American Residential Announces Acquired Revenues Totaling $64 Million.

HOUSTON--(BUSINESS WIRE)--Nov. 24, 1998--American Residential Services Inc. (NYSE:ARS), a leading provider of residential and commercial heating, air conditioning, plumbing, electrical and appliance services, today announced that since its last acquisition announcement dated May 13, 1998, the Company has closed thirteen transactions with annualized revenues totaling approximately $64 million, increasing the Company's total annualized revenues to approximately $559 million.

Of the thirteen acquisitions completed, one was completed in the Company's second quarter, seven were completed in the Company's third quarter, and five were completed in the Company's current fourth quarter. Nine of the acquired companies provide residential services and expand these services into three new markets: Ft. Collins, Colo.; Winston-Salem, N.C.; and Austin, Texas. The remaining four companies were acquired by ARS's wholly-owned commercial subsidiary, American Mechanical Services Inc., and expand the Company's commercial operations into two new markets: San Jose and Los Angeles, Calif. All thirteen transactions have been accounted for as purchase transactions. Terms of the transactions were not disclosed.

"We've been fortunate in that we've been able to attract strong, solid companies to join our team of operators," stated Howard Hoover, chairman of the board. "As we go forward over the next several quarters, we will be significantly slowing our acquisition activity. One benefit of this is that our operating management should be able to better concentrate on improving operations and internal growth."

American Residential Services is engaged principally in providing comprehensive maintenance, repair, replacement and new equipment installation services for heating, air conditioning, plumbing, electrical, indoor air quality systems and major home appliances, primarily in existing homes, homes under construction and commercial buildings.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current plans and expectations of ARS and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those suggested or described in the forward-looking statements contained in this press release. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results, variations in stock prices, competition, weather conditions, risks of operations and integration of the newly acquired businesses. Additional information concerning factors that could cause actual results to differ from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC.