Encompass Selected to Support Extended Warranty Program Launched by Universal Technical Services for Sporting Goods Stores Nationwide

Lawrenceville, Ga., July 19, 2011 – Encompass Group Affiliates, Inc. (OTC Bulletin Board: ECGA), a leading provider of reverse logistics services and replacement parts for a wide range of electronics products, today announced that its subsidiary Encompass Service Solutions, Inc., has finalized an agreement with Universal Technical Services to provide product returns management and asset value recovery services in support of its extended warranty program offering.

Universal Technical Services (UTS) is a leading provider of extended warranties in the fitness industry and a wholly-owned subsidiary of ICON Health & Fitness, one of the largest developers, manufacturers and marketers of fitness equipment in the world.

Under the agreement, Encompass will manage the disposition of defective portable goods returned under UTS extended warranties offered through sporting goods stores across the country. Encompass will test returned items and recover value based on established business practices.

“The Encompass team is excited to be selected by Universal Technical Services to provide warranty return service for their customer base. We have the expertise, infrastructure and operational systems to deliver superior after sales service, and we look forward to supporting UTS in the sporting goods retail market,” said Thomas Sutlive, President and Chief Operating Officer of Encompass Service Solutions.

Encompass will receive and process returns out of its 150,000-square-foot distribution center and service facility in Lawrenceville, Ga., located just north of Atlanta. The company has developed a special web portal to effectively manage the returns authorization process for UTS’ extended warranty customers.

Nick Palmer, general manager of Universal Technical Services, said Encompass was the logical partner for this venture, which has the potential for explosive volume.

“Encompass’ flexibility to scale along with our extended warranty offering as it is rolled out to major sporting goods stores across the country will be a critical factor in the program’s success,” said Palmer. “We are confident that the Encompass team is up to the task and will provide the exceptional backend support needed to ensure the returns process runs smoothly and efficiently for warranty customers.”

About Universal Technical Services

Universal Technical Services is the leading provider of extended warranties in the fitness industry today.

About Encompass

Encompass is a market leader in forward and reverse supply chain logistics, board repair services and asset recovery with specialization in consumer electronics, imaging, computer and major appliance products. 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.