HOUSTON - ACR Group Inc. announced that it has signed leases for two new branch operations in the Phoenix area. These will be the company's first operations located in Arizona, which is among the top five states in demand for air conditioning. One of the new branches, located in north Phoenix, is expected to open in late May. The other branch, located in Mesa, a suburb of Phoenix, is in an industrial park that is under construction. The opening date for the Mesa branch in projected for August. The company is also evaluating potential sites in the Tucson area for a branch operation, although no lease is yet signed.

The Arizona branches will operate under the name ACH Supply, the company's business unit based in Southern California. The branches will distribute the Tempstar brand of HVAC equipment, as do the branches of ACH Supply that are located in California. International Comfort Products LLC (ICP), the manufacturer of Tempstar brand products and a subsidiary of Carrier Corp., has granted ACH Supply the distribution rights for Tempstar equipment for the entire state of Arizona. All of the company's business units are distributors of Tempstar or a companion brand of HVAC equipment manufactured by ICP.

Commenting on the company's expansion into Arizona, Alex Trevino Jr., president and chief executive officer of ACR Group, stated, "We have looked for opportunities to enter the Arizona market for several years. As we have planned our growth across the Sunbelt, Arizona was an obvious missing piece. The Phoenix area is annually among the fastest-growing metropolitan areas in the country, and the climate is certainly conducive to air conditioning. Obtaining the Tempstar distribution rights for the state provided the incentive to commit our resources to begin opening branches. While we will have two or three branches opened this year, there is a clear opportunity to expand our presence in Arizona in the future. This initiative is likely to be a significant growth driver for the company over the next few years and is consistent with our track record of successful organic expansion."

ACR Group is a leading wholesale distributor of HVACR equipment and supplies. The company's 51 branches are located in nine states and are organized into five business units. For more information, visit www.acrgroup.com.

Publication date: 05/01/2006