Griffon Operating Results for the Fourth Quarter

Griffon Corporation Announces Operating Results for the Fourth Quarter and Fiscal Year Ended September 30, 1998

Jericho, New York, November 5, 1998—Griffon Corporation (NYSE: GFF) today reported operating results for the fourth quarter and fiscal year ended September 30, 1998.

Net sales for the fourth quarter increased to $256,577,000 compared to $234,556,000 for the fourth quarter of fiscal 1997. Net income for the quarter was $10,935,000 compared to $12,379,000 for the fourth quarter of last year. Diluted earnings per share were $.35 compared to $.40 for the fourth quarter of last year. Basic earnings per share were $.36 compared to $.41 a year earlier.

The growth in sales for the quarter came from the building products segment and also from the specialty plastic films segment which had a significant increase in earnings due to new programs and the acquisition of a plastic packaging manufacturer in Germany. The improved operating performance of this segment is expected to continue into fiscal 1999. Earnings in the building products business were reduced from last year due to capacity constraints and competitive pricing pressure. Additional capacity is being implemented and should be in place early in 1999.

Net sales for the fiscal year ended September 30, 1998 were $914,874,000 compared to $770,227,000 for fiscal 1997. Net income for fiscal 1998 was $29,321,000 compared to $33,164,000 last year. Diluted earnings per share for this fiscal year were $.94 compared to $1.06 for last fiscal year. Basic earnings per share for fiscal 1998 were $.96 compared to $1.12 for fiscal 1997.

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
	For the Three Months Ended September 30,		For the Fiscal Years Ended September 30,
	1998	1997	1998	1997
Net sales	$256,577,000	$234,556,000	$914,874,000	$770,227,000

Operating income	$ 18,036,000	$ 19,978,000	$ 49,433,000	$ 54,432,000
Interest expense, net and other	(679,000)	(329,000)	(2,891,000)	(1,399,000)

Income before income taxes	17,357,000	19,649,000	46,542,000	53,033,000
Provision for income taxes	6,422,000	7,270,000	17,221,000	19,869,000
Net income	$ 10,935,000	$ 12,379,000	$ 29,321,000	$ 33,164,000
Net income per share of common stock:
Basic	$.36	$.41	$.96	$1.12
Diluted	$.35	$.40	$.94	$1.06
Weighted average number of shares used in the calculation of per share results:
Basic	30,611,000	30,235,000	30,553,000	29,664,000
Diluted	31,027,000	31,260,000	31,316,000	31,231,000