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 SEPTEMBER 30, 1998

     BIRMINGHAM, AL.,  October  23  -  Moore-Handley, Inc.  (NASDAQ - MHCO)
reported net sales of $38,729,000 and a net loss of $97,000, or $.05 per share
for the quarter ended September 30, 1998.  This compares to net income of
$45,000, or $.02 per share for the same quarter last year.

     The Company stated that the quarter was adversely affected by a change in
the timing of its regular third quarter Dealers' Mart which was held later in
the quarter than last year.  Most orders taken at this year's mart will not be
shipped until the fourth quarter.

     The Company also announced that its working capital line of credit has
been extended for two years and increased by $5,000,000.

      Summary results of operations follow:
                                         Summary Statement of Operations
                                      (in thousands, except per share data)
                                   Quarter Ended          Nine Months Ended
                                   September 30              September 30
                                 1998        1997          1998        1997
Sales                          $38,729     $40,000       $117,213    $113,266

Total gross margin               5,960       5,843         18,063      16,748
Warehouse & delivery expense     2,422       2,329          6,895       7,093
Gross profit                     3,538       3,514         11,168       9,655
Selling & administrative expense 3,358       3,212         10,100      10,237
Operating income (loss)            180         302          1,068        (582)
Interest expense                   332         236          1,051         734
Income (loss) before provision
  for income tax (benefit)        (152)         66             17      (1,316)
Income tax (benefit)               (55)         21              7        (419)
Net income (loss)              $   (97)    $    45       $     10    $   (897)
Net income (loss) per share    $  (.05)    $   .02       $    .01    $   (.42)
Weighted average common
    shares outstanding        1,967,000  2,154,000      1,892,000    2,154,000
                                        ****
102398
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