FOR IMMEDIATE RELEASE

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, 2005

BIRMINGHAM, Ala., October 17, 2005 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $320,000 or $0.21 per diluted share for the quarter ended September 30, 2005 vs. a net income of $110,000 or $0.07 per diluted share for the same period in 2004.

Sales for the quarter were $48,936,000 up 12.5% from the same quarter last year. Sales for the nine months ended September 30, 2005 were $134,458,000 or 7.4% above those for the comparable period in 2004. The net income for the nine months ended September 30, 2005 was $743,000 or $0.46 per diluted share vs. net income of $758,000 or $0.46 per diluted share for the same period last year.

Selected financial data follow:

Moore-Handley, Inc.

Selected Financial Data

(UNAUDITED)

Quarter Ended

Nine Months Ended

September 30

September 30


Operations:

2005

2004

2005

2004

Sales

$    48,936,000

$    43,482,000

$   134,458,000

$ 125,159,000

Operating income

833,000

429,000

2,130,000

1,930,000

Income before income tax

533,000

175,000

1,236,000

1,204,000

Net income

$        320,000

$       110,000

$        743,000

$      758,000

Net income per share - basic

$              0.22

$             0.07

$             0.51

$            0.49

Net income per share - diluted

$              0.21

$             0.07

$             0.46

$            0.46

Weighted average common shares

outstanding:

Basic

1,467,000

1,467,000

1,467,000

1,547,000

Diluted

1,560,000

1,520,000

1,631,000

1,634,000

               

Balance Sheets:

September 30 -

2005

2004

Current assets

$ 53,474,000

$ 48,692,000

Other assets

512,000

715,000

Property & equipment, net

9,310,000

8,793,000

Total assets

63,296,000

58,200,000

Current liabilities

26,702,000

21,664,000

Long term debt

22,021,000

23,169,000

Deferred income taxes

1,193,000

947,000

Stockholders’ equity

13,380,000

12,420,000

Total liabilities & stockholders’ equity

$ 63,296,000

$ 58,200,000

End 10/17/05