Moore-Handley, Inc. Reports Results of Operations for the Quarter Ended June 30, 2003


BIRMINGHAM, Ala., Aug. 7, 2003 (PRIMEZONE) -- Moore-Handley, Inc. (Nasdaq:MHCO), a Birmingham-based distributor of hardware and home center products, reported a net loss of $133,000 or $0.07 per diluted share for the quarter ended June 30, 2003 vs. net income of $328,000 or $0.17 per diluted share for the same period in 2002. The quarter ended June 30, 2003 included a charge to income, net of taxes, of $227,000 or $0.13 per diluted share because of a change in the allowance for uncollectible vendor receivables. This change in estimate was based on new information developed as the result of improved accounting and internal controls for vendor receivables.

Sales for the quarter were $38,276,000, down 5.2% from the same quarter last year. Sales for the six months ended June 30, 2003 were $78,542,000 or 1.4% below those for the comparable period in 2002. Net income for the first six months of 2003 was $34,000 or $0.02 per diluted share vs. $621,000 or $0.32 per diluted share for the same period last year.

Summary results of operations follows:


                         Moore-Handley, Inc.
                   Summary Statements of Operations
                             (UNAUDITED)

                        Quarter Ended           Six Months Ended
                           June 30                   June 30
                  ------------------------   -----------------------
                      2003         2002          2003       2002
                  -----------  -----------   ----------- -----------
 Sales            $38,276,000  $40,379,000   $78,542,000 $79,617,000

 Cost of
  merchandise
  sold             32,307,000   33,910,000    66,500,000  67,034,000
 Warehouse and
  delivery
  expense           2,486,000    2,301,000     4,864,000   4,618,000
                  -----------  -----------   ----------- -----------
 Cost of sales     34,793,000   36,211,000    71,364,000  71,652,000
                  -----------  -----------   ----------- -----------

 Gross profit       3,483,000    4,168,000     7,178,000   7,965,000
 Selling and
  administrative
  expense           3,456,000    3,427,000     6,657,000   6,559,000
                  -----------  -----------   ----------- -----------
 Operating income      27,000      741,000       521,000   1,406,000
 Interest expense,
  net                 238,000      222,000       467,000     423,000
                  -----------  -----------   ----------- -----------
 Income (loss)
  before
  income tax         (211,000)     519,000        54,000     983,000
 Income tax           (78,000)     191,000        20,000     362,000
                  -----------  -----------   ----------- -----------
 Net income
  (loss)          $  (133,000) $   328,000   $    34,000 $   621,000
                  ===========  ===========   =========== ===========
 Net income
  (loss) per
  share -
  diluted         $     (0.07) $      0.17   $      0.02 $      0.32
                  ===========  ===========   =========== ===========
 Weighted average
  diluted common
  shares
  outstanding       1,805,000    1,967,000     1,883,000   1,931,000
                  ===========  ===========   =========== ===========


            

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