Encompass Selected to be Authorized Parts Distributor for Haier America

Lawrenceville, Ga., January 12, 2011 – Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), a leading provider of genuine parts and reverse logistics services for a wide range of consumer and high-tech products, today announced its subsidiary Encompass Parts Distribution, Inc. has executed a distribution agreement with Haier America.

Under the agreement with Haier, Encompass will distribute a comprehensive line of replacement parts for the company’s consumer electronics, major appliances and HVAC products.

“This is a significant business win for Encompass, and we look forward to further demonstrating our proven ability to deliver unparalleled support to major manufacturers,” said Encompass President and CEO Robert Gowens. “Our dedication to going above and beyond to ensure the complete satisfaction of our clients is what sets us apart from other industry suppliers.”

Robert Coolidge, President of Encompass Parts Distribution, said Encompass is pleased to have the opportunity to assist Haier in supporting and maintaining its products in the marketplace.

“As an authorized Haier parts distributor, Encompass is committed to providing service centers with top quality original parts and superior professional support to assist them in serving their end user customers and enhancing the Haier brand,” said Coolidge.

About Haier America

Haier America is a leader for room air conditioner, compact refrigerator and wine cellar sales, as well as a leading force in home appliances, compact laundry, compact freezer and HDTV sales. Haier America is an Official Marketing Partner and the Official High Definition Television of the NBA.

About Encompass Group Affiliates, Inc.

Encompass Group Affiliates, Inc. is a market leader in forward and reverse supply chain logistics, board repair services and asset management for a wide variety of high-tech products and consumer electronics. Encompass, through its wholly-owned subsidiaries, Encompass Parts Distribution, Inc., Encompass Service Solutions, Inc. and Encompass International, provides comprehensive electronics parts distribution, asset value recovery, returns management, depot repair and refurbishment services. For more information about Encompass, please visit our website at encompass.com.