ACR GROUP, INC.- LOVELAND

Each year we evaluate opportunities for organic growth to take advantage of the availability of key personnel, product lines or distribution markets. While we never set out to be the biggest distributor in the industry, the economies generated by our size assist us in achieving our stated goal of being the best managed company in the industry. Branch expansion and acquisitions are expensive, but we are committed to capitalizing on opportunities presented so we can maximize the long-term value of our company.

We presently are working with our major suppliers in arranging full communication of inventory information that will allow for improved inventory balancing and reduced inventory needs at each branch location.

We are among the industry leaders in information technology. All field operations tie into a central computer system through a high speed Intranet managed in Houston. This system allows for a complete integration of the company's accounting system for up-to-the-minute sales information and asset management.

When our employees need guidance in solving daily business challenges, their managers understand the issues and can offer appropriate solutions. We all speak the same language.