Nortek Evaluates Capital Structure and Debt Restructuring

Nortek and its parent company NTK Holdings are working with financial and legal advisors to analyze their capital structures and have had preliminary discussions with an informal bondholder committee regarding potential equity and debt restructuring alternatives. The company is considering a negotiated transaction or a pre-packaged plan of reorganization under Chapter 11.

“The Company announced on June 17, 2009 that it had retained financial and legal advisors (combined, the “Advisors”) to assist NTK Holdings and Nortek in the analysis of their capital structures in light of the current economic conditions. NTK Holdings, Nortek and the Advisors have had preliminary discussions and outlined preliminary proposals as to potential equity and debt restructuring alternatives for NTK Holdings and Nortek with an informal committee comprised of certain holders of NTK Holdings’ 10 ¾% Senior Discount Notes due 2014 and Nortek’s 10% Senior Secured Notes due 2013 and 8 ½% Senior Subordinated Notes due 2014 (the “Bondholder Committee”).”

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