Investor Relations| P&F INDUSTRIES REPORTS IMPROVED FOURTH-QUARTER AND YEAR-END 2002 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 REPORTS IMPROVED FOURTH-QUARTER AND YEAR-END 2002 RESULTS

FARMINGDALE, N.Y.--March 27, 2003--P&F Industries, Inc. (Nasdaq NM: PFIN), today announced results from operations for the fourth quarter and year ended December 31, 2002.

Revenues for the fourth quarter of 2002 increased 19.4% to $20.4 million, compared to $17.1 million for the fourth quarter of 2001. Net income for the fourth quarter of 2002 was $572,684, compared to $476,884 for the fourth quarter of 2001. Diluted earnings per share for the fourth quarter of 2002 were $0.16, compared to $0.13 for the fourth quarter of 2001.

Revenues for the 12 months ended December 31, 2002 increased 14.9% to $77.2 million, compared to $67.2 million for the 12 months ended December 31, 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, Inc., net income for the 12 months ended December 31, 2002 was $2.9 million, or $0.80 per share, compared to $1.8 million, or $0.50 per share, for the 12 months ended December 31, 2001, both per share numbers being calculated on a diluted basis. After giving effect to the charge for the goodwill write-down, the net loss for the year was $376,267, or $0.11 per share, on a diluted basis.

"Overall performance for the quarter was consistent with our expectations, with the exception of promotional sales at Florida Pneumatic, which were better than we had anticipated," said P&F Chairman of the Board, President and Chief Executive Officer Richard Horowitz. "Strong improvements in results at Florida Pneumatic and Countrywide Hardware, which now includes both Franklin Manufacturing and Nationwide Industries, more than offset anticipated weakness at both Embassy Industries and Green Manufacturing."

Florida Pneumatic's revenues for the fourth quarter of 2002 increased 20.5% to $11.5 million, compared to $9.6 million for the fourth quarter of 2001, due primarily to major fall promotions at Florida Pneumatic's two largest customers, the effect of which was partially offset by price concessions to one of these major customers and lower commission revenue. Gross profit margin for the fourth quarter of 2002 decreased from 31.2% to 30.1%, due primarily to the special promotions noted above, which were sold at substantially discounted prices, and a stronger yen. Mr. Horowitz stated, "Operating profit at Florida Pneumatic increased primarily due to the subsidiary's strong revenue performance. Although a portion of the revenue increase was at discounted prices, the greater absorption of fixed expenses resulted in an overall profit improvement."

At Countrywide Hardware, revenues for the fourth quarter of 2002 increased 202% to $3.4 million, compared to $1.1 million for the fourth quarter of 2001, due primarily to the Nationwide acquisition, which more than offset a slight revenue decline at Franklin. Gross profit margin for the fourth quarter of 2002 increased from 31.4% to 37.2%, due primarily to the inclusion of the higher-margin Nationwide business.

Mr. Horowitz commented, "Countrywide Hardware, as our hardware group is now called, will be introducing several new high-margin products in the fencing and gate market in the second quarter of this year that we expect will make a material contribution to profits in 2003."

Green Manufacturing's revenues for the fourth quarter of 2002 decreased 19.7% to $2.6 million, compared to $3.3 million for the fourth quarter of 2001, due primarily to the loss of a major wrecker customer and an aerial-lift customer in the first quarter of 2002. The loss of these customers was partially offset by increased sales in the access division, which benefited from a new strategic relationship with a large manufacturers' representative organization, as well as the acquisition of a small product line in the first quarter of 2002. A change in product mix and the continuation of cost-saving initiatives helped Green improve its gross profit margins, despite the decrease in sales, to 14.3% for the fourth quarter of 2002 from 10.3% for the fourth quarter of 2001.

"At Green, approximately $2 million in revenues was generated in 2002 from new cylinder customers as well as from new business at existing cylinder customers," Mr. Horowitz added. "Although this did not fully offset the lost accounts, we believe that our continuing marketing initiatives will eventually return Green to profitability. We also have commitments from several large manufacturers of residential log splitters to begin using our cylinders and other related products for the upcoming season."

Embassy's revenues from heating products for the fourth quarter of 2002 decreased 9.5% to $2.8 million, compared to $3.1 million for the fourth quarter of 2002, due primarily to the loss of a significant customer in the first quarter of 2002, which was partially offset by increased sales of boilers. Gross profit margin for the fourth quarter of 2002 decreased from 35.2% to 32.2%, due to lower production activity that resulted in lower absorption of fixed expenses and, to a lesser extent, increased manufacturing costs related to the start-up of a new commercial line of products.

"At Embassy, we will be introducing a higher-BTU-range boiler and a new and improved radiant tubing by mid-year 2003," commented Mr. Horowitz.

Concerning anticipated performance, Mr. Horowitz stated, "For the first quarter of 2003, we expect overall results to improve. We expect sales at Florida Pneumatic to increase 5%-10%, due primarily to increased sales at one major OEM customer and general improvement in several smaller market segments. Sales at Countrywide are expected to increase between 150%-175% as a result of the inclusion of Nationwide's sales in the first quarter for the first time as noted above. Sales at Green are expected to decrease 10%-15% due to the discontinuation of business with two major accounts at the end of the first quarter of 2002. Further, we expect weakness in the capital goods market to continue to impact cylinder orders. Sales at Embassy's heating unit are expected to decrease 5%-10% due to decreases in both baseboard and radiant sales."

Mr. Horowitz continued, "We expect gross profits overall to be between 29% and 31%, which is approximately the same as last year, as the impact of Nationwide's favorable margins should be offset by lower margins at Florida Pneumatic due to the price concessions given to a major customer at the end of 2002. Selling, general and administrative expenses as a percentage of sales will continue to benefit from the larger revenue base. However, the impact of the higher costs associated with complying with additional reporting rules for public companies will be a primary contributor to increasing these costs. We also expect a substantial increase in interest expense due to the debt assumed as a result of the acquisition of Nationwide in the second quarter of 2002. As a result, we expect overall profits to increase 10%-20% from the first quarter of 2002. Although we do not anticipate an improvement in the economy in the near term, we believe that our recent acquisition, marketing activities and cost-containment programs will help P&F to increase profits."

P&F Industries has scheduled a conference call for today at 11:00 a.m. Eastern time to discuss its fourth quarter and year-end results. Investors and other interested parties can listen to the call by dialing 703-871-3025 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 through March 28 beginning at 2:00 p.m. Eastern time on March 27, at 888-266-2081 or 703-925-2533, passcode # 6457228.

P&F Industries, Inc., through its four wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation, Countrywide Hardware, Inc., Green Manufacturing Inc. and Embassy Industries 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, which 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 2003 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 INCOME (PDF)

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