Encompass Group Announces Its Expansion into Mexico with the Opening of a Distribution and Reverse Logistics Facility

Scheduled to open on or about October 15, 2009, the facility will be dedicated initially to parts distribution for hundreds of brands of consumer electronics, appliance, computer and imaging products, and will be the only single source in Mexico to offer parts for all four major product categories. Most notably, Encompass will be the single authorized source of original replacement parts for P & F (formerly Philips) consumer products in Mexico -- a role the Company already serves in the U.S. and Canada. The distribution facility is located in Lerma, a suburb of Mexico City, in a secure modern warehouse/distribution facility with tenants such as BMW Parts, Coca Cola and Rubbermaid.

Encompass President and CEO Wayne Danson said the new facility marks a long-term strategic commitment to the Latin and South American markets. "This facility marks a commitment to Mexico and the Latin and South American markets which we believe will experience tremendous growth in the years ahead. We have commitments from OEM's, retailers and insurers to utilize Encompass and our new facility for all their parts and reverse logistics needs." explained Danson, "We are very excited about the potential growth in these markets and are poised to aggressively expand into other Latin and South American countries on a case-by-case basis."

According to Danson, one of the Company's most important missions will be to introduce its highly regarded "Green Choice" parts program to Mexico. The program, which assures that certifiably good parts end up in consumer electronic products instead of landfills, is a key part of the company's e-Recycling commitment. All parts are rigorously tested and certified, and come with a warranty -- but cost less than conventional replacement parts.

Jose Hernandez, General Manager of International Business Development says, "The Encompass Group's vision for product lifecycle management has made a significant impact on how consumer products are managed today in the United States. We will replicate our successful model into the rapidly growing technology markets of Latin America. We are very proud to have selected Mexico, one of our largest trading partners in this hemisphere, as the pivotal launch country for our expansion into the Latin and South American markets."

About Encompass Group Affiliates, Inc.

Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), a New York-based company is a market leader in the end-of-life cycle management of the consumer electronics segment of the reverse logistics industry. Encompass Group, through its wholly-owned subsidiaries, Encompass Parts Distribution, Inc. and Encompass Service Solutions, Inc., provide comprehensive consumer electronics parts distribution, asset recovery, returns management, reverse logistics services, and depot repair and refurbishment services. Encompass Group addresses the full scope of this multi-billion market -- including the end-user driven product support and provides single-source lifecycle management services for technology products, currently in the North American market, with accelerating growth towards a global presence. The Company's market position is based on its distinctive ability to provide single-point, professional comprehensive value-added lifecycle service on a competitive basis. For more information about Encompass Group Affiliates, visit our website at http://www.encompass.com

Encompass Parts Distribution, Inc. is comprised of the former number two (Vance Baldwin) and number three (Tritronics) parts distributors in the U.S., to create what is now the country's largest distributor of consumer electronic parts and accessories. Most importantly, Encompass maintains the heritage of focused expertise and personalized service exemplified by both legacy brands. With warehouses in Florida, Georgia, Maryland and Las Vegas, Encompass distributes both new and certified reclaimed parts for more than 150 brands of consumer electronics, computers, printers and office equipment. The company also provides service aids and industrial products such as cable, tools, test equipment, cleaners and other installation equipment. For more information about Encompass Parts Distribution, visit our website at www.encompassparts.com

Encompass Service Solutions is comprised of a primary electronic equipment repair center in Orlando Florida, as well as a network of sophisticated repair facilities in Georgia and South Florida. With over 22 years of industry leadership, the company specializes in the repair and advanced exchange of consumer and office electronic equipment, providing parts reclamation services, sophisticated board-level and whole-unit repair to third-party warranty companies, OEMs, national retailers and national office equipment dealers. Encompass Service Solutions offers Level II and Level III call center technical support, service contract administration and support, and asset recovery programs.

This release and oral statements made from time to time by Encompass Group Affiliates, Inc.'s representatives concerning the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "anticipate," "plans," "should," "believes," "will," or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Many factors may cause actual results to differ from forward-looking statements, as well as inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Encompass Group Affiliates, Inc. with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements.

SOURCE: Encompass Group Affiliates, Inc.

Encompass Group Affiliates, Inc. 
Wayne I. Danson, 646-227-1600 
Chief Executive Officer 
or 
John E. Donahue, 646-227-1600 
Chief Financial Officer