ACR GROUP, INC.- PHOENIX

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. 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.

ACR Group, Inc. is a holding company with 54 locations operating in 5 business units that do business in Arizona, Texas, Colorado, Georgia, Tennessee, California, Florida, Nevada, New Mexico and Louisiana. We strongly support a decentralized business philosophy, and each business unit operates much like an independent business. This style fosters and rewards the entrepreneurial spirit of each unit's management, and is a quality that distinguishes us from most of our competitors.

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.