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, 2004

BIRMINGHAM, Ala., October 27, 2004 -- Moore-Handley, Inc. (Other OTC: MHCO.PK), a Birmingham-based distributor of hardware and home center products, reported net income of $110,000 or $0.07 per diluted share for the quarter ended September 30, 2004 vs. a net income of $28,000 or $0.02 per diluted share for the same period in 2003.

Sales for the quarter were $43,482,000 up slightly from the same quarter last year. Sales for the nine months ended September 30, 2004 were $125,159,000 or 2.8% above those for the comparable period in 2003. The net income for the nine months ended September 30, 2004 was $758,000 or $0.46 per diluted share vs. net income of $62,000 or $0.03 per diluted share for the same period last year. Included in the net income for the quarter and nine months 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.

              Selected financial data follow:

Moore-Handley, Inc.

Selected Financial Data

(UNAUDITED)

Quarter Ended

Nine Months Ended

September 30

September 30


Operations:

2004

2003

2004

2003

Sales

$ 43,482,000

$ 43,252,000

$ 125,159,000

$ 121,794,000

Operating income

429,000

283,000

1,930,000

804,000

Income before income tax

175,000

44,000

1,204,000

98,000

Net income

$     110,000

$      28,000

$      758,000

$        62,000

Net income per share - diluted

$           0.07

$          0.02

$            0.46

$            0.03

Weighted average diluted common

shares outstanding

1,520,000

1,778,000

1,634,000

1,868,000

Balance Sheets:

September 30 -

2004

2003

Current assets

$ 48,692,000

$ 47,041,000

Other assets

715,000

719,000

Property & equipment, net

8,793,000

8,594,000

Total assets

58,200,000

56,354,000

Current liabilities

21,664,000

21,619,000

Long term debt

23,169,000

20,744,000

Deferred income taxes

947,000

1,032,000

Stockholders’ equity

12,420,000

12,959,000

Total liabilities & stockholders’ equity

$ 58,200,000

$ 56,354,000

End 10/27/04