Investor Relations| P&F INDUSTRIES REPORTS THIRD QUARTER 2002 RESULTS

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Lippert/Heilshorn & Assoc., Inc.
John Nesbett
Investors Relations
212-838-3777
www.lhai.com

P&F INDUSTRIES REPORTS THIRD QUARTER 2002 RESULTS

FARMINGDALE, N.Y., Nov. 12, 2002 - P&F Industries, Inc. (Nasdaq NM: PFIN), today announced results from operations for the third quarter ended September 30, 2002.

Revenues for the third quarter of 2002 increased 28.2% to $21.1 million, compared to $16.5 million for the third quarter of 2001. Net income for the third quarter of 2002 increased 59.1% to $777,000, compared to $488,000 for the third quarter of 2001. Earnings per share on a fully diluted basis increased to $0.22 for the third quarter of 2002, from $0.13 for the same period in the prior year. The primary reasons for the increases were the acquisition of Nationwide Industries, Inc. on May 3, 2002 and increased revenues at Florida Pneumatic.

Revenues for the nine months ended September 30, 2002 increased 13.4% to $56.8 million, from $50.1 million for the comparable period of 2001. Excluding the one-time after-tax adjustment to earnings of $3.2 million during the second quarter of 2002 that resulted from the impairment of the goodwill associated with the 1998 acquisition of Green Manufacturing, net income for the nine months ended September 30, 2002 increased 71.4% to $2.3 million, or diluted earnings per share of $0.64, compared to $1.3 million, or diluted earnings per share of $0.37, for the nine months ended September 30, 2001. After giving effect to the charge for the goodwill write-down, the net loss for the nine months ended September 30, 2002 was $949,000, or a diluted loss per share of $0.26.

Florida Pneumatic?s revenues for the third quarter of 2002 increased 22.8% to $11.2 million, from $9.1 million for the comparable period of 2001, due primarily to promotions at two major customers and increased sales through catalogue customers. These increases were partially offset by reduced non-promotional sales to one of these customers and lower commission revenues. Gross margins for the third quarter of 2002 decreased to 34.0%, from 40.0% for the third quarter of 2001, due primarily to the low-margin promotional sales noted above, which was partially offset by a weaker yen and improved factory efficiencies.

Richard Horowitz, Chairman of the Board, President and Chief Executive Officer of P&F Industries, Inc., stated, ?Florida Pneumatic continues to perform well in this uncertain economy. Placement of our products at a major customer was recently improved, providing us with an opportunity to increase future revenues. In addition, we have reduced costs on products manufactured in our Jupiter, Florida facility by $300,000 year-to-date, through improved manufacturing techniques.?

At P&F?s hardware group, which includes Franklin Manufacturing and Nationwide Industries, revenues for the third quarter of 2002 increased 278%, from $1.2 million to $4.6 million, due primarily to the acquisition of Nationwide Industries and strong results at Franklin, which benefited from two new customers late in 2001. Margins have also improved from 26.1% to 32.1%, due primarily to the addition of Nationwide?s higher margin OEM business, which is now included in the product mix.

Commenting on the hardware group?s performance, Mr. Horowitz said, ?We continue to be pleased with the acquisition of Nationwide Industries and continue to work to expand Nationwide?s geographic presence from its current Southeastern United States concentration. Additionally, we continue to develop cross-selling opportunities between Nationwide and Franklin and hope to further increase sales from this effort in 2003.?

Revenues at Green Manufacturing for the third quarter of 2002 decreased 15.1%, from $3.5 million to $3.0 million, due primarily to the phasing out of a major wrecker customer in the first quarter of 2002 and continued depressed market conditions, which was partially offset by increased sales in the access and agricultural product lines. The loss in volume reduced gross margins from 8.4% to 8.1%.

Mr. Horowitz continued, ?Although the cylinder market remains weak, there is some cause for optimism. Our heavy prototyping activity has helped Green develop several substantial accounts that we expect to begin to ship near the end of the year. Green also has purchase commitments from several large manufacturers of log splitters, which is a new application for our product, beginning with the Spring 2003 selling season. Finally, our access product line for the petro-chemical and bulk-storage industries is up 32.7% for 2002, and we have recently entered into an agreement with a large manufacturer of complementary products to sell Green?s access equipment through its extensive national sales force.?

Heating sales at Embassy for the third quarter of 2002 decreased 13.0%, from $2.6 million to $2.2 million, due primarily to weakness in the baseboard market and the loss of a major customer earlier in the year. Gross margins decreased from 31.1% to 29.8%, due primarily to the decrease in revenues, which reduced coverage of fixed expenses, as well as to a change in product mix.

Mr. Horowitz went on to say, ?We have further developed our internal capabilities in the radiant panel market. This has allowed us to market this product more aggressively as we now control the production process. However, the start-up costs have been substantial in relation to the small, but growing, revenues in the product line. We are viewing this opportunity from a long-term perspective, with the hope that it will be a meaningful contributor to profits in the future. Furthermore, in the Spring of 2003, we will be introducing a substantially improved radiant tubing that will be easier to install than the current product.?

Concerning anticipated fourth quarter performance, Mr. Horowitz stated, ?Revenues at Florida Pneumatic are expected to be essentially unchanged compared to the fourth quarter of 2001. We expect the hardware group?s revenues for the fourth quarter of 2002 to increase by approximately 200% compared to the same period of 2001, due primarily to the acquisition of Nationwide. We expect revenues at Embassy?s heating business to decrease by approximately 5%, as weakness in the housing market in the Northeast and the loss of a large account earlier in 2002 will continue to impact results. Revenues at Green are expected to decrease 10%-20%, as the loss of the major customer early in 2002 will continue to have a negative impact.?

Mr. Horowitz concluded, ?Gross margins are expected to be between 30% and 32% for the fourth quarter of 2002, compared to 28% for the fourth quarter of 2001. Improvement in Florida Pneumatic?s margins due to the weaker yen and cost reductions will contribute substantially to this, as will the strong margins of our new and larger hardware group. Additionally, we expect fourth quarter SG&A to increase to approximately 25% of revenues, up from approximately 23% for the fourth quarter of 2001, due primarily to increased accounting-related expenses and the costs of complying with recently-imposed Securities and Exchange Commission requirements, as well as increases in compensation tied to improved profitability. We also expect that interest expense for the quarter will be higher than in 2001, due primarily to the Nationwide acquisition debt and the mortgage for the related real estate that was purchased in a separate transaction. Overall, we expect profit to increase by 5%-10% over the fourth quarter of 2001.?

P&F Industries has scheduled a conference call for today at 11:30 a.m. Eastern Time to discuss its third quarter 2002 results. Investors and other interested parties can listen to the call by dialing 703-871-3086 or via a live webcast accessible at www.pfina.com. To listen, please register and download audio software at the site at least 15 minutes prior to the call. The webcast will be archived on P&F?s Web site and a telephone replay of the call will be available for 24 hours beginning at 2:00 p.m. Eastern Time, Nov. 12, 2002, at 888-266-2081 or 703-925-2533, passcode # 6286592.

P&F Industries, Inc., through its four wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation, Green Manufacturing, Inc., Embassy Industries, Inc. and Countrywide Hardware, Inc., manufactures and/or imports air-powered tools, hydraulic cylinders, baseboard and radiant heating products, and residential and commercial hardware. 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. CONSOLIDATED BALANCE SHEETS, STATEMENTS OF OPERATIONS & EARNINGS (LOSS) PER SHARE (PDF)

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