PRE-RECAPITALIZATION POST-RECAPITALIZATION ------------------------------------- ------------------------------- YEAR ENDED DEC. 31, PERIOD FROM PERIOD FROM PERIOD FROM --------------------- JAN. 1, 2003- JAN. 10, 2003- JAN. 10, 2003- 2001 2002 JAN. 9, 2003 JULY 5, 2003 DEC. 31, 2003 --------------------------------------------------------------------------------------------------------- (dollars in millions except percentage data and ratios) STATEMENT OF OPERATIONS DATA(1)(2) Net sales...................... $1,293.8 $1,384.1 $ 24.9 $ 726.1 $ 1,490.1 Cost of products sold.......... 945.6 992.3 18.6 520.4 1,060.0 Selling, general and administrative expense........ 226.5 262.6 5.0 123.5 261.6 Amortization of goodwill and intangible assets(3).......... 12.0 3.0 0.1 3.8 9.1 Expenses and charges arising from the recapitalization(4)... -- 6.6 83.0 -- -- -------- -------- ------------- -------------- -------------- Operating earnings (loss)(6)(7) 109.7 119.6 (81.8) 78.4 159.4 Interest expense............... (51.8) (52.4) (1.0) (29.4) (57.6) Loss from debt retirement(5)... (5.5) -- -- -- -- Investment income.............. 8.2 5.9 0.1 0.6 1.5 -------- -------- ------------- -------------- -------------- Earnings (loss) from continuing operations before provision (benefit) for income taxes.... 60.6 73.1 (82.7) 49.6 103.3 Provision (benefit) for income taxes......................... 27.8 29.5 (21.8) 20.1 41.3 -------- -------- ------------- -------------- -------------- Earnings (loss) from continuing operations.................... 32.8 43.6 (60.9) 29.5 62.0 Earnings (loss) from discontinued operations....... (24.8) 18.9 (1.0) 1.9 12.2 -------- -------- ------------- -------------- -------------- Net earnings (loss)............ 8.0 62.5 (61.9) 31.4 74.2 ======== ======== ============= ============== ============== OTHER FINANCIAL DATA(1)(2): Operating earnings (loss)(6)(7).................. 109.7 119.6 (81.8) 78.4 159.4 Depreciation expense from continuing operations......... 25.2 26.1 0.6 7.7 17.5 Amortization expense from continuing operations......... 12.0 3.0 0.1 8.8 14.5 Capital expenditures........... 27.1 19.1 0.2 7.2 24.7 POST-RECAPITALIZATION ----------------------------- PRO FORMA SIX MONTHS TWELVE TWELVE MONTHS ENDED MONTHS ENDED ENDED JULY 3, 2004 JULY 3, 2004 JULY 3, 2004(9) -------------------------------- ------------------------------------------------ (dollars in millions except perc (unaudited) (unaudited) (unaudited) STATEMENT OF OPERATIONS DATA(1)(2) Net sales...................... $ 855.8 $ 1,619.8 $ 1,619.8 Cost of products sold.......... 605.1 1,144.7 1,146.1 Selling, general and administrative expense........ 155.8 293.9 288.4 Amortization of goodwill and intangible assets(3).......... 6.8 12.1 13.4 Expenses and charges arising from the recapitalization(4)... -- -- -- ------------- ------------- ---------------- Operating earnings (loss)...... 88.1 169.1 171.9 Interest expense............... (44.0) (72.2) (90.1) Loss from debt retirement(5)... (12.0) (12.0) -- Investment income.............. 1.3 2.2 0.6 ------------- ------------- ---------------- Earnings (loss) from continuing operations before provision (benefit) for income taxes.... 33.4 87.1 82.4 Provision (benefit) for income taxes......................... 13.8 35.0 33.4 ------------- ------------- ---------------- Earnings (loss) from continuing operations.................... 19.6 52.1 49.0 ================ Earnings (loss) from discontinued operations....... 67.4 77.7 ------------- ------------- Net earnings (loss)............ 87.0 129.8 ============= ============= OTHER FINANCIAL DATA(1)(2): Operating earnings (loss)(6)(7).................. 88.1 169.1 171.9 Depreciation expense from continuing operations......... 12.8 22.6 24.0 Amortization expense from continuing operations......... 7.1 12.8 14.1 Capital expenditures........... 9.6 27.1 27.1____________________________________________________________________________________________________________________________________________________________

~~HISTORICAL~~SECURITIES CURRENT ACQUISITION NORTEK PRO FORMA PRO FORMA HOLDINGS, INC. ADJUSTMENTS NORTEK, INC. ---------------------------------------------------------------------------------------------------- (dollars in millions) ASSETS CURRENT ASSETS: Unrestricted: Cash and cash equivalents.......................... $ 127.7 $ (120.7)(a) $ 7.0 Marketable securities available for sale........... 5.0 (5.0)(b) -- Restricted: Cash and marketable securities..................... 8.5 -- 8.5 Accounts receivable (less allowances of $6.3)........ 263.2 -- 263.2 Inventories, net..................................... 202.0 7.8(c) 209.8 Prepaid expenses..................................... 11.5 (0.1)(d) 11.4 Other current assets................................. 16.7 (0.3)(e) 16.4 Prepaid income taxes................................. 20.7 64.2(f) 84.9 -------- -------- -------- Total current assets....................... 655.3 (54.1) 601.2 Property, plant and equipment, net................... 190.2 -- 190.2 Goodwill............................................. 686.9 651.3(g) 1,338.2 Intangible assets (less accumulated amortization of $16.1)............................................. 89.1 -- 89.1 Deferred debt expense................................ 16.0 22.4(h) 38.4 Other assets......................................... 17.2 (9.1)(i) 8.1 -------- -------- -------- Total assets............................... $1,654.7 $ 610.5 $2,265.2 ======== ======== ======== LIABILITIES AND ~~STOCKHOLDER'S~~EXCHANGE INVESTMENT CURRENT LIABILITIES: Notes payable and other short term obligations....... $ 6.2 $ -- $ 6.2 Current maturities of long-term debt................. 7.2 7.0(j) 14.2 Accounts payable..................................... 159.7 -- 159.7 Accrued expenses and taxes, net...................... 168.0 (3.8)(k) 164.2 -------- -------- -------- Total current liabilities.................. 341.1 3.2 344.3 Deferred income taxes................................ 32.6 -- 32.6 Other long-term liabilities.......................... 150.4 (0.7)(l) 149.7 Notes, mortgages, capital leases and obligations payable less current maturities.................... 841.9 496.9(m) 1,338.8 Stockholder's investment............................. 288.7 111.1(n) 399.8 -------- -------- -------- Total liabilities and stockholder's investment............................... $1,654.7 $ 610.5 $2,265.2 ======== ======== ========COMMISSION

~~JULY 3~~WASHINGTON, 2004 PRO FORMA ADJUSTMENTS -------------------------------------------------------------------------- (dollars in millions) ADJUSTMENTS RELATED TO THE ACQUISITION (a) Cash and cash equivalents Current Nortek Holdings, IncD. ~~cash used to consummate transaction~~C.~~..............................................~~ $(120.7) ======= (b) Marketable securities available for sale Current Nortek Holdings, Inc. marketable securities used to consummate transaction.................................... $ (5.0) ======= (c) Inventories, net Inventory fair value adjustment............................. $ 7.8 ======= (d) Prepaid expenses Elimination of certain contractual management compensation arrangements.............................................. $ (0.1) ======= (e) Other current assets Elimination of certain contractual management compensation arrangements.............................................. $ (0.3) ======= (f) Prepaid income taxes Deferred tax consequences of purchase accounting adjustments related to current assets and liabilities................. $ 64.2 ======= (g) Goodwill Excess of fair value over net assets acquired............... $ 651.3 ======= (h) Deferred debt expense Elimination of prior deferred financing costs related to debt redeemed and a senior secured credit facility to be terminated................................................ $ (16.0) Financing costs related to the sale of the notes and the new senior secured credit facility............................ 38.4 ------- $ 22.4 ======= (i) Other assets Elimination of certain contractual management compensation arrangements.............................................. $ (9.1) ======= (j) Current maturities of long term debt Current portion of borrowings under the new senior secured credit facility........................................... $ 7.0 ======= (k) Accrued expenses and taxes, net Payment of accrued interest expense upon debt redemption.... $ (1.1) Elimination of certain contractual management compensation arrangements.............................................. (2.7) ======= $ (3.8) ======= (l) Other long-term liabilities Elimination of certain contractual management compensation arrangements.............................................. $ (0.7) ======= (m) Notes, mortgages and obligations payable, less current maturities Sale of the notes........................................... $ 625.0 Borrowings under the new senior secured credit facility..... 693.0 Elimination of principal and debt premium related to debt redemptions............................................... (821.1) ------- $ 496.9 =======20549

~~JULY~~FORM 3, 2004 PRO FORMA ADJUSTMENTS -------------------------------------------------------------------------- (dollars in millions) ADJUSTMENTS RELATED TO THE ACQUISITION (n) Stockholder's Investment Purchase of Series B preference stock as part of transaction............................................... $ (8~~.1) Purchase of Class A common stock as part of transaction..... (0.4) Purchase of non~~-rolled stock options, net................... (90.3) Fees and expenses related to the Acquisition................ (30.5) Redemption premiums and elimination of prior deferred financing costs related to debt redemption, net........... (78.1) Retention payments to certain executive officers............ (0.2) Elimination of certain contractual management compensation arrangements.............................................. (9.2) Impact due to transaction being accounted for as a purchase.................................................. 327.9 ------- $ 111.1 =======K

~~HISTORICAL~~ CURRENT ACQUISITION NORTEK PRO FORMA PRO FORMA HOLDINGS, INC. ADJUSTMENTS NORTEK, INC. ---------------------------------------------------------------------------------------------------- (dollars in millions) Net sales............................................ $855.8 $ -- $855.8 Cost and expenses: Cost of products sold.............................. 605.1 -- (a) 605.1 Selling, general and administrative expense........ 155.8 (2.5)(b) 153.3 Amortization of intangible assets.................. 6.8 -- (c) 6.8 ------ ---- ------ 767.7 (2.5) 765.2 ------ ---- ------ Operating earnings................................... 88.1 2.5 90.6 Interest expense..................................... (44.0) (0.9)(d) (44.9) Loss on debt redemption.............................. (12.0) 12.0 (e) -- Investment income.................................... 1.3 (0.8)(f) 0.5 ------ ---- ------ Earnings from continuing operations before provision for income taxes................................... 33.4 12.8 46.2 Provision for income taxes........................... 13.8 4.5(g) 18.3 ------ ---- ------ Earnings from continuing operations.................. $ 19.6 $8.3 $ 27.9 ====== ==== ====== Ratio of earnings to fixed charges(m)................ 1.7x 2.0xREPORT

~~HISTORICAL~~Pursuant ~~HISTORICAL~~to ~~CURRENT~~Section CURRENT NORTEK NORTEK HOLDINGS, INC. HOLDINGS, INC. FOR THE FOR THE 2003 PERIOD FROM PERIOD FROM RECAPITALIZATION ACQUISITION PRO FORMA JAN. 1, 2003 TO JAN. 10, 2003 TO PRO FORMA PRO FORMA NORTEK, JAN. 9, 2003 DEC. 31, 2003 ADJUSTMENTS SUBTOTAL ADJUSTMENTS INC. -------------------------------------------------------------------------------------------------------------------------- (dollars in millions) Net sales................... $ 24.9 $1,490.1 $ -- $1,515.0 $ -- $1,515.0 Cost and expenses: Cost of products sold..... 18.6 1,060.0 (0.1)(h) 1,078.5 4.5(a) 1,083.0 Selling, general and administrative expense.... 88.0 261.6 (82.7)(i) 266.9 (4.2)(b) 262.7 Amortization of intangible assets.................... 0.1 9.1 0.2(j) 9.4 4.0(c) 13.4 ~~------~~or ~~-------- ------ -------- ------ -------- 106.7 1,330.7~~ 15(82.6) 1,354.8 4.3 1,359.1 ------ -------- ------ -------- ------ -------- Operating earnings (loss)... (81.8) 159.4 82.6 160.2 (4.3) 155.9 Interest expense............ (1.0) (57.6) 0.1(k) (58.5) (33.6)(d) ~~(92.1)~~of ~~Investment~~the ~~income...........~~Securities ~~0.1~~Exchange ~~1.5~~Act -- 1.6 (1.5)(f) 0.1 ------ -------- ------ -------- ------ -------- Earnings (loss) from continuing operations before provision (benefit) for income taxes.......... (82.7) 103.3 82.7 103.3 (39.4) 63.9 Provision (benefit) for income taxes.............. (21.8) 41.3 22.2(l) 41.7 (13.8)(g) 27.9 ------ -------- ------ -------- ------ -------- Earnings (loss) from continuing operations..... $(60.9) $ 62.0 $ 60.5 $ 61.6 $(25.6) $ 36.0 ====== ======== ====== ======== ====== ======== Ratio of ~~earnings to fixed charges(m)................ -- 2.7x 1.7x~~1934

~~HISTORICAL~~Date CURRENT NORTEK HOLDINGS, INC. FOR THE TWELVE MONTHS ACQUISITION ENDED PRO FORMA PRO FORMA JULY 3, 2004 ADJUSTMENTS NORTEK, INC. ---------------------------------------------------------------------------------------------------- (dollars in millions) Net sales.............................................. $ 1,619.8 $ -- $ 1,619.8 Cost and expenses: Cost of ~~products~~Report ~~sold................................ 1,144.7 1.4~~(a)Date ~~1,146.1 Selling, general and administrative expense.......... 293.9 (5.5)(b) 288.4 Amortization~~ of ~~intangible~~Earliest ~~assets....................~~Event ~~12.1 1.3(c~~Reported): ~~13.4~~August ~~---------- ----- ---------- 1~~19,~~450.7~~ (2.8) 1,447.9 ---------- ----- ---------- Operating earnings..................................... 169.1 2.8 171.9 Interest expense....................................... (72.2) (17.9)(d) (90.1) Loss on debt redemption................................ (12.0) 12.0(e) -- Investment income...................................... 2.2 (1.6)(f) 0.6 ---------- ----- ---------- Earnings from continuing operations before provision for income taxes..................................... 87.1 (4.7) 82.4 Provision for income taxes............................. 35.0 (1.6)(g) 33.4 ---------- ----- ---------- Earnings from continuing operations.................... $ 52.1 $(3.1) $ 49.0 ========== ===== ========== Ratio of earnings to fixed charges(m).................. 2.1x 1.9x2004

~~TWELVE~~Nortek ~~SIX MONTHS YEAR MONTHS ENDED ENDED ENDED JULY 3~~Holdings, ~~2004 DEC~~Inc. 31, 2003 JULY 3, 2004 PRO FORMA PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ----------------------------------------------------------------------------------------------------- (dollars in millions) ADJUSTMENTS RELATED TO THE ACQUISITION: (a) Cost of products sold Amortization of inventory fair value adjustment........ $ -- $ 0.7 $ -- Change in depreciation expense related to property, plant and equipment fair value adjustment and changes in lives............................................. -- 3.8 1.4 ------ ------ ------ $ -- $ 4.5 $ 1.4 ====== ====== ====== (b) Selling, general and administrative expense Elimination of certain contractual management compensation arrangements............................ $ (2.8) $ (4.7) $ (6.0) Additional contractual management fees................. 0.3 0.5 0.5 ------ ------ ------ $ (2.5) $ (4.2) $ (5.5) ====== ====== ====== (c) Amortization of intangible assets Change in amortization expense related to intangible asset fair value adjustment and changes in lives..... $ -- $ 4.0 $ 1.3 ====== ====== ====== (d) Interest expense Interest expense of notes issued in this offering...... $ 27.4 $ 54.9 $ 54.9 Interest expense of new senior secured credit facility............................................. 16.3 32.9 32.8 Deferred financing costs of a bridge facility.......... -- 2.2 -- Reduction in interest expense for debt redemptions..... (42.8) (56.4) (69.8) ------ ------ ------ $ 0.9 $ 33.6 $ 17.9 ====== ====== ====== (e) Loss on debt redemption Elimination of loss on prior debt redemption........... $ 12.0 $ -- $ 12.0 ====== ====== ====== (f) Investment income Reduction in investment income related to a reduction in cash, cash equivalents and marketable securities to fund the Acquisition and related transactions..... $ (0.8) $ (1.5) $ (1.6) ====== ====== ====== (g) Provision (benefit) for income taxes Amortization of inventory fair value adjustment........ $ -- $ (0.3) $ -- Change in depreciation expense......................... -- (1.4) (0.6) Elimination of certain contractual management compensation arrangements............................ 1.0 1.8 2.3 Additional contractual management fees................. (0.1) (0.2) (0.2) Change in intangible amortization expense.............. -- (1.5) (0.5) Changes in interest expense............................ (0.3) (11.7) (6.3) Elimination of loss on prior debt redemption........... 4.2 -- 4.2 Reduction in investment income......................... (0.3) (0.5) (0.5) ------ ------ ------ $ 4.5 $(13.8) $ (1.6) ====== ====== ======

SIX MONTHS TWELVE MONTHS ENDED YEAR ENDED ENDED JULY 3, 2004 DECEMBER 31, 2003 JULY 3, 2004 PRO FORMA PRO FORMA PRO FORMA ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS --------------------------------------------------------------------------------------------------- (~~DOLLARS~~Exact INname ~~MILLIONS) ADJUSTMENTS RELATED TO THE 2003 RECAPITALIZATION: (h) Cost~~ of ~~products~~registrant ~~sold~~as ~~Amortization~~specified of inventory fair value adjustment.................................... $ -- $ (0.1) $ -- ==== ====== ===== (i) Selling, general and administrative expense Elimination of expenses of a supplemental executive retirement plan ("SERP")............ $ -- $ (0.4) $ -- Elimination of a life insurance policy to partially fund expenses related to a SERP..... -- 0.2 -- Curtailment loss related to the termination of a SERP.......................................... -- (70.1) -- Management retention payments................... -- (0.4) -- Insurance costs of recapitalization............. -- (1.2) -- Expenses of Nortek related to the consummation of the recapitalization....................... -- (10.8) -- ---- ------ ----- $ -- $(82.7) $ -- ==== ====== ===== (j) Amortization of intangible assets Change in ~~amortization of intangible assets related to intangible asset fair value adjustment and changes in lives............... $ -- $ 0.2 $ -- ==== ====== ===== (k~~charter) Interest expense Change in interest expense related to fair value adjustments to debt........................... $ -- $ (0.1) $ -- ==== ====== ===== (l) Provision (benefit) for income taxes Elimination of expenses of a SERP............... $ -- $ 0.1 $ -- Change in interest expense...................... -- 0.1 -- Curtailment loss related to the termination of a SERP.......................................... -- 21.3 -- Management retention payments................... -- 0.1 -- Insurance costs of recapitalization............. -- 0.4 -- Expenses of Nortek related to the consummation of the recapitalization....................... -- 0.2 -- ---- ------ ----- $ -- $ 22.2 $ -- ==== ====== =====

Delaware	1-6112	16-1638891
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

50 Kennedy Plaza, Providence, Rhode Island	02903-2360
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (401) 751-1600

____________________________________________________________________________________________________________________________________________________________

Item 5. OTHER EVENTS AND REGULATION FD DISCLOSURE

On August 17, 2004, Nortek Holdings, Inc. ("Nortek Holdings") and its wholly-owned subsidiary, Nortek, Inc. ("Nortek"), publicly announced that they have extended the expiration date for Nortek Holdings' previously announced tender offer to purchase for cash all of its outstanding 10% Senior Discount Notes due 2011 and Nortek's previously announced tender offers to purchase for cash all of its outstanding 9.875% Senior Subordinated Notes due June 15, 2011 and Senior Floating Rate Notes due 2010 from 9:00 a.m., New York City time, on August 17, 2004 until 9:00 a.m., New York City time, on August 27, 2004.

Item 7. FINANCIAL STATEMENTS AND EXHIBITS

99.1 Press release, dated August 17, 2004.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NORTEK HOLDINGS, INC.

By: /s/ Edward J. Cooney

Name: Edward J. Cooney

Title: Vice President and Treasurer

Date: August 19, 2004

EXHIBIT INDEX

Exhibit No.		Description of Exhibits

99.1		Press release, dated August 17, 2004.

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