GRIFFON CORPORATION ANNOUNCES OPERATING RESULTS FOR THE FIRST QUARTER OF FISCAL 2001

Jericho, New York, February 7, 2001 — Griffon Corporation (NYSE: GFF) today reported operating results for the first quarter of fiscal 2001, ended December 31, 2000.

Net sales for the first quarter increased to $288,195,000 compared to $280,761,000 for the first quarter of fiscal 2000. The sales growth came from substantial improvement in specialty plastic films’ operations due to increased domestic volume and from Telephonics, the company’s electronic information and communication systems segment. These sales gains were partly offset by decreased sales in the garage doors and installation services segments, which were negatively impacted during the quarter by the effects of a slowing economy, competitive markets and harsh winter weather conditions.

Pretax income for the quarter rose to $14,987,000 compared to $14,350,000 last year. Income for the quarter before minority interest was $8,842,000 compared to $8,650,000 for the first quarter of last year. During last year’s first quarter, the company implemented a required change in accounting principle to write-off costs that were previously capitalized by its 60%-owned joint venture in connection with start-up activities and the implementation of additional production capacity. Income before the cumulative effect of the change in accounting principle was $7,503,000 compared to $9,732,000 for the first quarter of last year which included a credit of $2,116,000 representing the minority interest’s share of the change in accounting principle.

Diluted and basic earnings per share for the current quarter were both $.25 compared to $.32 before the cumulative effect of the change in accounting principle last year. Diluted and basic net income per share for the current quarter were both $.25 compared to $.15 last year.

The specialty plastic films segment experienced substantial earnings growth in the first quarter of fiscal 2001. Increased volume and manufacturing efficiencies helped drive the major improvement in both the segment’s domestic operations and in Europe. The Company anticipates that specialty plastic films will further improve profitability through additional sales growth and increased efficiencies. In addition, further global expansion is planned with a view towards an investment in South America during 2001.

Telephonics also achieved higher profits compared to last year due to the sales increase, partly offset by costs associated with its previously announced technology initiatives. These costs, which are expected to total approximately $5 million for the year, aggregated less than $500,000 during the first quarter as the programs commenced. Telephonics’ core business remains strong, and though near-term earnings will be impacted by the increased research and development activities, the company is optimistic that this segment will generate increased sales and orders for the year.

Building products reflected decreased earnings principally due to the effect of lower sales, partially offset by cost reduction programs. The garage door segment’s operating results included a loss of approximately $1,200,000 from a commercial door product line for which strategic alternatives are being explored. The outlook for building products’ near-term prospects remains guarded while cost containment steps are being taken to enhance operating results when its markets improve.

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 a 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, competitive factors and pricing pressures, 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.