Griffon Reports Results for First Quarter

Griffon Corporation Reports Operating Results for the First Quarter of Fiscal 1999

Jericho, New York, February 4, 1999—Griffon Corporation (NYSE: GFF) today reported operating results for the first quarter of fiscal 1999, ended December 31, 1998.

Net sales for the quarter were $258,557,000 compared to $229,031,000 for the first quarter of fiscal 1998. Net income for the quarter was $7,152,000 compared to $8,515,000 for the first quarter of last year. Diluted earnings per share for the quarter were $.23 compared to $.27 for the first quarter of last year. Basic earnings per share for the first quarter were $.24 compared to $.28 a year earlier.

The growth in sales came from all three of the company’s business segments; building products, specialty plastic films and electronic information and communication systems. Operations of the specialty plastic films and electronic information and communication systems segments each reflected slight improvement compared to the first quarter of last fiscal year. This improvement was more than offset by reduced earnings of the garage door business which continues to be impacted by competitive pricing pressures and capacity constraints.

Griffon Corporation—

is a leading manufacturer and marketer of residential garage doors, as well as a major supplier of commercial and industrial garage doors and a range of related products and services for the home building and replacement markets;
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: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements, including the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; and other risks and uncertainties.

Griffon Corporation Operating Highlights (Unaudited)
	For the Three Months Ended December 31,
	1998	1997
Net sales	$258,557,000	$229,031,000

Operating income	$ 12,792,000	$ 14,305,000
Interest expense, net and other	(1,440,000)	(789,000)

Income before income taxes	11,352,000	13,516,000
Provision for income taxes	4,200,000	5,001,000
Net income	$ 7,152,000	$ 8,515,000
Net income per share of common stock:
Basic	$.24	$.28
Diluted	$.23	$.27
Weighted average number of shares used in the calculation of per share results:
Basic	30,377,000	30,477,000
Diluted	30,596,000	31,408,000