Moore-Handley: Quarterly Earnings

FOR IMMEDIATE RELEASE

For:  Moore-Handley, Inc.               Contact: L. Ward Edwards
      P.O. Box 2607                     (404) 577-5532
      Birmingham, Al. 35202

                MOORE-HANDLEY REPORTS RESULTS OF OPERATIONS
                  FOR THE QUARTER ENDED DECEMBER 31, 1996

     BIRMINGHAM, Al., February 20 - Moore-Handley, Inc. (NASDAQ - MHCO)
reported a net loss of $(1,072,000) or $(.50) per share for 1996 compared to
net income of $808,000 or $.37 per share for the preceding year. 

     During the year the Company made major changes and improvements to its
warehouse.  Operations were disrupted while these changes were made resulting
in higher expenses and a lower than normal service level.  By the end of the
year the service level was back to a normal level and warehouse expenses had
begun to reduce.  However, the Company estimates that net income for the
quarter and the year was reduced about $550,000 and $1,500,000, respectively,
due to the disruption of operations.

     Summary results of operations for 1996 follow:

                                      Summary Statement of Operations
                                     (in thousands, except per share data)

                                      Quarter Ended          Year Ended
                                      December  31          December 31  
                                    1996      1995       1996        1995

Sales                                $31,982    $32,136  $145,785  $142,157 

Total gross margin                     5,681      5,388    23,364    22,948 
Warehouse & delivery expense           2,407      1,831     9,908     7,867 
Gross profit                           3,274      3,557    13,456    15,081 
Selling & administrative expense       3,476      3,167    14,140    13,094 
Operating income (loss)                 (202)       390      (684)    1,987 
Interest expense                         287        138       908       659 
Income (loss) before provision
  for income tax (benefit)              (489)       252    (1,592)    1,328 
Income tax (benefit)                    (110)       117      (520)      520 
Net income (loss)                    $  (379)   $   135   $(1,072) $    808 

Net income (loss) per share            $(.18)      $.06     $(.50)    $ .37 

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022097
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