Nortek Launches New "Core Brands" Group

Providence, RI, August 27, 2012 – Nortek, Inc. (Nasdaq: NTK), a global diversified company with leading brands and innovative, technology-driven products and solutions for residential and commercial applications, today announced the formation of Core Brands, a new group that combines the product and marketing strengths of 10 of the company’s formerly independent audio, power management and control brands operating within its Technology Solutions segment.

Including Nortek’s Aton®, BlueBOLT®, Elan®, Furman®, Niles®, Panamax®, Proficient®, SpeakerCraft®, Sunfire® and Xantech® brands, Core Brands has more than 190 years of combined experience in the residential, commercial and professional markets and over 4,300 direct customer accounts in multiple distribution channels in the U.S. and worldwide.

Core Brands will be based in Petaluma, Calif., with offices in Carlsbad and Riverside, Calif., and Marblehead, Mass. Bill Pollock, who has served as president of Panamax, will lead Core Brands. Dave Keller, vice president of sales and marketing for Panamax/Furman, will handle worldwide sales. Keith Marshall, president of SpeakerCraft/Proficient, will be in charge of channel management, and Paul Starkey, president of Elan, will lead marketing for all brands.

“The formation of Core Brands reflects the strategic refocusing currently taking place as we pursue new markets and new opportunities to serve our dealers, channel partners and end users,” said Nortek President and Chief Executive Officer Michael J. Clarke. “We expect that combining the unique capabilities of each of these 10 formidable brands will deliver new and powerful benefits they can only achieve as a group.”

“Operating as Core Brands will enable us to leverage economies of scale while strengthening our ability to invest in launching innovative technologies and a range of new marketing programs designed to increase the value, clarity and acceptance of each brand,” said Sean Burke, group president of Nortek’s Technology Solutions segment. “In addition, combining these market leading brands will allow us to deliver more localized and responsive factory training and product support expertise. These initiatives should position the brands not only to improve their business performance, but also to increase their penetration of un-served and underserved market segments during a period of generally improving business conditions in their respective distribution channels.”

About Nortek

Nortek* is a global, diversified company whose many market-leading brands deliver broad capabilities and a wide array of innovative, technology-driven products and solutions for lifestyle improvement at home and at work. The Company’s broad array of offerings includes audio/video and security solutions, digital display mounting solutions, ventilation products such as range hoods and bathroom fans, heating and cooling products, and air management systems.

*As used herein, the term "Nortek" refers to Nortek, Inc., together with its subsidiaries, unless the context indicates otherwise.  This term is used for convenience only and is not intended as a precise description of any of the separate corporations, each of which manages its own affairs.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "intend," "may," "plan," "potential," "project," "should," or "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on Nortek's current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors impacting such forward-looking statements include the availability and cost of certain raw materials (including, among others, steel, copper, packaging materials, plastics, resins, glass, wood and aluminum) and purchased components, freight costs, the level of domestic and foreign construction and remodeling activity affecting residential and commercial markets, interest rates, employment levels, inflation, foreign currency fluctuations, consumer spending levels, exposure to foreign economies, the rate of sales growth, prices, and product and warranty liability claims. Nortek undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the reports and filings of Nortek with the Securities and Exchange Commission including the description of "risk factors" set forth under IA in our annual report on Form 10-K, as updated on subsequent quarterly reports on Form 10-Q.

Ken Johnsen Appointed to Lead International Sales Training for The AVC Group

Adding strength to its international sales support programs, The AVC Group today announced the promotion of Niles® Western Regional Sales Manager Kenneth Johnsen to the newly created position of International Training Manager. Effective immediately, Johnsen assumes responsibility for the development and implementation of all distributor and dealer training programs and training teams for the ELAN®, Niles®, Xantech®, Sunfire®, and ATON® product lines outside of North America. In this new position he reports directly to Mark Terry, President of The AVC Group.

“In his 12-year career at Niles, Ken has held a number of key positions in sales and product training,” Terry said today. “He is a natural educator who understands how to train distributors and dealers to completely and accurately present the full capabilities of our brands’ product lines. On top of this, he is a leader who can identify and motivate a global team of product specialists who will take our training courses deeper into every geographic region around the world.”

Johnsen joined Niles in 1999 as a Regional Product Specialist and was responsible for coordinating, developing and conducting all Niles product and sales trainings for internal staff and Niles sales representatives, as well as dealers and end-users in both domestic and international markets. In 2003 he was promoted to the position of Training Manager and was responsible for development and execution of all of Niles, IntelliControl ICS and JobSite training strategies. He hired, coordinated and managed training staff, while creating and developing the Niles in-house training facility while introducing new frontiers of training and field communication with the “Train the Trainer” and Web-based training sessions.

After a brief stint as Eastern Regional Sales Manager, Johnsen returned to his roots when he was appointed Niles Product Manager in 2006 where he served as liaison between Niles Engineering, Sales and Marketing, and Niles customers to design and develop new products while being “the voice of the customer”. He worked on the product development teams responsible for bringing to market IntelliControl ICS products such as the iRemoteTS and DMS4 Digital Music Server and Niles branded products such as the VS-6 Component Video Switcher, the iC2 Home Theater and Control System, RFG Radio Frequency Gateway, HT-MSU Home Theater Main System Unit, HDMI Baluns and next-generation 20 series Infrared Repeater products. For the last year, he served as Western Regional Sales Manager and was responsible for managing 10 Niles territories in the United States and Canada.

Prior to his career at Niles, Johnsen was with Audio Concepts of Long Beach and San Gabriel, California, from 1989 to 1999. Previous to this, he held sales management positions at World of Sound and The Good Guys. He was awarded a Bachelor of Computer Science degree from San Francisco State University and an Associate of Science degree from Monterey Peninsula Jr. College. He resides in Oceanside, California.

The AVC Group Consolidates Sales Rep Network to Provide Dealers With 'One Source' Contact for ELAN®, Niles®, Xantech®, Sunfire® and Aton Brands®.

In a move designed to provide dealers with a single point of contact for its iconic custom installation brands, The AVC Group today announced the implementation of a new consolidated independent sales rep network that enables qualifying dealers to have ‘one source’ access to more than 1700 products and system solutions offered by its ELAN®, NILES®, Xantech®, Sunfire®, and ATON® brands.

According to Mark Terry, President of The AVC Group, the current network of 45 independent rep firms will now be reduced to 15 firms each of whom will carry all five of The AVC Group brands. It is expected that this new sales rep organization will maximize the effectiveness of the recently introduced AVC Advantage program, which combines focused, complementary brand offerings with automatic incentive, rebate, and support programs. “As a company we are totally committed to the business model of using independent sales rep firms as our front line sales force,” Terry emphasized. “The implementation of a consolidated rep organization is the next logical step forward in our long term plan to provide dealers with a greater array of opportunities to sell more system solutions to a larger and wider range of customers,” Terry said. “This new organization empowers dealers to meet more customer requirements than ever before, allowing them to offer a truly complete range of system and product offerings at every price point.”

In fact, according to Terry, the consolidated rep organization introduced today benefits every entity involved in the sales process — dealers, distributors, reps, and The AVC Group. For dealers, the new organization provides a single point of contact for all five AVC Group brands while allowing them to access bundled and tiered programs and incentives. “We will be able to provide our dealers and distributors with complete and complementary systems solutions — more than 1700 different products,” Terry emphasized. “Our dealers will now enjoy a greater, more powerful relationship with a single manufacturing partner.

For the sales reps in the new organization, the new structure delivers an entirely new level of efficiency with features such as one-stop training, one sales meeting, one commission check, and one business methodology. “At the same time,” Terry emphasized, “the new consolidated sales rep network offers reps the ability to finally offer every dealer a complete price performance range of solutions. Every dealer call they make will be much more likely to result in a sale and that reality will significantly increase their income.”

Finally, for The AVC Group the new structure allows the Group to make sure it always has “A” level reps in every single sales territory. It also allows the Group to more effectively develop and implement a long-term systems solution product strategy that benefits all of its dealers while ensuring that the Group’s brands are not squeezed out of a channel or used to leverage a competitor. “It also allows us to act quicker in the market, offer more comprehensive training and be more efficient with our resources. The bottom line is that everyone benefits, including the customer and that’s the most important priority for all of us.”

While the implementation of a consolidated independent sales rep network bodes well for the future of The AVC Group, dealers, and consumers, it is a significant change that does affect some long established relationships. “Unfortunately this type of action requires that we part company with many extremely qualified, talented and loyal Reps through no fault of their own. I want to thank these firms for their many contributions over the years. Without their effort and success, our brands would not be the leaders that they are today. I wish each and every one of these firms continued success in the future.”

The new independent sales rep organization is comprised of the following firms: Audio Associates Corporation (South Plainfield, NJ), Electronic Marketing Associates (Raytown, MO), High-Tech Network (Smyrna, GA), Market Share Inc. (Bellevue, WA), New Age Marketing (Manvel, TX), ProMark Marketing (Santa Clarita, CA), RS Pro Sales, LLC (Cincinnati, OH), SLAMCO (Chanhassen, MN), Sound Tech Marketing (Golden, CO), Tandem Marketing, Inc. (Elk Grove Village, IL), The Jarmac Group (Taunton, MA), TWC Michigan, Inc. (Trenton, MI), and Zone Pacific Sales (Sacramento, CA).

CAS Group Ltd. Appointed as Exclusive Distributor for The AVC Group in China and Taiwan

Strengthening the representation of its ELAN®, NILES®, Xantech®, and ATON® brands throughout China and Taiwan, The AVC Group today announced the appointment of CAS Group Limited, formerly Xantech China Ltd., to serve as its exclusive distributor in the region. The announcement was made today by Mark Terry, president of The AVC Group, who said that CAS Group Ltd. will now work closely with Claude Sabourin, International Sales Manager, Asia at The AVC Group.

“Cliff Wong and his team of proven professionals at the CAS Group have what it takes to bring our brands to the next level of success in China and the surrounding regions,” Terry said today. “They have the experience, relationships, and commitment necessary to strengthen our leadership position in this vitally important and growing market. Their prior success with Xantech speaks well for their future success with our other brands.”

CAS Group Ltd. is the successor company to Xantech China Ltd. Effective this month, the company changed its name and now operates as a stand-alone distributor for brands of The AVC Group, as well as for Omnimount, Magenta, and BrightSign. The company employs 15 sales professionals and maintains offices in Beijing and Shenzhen in addition to its headquarters office in Hong Kong.

Cliff Wong, CAS Group Ltd. Sales Director, said, “We are honored to represent these iconic brands. Our market is growing and expanding at a very rapid rate and our customers are looking for the quality, performance features, and reliability that the brands of The AVC Group deliver. The value propositions offered by ELAN, NILES, Xantech, and ATON provide our dealers with a complete range of complementary system solution options and connectivity tools to offer their customers.”

The CAS Group Ltd. is headquartered in Unit 1701, Union Park Tower, 168 Electric Road, North Point, Hong Kong. The phone number is 852.31051493. Cliff Wong can be reached by email at cliff@the-casgroup.com.

MidwichHome Appointed as Exclusive UK Distributor for The AVC Group

Moving strategically to strengthen the representation of its ELAN®, NILES®, Xantech®, Sunfire®, and ATON® brands throughout the United Kingdom, the AVC Group has announced the appointment of MidwichHome to serve as its exclusive UK distributor. The deal was unveiled today by Mark Terry, president of the AVC Group, who said that MidwichHome would work closely with Conrad Gonthier, International Sales Manager, Europe at The AVC Group.

“MidwichHome has the exact combination of experience, strategic thinking, and tactical effectiveness to best represent our brands in the United Kingdom,” Terry said today. “Their track record of success working with the world’s leading audio visual and consumer electronics brands speaks for itself. We look forward to working closely with the MidwichHome team to develop and implement innovative sales and marketing programmes that reflect the innovation incorporated into each of our iconic brands.”

Lee Hooker, sales manager for MidwichHome, said: "AVC’s industry-leading brands provide professional installers with a great choice of integrated solutions for audio, video and control applications in residential installations. We have built upon our internal team by the appointment of specialist field-based sales and technical staff to support these new brands. This partnership represents a significant further expansion for Midwich into the custom install market and we are delighted to have reached this agreement to become AVC’s exclusive UK distributor."

The agreement with the AVC Group further strengthens Midwich’s strong position in the custom residential installation and independent retail channels. The distributor already has a strong portfolio of consumer electronics products and represents some of the world’s biggest brand names, including Samsung, Sony, LG Electronics, Toshiba, Panasonic, Sharp and Pioneer.

ATON Launches Industry's First Out-Of-The-Box Solution For Multi-Zone Music With In-Wall OLED Interfaces

ATON™, a premier manufacturer of affordable, high performance speakers and digital audio and Hi Def video distribution systems, today introduced the industry’s first pre-programmed Whole House “Music & More” System, the ATON AH66T Kit.

The new kit features the AH66T Multi-Source Multi-Zone Controller plus six (6) OLED2 touchpads that offer full-color graphic control and feedback. With built-in programming to run market leading sources like the iPort® and Lutron™ RadioRA®2, the affordable multi-room audio solution allows dealers to rapidly deploy a first-time or add-on audio system with iPod® & lighting control capability ready to go.

The AH66T is a multi-zone music solution with a built-in, RDS-enabled AM/FM tuner plus six additional sources, rated at 60 watts of power per zone with a line level pre-output for subzones. The controller includes a dedicated IR input for every zone with a full, discrete IR code set for integration. It comes with a full 2-way RS232 code set for control via 3rd party devices where a separate multi-room solution is required. The kit comes with six OLED2 in-wall capacitive touch touchpads featuring full-color OLED displays. OLED, or Organic LED displays, are perfect for displaying the system's metadata text, graphics, channel icons and more. Pair this with interchangeable faceplates in white, ivory and almond and you now have the perfect control solution that matches any décor. The kit also comes with 2 built-in RS232 ports ready for an iPort iPod dock (or two) Metadata ready, or Lutron RadioRA2 Lighting control with codes preloaded. The controller is “stackable” to two chassis for a 12-zone system with tuner pre-outputs to share the AM/FM selections between chassis.

The new ATON OLED2 touchpads tie the system together with the speed, graphics, and response of an LCD touch panel, with the ease-of-use and affordability of a traditional keypad. A radical departure from hard button keypads, this controller offers a 2.1” display and user-friendly 15-function hard button layout under a film overlay for the largest all-touch surface in a double-gang, in-wall product. The large display, with its six lines of metadata from 2-way sources, provides a detailed view of “Now Playing” information from the tuner and source components such as iPod and optional Sirius Satellite Radio. Each OLED2 comes pre-programmed to control the AH66T, the tuner, and iPort dock for iPods, plus advanced customization is a few clicks away with the new ATON SystemWorx software for Dealers.

“The AH66T KT offers an unsurpassed out-of-box experience that delivers beyond expectations,” said Paul Starkey, President of ATON Home Systems. “ATON is all about bending traditional categories and this is no exception. Why have just music when you can get so much more? Plus you can complete the system with our musician-voiced Storm Series speakers.”

The AH66T-KT Multi-Source/Zone Controller Kit will be featured at The AVC Group ISE 2011 Stand 1L90. The AH66TKT Kit is available for immediate delivery at a US MSRP of $3599. The AH66T Controller and OLED2 Touchpad are available separately at US MSRPs of $1599 and $610. The complete AH66TKT kit ships with the AH66T Multi-Source / Multi-Zone Controller, 6 OLED2 Touchpads, 4 IR Emitters and Talkback Emitters, AM and FM Antennas, 2 DB-9 Male to RJ45 Adapters, a DB-9 Female to Null RJ45 Adapter, 2 RJ45 568A CAT Cables, a Detachable Line Cord, 6 4-Pin Connectors and a 3-Pin Connector. Go to http://www.atonhome.com for more information and dealer locations.

AH66T Multi-Source Multi-Zone Controller:
• 6-zone multi-room controller, “Stackable” to two chassis for a 12 zone system
• Integrated AM/FM tuner with RDS metadata plus 6 additional audio sources
• AM / FM tuner pre-outputs to share tuners between chassis when “Stacked”
• 60 Watts of audio power per zone
• Dedicated 3.5mm IR inputs – for every zone with discrete IR code set available
• 2 built-In RS232 ports for iPod metadata and lighting control
• Out-of-box support for iPort iPod Dock and Lutron™ Radio Ra2® lighting system
• Variable or fixed pre-amp outputs for every zone
• Optional Sirius satellite radio support
• Compatible with the ATON HRR44 video switcher
• Accommodates up to two touchpads per zone
• System and zone trigger outputs
• Rack mountable using the RMK3 3U Rack Mount Kit sold separately

OLED2 Touchpad:
• Breakthrough interface that marries the magic and beauty of touchscreen technology, with the simplicity of a keypad
• Capable of controlling 13 devices including sources, lighting and shades
• Pre-programmed for independent zone functions, AM/FM tuner, iPort dock and Lutron RadioRA2
• Fully customizable using ATON SystemWorx software
• 3 interchangeable films and faceplates including White, Ivory and Almond with each touchpad