Also Announces New Internet Initiatives

MIAMI, FLORIDA - Watsco, Inc. (NYSE: WSO) today announced that it achieved record revenue, income and diluted earnings per share during the third quarter and for the nine months ended September 30, 1999. During the third quarter, the Company posted record revenue of $333 million compared to $317 million last year. Weather conditions, including Hurricane Floyd, impacted operating results as same store sales fell 2% during the period. Despite this decline, diluted earnings per share for the quarter increased to 39 cents on income of $11.5 million.

During the comparable period in 1998, Watsco's diluted earnings per share grew 48% to 37 cents on income of $10.8 million and a same store sales increase of 13%. Watsco also achieved record cash flows from operations of $27.2 million for the quarter. This contrasts with the third quarter last year in which cash used in operations was $2.5 million. Commenting on the quarter's results, Albert Nahmad, President and Chief Executive Officer stated, "Achieving record results for the quarter was quite an accomplishment given the tough weather conditions as well as the strong prior year comparisons. Assuming normal weather conditions going forward, Watsco should be able to accelerate its sales and earnings growth rates. In addition, the Company's focus on cash flow is paying off and we expect that trend to continue."

For the nine months ended September 30, 1999, revenue increased to $911 million from $761 million last year and diluted earnings per share rose 12% to 84 cents on a 17% increase in income of $25 million. Watsco also announced two new internet initiatives related to its e-commerce strategy. The first initiative, now being implemented by its subsidiaries, enables connectivity by Watsco's customers through the internet to the company's operating software. This allows customers to access the Company's systems on-line 24 hours a day, 7 days a week to search for desired products, verify inventory availability, obtain pricing, place orders, check order status, schedule pick-up or delivery times and make payments.

An example of this new service can be found at www.comfortsupply.com. The second initiative will introduce a new web site, AC-Doctor.com, which will provide homeowners, businesses and HVAC contractors useful information and a variety of services. This site is expected to be available on a limited test basis during the fourth quarter this year. Watsco is the nation's largest distributor of air conditioning, heating and refrigeration equipment and related products in the distribution segment of the HVAC/R industry.

The Company's strategy is to expand its network of distribution locations across the country. The Company currently operates 317 locations serving customers in 30 states with annual revenue of over $1 billion. The Company is pursuing opportunities for further growth throughout the country.

This release contains forward-looking statements which are made pursuant to the safe harbor provisions if the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities & Exchange Commission. All forward-looking statements should be considered in light of these risks and circumstances.