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 June 30, 2006

BIRMINGHAM, Ala., July 18, 2006 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $333,000 or $0.20 per diluted share for the quarter ended June 30, 2006 vs. $258,000 or $0.17 per diluted share for the same period in 2005.

Sales for the quarter were $48,699,000, up 18.3% from the same quarter last year. Sales for the six months ended June 30, 2006 were $100,831,000 or 17.9% above those in 2005. Net income for the six months ended June 30, 2006 was $640,000 or $0.39 per diluted share vs. net income of $423,000 or $0.26 per diluted share last year.

Selected financial data follow:

Moore-Handley, Inc.

Selected Financial Data

(UNAUDITED) (UNAUDITED)

Quarter Ended

Six Months Ended

June 30

June 30


Operations:

2006

2005

2006

2005

Sales

$   48,699,000

$   41,173,000

$  100,831,000

$   85,522,000

Operating income

1,013,000

746,000

1,907,000

1,297,000

Income before income tax

556,000

429,000

1,067,000

703,000

Net income

$       333,000

$      258,000

$        640,000

$      423,000

Net income per share - basic

$             0.20

$            0.18

$              0.39

$            0.29

Net income per share - diluted

$             0.20

$            0.17

$             0.39

$           0.26

Weighted average common

shares outstanding

Basic

1,627,000

1,467,000

1,627,000

1,467,000

Diluted

1,651,000

1,547,000

1,650,000

1,620,000

Balance Sheets:

June 30 -

2006

2005

Current assets

$   50,644,000

$   44,005,000

Other assets

384,000

483,000

Property & equipment, net

9,422,000

9,402,000

Total assets

$   60,450,000

$   53,890,000

Current liabilities

18,987,000

17,898,000

Long term debt

25,800,000

21,741,000

Other liabilities

1,730,000

1,193,000

Stockholders’ equity

13,933,000

13,058,000

Total liabilities & stockholders’ equity

$   60,450,000

$   53,890,000

End 7/18/06