Service Experts, Inc.

Ticker: SERX		1134 Murfreesboro Road
Exchange: NASDAQ-National Market		Nashville, Texas 37217
Industry: Service		(615) 367-0003

Type of Shares:	Common Shares	Filing Date:	6/27/96
U.S. Shares:	2,250,000	Offer Date:	8/16/96
Non-U.S. Shares:	0	Filing Price:	$14.00
Primary Shares:	2,250,000	Offer Price:	$13.00
Secondary Shares:	0	Gross Spread:	$0.91
Offering Amount:	$31,500,000	Selling:	$0.54
Expenses:	-	Reallowance:	$0.10
Shares Out After:	8,250,000

Manager	Tier	Phone
Equitable Securities Corporation	Lead Manager	(615) 780-9300
Morgan Keegan & Company, Incorporated	Co-manager	(901) 524-4100

	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/95	3/31/96	3/31/95		3/31/96
Revenue:	$59.65	$13.97	$12.73	Assets:	$19.02
Net Income:	-$0.10	$0.49	$0.47	Liabilities:	$11.11
EPS:				Equity:	$7.91
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year

Business Description

The company provides installation and maintenance service for air conditioners and heat pumps, primarily in existing homes. Management estimates that in 1995 over 80% of the Company's proforma net revenue was derived from replacing, maintaining and servicing HVAC equipment at existing residences and commercial businesses and less than 20% was derived from installing new equipment at newly constructed homes and businesses. The Company focuses on the service and replacement segment of the HVAC industry rather than the new construction segment because management believes that the service and replacement segment exposes the Company to less credit risk and offers higher margins as a result of opportunities for more attractive pricing because of customers' demands for immediate, convenient and reliable service.

Use of Proceeds

The proceeds from the proposed offering will be used to repay founding companies, develop and acquire additional service facilities, repay debt and for other general corporate purposes.

Last updated: 10/28/96