Investor Relations| P & F INDUSTRIES, INC. REPORTS RECORD FIRST QUARTER FINANCIAL RESULTS

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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. REPORTS RECORD FIRST QUARTER FINANCIAL RESULTS

FUNDING FROM EUROPEAN AMERICAN BANK
FARMINGDALE, NY, MAY 6, 1998 - P & F Industries, Inc. (Nasdaq NM: PFINA), today announced results of operations for the first quarter ended March 31, 1998.

Revenues for the first quarter of 1998 increased 36%, from $9,217,808 to $12,541,124, while net income increased 116%, from $361,474 to $780,869. Diluted earnings per share rose from $.10 to $.22.

Richard A. Horowitz, Chairman of the Board, President and Chief Executive Officer of P & F, stated, "We are very pleased to report our eighth consecutive year of increased first quarter net income. During the quarter, our Florida Pneumatic subsidiary launched a major new product line. In addition, Florida Pneumatic further strengthened its presence in the industrial sector, gaining market share vis-a-vis its major competitors."

"Also, sales of our radiant heating line sold through our Embassy Industries subsidiary continued their strong growth, increasing 104% compared with the first quarter of 1997. Although we do not expect this exceptional pace to continue, we view this growth as confirmation of our decision to make substantial investments in capital equipment, marketing dollars and human resources in this area."

In conclusion, Mr. Horowitz stated, "All of P & F's strategic business units are making significant contributions to overall corporate profitability. This profitability, with its resulting cash flows, provides many viable choices for reinvestment in our existing business units as well as the opportunity to make investments outside of the company."

P & F Industries, Inc., through its two wholly-owned subsidiaries, manufactures and imports air-powered tools 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 manufactures heavy- duty pipe wrenches.

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