Investor Relations| FORBES RANKS P&F INDUSTRIES 161 OF BEST SMALL COMPANIES IN AMERICA AND AMONG 10 FEATURED VALUE PLAYS

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

FORBES RANKS P&F INDUSTRIES 161 OF BEST SMALL COMPANIES IN AMERICA AND AMONG 10 FEATURED VALUE PLAYS

FARMINGDALE, NY, OCTOBER 24, 2000 - P & F Industries, Inc. (Nasdaq: PFIN) , has been ranked number 161 in the Forbes annual list of the 200 Best Small Companies in America and among 10 value play investment ideas. The list of 200 Best Small Companies in America is reported in the October 30th issue, on newsstands today.

According to Forbes, companies must clear a series of tough hurdles in order to make the Forbes 200 Best list, including five-year sales and earnings-per-share (EPS) growth rates of at least 5%. In addition, net income must have topped $1 million during the past four quarters. Those that made this year's list average a five-year return on equity of 18.7%, a 12-month sales growth of 44.4% and a 12-month EPS growth of 76.9%. P&F Industries was able to achieve this recognition through solid performance in each category. Forbes reported P&F Industries' last 12 months' sales growth at 27% and EPS at 25%. Return on equity for the past twelve months was reported at 16%.

Richard Horowitz, Chairman of the Board, President and CEO, stated, "We are very pleased to be identified by Forbes as one of the best small companies in America. To be featured in a publication as prestigious as Forbes is truly an exciting event. Their selection criteria and evaluation methodology are very comprehensive. P&F's focus on quality and customer service over the years has served us well and we look forward to maintaining the loyalty of our customers as we continue to grow our business."

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, 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 performance for the year 2000, 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 2000 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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