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, 2005

BIRMINGHAM, Ala., August 1, 2005 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $258,000 or $0.17 per diluted share for the quarter ended June 30, 2005 vs. $317,000 or $0.21 per diluted share for the same period in 2004.

Sales for the quarter were $41,173,000, up 6.5% from the same quarter last year. Sales for the six months ended June 30, 2005 were $85,522,000 or 4.7% above those in 2004. Net income for the six months ended June 30, 2005 was $423,000 or $0.26 per diluted share vs. net income of $647,000 or $0.39 per diluted share last year. Lower earnings resulted from pressure on gross margin, increased marketing expense, and higher interest costs.

Selected financial data follow:

Moore-Handley, Inc.

Selected Financial Data

                                                                          (UNAUDITED)                                             (UNAUDITED)

Quarter Ended

Six Months Ended

June 30

June 30


Operations:

2005

2004

2005

2004

Sales

$    41,173,000

$      38,652,000

$      85,522,000

$      81,679,000

Operating income

746,000

739,000

1,297,000

1,501,000

Income (loss) before income tax

429,000

504,000

703,000

1,028,000

Net income (loss)

$       258,000

$         317,000

$         423,000

$         647,000

Net income (loss) per share - basic

$            0.18

$              0.22

$              0.29

$              0.41

Net income (loss) per share - diluted

$            0.17

$              0.21

$              0.26

$              0.39

Weighted average common

shares outstanding

Basic

1,467,000

1,467,000

1,467,000

1,587,000

Diluted

1,547,000

1,507,000

1,620,000

1,666,000

Balance Sheets:

June 30 -

2005

2004

Current assets

$     44,005,000

$     41,668,000

Other assets

483,000

202,000

Property & equipment, net

9,402,000

8,473,000

Total assets

53,890,000

50,343,000

Current liabilities

17,898,000

15,838,000

Long term debt

21,741,000

21,246,000

Deferred income taxes

1,193,000

947,000

Stockholders’ equity

13,058,000

12,312,000

Total liabilities & stockholders’ equity

$     53,890,000

$     50,343,000

End 8/01/05