FOR IMMEDIATE RELEASE
                   For:    Moore-Handley, Inc.                                                                           Contact: Carol Temple
                             P. O. Box 2607                                                                                              (205) 663-8316
                             Birmingham, Alabama 35202

Moore-Handley Reports Results of Operations for the Quarter Ended September 30, 2006

BIRMINGHAM, Ala., October 16, 2006 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $225,000 or $0.14 per diluted share for the quarter ended September 30, 2006 vs. $320,000 or $0.21 per diluted share for the same period in 2005.

Sales for the quarter were $48,424,000, down 1.0% from the same quarter last year. Sales for the nine months ended September 30, 2006 were $149,255,000 or 11.0% above those in 2005. Net income for the nine months ended September 30, 2006 was $865,000 or $0.52 per diluted share vs. net income of $743,000 or $0.46 per diluted share last year.

Selected financial data follow:

Moore-Handley, Inc.

Selected Financial Data

                                                             

(UNAUDITED)
Quarter Ended

(UNAUDITED)
Nine Months Ended

September 30

September 30


Operations:

2006

2005

2006

2005

Sales

$    48,424,000

$     48,936,000

$   149,255,000

$   134,458,000

Operating income

865,000

833,000

2,772,000

2,130,000

Income before income tax

373,000

533,000

1,440,000

1,236,000

Net income

$       225,000

$         320,000

$         865,000

$         743,000

Net income per share - basic

$             0.14

$               0.22

$               0.53

$               0.51

Net income per share - diluted

$             0.14

$               0.21

$               0.52

$              0.46

Weighted average common

shares outstanding

Basic

1,628,000

1,467,000

1,627,000

1,467,000

Diluted

1,647,000

1,560,000

1,648,000

1,631,000

Balance Sheets:

September 30 -

2006

2005

Current assets

$       56,041,000

$       53,474,000

Other assets

384,000

512,000

Property & equipment, net

9,257,000

9,310,000

Total assets

65,682,000

63,296,000

Current liabilities

25,545,000

26,702,000

Long term debt

24,359,000

22,021,000

Other liabilities

1,620,000

1,193,000

Stockholders’ equity

14,158,000

13,380,000

Total liabilities & stockholders’ equity

$      65,682,000

$      63,296,000

End 10/16/06