Investor Relations| P & F INDUSTRIES ANNOUNCES $27 MILLION BANK FACILITY

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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 ANNOUNCES $27 MILLION BANK FACILITY

FUNDING FROM EUROPEAN AMERICAN BANK
FARMINGDALE, NY, JULY 28, 1998 , P & F Industries, Inc. (Nasdaq NM: PFINA) - today announced the signing of a $27 million credit facility agreement with European American Bank (EAB). EAB is a wholly-owned subsidiary of ABN-AMRO N. V., a large bank holding company based in Holland. The three-part facility will provide for letters of credit, bankers acceptances and working capital loans, a foreign exchange line of credit and an acquisition line. This line replaces the agreement the company had with Hong Kong and Shanghai Banking Corp. and represents an increase of 93% in available credit and an improvement in borrowing rates.

P & F will use part of the credit line to accelerate the significant factory improvement programs they have already begun. These programs include the integration of some formerly outsourced manufacturing processes into Embassy Industries' factory and the reconfiguration of Florida Pneumatic Manufacturing Corporation's warehouse facility to add a substantial amount of usable square footage. In addition, the EAB line will help fund P & F's growth both internally and externally, as it acquires new companies to complement its two wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation and Embassy Industries, Inc.

Richard A. Horowitz, Chairman, President and C.E.O. of P&F said, "EAB has committed to being a genuine partner in our endeavors. We have often stated our strategy of growth through continuous improvements in our existing operations and the acquisition of companies that will extend our existing product lines and/or provide us with distribution into new markets. We will now have extensive resources to achieve our goals."

Mr. Horowitz added, "Although we have had six consecutive years of earnings growth and have excellent relationships with major customers, we look forward to an even brighter future with EAB working alongside us."

P & F Industries, Inc., through its two wholly-owned subsidiaries manufactures and imports air-powered tools, 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, such as Tradesman and Franklin, as well as under the private labels of major retailers.

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