News

Houston, TX – November 2, 2005 – 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 $6,131,000 or $0.15 per diluted share, for the quarter ended September 30, 2005, as compared to net income of $3,490,000 or $0.09 per diluted share, in the third quarter of 2004. Net income from continuing operations for the quarter was $6,464,000 or $0.16 per diluted share in the third quarter of 2005, as compared to $3,341,000 or $0.09, in the third quarter of 2004.

The Company reported revenues from continuing operations of $243,453,000 in the current quarter as compared to $206,171,000 in 2004. The Company also reported free cash flow of $6,630,000 in the current quarter as compared to free cash flow of $4,158,000 in 2004. Backlog as of September 30, 2005 was $650,751,000 as compared to $639,654,000 as of June 30, 2005 on a same-store basis.

Bill Murdy, Comfort Systems USA's Chairman and CEO, said, “We experienced sharp improvements in earnings and revenues, and we continued our track record of effective capital management even as rising activity levels led to an increase in our investment in working capital. Our Company's growing strength has also allowed our Board of Directors to declare, for the first time, a quarterly dividend of $0.025 per share, and we are very pleased to begin to provide a direct and tangible return to our many loyal shareholders.” The details of the dividend are contained in a separate release also issued today.

The Company reported net income for the nine months ended September 30, 2005 of $11,338,000 or $0.28 per diluted share as compared to net income of $8,707,000 or $0.22 per diluted share in 2004. Excluding the debt cost write off, net income from continuing operations was $12,718,000 or $0.32 per diluted share for the nine months ended September 30, 2005. The Company reported revenues of $681,937,000 from continuing operations for the first nine months of 2005, as compared to $594,198,000 in 2004.

Murdy continued, “We believe that the improvement we are experiencing is largely due to our emphasis on productivity and execution, and is a tribute to our many employees. Our commitment to our people is leading us to continue to increase our efforts and investment in training our team members throughout the Company. This emphasis, when combined with improved market conditions and our strong balance sheet and backlog, should give us a solid foundation to pursue further improvement.”

As previously announced, the Company will host a conference call to discuss its financial results and position in more depth on Thursday, November 3, 2005 at 9:00 a.m. Central Time. The call-in number for this conference call is 1-517-308-9002. A replay of the entire call will be available until 5:00 p.m. Central Time, Thursday, November 10, 2005 by calling 1-402-220-9713.

Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with 57 locations in 50 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, retention of key management, national and regional weakness in non-residential construction activity, difficulty in obtaining debt financing or bonding, shortages of labor and specialty building materials, seasonal fluctuations in the demand for HVAC systems and the use of incorrect estimates for bidding a fixed price contract and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. 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.