News

Houston, TX – November 1, 2006 – Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation and air conditioning (“HVAC”) services, today announced net income of $8,962,000 or $0.22 per diluted share, for the quarter ended September 30, 2006, as compared to net income of $6,131,000 or $0.15 per diluted share, in the third quarter of 2005.

Bill Murdy, Comfort Systems USA's Chairman and CEO, said, “The employees of Comfort Systems continued to raise the bar of excellence in the third quarter by creating net income for our stockholders that was 46% higher than the same quarter a year ago.”

The Company reported revenues from continuing operations of $287,676,000 in the current quarter, an increase of 22.3% as compared to $235,252,000 in 2005. The Company also reported free cash flow of $3,265,000 in the current quarter as compared to free cash flow of $6,630,000 in 2005. Backlog as of September 30, 2006 was $678,858,000, compared to $689,993,000, as of June 30, 2006 on a same store basis. Backlog as of September 30, 2005 was $634,093,000 on a same store basis.

Murdy continued, “Backlog levels remain very high, and should support continued activity level increases. As in the second quarter, our multi-family backlog declined somewhat while our remaining book of business continued to experience a backlog increase. We believe that the shift of our backlog composition toward other market segments as well as productivity improvement we expect in our underperforming multifamily sector are positive factors for future bottom line performance.”

The Company reported net income for the nine months ended September 30, 2006 of $21,210,000 or $0.52 per diluted share as compared to net income of $11,338,000 or $0.28 per diluted share in 2005. The Company reported net income from continuing operations for the nine months ended September 30, 2006 of $21,218,000 or $0.52 per diluted share as compared to net income from continuing operations of $12,259,000 or $0.31 per diluted share for the nine months ended September 30, 2005. The Company reported revenues of $788,451,000 from continuing operations for the first nine months of 2006, as compared to $658,899,000 in 2005.

Bill Murdy concluded, “Internal and external indicators remain positive for nonresidential building construction. We are continuing to invest in growth and improvement, and we remain optimistic as we head into the fourth quarter and 2007.”

As previously announced, the Company will host a conference call to discuss its financial results and position in more depth on Thursday, November 2, 2006 at 10:00 a.m. Central Time. The call-in number for this conference call is 1-210-839-8504. A replay of the entire call will be available until 6:00 p.m. Central Time, Thursday, November 9, 2006 by calling 1-402-530-8074.

Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with more than 60 locations in 53 cities around the nation. For more information, visit the Company's website at www.comfortsystemsusa.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of Comfort Systems USA, Inc. and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, national or regional weakness in nonresidential construction activity, difficulty in obtaining or increased costs associated with bonding, shortages of labor and specialty building materials, the use of incorrect estimates for bidding a fixed price contract, retention of key management, the Company's backlog failing to translate into actual revenue or profits, errors in the Company's percentage of completion method of accounting, the result of competition in the Company's markets, seasonal fluctuations in the demand for HVAC systems, the imposition of past and future liability from environmental, safety, and health regulations including the inherent risk associated with selfinsurance, adverse litigation results and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. Important factors that could cause actual results to differ are discussed under “Item 1A. Company Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2005. These forward-looking statements speak only as of the date of this release. Comfort Systems USA, Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Comfort Systems USA, Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.