ACR GROUP INC.- AUSTIN

We also are proud that most of our new employees are referred to us by our current employees. We look for independent-thinking, self-motivated men and women who have confidence in their capabilities and are looking for a career and a company that offers unlimited opportunity. Most of our management team, including top management, has experience at every level of the business. Working in the warehouse, driving delivery trucks and assisting in sales efforts, they represent hundreds of years of experience in our industry. 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.

We are excited about our future. We've come a long way in a short time, and as we continue down the journey that we started just 16 years ago, things keep getting better. Every year, we serve more customers, add seasoned industry people to our team, enter strategic geographic areas and distribute products for new suppliers. We will continue to be here for our customers, playing a key role in this dynamic and increasingly vital industry.

ACR continues to grow. 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 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.