MIAMI, Jan 14, 2002 (BUSINESS WIRE) -- Watsco, Inc. (NYSE:WSO) announced today that it has signed a multi-year license agreement with Whirlpool Corporation (NYSE:WHR) to be the exclusive national distributor for a new line of central air conditioning and heating equipment carrying the Whirlpool brand name. Terms of the agreement were not disclosed.

The Whirlpool-brand HVAC product offering will include a complete line of residential and light-commercial central air conditioning and heating equipment with state-of-the-art features, including quiet, reliable and energy-efficient operation. These products, which will be sold and jointly marketed to the replacement and new construction markets, and are expected to be available by early 2003 following the qualification and selection of manufacturers.

Albert Nahmad, Watsco's president and chief executive officer, said: "This initiative represents a terrific opportunity for Watsco to distribute products with a great brand on a national basis. We believe that an extensive product offering, matched with great service and the strong consumer appeal of the Whirlpool brand will enable us to build market share and provide a meaningful source of revenue and profit."

Watsco's initiative to distribute Whirlpool-brand equipment will target the estimated $10 billion market for central air conditioning and heating systems. An estimated 9.3 million central air conditioning units and warm-air gas furnaces were sold in the United States in 2001, according to data published by the Air Conditioning & Refrigeration Institute and the Gas Appliance Manufacturers Association. An estimated 100 million homes and businesses have central air conditioning or heating systems with average product lives of 8 to15 years, providing a large annual repair and replacement market. Over 100,000 contractors operating throughout the United States perform repair and replacement services for existing HVAC systems as well as the installation of new systems in the construction market.

"This agreement expands the Whirlpool brand presence in air treatment," said Marise Kumar, Whirlpool vice president for value brands and developing categories. "Specifically, HVAC products and services will allow us to better meet the home environment needs of Whirlpool brand targeted consumers. Watsco's HVAC expertise, growth and extensive distribution network supported our decision to lend the globally recognized Whirlpool name to this venture."

Watsco and Whirlpool also intend to jointly market products to homebuilders. In addition, joint efforts will be made to utilize Watsco's contractor network to open new HVAC sales channels in the retailing and home-remodeling markets. Watsco will also take steps to bring additional business to its contractor network by marketing to consumers. First, Watsco will build a consumer-oriented web site featuring product information as well as enabling consumers to find, evaluate and contact local HVAC contractors. Next, Watsco will establish resources that link to Whirlpool's existing customer call center and provide consumers with a similar array of services.

Terry Kelly, Watsco's vice president of operations added, "This agreement with Whirlpool is an exciting opportunity to leverage our distribution network and to implement distribution strategies in new markets and emerging sales channels. We expect the introduction of an innovative family of Whirlpool-brand products to be very attractive to both contractors and consumers."

Watsco is the nation's largest independent distributor of air conditioning, heating and refrigeration equipment and related products in the distribution segment of the HVAC/R industry, currently operating 290 locations serving customers in 30 states. Additional information about Watsco may be found on the Internet at http://www.watsco.com. Watsco is also the sponsor of http://www.ACDoctor.com, a web site providing a variety of services to consumers and contractors.

Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances. Headquartered in Benton Harbor, the company manufactures in 13 countries and markets products under 11 major brand names in more than 170 countries. Additional information about the company can be found on the Internet at http://www.WhirlpoolCorp.com.

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market and regulatory factors. More detailed information about those factors is contained in Watsco's filings with the Securities and Exchange Commission.

CONTACT: Watsco, Inc., Coconut Grove, Fla. Barry S. Logan, 305/714-4102 Fax: 305/858-4492 e-mail: blogan@watsco.com http://www.watsco.com URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.

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