On January 18, 2013, Lawndale Capital Management announced On January 8, 2013, it has sent a letter to Mitch Solomon, lead independent director of P&F Industries Inc. communicating that it was prepared to nominate alternative directors to replace 2 long-term legacy directors with close social ties to Chairman/CEO Horowitz, who were likely candidates for re-election to 3-year terms at the coming 2013 annual meeting. Lawndale Capital also expressed its concerns with respect to the Company's board composition and corporate governance practices as well as the Company's senior executive compensation programs and policies. Further, Lawndale Capital stated that on January 16, 2013, again it has sent a letter reiterated its desires, set forth in its January 8, 2013 letter for the Company to implement additional corporate governance improvements towards Best Practices and to improve compensation policy/practices and the transparency of these improvements.