Moore-Handley: Quarterly Earnings



FOR IMMEDIATE RELEASE
For: Moore-Handley, Inc.                      Contact: Peter B. Covert
     P.O. Box 2607                                     (205) 663-8408
     Birmingham, AL 35202

            MOORE-HANDLEY REPORTS RESULTS OF OPERATIONS
             FOR THE YEAR ENDED DECEMBER 31, 1998

 BIRMINGHAM, AL... March 11- Moore-Handley, Inc. (NASDAQ - MHCO) reported net
income of $l61,000 or $.09 per share for the year on sales of $l59,027,000.
This compares to a net loss of $1,416,000 or $(.66) per share on sales of
$l45,730,000 for the prior year.

 The improvement of approximately $2.7 million in operating income and $.75 in
per share net income was achieved despite substantial expenditures for resetting
the warehouse, installing radio frequency put away and picking, and beginning
two new lines of business.


 Summary results of operations follow;
                                    Summary Statement of Operations
                                    (in thousands, except per share data)
                               Quarter Ended         Twelve Months Ended
                                December 31             December 31
                             1998       1997        1998       1997

Sales                       $41,814    $32,464    $159,027   $145,730

Total gross margin            6,261      5,354      24,323     22,102
Warehouse & delivery
expense                       2,479      2,393       9,374      9,486
Gross profit                  3,782      2,961      14,949     12,616
Selling & administrative
expense                       3,216      3,468       13,315    13,705
Operating income (loss)         566       (507)       1,634    (1,089)
Interest expense                286        257        1,337       991
Income (loss) before provision
for income tax (benefit)        280       (764)         297    (2,080)
Income tax (benefit)            129       (245)         136      (664)
Net income (loss)           $   151    $  (519)   $     161  $ (1,416)

Net income (loss) per share $   .08    $  (.25)   $     .09  $   (.66)
Weighted average common
Shares outstanding        1,862,000   2,045,000   1,861,000  2,135,000


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