Exhibit 99.1

NEWS RELEASE

Barry S. Logan	Watsco, Inc.
Senior Vice President	2665 S. Bayshore Drive - Suite 901
(305) 714-4102	Coconut Grove, FL 33133
e-mail: blogan@watsco.com	(305) 714-4100
	Fax: (305) 858-4492
	www.watsco.com

For Immediate Release:

Watsco Reports Record Second Quarter

Sales, Earnings and Earnings Per Share

Diluted EPS Grows 38% to 72 Cents Per Share on a 9% Sales Increase

MIAMI, FLORIDA, July 22, 2004 – Watsco, Inc. (NYSE:WSO) today announced record operating results for the second quarter and six months ended June 30, 2004.

Second Quarter Results

Diluted earnings per share grew 38% to 72 cents, reflecting record sales, gross profit, gross profit margin, operating income, operating margin and net income.

Sales increased 9% to $373 million, including an 8% increase in same-store sales of residential and light-commercial HVAC products. Gross profit grew 14% to $96 million, with gross profit margin expanding 100 basis-points to 25.8% from 24.8%. Selling, general and administrative expenses increased 4% (3% on a same-store basis) and, as a percentage of revenues, decreased by 100 basis-points to 17.1%.

Operating income advanced 41% to $32.3 million, with operating margins expanding 200 basis-points to 8.7%. Net interest expense decreased 26% to $1.2 million from a 29% decrease in average borrowings. Net income increased 44% to $19.4 million.

Six-Month Results

Diluted earnings per share grew 45% to a record 97 cents, reflecting higher sales, enhanced gross profit margins, effective leveraging of operating costs and lower borrowing costs.

Sales increased 9% to $651 million, including a 7% increase in same-store sales of residential and light-commercial HVAC products. Gross profit grew 13% to a record $168 million, with gross profit margin expanding 90 basis-points to 25.7% from 24.8%. Selling, general and administrative expenses increased 5% (2% on a same-store basis) and, as a percentage of revenues, decreased by 70 basis-points to 19.0%.

Operating income increased 45% to a record $44.0 million, with operating margins expanding 170 basis-points to 6.8%. Net interest expense decreased 25% to $2.3 million from a 28% decrease in average borrowings. Net income increased 51% to a record $26.0 million.

Cash flow provided by operations was $12.1 million for the quarter and a use of cash of $13.3 million for the six-months in response to seasonal demand. Cash flow is expected to grow substantially by the end of 2004 as the second half of the year is typically a strong seasonal period for cash flow. Long-term debt at June 30, 2004 declined 25% to $60.1 million compared to $80.2 million a year ago. The Company’s debt-to-total capitalization ratio improved to 13% at June 30, 2004 versus 19% a year ago.

Albert H. Nahmad, President & Chief Executive Officer commented, “This quarter’s outstanding results represent a break-through for the Company as each major operational and financial metric has reached a record level and has combined to produce a terrific growth rate in earnings per share. These results also reflect our ability and continued emphasis on providing customers the products and services they desire. We are optimistic that the momentum of the first-half of 2004 will continue and produce another record year of performance.”

Watsco will be holding its investor conference call today, July 22, 2004 at 10:00 a.m. Eastern Time. Shareholders interested in participating may call (877) 391-0532. Internet users can listen to a live webcast of the conference call on the Investor Relations section of Watsco’s website at http://www.watsco.com.

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 318 locations serving customers in 31 states. Additional information about Watsco may be found on the Internet at http://www.watsco.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, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, seasonal nature of sales of Watsco’s products and insurance coverage risks. Forward-looking statements speak only as of the date the statement was made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Detailed information about these factors and additional important factors can be found in the documents that Watsco files from time to time with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K.

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WATSCO, INC.

Consolidated Results of Operations

(In thousands, except per share data)

(Unaudited)

	Quarter Ended June 30,						Percentage Change		Six-Months Ended June 30,						Percentage Change
	2004			2003					2004			2003
Revenue	$	372,636		$	340,516		9	%	$	651,351		$	597,914		9	%
Cost of sales		276,538			256,172					483,806			449,784
Gross profit		96,098			84,344		14	%		167,545			148,130		13	%
Gross profit margin (1)		25.8	%		24.8	%				25.7	%		24.8	%
SG&A expenses		63,841			61,468		4	%		123,499			117,700		5	%
Operating income		32,257			22,876		41	%		44,046			30,430		45	%
Operating margin (2)		8.7	%		6.7	%				6.8	%		5.1	%
Interest expense, net		1,159			1,565		(26	)%		2,314			3,077		(25	)%
Income before income taxes		31,098			21,311		46	%		41,732			27,353		53	%
Income tax expense		11,711			7,885					15,716			10,121
Net income	$	19,387		$	13,426		44	%	$	26,016		$	17,232		51	%
Basic earnings per share	$	0.76		$	0.54		41	%	$	1.02		$	0.69		48	%
Diluted earnings per share	$	0.72		$	0.52		38	%	$	0.97		$	0.67		45	%
Weighted average shares and equivalent shares used to calculate:
Basic earnings per share		25,455			25,016					25,384			25,069
Diluted earnings per share		26,920			25,786					26,821			25,787

(1) Gross profit margin represents gross profit divided by revenue.

(2) Operating margin represents operating income divided by revenue.

Segment Information:

(Unaudited)

	Quarter Ended June 30,						Six-Months Ended June 30,
	2004			2003			2004			2003
Revenue:
Distribution	$	367,793		$	334,099		$	641,733		$	584,831
Staffing		4,843			6,417			9,618			13,083
Total	$	372,636		$	340,516		$	651,351		$	597,914
Operating income (loss):
Distribution	$	36,956		$	26,336		$	52,597		$	37,572
Staffing		(104	)		(350	)		(136	)		(759	)
Corporate		(4,595	)		(3,110	)		(8,415	)		(6,383	)
Total	$	32,257		$	22,876		$	44,046		$	30,430

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WATSCO, INC.

Condensed Consolidated Balance Sheets

(In thousands)

	June 30, 2004		December 31, 2003
	(Unaudited)
Cash and cash equivalents	$	16,548	$	36,339
Accounts receivable, net		174,123		137,678
Inventories		243,297		194,267
Other		11,998		9,244
Total current assets		445,966		377,528
Property and equipment, net		20,396		22,066
Goodwill and other assets		136,103		135,501
Total assets	$	602,465	$	535,095
Accounts payable and accrued liabilities	$	149,509	$	107,831
Current portion of long-term obligations		104		172
		149,613		108,003
Borrowings under revolving credit agreement		30,000		30,000
Long-term notes		30,000		30,000
Deferred income taxes and other liabilities		5,482		6,223
Total liabilities		215,095		174,226
Shareholders’ equity		387,370		360,869
Total liabilities and shareholders’ equity	$	602,465	$	535,095

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