/      Almon C. Hall                              |   /s/      Anthony J. DiNovi                                                                                                                                                                                                                                                                                                                                                                                               |
| Almon C.      Hall                                             |  Anthony J. DiNovi                                                                                                                                                                                                                                                                                                                                                                                                              |
| Vice President and      Chief Financial Officer                |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                           |  /s/      David V.      Harkins                                                                 |
|                                                           |  David V. Harkins                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                           |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                           |  /s/      David B.      Hiley                                                                   |
|                                                           |  David B.      Hiley                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                           |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                           |  /s/      Kent R. Weldon                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                           |  Kent R. Weldon                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                           |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                           |  /s/      Jeffrey C. Bloomberg                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                           |  Jeffrey C. Bloomberg                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                           |  Director                                                                                                                                                                                                                                                                                                                                                                                                                       |

|                                                                                |   | For the Years Ended December      31, |    |
|-------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |
|                                                                                |   | (Amounts      in millions)            |    |
|                                                                                |   |                                  |    |   |   |   |   |   |   |
| NetSales                                                                            |   | $                                     | 2,269.7 |   |   | $ | 2,368.2 |   |   | $ | 2,218.4 |   |
|                                                                                |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Costs      and Expenses:                                                            |   |                                  |    |   |   |   |   |   |   |   |   |   |
|         Cost of products sold (see Note 12)                               |   |                                  | 1,673.5 |   |   |   | 1,679.9 |   |   |   | 1,547.3 |   |
|         Selling, general and administrative expense, net (see Note    12) |   |                                  | 468.1   |   |   |   | 475.5 |   |   |   | 381.7 |   |
|         Goodwill impairment charge (see Note 1)                           |   |                                  | 710.0   |   |   |   | --- |   |   |   | --- |   |
|         Amortization of intangible assets                                 |   |                                  | 28.2    |   |   |   | 27.5 |   |   |   | 24.9 |   |
|                                                                                |   |                                  | 2,879.8 |   |   |   | 2,182.9 |   |   |   | 1,953.9 |   |
| Operating      (loss) earnings                                                      |   |                                  | (610.1  | ) |   |   | 185.3 |   |   |   | 264.5 |   |
| Interest      expense                                                               |   |                                  | (200.2  | ) |   |   | (183.7 | ) |   |   | (162.9 | ) |
| Loss from      debt retirement (see Note 5)                                         |   |                                  | (9.9    | ) |   |   | --- |   |   |   | --- |   |
| Investment      income                                                              |   |                                  | 0.8     |   |   |   | 2.0 |   |   |   | 2.2 |   |
| (Loss)      earnings before provision for income taxes                              |   |                                  | (819.4  | ) |   |   | 3.6 |   |   |   | 103.8 |   |
| Provision for      income taxes                                                     |   |                                  | 25.1    |   |   |   | 10.6 |   |   |   | 46.1 |   |
| Net      (loss) earnings                                                            |   | $                                     | (844.5  | ) |   | $ | (7.0 | ) |   | $ | 57.7 |   |

|                                                                         |   | December 31, |    |
|------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                         |   | 2008         |    |   | 2007 |   |
| Assets                                                                       |   |         |    |   |   |   |
| Current      Assets:                                                         |   |         |    |   |   |   |
| Unrestricted      cash and cash equivalents                                  |   | $            | 182.2   |   |   | $ | 53.4 |   |
| Restricted      cash                                                         |   |         | 0.7     |   |   |   | 1.0 |   |
| Accounts      receivable, less allowances                                    |   |         |    |   |   |   |   |   |
|         of $14.5 and $12.2                                         |   |         | 260.3   |   |   |   | 320.0 |   |
| Inventories:                                                                 |   |         |    |   |   |   |   |   |
|         Raw materials                                              |   |         | 86.0    |   |   |   | 91.6 |   |
|         Work in process                                            |   |         | 26.9    |   |   |   | 29.9 |   |
|         Finished goods                                             |   |         | 183.4   |   |   |   | 187.1 |   |
|                                                                         |   |         | 296.3   |   |   |   | 308.6 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Prepaid      expenses                                                        |   |         | 12.8    |   |   |   | 11.7 |   |
| Other current      assets                                                    |   |         | 9.5     |   |   |   | 19.8 |   |
| Prepaid      income taxes                                                    |   |         | 11.0    |   |   |   | 28.9 |   |
|         Total current assets                                       |   |         | 772.8   |   |   |   | 743.4 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Property      and Equipment, at Cost:                                        |   |         |    |   |   |   |   |   |
| Land                                                                         |   |         | 8.7     |   |   |   | 10.4 |   |
| Buildings and      improvements                                              |   |         | 107.0   |   |   |   | 110.1 |   |
| Machinery and      equipment                                                 |   |         | 222.6   |   |   |   | 217.1 |   |
|                                                                         |   |         | 338.3   |   |   |   | 337.6 |   |
| Less      accumulated depreciation                                           |   |         | 130.6   |   |   |   | 99.7 |   |
|         Total property and equipment, net                          |   |         | 207.7   |   |   |   | 237.9 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Other      Assets:                                                           |   |         |    |   |   |   |   |   |
| Goodwill                                                                     |   |         | 810.8   |   |   |   | 1,528.9 |   |
| Intangible      assets, less accumulated amortization                        |   |         |    |   |   |
|         of $107.4 and $80.7                                        |   |         | 135.4   |   |   |   | 156.6 |   |
| Deferred debt      expense                                                   |   |         | 47.1    |   |   |   | 31.4 |   |
| Restricted      investments and marketable securities                        |   |         | 2.4     |   |   |   | 2.3 |   |
| Other      assets                                                            |   |         | 7.4     |   |   |   | 10.3 |   |
|                                                                         |   |         | 1,003.1 |   |   |   | 1,729.5 |   |
| Total      Assets                                                            |   | $            | 1,983.6 |   |   | $ | 2,710.8 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Liabilities      and Stockholder’s (Deficit) Investment                |   |         |    |   |   |
| Current      Liabilities:                                                    |   |         |    |   |   |   |   |   |
| Notes payable      and other short-term obligations                          |   | $            | 32.7    |   |   | $ | 64.0 |   |
| Current      maturities of long-term debt                                    |   |         | 13.1    |   |   |   | 32.4 |   |
| Long-term      debt (see Note 5)                                             |   |         | 8.1     |   |   |   | --- |   |
| Accounts      payable                                                        |   |         | 152.3   |   |   |   | 192.7 |   |
| Accrued      expenses and taxes, net                                         |   |         | 218.3   |   |   |   | 248.6 |   |
|         Total current liabilities                                  |   |         | 424.5   |   |   |   | 537.7 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Other      Liabilities:                                                      |   |         |    |   |   |   |   |   |
| Deferred      income taxes                                                   |   |         | 31.8    |   |   |   | 37.0 |   |
| Other                                                                        |   |         | 160.7   |   |   |   | 125.6 |   |
|                                                                         |   |         | 192.5   |   |   |   | 162.6 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Notes,      Mortgage Notes and Obligations                                   |   |         |    |   |   |   |   |   |
|    Payable, Less      Current Maturities                           |   |         | 2,179.9 |   |   |   | 1,921.5 |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Commitments      and Contingencies (see Note 8)                              |   |         |    |   |   |
|                                                                         |   |         |    |   |   |   |   |   |
| Stockholder’s      (Deficit) Investment:                               |   |         |    |   |   |   |   |   |
| Common stock,      $0.01 par value, authorized 3,000 shares;                 |   |
|         3,000 issued and outstanding at December 31, 2008 and 2007 |   |         | ---     |   |   |   | --- |   |
| Additional      paid-in capital                                              |   |         | 25.9    |   |   |   | 21.6 |   |
| (Accumulated      deficit) retained earnings                                 |   |         | (814.8  | ) |   |   | 29.7 |   |
| Accumulated      other comprehensive (loss) income                           |   |         | (24.4   | ) |   |   | 37.7 |   |
|         Total stockholder's (deficit) investment                   |   |         | (813.3  | ) |   |   | 89.0 |   |
| Total      Liabilities and Stockholder's (Deficit) Investment                |   | $            | 1,983.6 |   |   | $ | 2,710.8 |   |

|                                                                                       |   | For the Years Ended December      31, |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                       |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                                                       |   | (Amounts      in millions)            |   |
| Cash      Flows from operating activities:                                                 |   |                                  |   |   |   |   |   |   |   |
| Net (loss)      earnings                                                                   |   | $                                     | (844.5 | ) |   | $ | (7.0 | ) |   | $ | 57.7 |   |
| Adjustments      to reconcile net (loss) earnings                                          |   |                                  |   |   |   |   |   |   |   |   |   |   |
|          to net cash provided by operating activities:                      |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization expense                                                 |   |                                  | 68.6   |   |   |   | 65.1 |   |   |   | 61.2 |   |
| Non-cash      interest expense, net                                                        |   |                                  | 73.7   |   |   |   | 67.3 |   |   |   | 47.6 |   |
| Non-cash      goodwill impairment charge                                                   |   |                                  | 710.0  |   |   |   | --- |   |   |   | --- |   |
| Non-cash      write-down of a foreign subsidiary                                           |   |                                  | 3.3    |   |   |   | --- |   |   |   | --- |   |
| Loss from debt      retirement                                                             |   |                                  | 9.9    |   |   |   | --- |   |   |   | --- |   |
| Gain from      curtailment of post-retirement medical benefits                             |   |                                  | ---    |   |   |   | --- |   |   |   | (35.9 | ) |
| Compensation      reserve adjustment                                                       |   |                                  | ---    |   |   |   | --- |   |   |   | (3.5 | ) |
| Non-cash      stock-based compensation                                                     |   |                                  | 0.1    |   |   |   | 0.3 |   |   |   | 0.3 |   |
| (Gain) loss on      sale of property and equipment                                         |   |                                  | (2.7   | ) |   |   | 2.4 |   |   |   | 1.3 |   |
| Deferred      federal income tax provision (benefit)                                       |   |                                  | 9.3    |   |   |   | (6.0 | ) |   |   | 26.8 |   |
| Changes      in certain assets and liabilities, net of                                     |   |                                  |   |   |   |   |   |   |   |   |   |   |
|          effects from acquisitions and dispositions:                        |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable, net                                                              |   |                                  | 47.4   |   |   |   | 23.7 |   |   |   | (19.6 | ) |
| Inventories                                                                                |   |                                  | 5.6    |   |   |   | (16.6 | ) |   |   | (14.0 | ) |
| Prepaids and      other current assets                                                     |   |                                  | 1.1    |   |   |   | (2.0 | ) |   |   | 13.1 |   |
| Accounts      payable                                                                      |   |                                  | (33.7  | ) |   |   | (8.4 | ) |   |   | (0.7 | ) |
| Accrued      expenses and taxes                                                            |   |                                  | 1.7    |   |   |   | (16.5 | ) |   |   | 18.5 |   |
| Long-term      deferred compensation                                                       |   |                                  | ---    |   |   |   | --- |   |   |   | (54.0 | ) |
| Long-term      assets, liabilities and other, net                                          |   |                                  | 4.5    |   |   |   | 4.0 |   |   |   | (4.8 | ) |
|           Total adjustments to net (loss) earnings                     |   |                                  | 898.8  |   |   |   | 113.3 |   |   |   | 36.3 |   |
|          Net cash provided by operating activities                          |   | $                                     | 54.3   |   |   | $ | 106.3 |   |   | $ | 94.0 |   |
|                                                                                       |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows from investing activities:                                                 |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                  |   | $                                     | (25.4  | ) |   | $ | (36.4 | ) |   | $ | (42.3 | ) |
| Net cash paid      for businesses acquired                                                 |   |                                  | (32.7  | ) |   |   | (93.5 | ) |   |   | (106.2 | ) |
| Proceeds from      the sale of property and equipment                                      |   |                                  | 8.5    |   |   |   | 0.5 |   |   |   | 5.1 |   |
| Change in      restricted cash and investments                                             |   |                                  | 0.3    |   |   |   | 1.2 |   |   |   | 0.4 |   |
| Other,      net                                                                            |   |                                  | (1.8   | ) |   |   | (1.7 | ) |   |   | (3.3 | ) |
|          Net cash used in investing activities                              |   | $                                     | (51.1  | ) |   | $ | (129.9 | ) |   | $ | (146.3 | ) |
|                                                                                       |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows from financing activities:                                                 |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Increase in      borrowings                                                                |   | $                                     | 279.4  |   |   | $ | 121.4 |   |   | $ | 87.0 |   |
| Payment of      borrowings                                                                 |   |                                  | (111.0 | ) |   |   | (97.3 | ) |   |   | (78.8 | ) |
| Net proceeds      from the sale of Nortek's 10% Senior Secured Notes due2013               |   |                                  | 742.2  |   |   |   | --- |   |   |   | --- |   |
| Redemption of      Nortek's senior secured credit facility                                 |   |                                  | (755.5 | ) |   |   | --- |   |   |   | --- |   |
| Fees paid in      connection with Nortek's new debt facilities                             |   |                                  | (33.8  | ) |   |   | --- |   |   |   | --- |   |
| Equity      investment by THL-Nortek Investors, LLC (see Note 6)                           |   |                                  | 4.2    |   |   |   | --- |   |   |   | --- |   |
| Payment in      connection with NTK Holdings' senior unsecured loan facility      rollover |   |                                  | ---    |   |   |   | (4.5 | ) |   |   | --- |   |
| Borrowings      under NTK Holdings' senior unsecured loan facility                         |   |                                  | ---    |   |   |   | --- |   |   |   | 200.8 |   |
| Dividends                                                                                  |   |                                  | ---    |   |   |   | --- |   |   |   | (174.9 | ) |
| Other,      net                                                                            |   |                                  | 0.1    |   |   |   | --- |   |   |   | (1.6 | ) |
|           Net cash provided by financing activities                    |   |                                  | 125.6  |   |   |   | 19.6 |   |   |   | 32.5 |   |
| Net change in      unrestricted cash and cash equivalents                                  |   |                                  | 128.8  |   |   |   | (4.0 | ) |   |   | (19.8 | ) |
| Unrestricted      cash and cash equivalents at the beginning of the period                 |   |                                  | 53.4   |   |   |   | 57.4 |   |   |   | 77.2 |   |
| Unrestricted      cash and cash equivalents at the end of the period                       |   | $                                     | 182.2  |   |   | $ | 53.4 |   |   | $ | 57.4 |   |

|                                                                                 |   |       |   |   |     |   |   | Accumulated   |   |   |          |   |
|--------------------------------------------------------------------------------------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------|--------|
|                                                                                 |   | Additional |   |   |     |   |   | Other         |   |   |          |   |
|                                                                                 |   | Paid-in    |   |   | Retained |   |   | Comprehensive |   |   | Comprehensive |   |
|                                                                                 |   | Capital    |   |   | Earnings |   |   | Income (Loss) |   |   | Income (Loss) |   |
|                                                                                 |   |       |   |   |     |   |   |          |   |   |          |   |
| Balance,      December 31, 2005                                                      |   | $          | 130.2  |   |     | $      | 52.8   |          |   | $      | 7.5           |   |   | $ | --- |   |
| Net      earnings                                                                    |   |       | ---    |   |     |   | 57.7   |          |   |   | ---           |   |   |   | 57.7 |   |
| Other      comprehensive income (loss):                                              |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|          Currency translation adjustment                              |   |       | ---    |   |     |   | ---    |          |   |   | 5.1           |   |   |   | 5.1 |   |
|          Reversal of SFAS No. 87 minimum pension liability,           |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|              net of tax provision of $0.1 million |   |       | ---    |   |     |   | ---    |          |   |   | 0.3           |   |   |   | 0.3 |   |
|          Effect of SFAS No. 158 adoption, net of tax                  |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|              provision of $1.8 million            |   |       | ---    |   |     |   | ---    |          |   |   | (1.3          | )      |   |   | (1.3 | ) |
| Comprehensive      income                                                            |   |       |   |   |     |   |   |          |   |   |          |   |   | $ | 61.8 |   |
| Dividends                                                                            |   |       | (104.3 | )      |     |   | (70.6  | )             |   |   | ---           |   |   |   |   |   |
| Adjustment of      carryover basis of continuing                                     |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|          management investors in the THL Transaction                  |   |       | (4.9   | )      |     |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Stock-based      compensation                                                        |   |       | 0.3    |   |     |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance,      December 31, 2006                                                      |   | $          | 21.3   |   |     | $      | 39.9   |          |   | $      | 11.6          |   |   |   |   |   |

|                                                                      |   |       |   |   |     |   |   | Accumulated   |   |   |          |   |
|---------------------------------------------------------------------------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------|--------|
|                                                                      |   | Additional |   |   |     |   |   | Other         |   |   |          |   |
|                                                                      |   | Paid-in    |   |   | Retained |   |   | Comprehensive |   |   | Comprehensive |   |
|                                                                      |   | Capital    |   |   | Earnings |   |   | Income        |   |   | Income (Loss) |   |
|                                                                      |   |       |   |   |     |   |   |          |   |   |          |   |
| Balance,      December 31, 2006                                           |   | $          | 21.3   |   |     | $      | 39.9   |          |   | $      | 11.6          |   |   | $ | --- |   |
| Net      loss                                                             |   |       | ---    |   |     |   | (7.0   | )             |   |   | ---           |   |   |   | (7.0 | ) |
| Other      comprehensive income:                                          |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|          Currency translation adjustment                   |   |       | ---    |   |     |   | ---    |          |   |   | 15.4          |   |   |   | 15.4 |   |
|          Pension liability adjustment, net of tax          |   |       |   |   |     |   |   |          |   |   |          |   |   |   |   |   |
|              provision of $3.9 million |   |       | ---    |   |     |   | ---    |          |   |   | 10.7          |   |   |   | 10.7 |   |
| Comprehensive      income                                                 |   |       |   |   |     |   |   |          |   |   |          |   |   | $ | 19.1 |   |
| Adoption of      FIN 48 (see Note 4)                                      |   |       | ---    |   |     |   | (3.2   | )             |   |   | ---           |   |   |   |   |   |
| Stock-based      compensation                                             |   |       | 0.3    |   |     |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance,      December 31, 2007                                           |   | $          | 21.6   |   |     | $      | 29.7   |          |   | $      | 37.7          |   |   |   |   |   |

|                                                    |   |       |   |   | Retained     |   |   | Accumulated   |   |   |          |   |
|---------------------------------------------------------|--------|------------|--------|--------|--------------|--------|--------|---------------|--------|--------|---------------|--------|
|                                                    |   | Additional |   |   | Earnings     |   |   | Other         |   |   |          |   |
|                                                    |   | Paid-in    |   |   | (Accumulated |   |   | Comprehensive |   |   | Comprehensive |   |
|                                                    |   | Capital    |   |   | Deficit)     |   |   | Income (Loss) |   |   | Loss          |   |
|                                                    |   |       |   |   |         |   |   |          |   |   |          |   |
|                                                    |   |       |   |   |         |   |   |          |   |   |          |   |
| Balance,      December 31, 2007                         |   | $          | 21.6   |   |         | $      | 29.7   |          |   | $      | 37.7          |   |   | $ | --- |   |
| Net      loss                                           |   |       | ---    |   |         |   | (844.5 | )             |   |   | ---           |   |   |   | (844.5 | ) |
| Other      comprehensive loss:                          |   |       |   |   |         |   |   |          |   |   |          |   |   |   |   |   |
|          Currency translation adjustment |   |       | ---    |   |         |   | ---    |          |   |   | (25.7         | )      |   |   | (25.7 | ) |
|          Pension liability adjustment    |   |       | ---    |   |         |   | ---    |          |   |   | (36.4         | )      |   |   | (36.4 | ) |
| Comprehensive      loss                                 |   |       |   |   |         |   |   |          |   |   |          |   |   | $ | (906.6 | ) |
| Capital      contribution from parent (see Note 6)      |   |       | 4.2    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Stock-based      compensation                           |   |       | 0.1    |   |         |   | ---    |          |   |   | ---           |   |   |   |   |   |
| Balance,      December 31, 2008                         |   | $          | 25.9   |   |         | $      | (814.8 | )             |   | $      | (24.4         | )      |   |   |   |   |

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

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

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

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

| Buildings and      improvements                | 10-35      years                                              |
|------------------------------------------------|---------------------------------------------------------------|
| Machinery and      equipment, including leases | 3-15      years                                               |
| Leasehold      improvements                    | Shorter of      the term of lease or the estimated usefullife |

|                                             |   | Residential                |   |   | Home       |   |   | Residential |   |   | Commercial |   |   |         |   |
|--------------------------------------------------|--------|----------------------------|--------|--------|------------|--------|--------|-------------|--------|--------|------------|--------|--------|--------------|--------|
|                                             |   | Ventilation                |   |   | Technology |   |   | HVAC        |   |   | HVAC       |   |   |         |   |
|                                             |   | Products                   |   |   | Products   |   |   | Products    |   |   | Products   |   |   | Consolidated |   |
|                                             |   | (Amounts      in millions) |   |
|                                             |   |                       |   |   |       |   |   |        |   |   |       |   |   |         |   |
| Balance      as of December 31, 2006             |   | $                          | 798.0  |   |       | $      | 368.3  |        |   | $      | 234.1      |   |   | $            | 81.0   |   |   | $ | 1,481.4 |   |
| Acquisitions      during the year ended          |   |                       |   |   |       |   |   |        |   |   |       |   |   |         |   |   |   |   |   |   |
|          December 31, 2007        |   |                       | 7.8    |   |       |   | 19.2   |        |   |   | ---        |   |   |         | ---    |   |   |   | 27.0 |   |
| Contingent      earnouts related to acquisitions |   |                       | ---    |   |       |   | 32.7   |        |   |   | ---        |   |   |         | ---    |   |   |   | 32.7 |   |
| Purchase      accounting adjustments             |   |                       | (8.4   | )      |       |   | (4.6   | )           |   |   | (0.4       | )      |   |         | (0.1   | ) |   |   | (13.5 | ) |
| Impact of      foreign currency translation      |   |                       | 1.4    |   |       |   | ---    |        |   |   | ---        |   |   |         | (0.1   | ) |   |   | 1.3 |   |
| Balance      as of December 31, 2007             |   |                       | 798.8  |   |       |   | 415.6  |        |   |   | 233.7      |   |   |         | 80.8   |   |   |   | 1,528.9 |   |
| Impairment      losses                           |   |                       | (444.0 | )      |       |   | (77.0  | )           |   |   | (189.0     | )      |   |         | ---    |   |   |   | (710.0 | ) |
| Contingent      earnouts related to acquisitions |   |                       | ---    |   |       |   | 14.1   |        |   |   | ---        |   |   |         | ---    |   |   |   | 14.1 |   |
| Purchase      accounting adjustments             |   |                       | (5.8   | )      |       |   | 1.1    |        |   |   | ---        |   |   |         | ---    |   |   |   | (4.7 | ) |
| FIN 48      Adjustments                          |   |                       | (5.2   | )      |       |   | (1.7   | )           |   |   | (1.7       | )      |   |         | (0.5   | ) |   |   | (9.1 | ) |
| Impact of      changes in foreign currency       |   |                       |   |   |       |   |   |        |   |   |       |   |   |         |   |   |   |   |   |   |
|          translation and other    |   |                       | (2.8   | )      |       |   | (0.7   | )           |   |   | ---        |   |   |         | (4.9   | ) |   |   | (8.4 | ) |
| Balance      as of December 31, 2008             |   | $                          | 341.0  |   |       | $      | 351.4  |        |   | $      | 43.0       |   |   | $            | 75.4   |   |   | $ | 810.8 |   |

| ·   | Finalized the      detailed appraisals used to determine the estimated fair value of      intangible assets, real estate and machinery and equipment for the RVP,      HTP and Residential HVAC reporting units in accordance with methodologies      for valuing assets under SFAS No.141. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      allocation of the estimated fair value of pension liabilities determined      in accordance with the Company’s consolidated financial statement      requirements to the RVP and Residential HVAC reporting units based on the      actuarially determined pension benefit obligations and an allocation of      plan assets as of September 27, 2008 for the plans associated with these      reporting units. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      analysis to determine the estimated fair value adjustment required to      inventory for the RVP, HTP and Residential HVAC reporting      units. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finalized the      deferred tax analysis for the RVP, HTP and Residential HVAC reporting      units, which included allocating estimated deferred tax requirements as of      September 27, 2008 to the specific reporting units and calculating the      deferred tax consequences of the theoretical purchase price adjustments      required by the Step 2 test. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   |                                               |   |   |         |   |   |       |   |   | Weighted     |   |
|-----------------------------|--------|----------------------------------------------------|--------|--------|--------------|--------|--------|------------|--------|--------|--------------|--------|
|                        |   | Gross                                              |   |   |         |   |   | Net        |   |   | Average      |   |
|                        |   | Carrying                                           |   |   | Accumulated  |   |   | Intangible |   |   | Remaining    |   |
|                        |   | Amount                                             |   |   | Amortization |   |   | Assets     |   |   | Useful Lives |   |
|                        |   | (Amounts      in millions except for useful lives) |   |
|                        |   |                                               |   |   |         |   |   |       |   |   |         |   |
| December      31, 2008:     |   |                                               |   |   |         |   |   |       |   |   |         |   |
| Trademarks                  |   | $                                                  | 98.5   |   |         | $      | (25.6  | )          |   | $      | 72.9         |   |   |   | 9.9 |   |
| Patents                     |   |                                               | 34.3   |   |         |   | (8.9   | )          |   |   | 25.4         |   |   |   | 11.2 |   |
| Customer      relationships |   |                                               | 80.7   |   |         |   | (54.6  | )          |   |   | 26.1         |   |   |   | 2.0 |   |
| Others                      |   |                                               | 29.3   |   |         |   | (18.3  | )          |   |   | 11.0         |   |   |   | 1.9 |   |
|                        |   | $                                                  | 242.8  |   |         | $      | (107.4 | )          |   | $      | 135.4        |   |   |   | 4.8 |   |
|                        |   |                                               |   |   |         |   |   |       |   |   |         |   |   |   |   |   |
| December      31, 2007:     |   |                                               |   |   |         |   |   |       |   |   |         |   |   |   |   |   |
| Trademarks                  |   | $                                                  | 100.2  |   |         | $      | (18.8  | )          |   | $      | 81.4         |   |   |   | 12.9 |   |
| Patents                     |   |                                               | 34.9   |   |         |   | (6.9   | )          |   |   | 28.0         |   |   |   | 11.0 |   |
| Customer      relationships |   |                                               | 74.9   |   |         |   | (42.3  | )          |   |   | 32.6         |   |   |   | 3.6 |   |
| Others                      |   |                                               | 27.3   |   |         |   | (12.7  | )          |   |   | 14.6         |   |   |   | 3.4 |   |
|                        |   | $                                                  | 237.3  |   |         | $      | (80.7  | )          |   | $      | 156.6        |   |   |   | 6.4 |   |

| Year      Ended            |   | Annual      Amortization |
|----------------------------|--------|--------------------------|
| December 31,               |   | Expense                  |
| (Amounts      in millions) |
| (Unaudited)                |
|                       |   |                     |   |
| 2009                       |   | $                        | 22.3 |   |
| 2010                       |   |                     | 18.7 |   |
| 2011                       |   |                     | 15.2 |   |
| 2012                       |   |                     | 12.2 |   |
| 2013                       |   |                     | 11.1 |   |
| 2014 and      thereafter   |   |                     | 55.9 |   |

|                            |   |                       |   |   | SFAS      No. 87 |   |   |              |   |   | Total         |   |
|---------------------------------|--------|----------------------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|---------------|--------|
|                            |   |                       |   |   | Minimum          |   |   | SFAS      No. 158 |   |   | Accumulated   |   |
|                            |   | Foreign                    |   |   | Pension          |   |   | Post-Retirement   |   |   | Other         |   |
|                            |   | Currency                   |   |   | Liability        |   |   | Liability         |   |   | Comprehensive |   |
|                            |   | Translation                |   |   | Adjustment       |   |   | Adjustment        |   |   | Income (Loss) |   |
|                            |   | (Amounts      in millions) |   |
|                            |   |                       |   |   |             |   |   |              |   |   |          |   |
| Balance,      December 31, 2005 |   | $                          | 7.8    |   |             | $      | (0.3   | )                 |   | $      | ---           |   |   | $ | 7.5 |   |
| Change during      the period   |   |                       | 5.1    |   |             |   | ---    |              |   |   | ---           |   |   |   | 5.1 |   |
| Adoption of      SFAS No. 158   |   |                       | ---    |   |             |   | 0.3    |              |   |   | (1.3          | )      |   |   | (1.0 | ) |
| Balance,      December 31, 2006 |   |                       | 12.9   |   |             |   | ---    |              |   |   | (1.3          | )      |   |   | 11.6 |   |
| Change during      the period   |   |                       | 15.4   |   |             |   | ---    |              |   |   | 10.7          |   |   |   | 26.1 |   |
| Balance,      December 31, 2007 |   |                       | 28.3   |   |             |   | ---    |              |   |   | 9.4           |   |   |   | 37.7 |   |
| Change during      the period   |   |                       | (25.7  | )      |             |   | ---    |              |   |   | (36.4         | )      |   |   | (62.1 | ) |
| Balance,      December 31, 2008 |   | $                          | 2.6    |   |             | $      | ---    |              |   | $      | (27.0         | )      |   | $ | (24.4 | ) |

|                                     |   | For the Years Ended December      31, |   |
|------------------------------------------|--------|---------------------------------------|--------|
|                                     |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                     |   | (Amounts      in millions)            |   |
|                                     |   |                                  |   |   |   |   |   |   |   |
| Fair value of      assets acquired       |   | $                                     | ---    |   |   | $ | 105.7 |   |   | $ | 234.7 |   |
| Liabilities      assumed or created      |   |                                  | (---   | ) |   |   | (67.8 | ) |   |   | (133.2 | ) |
| Net assets of      businesses acquired   |   |                                  | ---    |   |   |   | 37.9 |   |   |   | 101.5 |   |
| Payment of      contingent consideration |   |                                  | 32.7   |   |   |   | 55.6 |   |   |   | 4.7 |   |
|                                     |   | $                                     | 32.7   |   |   | $ | 93.5 |   |   | $ | 106.2 |   |

|     |   | For the Years Ended December      31, |   |
|----------|--------|---------------------------------------|--------|
|     |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|     |   | (Amounts      in millions)            |   |
|     |   |                                  |   |   |   |   |   |   |   |
| Domestic |   | $                                     | (843.0 | ) |   | $ | (30.8 | ) |   | $ | 80.0 |   |
| Foreign  |   |                                  | 23.6   |   |   |   | 34.4 |   |   |   | 23.8 |   |
|     |   | $                                     | (819.4 | ) |   | $ | 3.6 |   |   | $ | 103.8 |   |

|                       |   | For the Years Ended December      31, |   |
|----------------------------|--------|---------------------------------------|--------|
|                       |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                       |   | (Amounts      in millions)            |   |
| Federal      income taxes: |   |                                  |   |   |   |   |   |   |   |
| Current                    |   | $                                     | ---    |   |   | $ | 0.3 |   |   | $ | 0.3 |   |
| Deferred                   |   |                                  | 9.3    |   |   |   | (6.0 | ) |   |   | 26.8 |   |
|                       |   |                                  | 9.3    |   |   |   | (5.7 | ) |   |   | 27.1 |   |
| Foreign                    |   |                                  | 14.0   |   |   |   | 14.6 |   |   |   | 14.5 |   |
| State                      |   |                                  | 1.8    |   |   |   | 1.7 |   |   |   | 4.5 |   |
|                       |   | $                                     | 25.1   |   |   | $ | 10.6 |   |   | $ | 46.1 |   |

|                                                                    |   | For the Years Ended December      31, |   |
|-------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                    |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                                    |   | (Amounts      in millions)            |   |
|                                                                    |   |                                  |   |   |   |   |   |   |   |
| Income tax at      the federal statutory rate                           |   | $                                     | (286.8 | ) |   | $ | 1.3 |   |   | $ | 36.3 |   |
|                                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net      change from statutory rate:                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| State income      tax provision, net of federal income tax effect       |   |                                  | 1.8    |   |   |   | 1.1 |   |   |   | 2.9 |   |
| Goodwill      impairment                                                |   |                                  | 244.4  |   |   |   | --- |   |   |   | --- |   |
| Increase in      valuation allowance                                    |   |                                  | 56.6   |   |   |   | --- |   |   |   | --- |   |
| Non-deductible      expenses, net                                       |   |                                  | 1.0    |   |   |   | 0.9 |   |   |   | 3.3 |   |
| Tax effect      resulting from foreign activities and foreign dividends |   |                                  | 11.1   |   |   |   | 5.9 |   |   |   | 2.9 |   |
| Uncertain tax      positions / FIN 48                                   |   |                                  | (3.3   | ) |   |   | 1.3 |   |   |   | --- |   |
| Other,      net                                                         |   |                                  | 0.3    |   |   |   | 0.1 |   |   |   | 0.7 |   |
|                                                                    |   | $                                     | 25.1   |   |   | $ | 10.6 |   |   | $ | 46.1 |   |

|                                                                    |   | For the year ended December    31, |
|-------------------------------------------------------------------------|--------|------------------------------------|
|                                                                    |   | 2008                               |   | 2007 |   | 2006 |
| Effective      tax rate%:                                               |   |                               |   |   |   |   |   |   |   |
| Income tax at      the federal statutory rate                           |   |                               | 35.0 | % |   |   | 35.0 | % |   |   | 35.0 | % |
|                                                                    |   |                               |   |   |   |   |   |   |   |   |   |   |
| Net      change from statutory rate:                                    |   |                               |   |   |   |   |   |   |   |   |   |   |
| State income      tax provision, net of federal income tax effect       |   |                               | (0.2 | ) |   |   | 30.7 |   |   |   | 2.8 |   |
| Goodwill      impairment                                                |   |                               | (29.8 | ) |   |   | --- |   |   |   | --- |   |
| Increase in      valuation allowance                                    |   |                               | (6.9 | ) |   |   | --- |   |   |   | --- |   |
| Non-deductible      expenses, net                                       |   |                               | (0.1 | ) |   |   | 24.5 |   |   |   | 3.2 |   |
| Tax effect      resulting from foreign activities and foreign dividends |   |                               | (1.4 | ) |   |   | 165.7 |   |   |   | 2.8 |   |
| Uncertain tax      positions / FIN 48                                   |   |                               | 0.4 |   |   |   | 35.2 |   |   |   | --- |   |
| Other,      net                                                         |   |                               | (0.1 | ) |   |   | 3.4 |   |   |   | 0.6 |   |
|                                                                    |   |                               | (3.1 | )% |   |   | 294.5 | % |   |   | 44.4 | % |

|                                                  |   | December 31,               |   |
|-------------------------------------------------------|--------|----------------------------|--------|
|                                                  |   | 2008                       |   |   | 2007 |   |
|                                                  |   | (Amounts      in millions) |   |
| Prepaid      Income Tax Assets (classified current)   |   |                       |   |   |   |   |
| Arising      From:                                    |   |                       |   |   |   |   |
| Accounts      receivable                              |   | $                          | 4.3    |   |   | $ | 3.0 |   |
| Inventories                                           |   |                       | 4.9    |   |   |   | 3.4 |   |
| Insurance      reserves                               |   |                       | 6.5    |   |   |   | 4.6 |   |
| Warranty      accruals                                |   |                       | 8.3    |   |   |   | 8.0 |   |
| Net operating      loss and tax credits               |   |                       | ---    |   |   |   | 3.2 |   |
| Valuation      allowances                             |   |                       | (21.0  | ) |   |   | --- |   |
| Other      reserves and assets, net                   |   |                       | 8.0    |   |   |   | 6.7 |   |
|                                                  |   | $                          | 11.0   |   |   | $ | 28.9 |   |
| Deferred      Income Tax Assets (Liabilities)         |   |                       |   |   |   |   |   |   |
| (classified      non-current)                         |   |                       |   |   |   |   |   |   |
| Arising      From:                                    |   |                       |   |   |   |   |   |   |
| Property and      equipment, net                      |   | $                          | (13.4  | ) |   | $ | (17.6 | ) |
| Intangible      assets, net                           |   |                       | (21.5  | ) |   |   | (27.7 | ) |
| Pension and      other benefit accruals               |   |                       | 15.7   |   |   |   | 5.2 |   |
| Insurance      reserves                               |   |                       | 12.0   |   |   |   | 12.1 |   |
| Warranty      accruals                                |   |                       | 8.5    |   |   |   | 6.6 |   |
| Capital loss,      net loss and credit carry forwards |   |                       | 41.0   |   |   |   | 14.3 |   |
| Other      reserves and assets, net                   |   |                       | 15.8   |   |   |   | 2.6 |   |
| Valuation      allowance                              |   |                       | (76.4  | ) |   |   | (20.0 | ) |
| Tax      deductible Goodwill                          |   |                       | (13.5  | ) |   |   | (12.5 | ) |
|                                                  |   | $                          | (31.8  | ) |   | $ | (37.0 | ) |

|                                                                                             |   | December 31,               |   |
|--------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                                             |   | 2008                       |   |   | 2007 |   |
|                                                                                             |   | (Amounts      in millions) |   |
| Balance at      January 1,                                                                       |   | $                          | 36.3   |   |   | $ | 38.2 |   |
| Gross      increases related to positions taken in the current year                              |   |                       | 5.6    |   |   |   | 4.3 |   |
| Gross      increases related to positions  taken in prior      periods                 |   |                       | 1.3    |   |   |   | 0.2 |   |
| Decreases      related to settlements with taxing authorities                                    |   |                       | (7.8   | ) |   |   | (1.2 | ) |
| Decreases due      to lapse of statutes of limitation  related to state tax      items |   |                       | (4.1   | ) |   |   | (5.2 | ) |
| Balance at      December 31,                                                                     |   | $                          | 31.3   |   |   | $ | 36.3 |   |

|                                                                    |   | December 31,               |   |
|-------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                    |   | 2008                       |   |   | 2007 |   |
|                                                                    |   | (Amounts      in millions) |   |
|                                                                    |   |                       |   |   |   |   |
| Secured lines      of credit and bank advances of the Company’s:  |   |                       |   |   |   |   |
| Foreign      subsidiaries                                               |   | $                          | 32.7   |   |   | $ | 29.0 |   |
| Revolving      portion of Nortek’s senior secured credit facility |   |                       | ---    |   |   |   | 35.0 |   |
|                                                                    |   | $                          | 32.7   |   |   | $ | 64.0 |   |

|                                                                                                                                                                                                                                           |   | December 31,               |         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------------|
|                                                                                                                                                                                                                                           |   | 2008                       |         |   | 2007 |   |
|                                                                                                                                                                                                                                           |   | (Amounts      in millions) |         |
|                                                                                                                                                                                                                                           |   |                       |         |   |   |   |
| NTK Holdings      10 3/4% Senior Discount Notes due 2014 (the “10 3/4% Senior Discount      Notes”), net of unamortized discount of approximately $27.1 million and      $64.4 million at December 31, 2008 and 2007, respectively |   | $                          |  375.9  |   |   | $ |  338.6 |   |
| NTK Holdings      senior unsecured loan facility, including approximately $57.0 million and      $33.0 million at December 31, 2008 and 2007, respectively, of debt      accretion related to the PIK option *                                 |   |                       |   258.5 |   |   |   |   233.9 |   |
| Nortek’s 10%      Senior Secured Notes due December 31, 2013 (the “10% Senior Secured      Notes”), net of unamortized discount of approximately $7.1 million at      December 31, 2008                                      |   |                       |   742.9 |   |   |   |   --- |   |
| Nortek’s 8      1/2% Senior Subordinated Notes due 2014 (“8 1/2% Notes”)                                                                                                                                                     |   |                       | 625.0        |   |   |   | 625.0 |   |
| Nortek’s ABL      Facility                                                                                                                                                                                                               |   |                       | 145.0        |   |   |   | --- |   |
| Nortek’s 9      7/8% Senior Subordinated Notes due 2011 (“9 7/8% Notes”), including      unamortized premium                                                                                                                 |   |                       | 10.0         |   |   |   | 10.0 |   |
| Nortek Senior      Secured Credit Facility                                                                                                                                                                                                     |   |                       | ---          |   |   |   | 677.3 |   |
| Mortgage      notes payable                                                                                                                                                                                                                    |   |                       | 4.0          |   |   |   | 4.7 |   |
| Other                                                                                                                                                                                                                                          |   |                       | 39.8         |   |   |   | 64.4 |   |
|                                                                                                                                                                                                                                           |   |                       | 2,201.1      |   |   |   | 1,953.9 |   |
| Less amounts      included in current liabilities                                                                                                                                                                                              |   |                       | 21.2         |   |   |   | 32.4 |   |
|                                                                                                                                                                                                                                           |   | $                          | 2,179.9      |   |   | $ | 1,921.5 |   |

|   | * | Also net of      approximately $3.5 million and $4.1 million of unamortized debt discount      at December 31, 2008 and 2007,respectively. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 85% of the      net amount of eligible accountsreceivable; |
|--------------------|------------------------------------------------------------|

| ·   | 85% of the      net orderly liquidation value of eligible inventory;  and |
|--------------------|---------------------------------------------------------------------------|

| ·   | available      cash subject to certain limitations as specified in the ABL      Facility. |
|--------------------|-------------------------------------------------------------------------------------------|

| Year      Ended                                      |   | Debt      Obligation       |
|------------------------------------------------------|--------|----------------------------|
| December 31,                                         |   | Maturities                 |
|                                                 |   | (Amounts      in millions) |
|                                                 |   |                       |   |
| 2009                                                 |   | $                          | 21.2 |   |
| 2010                                                 |   |                       | 129.2 |   |
| 2011                                                 |   |                       | 130.2 |   |
| 2012                                                 |   |                       | 2.6 |   |
| 2013                                                 |   |                       | 900.0 |   |
|             Thereafter |   |                       | 1,131.8 |   |

|                                                                                         |   | Pension      Benefits                 |   |
|----------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                         |   | For the Years Ended December      31, |   |
|                                                                                         |   | 2008                                  |   |   | 2007 |   |
|                                                                                         |   | (Amounts      in millions)            |   |
| Change      in benefit obligation:                                                           |   |                                  |   |   |   |   |
|         Benefit obligation at October 1,                                           |   | $                                     | 166.8  |   |   | $ | 177.3 |   |
|         Required adjustment - change in measurement date                           |   |                                  | (0.1   | ) |   |   | --- |   |
|         Benefit obligation at beginning of the year (January 1,    2008)           |   |                                  | 166.7  |   |   |   | 177.3 |   |
|         Service cost                                                               |   |                                  | 0.5    |   |   |   | 0.5 |   |
|         Interest cost                                                              |   |                                  | 9.7    |   |   |   | 9.6 |   |
|         (Gain) loss due to foreign exchange                                        |   |                                  | (9.5   | ) |   |   | 0.6 |   |
|         Actuarial gain excluding assumption changes                                |   |                                  | (0.5   | ) |   |   | (4.7 | ) |
|         Actuarial gain due to assumption changes                                   |   |                                  | (3.6   | ) |   |   | (5.3 | ) |
|         Benefits and expenses paid                                                 |   |                                  | (12.0  | ) |   |   | (11.2 | ) |
| Benefit      obligation at December 31, 2008 and September 30, 2007,                         |   | $                                     | 151.3  |   |   | $ | 166.8 |   |
|                                                                                         |   |                                  |   |   |   |   |   |   |
| Change      in plan assets:                                                                  |   |                                  |   |   |   |   |   |   |
|         Fair value of plan assets at October 1,                                    |   | $                                     | 146.0  |   |   | $ | 132.3 |   |
|         Required adjustment - change in measurement date                           |   |                                  | 0.3    |   |   |   | --- |   |
|         Fair value of assets at beginning of the year (January 1,      2008)       |   |                                  | 146.3  |   |   |   | 132.3 |   |
|         Actual (loss) gain on plan assets                                          |   |                                  | (30.2  | ) |   |   | 14.9 |   |
|         (Loss) gain due to foreign exchange                                        |   |                                  | (7.2   | ) |   |   | 0.4 |   |
|         Employer contribution                                                      |   |                                  | 3.4    |   |   |   | 9.6 |   |
|         Benefits and expenses paid                                                 |   |                                  | (12.0  | ) |   |   | (11.2 | ) |
| Fair      value of plan assets at December 31, 2008 and September 30,      2007              |   | $                                     | 100.3  |   |   | $ | 146.0 |   |
|                                                                                         |   |                                  |   |   |   |   |   |   |
| Funded      status and statement of financial position:                                      |   |                                  |   |   |   |   |   |   |
|         Fair value of plan assets at December 31, 2008 and September 30,      2007 |   | $                                     | 100.3  |   |   | $ | 146.0 |   |
|         Benefit obligation at December 31, 2008 and September 30,    2007          |   |                                  | 151.3  |   |   |   | 166.8 |   |
|         Funded status at December 31, 2008 and September 30, 2007                  |   |                                  | (51.0  | ) |   |   | (20.8 | ) |
|         Amount contributed during fourth quarter                                   |   |                                  | ---    |   |   |   | 0.3 |   |
| Funded      status at December 31, 2008 and 2007                                             |   | $                                     | (51.0  | ) |   | $ | (20.5 | ) |

|                         |   | Pension      Benefits      |   |
|------------------------------|--------|----------------------------|--------|
|                         |   | December 31,               |   |
|                         |   | 2008                       |   |   | 2007 |   |
|                         |   | (Amounts      in millions) |   |
|                         |   |                       |   |   |   |   |
| Current      liabilities     |   | $                          | 0.6    |   |   | $ | 0.6 |   |
| Non-current      liabilities |   |                       | 50.4   |   |   |   | 19.9 |   |
|                         |   | $                          | 51.0   |   |   | $ | 20.5 |   |

|                                                                                                              |   | Pension      Benefits      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                                                              |   | December 31,               |   |
|                                                                                                              |   | 2008                       |   |   | 2007 |   |
|                                                                                                              |   | (Amounts      in millions) |   |
|                                                                                                              |   |                       |   |   |   |   |
| Actuarial      (loss) gain, net of tax provision of approximately $5.4 million at      December 31, 2008 and 2007 |   | $                          | (27.6  | ) |   | $ | 9.0 |   |

| Year      Ended                   |   | Defined      Benefit       |
|-----------------------------------|--------|----------------------------|
| December 31,                      |   | Plan Payments              |
|                              |   | (Amounts      in millions) |
|                              |   |                       |   |
|     2009      |   |                       | $  10.8 |   |
|     2010      |   |                       | 10.8 |   |
|     2011      |   |                       | 11.1 |   |
|     2012      |   |                       | 11.1 |   |
|     2013      |   |                       | 11.3 |   |
|     2014-2018 |   |                       | 59.8 |   |

|                                                  | For the year ended December    31, |
|-------------------------------------------------------|------------------------------------|
|                                                  | 2008                               | 2007 | 2006 |
|                                                  |                               |   |   |
| Discount rate      for projected benefit obligation   | 6.25      %                        | 5.80% -      6.25% | 5.00% -      5.75% |
| Discount rate      for pension costs                  | 5.80% -      6.25%                 | 5.00% -      5.75% | 5.00% -      5.25% |
| Expected      long-term average return on plan assets | 7.00% -      7.75%                 | 7.00% -      7.75% | 7.00% -      7.75% |
| Rate of      compensation increase                    | 3.25% -      5.00%                 | 3.75% -      5.00% | 3.75% -      5.00% |

|                                |   | For the year ended December    31, |   |
|-------------------------------------|--------|------------------------------------|--------|
|                                |   | 2008                               |   |   | 2007 |   |   | 2006 |   |
|                                |   | (Amounts      in millions)         |   |
| Service      cost                   |   | $                                  | 0.5    |   |   | $ | 0.5 |   |   | $ | 1.0 |   |
| Interest      cost                  |   |                               | 9.7    |   |   |   | 9.6 |   |   |   | 9.0 |   |
| Expected      return on plan assets |   |                               | (10.5  | ) |   |   | (10.0 | ) |   |   | (9.1 | ) |
| Recognized      actuarial gain      |   |                               | (0.1   | ) |   |   | --- |   |   |   | --- |   |
| Net periodic      benefit cost      |   | $                                  | (0.4   | ) |   | $ | 0.1 |   |   | $ | 0.9 |   |

|                           |   | Plan Assets at December  31, |
|--------------------------------|--------|------------------------------|
| Asset Category                 |   | 2008                         |   | 2007 |
| Cash and cash      equivalents |   |                         | 2.2 | % |   |   | 3.7 | % |
| Equity      securities         |   |                         | 64.9 |   |   |   | 69.6 |   |
| Fixed income      securities   |   |                         | 32.5 |   |   |   | 26.5 |   |
| Other                          |   |                         | 0.4 |   |   |   | 0.2 |   |
|                           |   |                         | 100.0 | % |   |   | 100.0 | % |

|                                                                                     |   | Non-Pension      Post                 |   |
|------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                     |   | Retirement      Health Benefits       |   |
|                                                                                     |   | For the Years Ended December      31, |   |
|                                                                                     |   | 2008                                  |   |   | 2007 |   |
|                                                                                     |   | (Amounts      in millions)            |   |
|                                                                                     |   |                                  |   |   |   |   |
| Change      in benefit obligation:                                                       |   |                                  |   |   |   |   |
|          Benefit obligation at October 1,                                 |   | $                                     | 6.3    |   |   | $ | 6.2 |   |
|          Required adjustment - change in measurement date                 |   |                                  | 0.1    |   |   |   | --- |   |
|          Benefit obligation at beginning of the year (January 1,    2008) |   |                                  | 6.4    |   |   |   | 6.2 |   |
|          Service cost                                                     |   |                                  | ---    |   |   |   | --- |   |
|          Interest cost                                                    |   |                                  | 0.3    |   |   |   | 0.3 |   |
|          Amendments                                                       |   |                                  | ---    |   |   |   | --- |   |
|          Actuarial gain excluding assumption changes                      |   |                                  | (0.1   | ) |   |   | (0.1 | ) |
|          Benefits and expenses paid                                       |   |                                  | (0.2   | ) |   |   | (0.1 | ) |
| Benefit      obligation at December 31, 2008 and September 30, 2007,                     |   | $                                     | 6.4    |   |   | $ | 6.3 |   |
|                                                                                     |   |                                  |   |   |   |   |   |   |
| Change      in plan assets:                                                              |   |                                  |   |   |   |   |   |   |
|          Fair value of plan assets at October 1,                          |   | $                                     | ---    |   |   | $ | --- |   |
|          Employer contribution                                            |   |                                  | 0.2    |   |   |   | 0.1 |   |
|          Benefits and expenses paid                                       |   |                                  | (0.2   | ) |   |   | (0.1 | ) |
| Fair      value of plan assets at December 31, 2008 and September 30,      2007          |   | $                                     | ---    |   |   | $ | --- |   |
|                                                                                     |   |                                  |   |   |   |   |   |   |
| Funded      status and statement of financial position:                                  |   |                                  |   |   |   |   |   |   |
|          Fair value of plan assets                                        |   | $                                     | ---    |   |   | $ | --- |   |
|          Benefit obligation                                               |   |                                  | 6.4    |   |   |   | 6.3 |   |
| Funded      status at December 31, 2008 and 2007                                         |   | $                                     | (6.4   | ) |   | $ | (6.3 | ) |

|                         |   | Non-Pension                |   |
|------------------------------|--------|----------------------------|--------|
|                         |   | Post      Retirement       |   |
|                         |   | Health      Benefits       |   |
|                         |   | December 31,               |   |
|                         |   | 2008                       |   |   | 2007 |   |
|                         |   | (Amounts      in millions) |   |
|                         |   |                       |   |   |   |   |
| Current      liabilities     |   | $                          | 0.4    |   |   | $ | 0.3 |   |
| Non-current      liabilities |   |                       | 6.0    |   |   |   | 6.0 |   |
|                         |   | $                          | 6.4    |   |   | $ | 6.3 |   |

|                                                                                                              |   | Non-Pension                |      |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|
|                                                                                                              |   | Post      Retirement       |      |
|                                                                                                              |   | Health      Benefits       |      |
|                                                                                                              |   | December 31,               |      |
|                                                                                                              |   | 2008                       |      |   | 2007 |   |
|                                                                                                              |   | (Amounts      in millions) |      |
|                                                                                                              |   |                       |      |   |   |   |
| Actuarial      loss, net of tax benefit of approximately         $0.1 million at December 31, 2007 |   | $                          | (0.2      | ) |   | $ | (0.2 | ) |
| Prior service      cost, net of tax provision of approximately $0.4 million at December 31,      2007             |   |                       |  0.8 |   |   |   |  0.6 |   |
|                                                                                                              |   | $                          | 0.6       |   |   | $ | 0.4 |   |

|                                                      |   | Post      Retirement       |
|-----------------------------------------------------------|--------|----------------------------|
| Year      Ended                                           |   | Health      Benefit        |
| December 31,                                              |   | Payments                   |
|                                                      |   | (Amounts      in millions) |
|                                                      |   |                       |   |
| 2009                                                      |   | $                          | 0.3 |   |
| 2010                                                      |   |                       | 4.2 |   |
| 2011                                                      |   |                       | 0.3 |   |
| 2012                                                      |   |                       | 0.3 |   |
| 2013                                                      |   |                       | 0.3 |   |
|              2014-2018 |   |                       | 1.0 |   |

|                                                           |   | For the year ended December    31, |   |
|----------------------------------------------------------------|--------|------------------------------------|--------|
|                                                           |   | 2008                               |   |   | 2007 |   |   | 2006 |   |
|                                                           |   | (Amounts      in millions)         |   |
| Service      cost                                              |   | $                                  | ---    |   |   | $ | --- |   |   | $ | 0.1 |   |
| Interest      cost                                             |   |                               | 0.3    |   |   |   | 0.3 |   |   |   | 0.7 |   |
| Amortization      of prior service cost                        |   |                               | (0.2   | ) |   |   | (0.2 | ) |   |   | (1.5 | ) |
| Recognized      actuarial loss                                 |   |                               | ---    |   |   |   | --- |   |   |   | --- |   |
| Curtailment      gain                                          |   |                               | ---    |   |   |   | --- |   |   |   | (35.9 | ) |
| Net periodic      post-retirement health benefit cost (income) |   | $                                  | 0.1    |   |   | $ | 0.1 |   |   | $ | (36.6 | ) |

| Year      Ended                                      |   | Future      Minimum        |
|------------------------------------------------------|--------|----------------------------|
| December 31,                                         |   | Rental Obligations         |
|                                                 |   | (Amounts      in millions) |
|                                                 |   |                       |   |
| 2009                                                 |   | $                          | 21.0 |   |
| 2010                                                 |   |                       | 16.9 |   |
| 2011                                                 |   |                       | 12.9 |   |
| 2012                                                 |   |                       | 10.5 |   |
| 2013                                                 |   |                       | 7.5 |   |
|             Thereafter |   |                       | 11.6 |   |

|                                  |   | For the year ended December    31, |   |
|---------------------------------------|--------|------------------------------------|--------|
|                                  |   | 2008                               |   |   | 2007 |   |
|                                  |   | (Amounts      in millions)         |   |
|                                  |   |                               |   |   |   |   |
| Balance,      beginning of the period |   | $                                  | 35.0   |   |   | $ | 27.8 |   |
| Provision      during the period      |   |                               | 12.0   |   |   |   | 13.8 |   |
| Payments made      during the period  |   |                               | (8.2   | ) |   |   | (6.1 | ) |
| Other      adjustments                |   |                               | 0.7    |   |   |   | (0.5 | ) |
| Balance, end      of the period       |   | $                                  | 39.5   |   |   | $ | 35.0 |   |

|                                                                       |   | For the year ended December    31, |   |
|----------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                       |   | 2008                               |   |   | 2007 |   |
|                                                                       |   | (Amounts      in millions)         |   |
|                                                                       |   |                               |   |   |   |   |
| Balance,      beginning of period                                          |   | $                                  | 47.3   |   |   | $ | 41.2 |   |
| Warranties      provided during period                                     |   |                               | 32.5   |   |   |   | 30.7 |   |
| Settlements      made during period                                        |   |                               | (27.2  | ) |   |   | (26.7 | ) |
| Changes in      liability estimate, including expirations and acquisitions |   |                               | (1.1   | ) |   |   |  2.1 |   |
| Balance, end      of period                                                |   | $                                  | 51.5   |   |   | $ | 47.3 |   |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

|                                                                       |   | For the Years Ended December      31, |    |
|----------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                       |   | 2008                                  |    |   | 2007 |   |   | 2006 |   |
|                                                                       |   | (Amounts      in millions)            |    |
| Net      sales:                                                            |   |                                  |    |   |   |   |   |   |   |
| Residential      ventilation products                                      |   | $                                     | 715.9   |   |   | $ | 828.8 |   |   | $ | 821.0 |   |
| Home      technology products                                              |   |                                  | 514.1   |   |   |   | 570.2 |   |   |   | 484.5 |   |
| Residential      HVAC products                                             |   |                                  | 524.5   |   |   |   | 515.3 |   |   |   | 518.5 |   |
| Commercial      HVAC products                                              |   |                                  | 515.2   |   |   |   | 453.9 |   |   |   | 394.4 |   |
|      Consolidated      net sales                  |   | $                                     | 2,269.7 |   |   | $ | 2,368.2 |   |   | $ | 2,218.4 |   |
| Operating      (loss) earnings:                                            |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Residential      ventilation products (1)                                  |   | $                                     | (391.9  | ) |   | $ | 102.9 |   |   | $ | 139.5 |   |
| Home      technology products (2)                                          |   |                                  | (39.2   | ) |   |   | 76.3 |   |   |   | 83.9 |   |
| Residential      HVAC products (3)                                         |   |                                  | (176.8  | ) |   |   | 10.8 |   |   |   | 37.7 |   |
| Commercial      HVAC products (4)                                          |   |                                  | 34.2    |   |   |   | 20.3 |   |   |   | 27.2 |   |
|           Subtotal                                     |   |                                  | (573.7  | ) |   |   | 210.3 |   |   |   | 288.3 |   |
| Unallocated:                                                               |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation charges                                      |   |                                  | (0.1    | ) |   |   | (0.3 | ) |   |   | (0.3 | ) |
| Foreign      exchange (losses) gains on transactions,                      |   |                                  |    |   |   |   |   |   |   |   |   |   |
|            including intercompany debt            |   |                                  | (1.0    | ) |   |   | 0.4 |   |   |   | 1.2 |   |
| Estimated      loss contingency on lease guarantee                         |   |                                  | (6.4    | ) |   |   | --- |   |   |   | --- |   |
| Expenses of a      terminated IPO                                          |   |                                  | ---     |   |   |   | --- |   |   |   | (2.5 | ) |
| Compensation      reserve adjustment                                       |   |                                  | ---     |   |   |   | --- |   |   |   | 3.5 |   |
| Unallocated,      net                                                      |   |                                  | (28.9   | ) |   |   | (25.1 | ) |   |   | (25.7 | ) |
|            Consolidated operating (loss) earnings |   |                                  | (610.1  | ) |   |   | 185.3 |   |   |   | 264.5 |   |
| Interest      expense                                                      |   |                                  | (200.2  | ) |   |   | (183.7 | ) |   |   | (162.9 | ) |
| Loss from      debt retirement                                             |   |                                  | (9.9    | ) |   |   | --- |   |   |   | --- |   |
| Investment      income                                                     |   |                                  | 0.8     |   |   |   | 2.0 |   |   |   | 2.2 |   |
| (Loss)      earnings before provision for income taxes                     |   | $                                     | (819.4  | ) |   | $ | 3.6 |   |   | $ | 103.8 |   |

| (1)   | The operating      results of the RVP segment for the year ended December 31, 2008      include: |
|-----------------|--------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $444.0  million, |
|--------------------|------------------------------------------------------------------------------|

| ·   | costs and      expenses incurred in connection with the start up of a range hood facility      in Mexico of approximately $4.5million, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain of      approximately $2.7 million from the sale of certain segment manufacturing      facilities, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.2 million of estimated inefficient production costs and expenses      associated with the relocation of certain manufacturing      operations, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in the social liability reserve related to one of the segment’s foreign      subsidiaries of approximately $2.0million, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.9 million related to the discontinuance of certain range      hood products within the U.S.market, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $1.8 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during2008, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.7 million in net charges related to the closure of certain segment      facilities and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.4 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The operating      results of the RVP segment for the year ended December 31, 2007      include: |
|--------|--------------------------------------------------------------------------------------------------|

| ·   | a favorable      adjustment to selling, general and administrative expense, net based upon      the Company’s revised estimate of reserves provided in 2006 for certain      suppliers in Italy and Poland of approximately $6.7    million, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $2.9 million in charges related to the closure of certain segment      facilities, |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | legal and      other professional fees and expenses incurred in connection with matters      related to certain subsidiaries based in Italy and Poland of approximately      $2.1 million, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $1.9 million loss related to the settlement of      litigation, |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $1.0 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge to      warranty expense of approximately $0.5 million related to a product safety      upgrade and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $0.4 million related to a reserve for amounts due from a      customer. |
|--------------------|--------------------------------------------------------------------------------------------------------|

|   | The operating      results of the RVP segment for the year ended December 31, 2006      include: |
|--------|--------------------------------------------------------------------------------------------------|

| ·   | an      approximately $35.9 million curtailment gain related to post-retirement      medical and life insurancebenefits, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | reserves of      approximately $16.0 million related to estimated losses as a result of the      unlikelihood that certain suppliers to our kitchen range hood subsidiaries      based in Italy and Poland will be able to repay advances and amounts due      under other arrangements, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.5 million charge related to the closure of certain      segment facilities and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | an increase      in warranty expense in the first quarter of 2006 of approximately $1.5      million related to a product safetyupgrade. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The operating      results of the HTP segment for the year ended December 31, 2008      include: |
|-----------------|--------------------------------------------------------------------------------------------------|

| ·   | a non-cash      goodwill impairment charge of approximately $77.0  million, |
|--------------------|-----------------------------------------------------------------------------|

| ·   | approximately      $4.9 million of fees and expenses recorded in connection with the      settlement of a dispute with one of its former  suppliers, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $2.7 million related to a reserve for amounts due from      customers, |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | approximately      $0.8 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during2008, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $0.7 million related to transactions      and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | an      approximately $0.1 million charge related to the closure of certain      facilities. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | approximately      $2.0 million of fees and expenses incurred in connection with a dispute      with a supplier, |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction      in warranty expense of approximately $0.7 million related to a product      safety upgrade and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $0.5 million related to a reserve for amounts due from      customers. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| (4)   | The operating      results of the Commercial HVAC segment for the year ended December 31,      2008 include: |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| ·   | an      approximately $3.3 million non-cash write-down of a foreign      subsidiary, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $2.1 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a lease      termination fee of approximately $1.9 million related to the closure of      the segment’s Mammoth, Inc. Chaska, Minnesota manufacturing      facility, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | approximately      $1.5 million of severance charges incurred related to certain reduction in      workforce initiatives implemented during 2008,  and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a gain on the      settlement of litigation of approximately $1.2 million resulting from a      prior bad debt write-off. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $3.7 million related to the closure of the segment’s      Mammoth, Inc. Chaska, Minnesota manufacturing  facility, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange losses of approximately $2.5 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.8 million related to a reserve for amounts due from      customers. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | a charge of      approximately $1.2 million, net of minority interest of approximately $0.8      million, related to a reserve for amounts due from a customer in China      related to a Chinese construction projectand |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net foreign      exchange gains of approximately $0.4 million related to transactions,      including intercompany debt not indefinitely invested in Nortek’s      subsidiaries. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | For the Years Ended December      31, |   |
|-----------------------------------------------------------|--------|---------------------------------------|--------|
|                                                      |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                      |   | (Amounts      in millions)            |   |
|                                                      |   |                                  |   |   |   |   |   |   |   |
| Depreciation      Expense:                                |   |                                  |   |   |   |   |   |   |   |
| Residential      ventilation products                     |   | $                                     | 16.0   |   |   | $ | 14.3 |   |   | $ | 12.9 |   |
| Home      technology products                             |   |                                  | 6.3    |   |   |   | 5.8 |   |   |   | 4.4 |   |
| Residential      HVAC products                            |   |                                  | 10.5   |   |   |   | 10.1 |   |   |   | 9.3 |   |
| Commercial      HVAC products                             |   |                                  | 6.8    |   |   |   | 6.7 |   |   |   | 5.7 |   |
| Unallocated                                               |   |                                  | 0.6    |   |   |   | 0.7 |   |   |   | 0.7 |   |
|          Consolidated depreciation expense |   | $                                     | 40.2   |   |   | $ | 37.6 |   |   | $ | 33.0 |   |
|                                                      |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Amortization      expense:                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Residential      ventilation products (1)                 |   | $                                     | 9.0    |   |   | $ | 6.3 |   |   | $ | 6.4 |   |
| Home      technology products (2)                         |   |                                  | 13.0   |   |   |   | 13.3 |   |   |   | 11.4 |   |
| Residential      HVAC products (3)                        |   |                                  | 0.8    |   |   |   | 0.9 |   |   |   | 1.2 |   |
| Commercial      HVAC products (4)                         |   |                                  | 5.3    |   |   |   | 6.5 |   |   |   | 8.7 |   |
| Unallocated                                               |   |                                  | 0.3    |   |   |   | 0.5 |   |   |   | 0.5 |   |
|          Consolidated amortization expense |   | $                                     | 28.4   |   |   | $ | 27.5 |   |   | $ | 28.2 |   |
|                                                      |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Capital      Expenditures:                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Residential      ventilation products                     |   | $                                     | 10.5   |   |   | $ | 13.7 |   |   | $ | 20.2 |   |
| Home      technology products                             |   |                                  | 3.7    |   |   |   | 5.5 |   |   |   | 6.2 |   |
| Residential      HVAC products                            |   |                                  | 6.3    |   |   |   | 12.8 |   |   |   | 6.1 |   |
| Commercial      HVAC products                             |   |                                  | 4.9    |   |   |   | 4.3 |   |   |   | 9.6 |   |
| Unallocated                                               |   |                                  | ---    |   |   |   | 0.1 |   |   |   | 0.2 |   |
|          Consolidated capital expenditures |   | $                                     | 25.4   |   |   | $ | 36.4 |   |   | $ | 42.3 |   |

|                                                                |   | For the Years Ended December      31, |    |
|---------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                |   | 2008                                  |    |   | 2007 |   |
|                                                                |   | (Amounts      in millions)            |    |
|                                                                |   |                                  |    |   |   |   |
| Segment      Assets:                                                |   |                                  |    |   |   |   |
| Residential      ventilation products                               |   | $                                     | 671.2   |   |   | $ | 1,202.7 |   |
| Home      technology products                                       |   |                                  | 603.8   |   |   |   | 704.0 |   |
| Residential      HVAC products                                      |   |                                  | 209.1   |   |   |   | 410.3 |   |
| Commercial      HVAC products                                       |   |                                  | 249.0   |   |   |   | 263.2 |   |
|                                                                |   |                                  | 1,733.1 |   |   |   | 2,580.2 |   |
| Unallocated:                                                        |   |                                  |    |   |   |   |   |   |
| Cash and cash      equivalents, including                           |   |                                  |    |   |   |   |   |   |
|          current restricted cash                     |   |                                  | 182.9   |   |   |   | 54.4 |   |
| Prepaid      income taxes                                           |   |                                  | 11.0    |   |   |   | 28.9 |   |
| Other assets,      including long-term restricted                   |   |                                  |    |   |   |   |   |   |
|          investments and marketable securities       |   |                                  | 56.6    |   |   |   | 47.3 |   |
|              Consolidated assets |   | $                                     | 1,983.6 |   |   | $ | 2,710.8 |   |

|                                                |   | December 31,               |   |
|-----------------------------------------------------|--------|----------------------------|--------|
|                                                |   | 2008                       |   |   | 2007 |   |
|                                                |   | (Amounts      in millions) |   |
|                                                |   |                       |   |   |   |   |
| Payroll,      pension and employee benefits         |   | $                          | 44.6   |   |   | $ | 56.0 |   |
| Contingent      consideration                       |   |                       | 14.1   |   |   |   | 32.7 |   |
| Insurance and      employee health benefit accruals |   |                       | 18.7   |   |   |   | 17.4 |   |
| Interest                                            |   |                       | 30.1   |   |   |   | 19.4 |   |
| Product      warranty                               |   |                       | 26.2   |   |   |   | 27.3 |   |
| Sales and      marketing                            |   |                       | 25.9   |   |   |   | 33.6 |   |
| Other,      net                                     |   |                       | 58.7   |   |   |   | 62.2 |   |
|                                                |   | $                          | 218.3  |   |   | $ | 248.6 |   |

|                                                |   | December 31,               |   |
|-----------------------------------------------------|--------|----------------------------|--------|
|                                                |   | 2008                       |   |   | 2007 |   |
|                                                |   | (Amounts      in millions) |   |
|                                                |   |                       |   |   |   |   |
| Employee      pension retirement benefit obligation |   | $                          | 50.4   |   |   | $ | 19.9 |   |
| Product      warranty                               |   |                       | 25.3   |   |   |   | 20.0 |   |
| Post      retirement health benefit obligations     |   |                       | 6.0    |   |   |   | 6.0 |   |
| Insurance                                           |   |                       | 40.6   |   |   |   | 37.1 |   |
| Other,      net                                     |   |                       | 38.4   |   |   |   | 42.6 |   |
|                                                |   | $                          | 160.7  |   |   | $ | 125.6 |   |

|                                 |   | Employee                   |   |   |   |   |   | Total         |   |
|--------------------------------------|--------|----------------------------|--------|--------|--------|--------|--------|---------------|--------|
|                                 |   | Separation                 |   |   |   |   |   | Restructuring |   |
|                                 |   | Expenses                   |   |   | Other  |   |   | Costs         |   |
|                                 |   | (Amounts      in millions) |   |
|                                 |   |                       |   |   |   |   |   |          |   |
| Balance      as of December 31, 2005 |   | $                          | 1.0    |   |   | $      | 0.3    |          |   | $ | 1.3 |   |
| Provision                            |   |                       | ---    |   |   |   | 0.5    |          |   |   | 0.5 |   |
| Payment and      asset write offs    |   |                       | (1.0   | )      |   |   | (0.7   | )             |   |   | (1.7 | ) |
| Balance      as of December 31, 2006 |   |                       | ---    |   |   |   | 0.1    |          |   |   | 0.1 |   |
| Provision                            |   |                       | 2.9    |   |   |   | 4.4    |          |   |   | 7.3 |   |
| Payment and      asset write offs    |   |                       | (1.3   | )      |   |   | (3.5   | )             |   |   | (4.8 | ) |
| Balance      as of December 31, 2007 |   |                       | 1.6    |   |   |   | 1.0    |          |   |   | 2.6 |   |
| Provision                            |   |                       | 0.9    |   |   |   | (0.1   | )             |   |   | 0.8 |   |
| Payment and      asset write offs    |   |                       | (2.1   | )      |   |   | (1.0   | )             |   |   | (3.1 | ) |
| Other                                |   |                       | (0.2   | )      |   |   | 0.1    |          |   |   | (0.1 | ) |
| Balance      as of December 31, 2008 |   | $                          | 0.2    |   |   | $      | ---    |          |   | $ | 0.2 |   |

|   |   |   |                                                                                       | For the Years Ended Dec. 31,    * |   |
|--------|--------|--------|--------------------------------------------------------------------------------------------|-----------------------------------|--------|
|   |   |   |                                                                                       | 2008                              |   |   | 2007 |   |   | 2006 |   |
|   |   |   |                                                                                       | (Amounts      in millions)        |   |
|   |   |   |                                                                                       |                              |   |   |   |   |   |   |   |
|   | (1     | )      | Gain from      curtailment of post-retirement medical and life insurance      benefits     |                              |   |   |   |   |   |   |   |   |
|   |   |   |         in the RVP segment                                                       |                              | $      | --- |   |   | $ | --- |   |   | $ | (35.9 | ) |
|   | (2     | )      | (Gains)      losses related to certain RVP segment suppliers based in    Italy             |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         and Poland (see Note 8)                                                  |                              |   | --- |   |   |   | (6.7 | ) |   |   | 16.0 |   |
|   | (3     | )      | Estimated      loss contingency on lease guarantee (see Note 8)                            |                              |   | 6.4 |   |   |   | --- |   |   |   | --- |   |
|   | (4     | )      | Severance      charges incurred related to certain reduction in workforce                  |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         initiatives implemented in all four segments (b)                         |                              |   | 5.0 |   |   |   | --- |   |   |   | --- |   |
|   | (5     | )      | Fees and      expenses incurred in the HTP segment in connection withthe                   |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         dispute and settlement with one of its former suppliers                  |                              |   | 4.9 |   |   |   | 2.0 |   |   |   | --- |   |
|   | (6     | )      | Cost and      expenses incurred in the RVP segment in connection with                      |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         the start up of a range hood facility in Mexico (a)                      |                              |   | 4.5 |   |   |   | --- |   |   |   | --- |   |
|   | (7     | )      | Product      safety upgrade reserves in the RVP and HTP segments (a)                       |                              |   | --- |   |   |   | (0.2 | ) |   |   | 3.8 |   |
|   | (8     | )      | Charges      related to the closure of the Commercial HVAC segment's                       |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         Mammoth, Inc. Chaska, MN facility  (see Note 11)               |                              |   | --- |   |   |   | 3.7 |   |   |   | --- |   |
|   | (9     | )      | Net charges      related to the closure of certain                                         |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         RVP segment facilities (see Note 11) (b)                                 |                              |   | 0.7 |   |   |   | 2.9 |   |   |   | 3.5 |   |
|   | (10    | )      | Compensation      reserve adjustment                                                       |                              |   | --- |   |   |   | --- |   |   |   | (3.5 | ) |
|   | (11    | )      | Non-cash      write-down of a foreign subsidiary in the Commercial HVAC      segment       |                              |   | 3.3 |   |   |   | --- |   |   |   | --- |   |
|   | (12    | )      | Foreign      exchange losses (gains) related to transactions,                              |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         including intercompany debt not indefinitely invested                    |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         in Nortek's subsidiaries                                                 |                              |   | (0.8 | ) |   |   | 3.1 |   |   |   | (1.7 | ) |
|   | (13    | )      | Reserve for      amounts due from customers in the RVP, HTP                                |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         and Commercial HVAC segments                                             |                              |   | 2.7 |   |   |   | 2.7 |   |   |   | 1.2 |   |
|   | (14    | )      | Gain from the      sale of certain manufacturing facilities in the RVPsegment              |                              |   | (2.7 | ) |   |   | --- |   |   |   | --- |   |
|   | (15    | )      | Write-off of      expenses related to NTK Holdings' initial public offering    (c)         |                              |   | --- |   |   |   | --- |   |   |   | 2.5 |   |
|   | (16    | )      | Estimated      inefficient production costs and expenses associated with    the            |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         relocation of certain RVP segment manufacturing operations    (b)        |                              |   | 2.2 |   |   |   | --- |   |   |   | --- |   |
|   | (17    | )      | Legal and      other professional fees and expenses incurred inconnection                  |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         with matters related to certain subsidiaries based in Italy      and     |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   | Poland in the      RVP segment (see Note 8)                                                |                              |   | --- |   |   |   | 2.1 |   |   |   | --- |   |
|   | (18    | )      | Reduction in      social liability reserve related to one of the Company's                 |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         foreign subsidiaries in the RVP segment                                  |                              |   | (2.0 | ) |   |   | --- |   |   |   | --- |   |
|   | (19    | )      | Charges      related to the discontinuance of certain range hood products      within      |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         the U.S. market in the RVP segment (a)                                   |                              |   | 1.9 |   |   |   | --- |   |   |   | --- |   |
|   | (20    | )      | Lease      termination fee related to the closure of the Commercial    HVAC                |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         segment's Mammoth, Inc. Chaska, Minnesota manufacturing      facility    |                              |   | 1.9 |   |   |   | --- |   |   |   | --- |   |
|   | (21    | )      | Loss on      settlement of litigation in the RVP segment                                   |                              |   | --- |   |   |   | 1.9 |   |   |   | --- |   |
|   | (22    | )      | Gain on      settlement of litigation in the Residential HVAC segment and      Unallocated |                              |   | --- |   |   |   | --- |   |   |   | (1.6 | ) |
|   | (23    | )      | Gain on      settlement of litigation in the Commercial HVAC segment      resulting        |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         from a prior bad debt write-off                                          |                              |   | (1.2 | ) |   |   | --- |   |   |   | --- |   |
|   | (24    | )      | Net charges      related to the closure of certain                                         |                              |   |   |   |   |   |   |   |   |   |   |   |
|   |   |   |         HTP segment facilities (see Note 11)                                     |                              |   | 0.1 |   |   |   | --- |   |   |   | --- |   |

|                                                  |   | For      the Quarter Ended |   |
|-------------------------------------------------------|--------|----------------------------|--------|
|                                                  |   | March 29                   |   |   | June 28 |   |   | September 27 |   |   | December 31 |   |
|                                                  |   | (Amounts      in millions) |   |
| 2008                                                  |   |                       |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                        |   | $                          | 540.2  |   |   | $ | 647.1 |   |   | $ | 582.6 |   |   | $ | 499.8 |   |
| Gross      profit                                     |   |                       | 148.6  |   |   |   | 173.8 |   |   |   | 148.2 |   |   |   | 125.6 |   |
| Selling,      general and administrative expense, net |   |                       | 118.5  |   |   |   | 118.5 |   |   |   | 121.2 |   |   |   | 109.9 |   |
| Goodwill      impairment charge                       |   |                       | ---    |   |   |   | --- |   |   |   | 600.0 |   |   |   | 110.0 |   |
| Depreciation      expense                             |   |                       | 10.7   |   |   |   | 10.2 |   |   |   | 10.4 |   |   |   | 8.9 |   |
| Amortization      expense                             |   |                       | 6.7    |   |   |   | 8.4 |   |   |   | 6.7 |   |   |   | 6.6 |   |
| Operating      earnings (loss)                        |   |                       | 23.4   |   |   |   | 46.9 |   |   |   | (579.7 | ) |   |   | (100.7 | ) |
| Net      loss                                         |   |                       | (14.0  | ) |   |   | (43.5 | ) |   |   | (636.6 | ) |   |   | (150.4 | ) |

|                                                  |   | For      the Quarter Ended |   |
|-------------------------------------------------------|--------|----------------------------|--------|
|                                                  |   | March 31                   |   |   | June 30 |   |   | September 29 |   |   | December 31 |   |
|                                                  |   | (Amounts      in millions) |   |
| 2007                                                  |   |                       |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                        |   | $                          | 552.5  |   |   | $ | 644.3 |   |   | $ | 602.2 |   |   | $ | 569.2 |   |
| Gross      profit                                     |   |                       | 167.9  |   |   |   | 192.2 |   |   |   | 169.2 |   |   |   | 159.0 |   |
| Selling,      general and administrative expense, net |   |                       | 117.1  |   |   |   | 121.1 |   |   |   | 125.1 |   |   |   | 112.2 |   |
| Depreciation      expense                             |   |                       | 8.6    |   |   |   | 10.1 |   |   |   | 9.3 |   |   |   | 9.6 |   |
| Amortization      expense                             |   |                       | 6.0    |   |   |   | 6.4 |   |   |   | 6.5 |   |   |   | 8.6 |   |
| Operating      earnings                               |   |                       | 44.8   |   |   |   | 64.7 |   |   |   | 37.6 |   |   |   | 38.2 |   |
| Net earnings      (loss)                              |   |                       | 1.2    |   |   |   | 7.3 |   |   |   | (8.7 | ) |   |   | (6.8 | ) |

|                                                                                                     |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                     |   | 2008         |   |   | 2007 |   |
|                                                                                                     |   |         |   |   |   |   |
| ASSETS:                                                                                                  |   |         |   |   |   |   |
| Investments      and Other Assets:                                                                       |   |         |   |   |   |   |
| Net      intercompany balance and investment in subsidiaries                                             |   | $            | ---    |   |   | $ | 658.8 |   |
| Deferred debt      expense                                                                               |   |         | 3.2    |   |   |   | 4.0 |   |
|          Total other long-term assets                                                     |   |         | 3.2    |   |   |   | 662.8 |   |
|              Total assets                                             |   | $            | 3.2    |   |   | $ | 662.8 |   |
|                                                                                                     |   |         |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDER'S (DEFICIT) INVESTMENT:                                                 |   |         |   |   |   |   |   |   |
| Current      Liabilities:                                                                                |   |         |   |   |   |   |   |   |
| Accrued      expenses and taxes, net                                                                     |   | $            | 4.2    |   |   | $ | 1.3 |   |
|                                                                                                     |   |         |   |   |   |   |   |   |
| Long-term      debt                                                                                      |   |         | 634.4  |   |   |   | 572.5 |   |
|                                                                                                     |   |         |   |   |   |   |   |   |
| Net      intercompany balance and investments in subsidiaries                                            |   |         | 177.9  |   |   |   | --- |   |
|                                                                                                     |   |         |   |   |   |   |   |   |
| Commitments      and Contingencies (Note 2)                                                              |   |         |   |   |   |   |   |   |
|                                                                                                     |   |         |   |   |   |   |   |   |
| Common stock,      $0.01 par value, authorized 3,000 shares;                                             |   |         |   |   |   |   |   |   |
|          3,000 issued and outstanding at December 31, 2008 and 2007                       |   |         | ---    |   |   |   | --- |   |
| Additional      paid-in capital                                                                          |   |         | 25.9   |   |   |   | 21.6 |   |
| (Accumulated      deficit) retained earnings                                                             |   |         | (814.8 | ) |   |   | 29.7 |   |
| Accumulated      other comprehensive (loss) income                                                       |   |         | (24.4  | ) |   |   | 37.7 |   |
|          Total stockholder's (deficit) investment                                         |   |         | (813.3 | ) |   |   | 89.0 |   |
|              Total liabilities and stockholder's (deficit) investment |   | $            | 3.2    |   |   | $ | 662.8 |   |

|                                                      |   | For the Years Ended December      31, |   |
|-----------------------------------------------------------|--------|---------------------------------------|--------|
|                                                      |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                      |   | (Amounts      in millions)            |   |
| Expenses:                                                 |   |                                  |   |   |   |   |   |   |   |
| Selling,      general and administrative expense          |   | $                                     | 0.1    |   |   | $ | 0.2 |   |   | $ | 2.6 |   |
| Interest      expense                                     |   |                                  | 65.5   |   |   |   | 61.7 |   |   |   | 42.2 |   |
|                                                      |   |                                  | 65.6   |   |   |   | 61.9 |   |   |   | 44.8 |   |
| Loss before      equity in subsidiaries' earnings         |   |                                  | (65.6  | ) |   |   | (61.9 | ) |   |   | (44.8 | ) |
| Equity in      subsidiaries' (loss) earnings              |   |                                  |   |   |   |   |   |   |   |   |   |   |
|          before provision for income taxes |   |                                  | (753.8 | ) |   |   | 65.5 |   |   |   | 148.6 |   |
| (Loss)      earnings before provision for income taxes    |   |                                  | (819.4 | ) |   |   | 3.6 |   |   |   | 103.8 |   |
| Provision for      income taxes                           |   |                                  | 25.1   |   |   |   | 10.6 |   |   |   | 46.1 |   |
| Net      (loss) earnings                                  |   | $                                     | (844.5 | ) |   | $ | (7.0 | ) |   | $ | 57.7 |   |

|                                                                                      |   | For the Years Ended December      31, |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                      |   | 2008                                  |   |   | 2007 |   |   | 2006 |   |
|                                                                                      |   | (Amounts      in millions)            |   |
|                                                                                      |   |                                  |   |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                |   |                                  |   |   |   |   |   |   |   |
| Net (loss)      earnings                                                                  |   | $                                     | (844.5 | ) |   | $ | (7.0 | ) |   | $ | 57.7 |   |
|                                                                                      |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net earnings to cash:                                       |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Non-cash      interest expense                                                            |   |                                  | 65.5   |   |   |   | 61.7 |   |   |   | 42.2 |   |
| Equity in      subsidiaries' (loss) earnings before provision for income      taxes       |   |                                  | 753.8  |   |   |   | (65.5 | ) |   |   | (148.6 | ) |
| Current      income tax provision                                                         |   |                                  | 15.8   |   |   |   | 16.6 |   |   |   | 19.3 |   |
| Deferred      federal income tax provision (benefit)                                      |   |                                  | 9.3    |   |   |   | (6.0 | ) |   |   | 26.8 |   |
| Changes      in certain assets and liabilities, net of effects from                       |   |                                  |   |   |   |   |   |   |   |   |   |   |
|          acquisitions and dispositions:                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Accrued      expenses and taxes                                                           |   |                                  | 0.1    |   |   |   | 0.2 |   |   |   | 2.6 |   |
|          Total adjustments to net earnings                                 |   |                                  | 844.5  |   |   |   | 7.0 |   |   |   | (57.7 | ) |
|              Net cash provided by operating activities |   |                                  | ---    |   |   |   | --- |   |   |   | --- |   |
| Cash      flows from investing activities:                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Capital      contribution to Nortek Holdings, Inc.                                        |   |                                  | (4.2   | ) |   |   | --- |   |   |   | (25.9 | ) |
|          Net cash used in investing activities                             |   |                                  | (4.2   | ) |   |   | --- |   |   |   | (25.9 | ) |
| Cash      flows from financing activities:                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Equity      investments by THL-Nortek Investors, LLC                                      |   |                                  | 4.2    |   |   |   | --- |   |   |   | --- |   |
| Borrowings      under NTK Holdings' senior unsecured loan facility                        |   |                                  | ---    |   |   |   | --- |   |   |   | 200.8 |   |
| Dividends                                                                                 |   |                                  | ---    |   |   |   | --- |   |   |   | (174.9 | ) |
|          Net cash provided by financing activities                         |   |                                  | 4.2    |   |   |   | --- |   |   |   | 25.9 |   |
| Net change in      unrestricted cash and cash equivalents                                 |   |                                  | ---    |   |   |   | --- |   |   |   | --- |   |
| Unrestricted      cash and cash equivalents at the beginning of the period                |   |                                  | ---    |   |   |   | --- |   |   |   | --- |   |
| Unrestricted      cash and cash equivalents at the end of the period                      |   | $                                     | ---    |   |   | $ | --- |   |   | $ | --- |   |

|                                                            |   | Balance      at            |   |   |                 |   |   | Charge      to |   |   | Deduction |            | Balance      at |
|-----------------------------------------------------------------|--------|----------------------------|--------|--------|----------------------|--------|--------|----------------|--------|--------|-----------|-----------------|-----------------|
|                                                            |   | Beginning                  |   |   | Charged      to Cost |   |   | Other          |   |   | from      |            | End      of     |
| Classification                                                  |   | of Year                    |   |   | and Expense          |   |   | Accounts       |   |   | Reserves  |            | Year            |
|                                                            |   | (Amounts      in millions) |   |   |
| For      the year-ended December 31, 2006                       |   |                       |   |   |                 |   |   |           |   |   |      |            |            |
|  Allowance      for doubtful accounts and sales allowances |   | $                          | 6.6    |   |                 | $      | 6.1    |           |   | $      | 0.6       |        (b) |            | $ | (3.9 | )  (a) | $ | 9.4 |   |
|                                                            |   |                       |   |   |                 |   |   |           |   |   |      |            |            |   |   |   |   |   |   |   |
| For      the year-ended December 31, 2007                       |   |                       |   |   |                 |   |   |           |   |   |      |            |            |   |   |   |   |   |   |   |
|  Allowance      for doubtful accounts and sales allowances |   | $                          | 9.4    |   |                 | $      | 11.8   |           |   | $      | 1.7       |        (b) |            | $ | (10.7 | )  (a) | $ | 12.2 |   |
|                                                            |   |                       |   |   |                 |   |   |           |   |   |      |            |            |   |   |   |   |   |   |   |
| For      the year-ended December 31, 2008                       |   |                       |   |   |                 |   |   |           |   |   |      |            |            |   |   |   |   |   |   |   |
|  Allowance      for doubtful accounts and sales allowances |   | $                          | 12.2   |   |                 | $      | 11.7   |           |   | $      | 0.2       |        (b) |            | $ | (9.6 | )  (a) | $ | 14.5 |   |

| (a)   | Amounts      written off, net of recoveries |
|-----------------|---------------------------------------------|

| (b)   | Other,      including acquisitions and the effect of changes in foreign currency      exchange rates |
|-----------------|------------------------------------------------------------------------------------------------------|

|   | 2.1    | Stock      Purchase Agreement among Kelso Investment Associates VI, L.P., the other      sellers named therein, THL Buildco Holdings, Inc. and THL Buildco, Inc.      dated as of July 15, 2004 (Exhibit 2.1 to Nortek Form 8-K filed July 16,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 2.2    | Amendment No.      1 to Stock Purchase Agreement by and among Kelso & Company, L.P.,      Third party Stockholders, Richard L. Bready, as the Management      Representative on behalf of the Management Stockholders and the Option      Sellers, and THL Buildco, Inc. dated August 27, 2004 (Exhibit 10.1 to      Nortek Form 8-K filed September 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 2.3    | THL Buildco,      Inc. and Nortek, Inc. $625,000,000 8 1⁄2% Senior Subordinated Notes due 2014      Purchase Agreement dated August 12, 2004 by and among Initial Issuer and      the Initial Purchasers (Exhibit 2.9 to Nortek Form S-4 filed October      22, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 2.4    | Purchase      Agreement, dated as of February 10, 2005 (Exhibit 2.10 to NTK Holdings S-4      filed July 5, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 3.1    | Amended and      Restated Certificate of Incorporation of Nortek, Inc. (Exhibit 3.1 to      Nortek Form S-4 filed October 22, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 3.2    | By-Laws of      Nortek, Inc. (Exhibit 3.2 to Nortek Form S-4 filed October 22,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 3.3    | Certificate      of Incorporation of NTK Holdings (Exhibit 3.1 to NTK Holdings S-4 filed      July 5, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 3.4    | By-Laws of      NTK Holdings, Inc. (Exhibit 3.2 to NTK Holdings S-4 filed July 5,      2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.1    | Indenture      dated as of June 12, 2001 between Nortek, Inc. and State Street Bank and      Trust Company, as Trustee, relating to the 9 7/8% Senior Subordinated      Notes due 2011 (Exhibit 4.1 to Nortek Registration Statement No. 333-64120      filed July 11, 2001).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.2    | First      Supplemental Indenture dated as of August 5, 2004 between Nortek, Inc. and      U.S. Bank National Association as the successor in interest to State      Street Bank and Trust Company, as Trustee under the Indenture dated June      12, 2001 relating to the 9 7/8% Senior Subordinated Notes due 2011      (Exhibit 4.3 to Nortek Form S-4 filed October 22,2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.3    | Indenture      dated as of August 27, 2004 between THL Buildco, Inc., Guarantors named      therein and U.S. Bank National Association, relating to the 8 1⁄2% Senior      Subordinated Notes due 2014 (Exhibit 4.1 to Nortek Form 8-K filed      September 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.4    | Registration      Rights Agreement dated as of August 27, 2004 by and among THL Buildco,      Inc., Nortek, Inc., the Guarantors and UBS Securities LLC and Credit      Suisse First Boston LLC, Banc of America Securities LLC, Bear, Stearns      & Co. Inc., and Sovereign Securities Corporation, LLC as Initial      Purchasers of 8 1⁄2% Senior Subordinated Notes due 2014 (Exhibit 4.1 to      Nortek Form 8-K filed September 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.5    | Indenture      dated as of February 15, 2005 between NTK Holdings, Inc. and U.S. Bank      National Association relating to the 103⁄4% Senior Discount Notes due 2014      (Exhibit 4.5 to NTK Holdings S-4 filed July 5, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.6    | Registration      Rights Agreement dated as of February 15, 2005 by and among NTK Holdings,      Inc. and Credit Suisse First Boston LLC, as Representative and Banc of      America Securities LLC and UBS Securities LLC as Initial Purchasers for      the 103⁄4% Senior Discount Notes due 2014 (Exhibit 4.6 to NTK Holdings S-4      filed July 5, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.7    | Securityholders      Agreement dated as of August 27, 2004 among THL-Nortek Investors, LLC, THL      Buildco Holdings, Inc., Thomas H. Lee Equity Fund V, L.P., Thomas H. Lee      Parallel Fund V, L.P., Thomas H. Lee Cayman Fund V, L.P., 1997 Thomas H.      Lee Nominee Trust, Thomas H. Lee Investors Limited Partnership, Putnam      Investments Employees’ Securities Company I LLC, Putnam Investments      Employees’ Securities Company II LLC, Putnam Investments Holdings, LLC,      Third Party Investors and the securityholders listed therein (Exhibit 4.7      to NTK Holdings S-1/A filed May 16, 2006).                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.8    | First      Amendment, dated as of February 10, 2005, to Securityholders Agreement      dated as of August 27, 2004 among THL-Nortek Investors, LLC, Nortek      Holdings, Inc., THL Buildco Holdings, Inc., Thomas H. Lee Equity Fund V,      L.P., Thomas H. Lee Parallel Fund V, L.P., Thomas H. Lee Cayman Fund V,      L.P., 1997 Thomas H. Lee Nominee Trust, Thomas H. Lee Investors Limited      Partnership, Putnam Investments Employees’ Securities Company I LLC,      Putnam Investments Employees’ Securities Company II LLC, Putnam      Investments Holdings, LLC, Third Party Investors and the securityholders      listed therein (Exhibit 4.9 to NTK Holdings S-1/A filed June 9,      2006).                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.9    | Indenture      dated as of May 20, 2008 between Nortek, Inc., the Guarantors named      therein and U.S. Bank National Association, as Trustee and Collateral      Agent relating to the 10% Senior Secured Notes due 2013 (Exhibit 4.9 to      Nortek S-4 filed August 11, 2008).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 4.10   | Registration      Rights Agreement dated as of May 20, 2008 by and among Nortek, Inc. and      Credit Suisse Securities (USA) LLC, Banc of America Securities LLC and      goldman, Sachs & Co as Initial Purchasers of the 10% Senior Secured      Notes due 2013 (Exhibit 4.10 to Nortek S-4 filed August 11,      2008).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **     | 10.1   | Form of      Indemnification Agreement between Nortek, Inc. and its directors and      certain officers (Appendix C to Nortek Proxy Statement dated March 23,      1987 for Annual Meeting of Nortek Stockholders, File No.      1-6112).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **     | 10.2   | Amended and      Restated Employment Agreement of Richard L. Bready, dated as of August 27,      2004 (Exhibit 10.2 to Nortek Form 8-K filed September 1,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **     | 10.3   | Amended and      Restated Employment Agreement of Almon C. Hall, III, dated as of August      27, 2004 (Exhibit 10.3 to Nortek Form 8-K filed September 1,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **     | 10.4   | Amended and      Restated Employment Agreement of Kevin W. Donnelly, dated as of August 27,      2004 (Exhibit 10.4 to Nortek Form 8-K filed September 1,      2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.5   | Nortek, Inc.      Second Amended and Restated Change in Control Severance Benefit Plan for      Key Employees and dated August 27, 2004 (Exhibit 10.7 to Nortek From 8-K      filed September 1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 10.6   | First Amendment to the Nortek,      Inc. Second Amended and Restated Change in Control Severance Benefit Plan      for Key Employees dated December 29, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.7   | Management      Agreement among Nortek Holdings, Inc., Nortek, Inc. and THL Managers V,      LLC dated August 27, 2004 (Exhibit 10.9 to Nortek Form 8-K filed September      1, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.8   | Amendment No.      1 to Management Agreement among Nortek Holdings, Inc., Nortek, Inc. and      THL Managers V, LLC dated February 10, 2005 (Exhibit 10.16 to Nortek Form      10-K filed March 9, 2006).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.9   | Bryan Kelln      Employment Offer Letter dated May 19, 2005 (Exhibit 99 to Nortek Form 8-K      filed June 6, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.10  | THL-Nortek      Investors, LLC Amended and Restated Limited Liability Company Agreement      dated as of April 16, 2008 (Exhibit 10.1 to Nortek Form 10-Q filed May 12,      2008).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.11  | Credit      Agreement, dated May 20, 2008 among Nortek, Inc., Ventrol Air Handling      Systems Inc., the other Borrowers named therein, Bank of America, N.A., as      Administrative Agent, Collateral Agent, U.S. Swing Line Lender and U.S.      L/C Issuer, Bank of America, N.A. (acting through its Canada Branch), as      Canadian Swing Line Lender and Canadian L/C Issuer, the other Lenders      Party thereto, Banc of America Securities LLC, and Credit Suisse      Securities (USA) LLC as Joint Lead Arrangers, Banc of America Securities      LLC, Credit Suisse Securities (USA) LLC, and Goldman Sachs Credit Partners      L.P., as Joint Bookrunners and Credit Suisse Securities (USA) LLC, Goldman      Sachs Credit Partners L.P. and UBS Securities LLC, as Co-Syndication      Agents (Exhibit 10.15 to Nortek S-4 filed August 11,  2008). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 10.12  | Bridge Loan      Agreement dated May 10, 2006 among NTK Holdings, Inc., The Lenders Party      hereto, and Goldman Sachs Credit Partners L.P., as Administrative Agent,      Goldman Sachs Credit Partners L.P. and Credit Suisse Securities (USA) LLC,      as Joint Lead Arrangers and Joint Bookrunners, Credit Suisse Securities      (USA) LLC, as Syndication Agent and Banc of America Bridge LLC and UBS      Securities LLC, as Documentation Agents (Exhibit 10.1 to NTK Holdings Form      8-K filed May 10, 2006).                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 14.1   | Code of      Ethics.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 21.1   | List of      subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 31.1   | Certificate      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 31.2   | Certificate      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *      | 32     | Certificate      of Chief Executive Officer and Chief Financial Officer Pursuant to Section      1350, Chapter 63 of Title 18, United States code, as Adopted Pursuant to      Section 906 of the Sarbanes-Oxley Act of2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |