hhgregg Joins Encompass’ PARTner Profits Program

Lawrenceville, Ga., March 3, 2011 – Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), a leading provider of replacement parts and reverse logistics services for a wide range of consumer and high-tech products, today announced its subsidiary Encompass Parts Distribution, Inc. has added retailer hhgregg to its growing PARTner Profits consumer referral program.

Through the program – which has been implemented by other major retailers – hhgregg directs its customers to a special web portal and dedicated phone line managed by Encompass to order replacement parts and accessories for consumer electronics and major appliance products. Encompass handles the entire backend process for hhgregg, including order and payment processing, fulfillment and customized call center services, and shares sales revenue with the retailer.

“PARTner Profits is a value-added program that we offer our clients to augment service to their customers,” said Robert Coolidge, President of Encompass Parts Distribution. “We assume full responsibility for the inventory, orders, distribution and accounting on behalf of our partners so they can focus on their core business.”

Coolidge said Encompass is pleased to have the opportunity to serve the consumer customers of all its retail partners.

“Encompass is focused on providing the same level of superior service to consumers that they expect from their retailers,” said Coolidge. “We are aware that our performance reflects on our partners, and are fully committed to protecting and enhancing their brands and customer relationships.”

About hhgregg

hhgregg is a specialty retailer of consumer electronics, home appliances, and related products and services operating under the name hhgreggTM and Fine LinesTM. hhgregg currently operates 173 stores in Alabama, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.

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, please visit encompass.com.