GRIFFON CORPORATION ANNOUNCES OPERATING RESULTS FOR THE FIRST QUARTER OF FISCAL 2007 AND ADDITIONAL AWARDS FROM SYRACUSE RESEARCH CORPORATION – AWARDS TO DATE APPROACH $330 MILLION

Jericho, New York, February 2, 2007 – Griffon Corporation (NYSE:GFF) today reported operating results for the first quarter of fiscal 2007, ended December 31, 2006.  Net sales for the quarter increased to $434,315,000 up from $358,524,000 for the first quarter of fiscal 2006.  Income before income taxes was $14,358,000 compared to $10,793,000 last year.  Net income was $8,465,000 in the current quarter compared to $6,776,000 last year.  Diluted earnings per share for the quarter was $.27 compared to $.22 in last year’s first quarter.

The sales increase in the first quarter was primarily attributable to the electronic information and communication systems segment (Telephonics), which achieved significant revenue growth, primarily as a result of the Syracuse Research Corporation contract. The Company announced incremental awards of an additional $23.3 Million in funding from SRCTec, Inc. (a wholly owned subsidiary of SRC) for turnkey production of a Counter Improvised Explosive Device. Telephonics has now received approximately $300 million of funding for the program and when all releases are definitized total value is expected to reach over $330 million.  All awards should be complete on or before the fourth quarter of fiscal year 2007. SRCTec is a high-tech manufacturing company providing integrated solutions, program management, full life-cycle support, and state-of-the-art products to a broad range of customers. SRC is a national, independent, not-for-profit trusted advisor that researches next generation challenges and develops innovative solutions in the areas of defense, environment, and intelligence.

 “We continue to collaborate with our customer, SRCTec, to ensure the success of the production aspect of this program critical to the force protection of our troops. The excellent performance and sustained achievements of this effort are unprecedented.” emphasized Mr. Donald C. Pastor, President Telephonics Electronic Systems. “We are excited about the future prospects regarding SRCTec’s leadership in technology and our combined success in the execution of the production requirements.”

The decline in revenue in the garage doors and installation services segments is primarily attributable to the slowdown in the housing market, both new home construction and the resale market. The increase in revenue in the specialty plastic films segment is attributable to higher unit volume and increased revenue to pass along the higher cost of resin, somewhat offset by selling price decreases.

The overall increase in operating income in the first quarter was reflective of the increased operating income at Telephonics. The decline in operating income in the garage doors and installation services segments is primarily attributable to the decline in sales volume. The increase in operating income in the specialty plastic films segment is attributable to the favorable impact of resin costs and unit volume increases somewhat offset by selling price decreases and production inefficiencies.

Cash flow from operations was $34 million for the quarter, which funded capital expenditures of $10.1 million. Also, during the quarter $1.1 million was used to acquire approximately 48,000 shares of the company's common stock under its buyback program.  Additional purchases will be made from time to time, depending on market conditions, at prices deemed appropriate by management.

Griffon Corporation

• is a leading manufacturer and marketer of residential, commercial and industrial garage doors sold to professional installing dealers and major home center retail chains;
• installs and services specialty building products and systems, primarily garage doors, openers, fireplaces and cabinets, for new construction markets through a substantial network of operations located throughout the country;
• is an international leader in the development and production of embossed and laminated specialty plastic films used in the baby diaper, feminine napkin, adult incontinent, surgical and patient care markets; and
• develops and manufactures information and communication systems for government and commercial markets worldwide.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation statements regarding the company’s financial position, business strategy and the plans and objectives of the company’s management for future operations, are forward-looking statements. When used in this release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions, as they relate to the company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company’s management, as well as assumptions made by and information currently available to the company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, business and economic conditions, results of integrating acquired businesses into existing operations, competitive factors and pricing pressures for resin and steel and capacity and supply constraints. Such statements reflect the views of the company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the company. Readers are cautioned not to place undue reliance on these forward-looking statements. The company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.