Acquisition Adds $102 Million Of Revenue And New Platform To Growth Strategy

MIAMI, FLORIDA, July 2, 1998 -- Watsco, Inc. (NYSE: WSO) today announced that it has completed the acquisition of Kaufman Supply, a leading distributor of air conditioning and other products to the manufactured housing industry. While the purchase price was not disclosed, the transaction is expected to be accretive to earnings.

Kaufman Supply, headquartered in Atlanta, Georgia, operates 12 locations serving over 2,500 dealers and contractors throughout the southeastern United States and sells central air conditioners and other products used in manufactured housing. The company's 1997 revenue was approximately $102 million. Kaufman Supply, founded in 1962, has over 300 employees and will continue to operate under its present trade name.

"The acquisition of Kaufman Supply provides a new consolidation platform for Watsco to increase its sales of air conditioning products to the fast growing manufactured housing segment of the $19 billion national market for HVAC/R products", said Albert H. Nahmad, Watsco Chairman and Chief Executive Officer. "Kaufman Supply is a recognized leader in supplying air conditioning and other products to this segment of our industry."

Mr. Nahmad added, "The acquisition by Watsco will also allow Kaufman Supply to accelerate its plans for internal growth, including the opening of new branches and the expansion of its product offerings, in addition to making strategic acquisitions of other air conditioning distributors serving this segment of the HVAC/R distribution industry. We are pleased that Richard Kaufman and his present team of management and employees at Kaufman Supply will continue to operate and grow their business as part of Watsco and welcome them to the growing family of Watsco employees."