EXHIBIT 99.1

November 16, 1998

Dear Falcon Building Products, Inc. Bondholders:

A copy of the Falcon Building Products, Inc (the "Company") Form 10-Q is
enclosed. A summary of the unaudited financial results follows (dollars in
millions):

PERIODS ENDED SEPTEMBER 30
1998 1997(e)
------------------- ------------------
NINE NINE
QUARTER MONTHS QUARTER MONTHS
-------- ------- -------- -------

Net sales
Air Distribution Products ..................... $ 61.0 $158.1 $ 50.4 $140.7
Plumbing Fixtures ............................. 40.1 116.6 43.3 121.9
Air Power Products ............................ 96.4 285.1 79.0 266.0
-------- ------- -------- -------
Total.................................. $197.5 $559.8 $172.7 $528.6
-------- ------- -------- -------
-------- ------- -------- -------
Operating income before recapitalization and
restructuring costs and charges ............... $ 15.5 $ 42.3 $ 12.2 $ 45.2

Net interest expense (a) ........................ $ 10.4 $ 30.6 $ 10.1 $ 16.5
Cash interest expense (a) ....................... $ 7.2 $ 21.4 $ 7.3 $ 12.9
EBITDA (b) ...................................... $ 20.1 $ 55.5 $ 17.4 $ 59.8
EBITDA - for the four quarters ended ............ $ 70.6 -- $ 82.0 --
Ratio of EBITDA to interest expense (c) ......... 1.8 x -- -- --
Ratio of EBITDA to cash interest expense(c) ..... 2.5 x -- -- --
Leverage Ratios: ................................ -- -- --
Senior debt to EBITDA (d) ..................... 1.9 x -- -- --
Total debt to EBITDA (d) ...................... 5.5 x -- -- --

(a) Excludes amortization of debt issuance costs.

(b) EBITDA represents operating earnings before non-recurring
recapitalization and Ultravent expenses, non-cash inventory reserves,
restructuring and other associated charges and depreciation and
amortization expense. EBITDA is presented as management believes it
provides useful information regarding a company's ability to incur
and/or service debt. However, EBITDA should not be considered in
isolation or as a substitute for net income or cash flow data prepared
in accordance with generally accepted accounting principles, or as a
measure of a company's profitability or liquidity.

(d) Senior debt and total debt is net of unencumbered cash.

(e) Ratios have not been provided for the 1997 period due to
non-comparability of information due to the Merger and recapitalization
financing in June 1997.

For the quarter ended September 30, 1998, net sales amounted to $197.5 million,
an increase of $24.8 million or 14% above the third quarter of 1997, while sales
for the nine months ended September 30, 1998 amounted to $559.8 million, an
increase of $31.2 million over the 1997 period. Sales for the quarter and nine
months benefited from continued strong activity in residential and commercial
vent, register and diffuser product sales. The Company also benefited from
increased compressor and generator sales during 1998 for both the three and
nine-month periods compared to 1997. Increased compressor volume is the result
of penetration gains at home improvement centers, while increased generator
volume has resulted from severe weather and storm activity. Pressure washer
volumes were up for the quarter $1.2 million, yet down approximately $13.4
million for the nine months in 1998, compared with 1997 as the implementation of
the Company's "no-return" policy resulted in a smaller customer base for this
product line in 1998.

EBITDA and EBITDA margins of $20.1 million and 10.2%, respectively, for the
third quarter of 1998 have increased from the third quarter of 1997 levels of
$17.4 million and 10.0%, respectively. Both Air Distribution Products and Air
Power Products posted improvements in gross margins and operating earnings,
before restructuring charges, in the 1998 third quarter versus last year. EBITDA
for the nine months ended September 30, 1998 amounted to $55.5 million, a $4.3
million decrease from the first nine months of 1997, while EBITDA margins
decreased from 11.3% in 1997 to 9.9% in 1998.

Year-to-date results continue to be affected by manufacturing inefficiencies
in Plumbing Fixtures. In the third quarter of 1998, the Company initiated a
reorganization of the Plumbing Fixtures business. This reorganization
includes: (1) the reorganization of the steel product enameling operations
and the closure of the bath-tub pressing operations; (2) a reconfiguration of
the Texas china plant, as new automated equipment is employed and new process
controls are instituted; (3) increased investment in manufacturing, finance,
engineering and production control personnel; and (4) a net realizable value
adjustment to the carrying value of existing raw material and work-in-process
inventories given the excess materials on hand as the Company exits the steel
tub pressing operations and the new china manufacturing technologies are
employed. Total costs recorded in 1998 related to the reorganization of the
Plumbing Fixtures business amounted to $7.9 million, substantially all of
which represents non-cash charges. While the Company expects long term
benefits from these actions, it is likely that operating results for the
fourth quarter of 1998 and the first quarter of 1999 will continue to be
adversely impacted until these improvements are fully integrated into the
manufacturing process. The Company anticipates spending approximately an
additional $1.2 million in the next six to nine months in connection with
this reorganization plan. Incoming order rates for Plumbing Fixtures for the
fourth quarter of 1998 continue to reflect a strong demand for the Company's
product.

In Air Power Products, the unfavorable comparison to 1997 is the result of:
a) lower margins as a result of implementing a "no returns" policy for
pressure washers in 1998; and b) higher margins reflected on pressure washer
sales in the first three quarters of 1997, which were based upon anticipated
return rates and related costs that ultimately developed to be significantly
higher than those originally assumed. This subsequent adverse development in
pressure washer returns resulted in the recognition of significant charges in
the fourth quarter of 1997. Additionally, in the third quarter of 1998, the
Company re-evaluated the carrying value of certain automotive product line
assets, previously utilized in Air Power Products, given recent efforts to
dispose of this product line resulting in a $1.1 million non-cash charge.

Pricing within the Company's flexible duct product line contributed to the
reduced operating profit in the second quarter and year-to-date periods of
1998 versus 1997. Pricing for this product line came under pressure in the
second half of 1997. The Company has initiated a plan to reorganize its
flexible duct manufacturing operations in the fourth quarter of 1998. The
estimated $1.0 million cost of this plan will be recorded in the fourth
quarter of 1998which is intended to lower manufacturing and logistic costs as
well as increase production capacity

The consolidated statement of income reflects an increased level of interest
expense for the current quarter and year-to-date over the 1997 periods due to
the merger financing entered into in June 1997.

The Company continues to have significant liquidity to fund operations and
make new investments. At September 30, 1998, the Company had $45.6 million of
unrestricted cash and $122.5 million of borrowing availability under its
revolving credit facility.

Falcon's business strategy continues to focus on strengthening the Company's
market leadership positions through domestic and international market
expansion, new products and product line extensions, expansion of our
distribution network, and strategic and complementary acquisitions. We
continue to work on and evaluate a number of projects and acquisition
candidates to expand our product offerings, customers and geographic base,
although we intend to remain disciplined in our acquisition approach in the
current highly competitive environment.

We thank you for your continued support and confidence.

WILLIAM K. HALL
CHAIRMAN, PRESIDENT & CHIEF
EXECUTIVE OFFICER

FORWARD-LOOKING STATEMENTS IN THIS LETTER ARE MADE PURSUANT TO THE "SAFE
HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION ACT OF 1995.
INVESTORS ARE CAUTIONED THAT ACTUAL RESULTS MAY DIFFER SUBSTANTIALLY FROM
SUCH FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND
UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO, CHANGES IN GENERAL ECONOMIC
CONDITIONS, FLUCTUATIONS IN INTEREST RATES, INCREASES IN RAW MATERIALS AND
LABOR COSTS, LEVELS OF COMPETITION AND OTHER FACTORS DETAILED FROM TIME TO
TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.