Investor Relations| P & F INDUSTRIES, INC. ACQUIRES NEW PRODUCT LINE

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Lippert/Heilshorn & Assoc., Inc.
Harriet Fried/Klea Theoharis
Investors Relations
212-838-3777
klea@lhai.com or www.lhai.com

P & F INDUSTRIES, INC. ACQUIRES NEW PRODUCT LINE

Transaction Will Add Over $700,000 In Annual Sales
FARMINGDALE, N.Y. - January 23, 2002 - P&F Industries, Inc., (Nasdaq NM: PFIN), today announced that its wholly-owned subsidiary, Green Manufacturing, Inc., has purchased Benko Products' access equipment product line, which is sold under the G-RAFF® name. The line is expected to add over $700,000 to Green's annual sales and to have an immediate positive impact on profits.

G-RAFF's equipment, which includes metal stairways, bridges and platforms, enables personnel at petrochemical plants, bulk storage depots and rail yards to safely access the various locations within these facilities. This transaction will give Green the second largest share in the $25 million access/fall protection equipment market.

Richard Horowitz, Chairman of the Board, President and Chief Executive Officer of P&F, stated, "The acquisition of the G-RAFF product line should provide a modest increase in revenues. We expect, however, that it will provide a proportionately larger increase in profits. The G-RAFF product line is an excellent addition to Green's product offerings and an efficient use of our existing manufacturing facilities. We have been a vendor to Benko for over fifteen years and Green's finished product currently represents a portion of Benko's final product, primarily in its platform systems. For this reason, the integration of the entire manufacturing process into our Bowling Green, Ohio facility is expected to be a smooth transition."

Mr. Horowitz continued, "The dry bulk handling industry is growing at 5% per year and represents a new market for us. We believe that G-RAFF's brand recognition enables us to secure a strong foothold in this important product category."

P&F Industries, Inc., through its three wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation, Green Manufacturing, Inc. and Embassy Industries, Inc., manufactures and/or imports air-powered tools, hydraulic cylinders and baseboard and radiant heating products. The Company also imports various security hardware items and compressor air filters, markets a line of pipe-cutting and threading tools and makes heavy-duty pipe wrenches. P&F's products are sold under their own trademarks, as well as under the private labels of major manufacturers and retailers.

This is a "Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those related to the Company's future performance, are based upon the Company's historical performance and on current plans, estimates and expectations. They are subject to various risks and uncertainties, including, but not limited to, the impact of competition, product demand and pricing. These risks could cause the Company's actual results for the 2002 fiscal year and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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