BIRMINGHAM, Ala., March 18, 2005 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $249,000 or $0.16 per diluted share for the quarter ended December 31, 2004 vs. a net loss of $488,000 or $0.29 per diluted share for the same period in 2003.

Sales for the quarter were $38,224,000, up 9.4% from the same quarter last year. Sales for the twelve months ended December 31, 2004 were $163,383,000 or 4.3% above those in 2003. Net income for the year ended December 31, 2004 was $1,007,000 or $0.62 per diluted share vs. a net loss of $426,000 or $0.24 per diluted share last year. Included in the net income for twelve months ended December 31, 2004 was a non-cash charge, net of taxes, of $188,000 or $0.12 per diluted share to increase the Company’s inventory valuation reserve in respect of vendor rebates.