|   | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the quarterly period ended September 30, 2009 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | For the transition period from | to |
|--------|----------------------|-------------------------------------------------------------------------------------------|--------------------------------|----|

| Texas                                                          |   | 76-0509661                              |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification Number) |
|                                                           |   |                                    |
| 7272 Pinemont, Houston, Texas                                  |   | 77040                                   |
| (Address of principal executive offices)                       |   | Zip code                                |
|                                                           |   |                                    |
| 713-996-4700                                                   |
| Registrant’s telephone number, including area code       |

----

| DXP ENTERPRISES, INC., AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In Thousands, Except Share and Per Share Amounts)                                                                                                                                                                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                  |   |   |   |
|                                                                                                                                                                                                                                                                                                                  | September 30, 2009 |   | December 31, 2008 |
|      ASSETS                                                                                                                                                                                                                                                                                  | (unaudited) |   |   |
| Current assets:                                                                                                                                                                                                                                                                                                       |   |   |   |
|   Cash                                                                                                                                                                                                                                                                                                      | $                     2,163 |   | $                     5,698 |
|   Trade accounts receivable, net of allowances for doubtful accounts                                                                                                                                                                                                                                        |   |   |   |
|     of $3,811 in 2009 and $3,494 in 2008                                                                                                                                                                                                                                                          | 78,336 |   | 101,191 |
|   Inventories, net                                                                                                                                                                                                                                                                                          | 91,088 |   | 119,097 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                                                                                 | 4,096 |   | 2,851 |
|   Deferred income taxes                                                                                                                                                                                                                                                                                     | 6,234 |   | 3,863 |
|      Total current assets                                                                                                                                                                                                                                                                    | 181,917 |   | 232,700 |
| Property and equipment, net                                                                                                                                                                                                                                                                                           | 17,750 |   | 20,331 |
| Goodwill                                                                                                                                                                                                                                                                                                              | 100,993 |   | 98,718 |
| Other intangibles, net of accumulated amortization of $15,025 in 2009   and $9,605 in 2008                                                                                                                                                                                                             |  39,807 |   |  45,227 |
| Other assets                                                                                                                                                                                                                                                                                                          | 801 |   | 880 |
|      Total assets                                                                                                                                                                                                                                                                            | $                 341,268 |   | $                 397,856 |
|      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                              |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                  |   |   |   |
|   Current portion of long-term debt                                                                                                                                                                                                                                                                         | $                   13,545 |   | $                   13,965 |
|   Trade accounts payable                                                                                                                                                                                                                                                                                    | 42,119 |   | 57,539 |
|   Accrued wages and benefits                                                                                                                                                                                                                                                                                | 8,190 |   | 12,869 |
|   Customer advances                                                                                                                                                                                                                                                                                         | 486 |   | 2,719 |
|   Federal income taxes payable                                                                                                                                                                                                                                                                              | 7,406 |   | 7,894 |
|   Other accrued liabilities                                                                                                                                                                                                                                                                                 | 3,816 |   | 8,660 |
|      Total current liabilities                                                                                                                                                                                                                                                               | 75,562 |   | 103,646 |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                  | 115,331 |   | 154,591 |
| Deferred income taxes                                                                                                                                                                                                                                                                                                 | 10,719 |   |  9,419 |
| Other liabilities                                                                                                                                                                                                                                                                                                     | 12 |   | 12 |
| Shareholders’ equity:                                                                                                                                                                                                                                                                                           |   |   |   |
|   Series A preferred stock, 1/10th vote per share; $1.00 par value;   liquidation preference of $100 per share ($112 at September 30,   2009); 1,000,000 shares authorized; 1,122 shares issued   and outstanding                                              |    1 |   |    1 |
|   Series B convertible preferred stock, 1/10th vote per share;  $1.00   par value; $100 stated value; liquidation preference of $100 per   share ($1,500 at September 30, 2009); 1,000,000 shares authorized;   15,000 shares issued and outstanding |    15 |   |    15 |
|   Common stock, $0.01 par value, 100,000,000 shares authorized;    12,917,133 in 2009 and 12,863,304 in 2008 shares outstanding                                                                                                                                                         |  129 |   |  128 |
| Paid-in capital                                                                                                                                                                                                                                                                                                       | 57,258 |   | 56,206 |
| Retained earnings                                                                                                                                                                                                                                                                                                     | 82,521 |   | 74,559 |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                                                                                                         | (280) |   | (721) |
|      Total shareholders’ equity                                                                                                                                                                                                                                                        | 139,644 |   | 130,188 |
|      Total liabilities and shareholders’ equity                                                                                                                                                                                                                                        | $                 341,268 |   | $                 397,856 |
|  The accompanying notes are an integral part of these consolidated financial statements.                                                                                                                                                                                                                         |

----

|                                                                              | Three Months Ended                                                                                    |   | Nine Months Ended                                                                                     |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|
|                                                                              | September 30,                                                                                         |   | September 30,                                                                                         |
|                                                                              | 2009                                                                                                  |   | 2008(Restated)                                                                                        |   | 2009 |   | 2008(Restated) |
| Sales                                                                             | $         143,422                                        |   | $         186,937                                        |   | $         445,400 |   | $        543,238 |
| Cost of sales                                                                     | 102,644                                                                                               |   | 134,687                                                                                               |   | 317,164 |   | 393,166 |
| Gross profit                                                                      | 40,778                                                                                                |   | 52,250                                                                                                |   | 128,236 |   | 150,072 |
| Selling, general and  administrative expense                            |  35,145                                                                                          |   |  39,460                                                                                          |   |  110,790 |   |  115,229 |
| Operating income                                                                  | 5,633                                                                                                 |   | 12,790                                                                                                |   | 17,446 |   | 34,843 |
| Other income                                                                      | 9                                                                                                     |   | 67                                                                                                    |   | 71 |   | 107 |
| Interest expense                                                                  | (1,232)                                                                                               |   | (1,456)                                                                                               |   | (4,020) |   | (4,015) |
| Income before income taxes                                                        | 4,410                                                                                                 |   | 11,401                                                                                                |   | 13,497 |   | 30,935 |
| Provision for income taxes                                                        | 1,726                                                                                                 |   | 4,375                                                                                                 |   | 5,475 |   | 12,097 |
| Net income                                                                        | 2,684                                                                                                 |   | 7,026                                                                                                 |   | 8,022 |   | 18,838 |
| Preferred stock dividend                                                          | (22)                                                                                                  |   | (23)                                                                                                  |   | (60) |   | (68) |
| Net income attributable to  common shareholders                         |  $             2,662            |   |  $             7,003            |   |  $             7,962 |   |  $          18,770 |
|                                                                              |                                                                                                  |   |                                                                                                  |   |   |   |   |
| Basic income per share                                                            | $               0.20       |   | $               0.54       |   | $              0.61 |   | $              1.45 |
| Weighted average common  shares outstanding                             |  13,132                                                                                          |   |  12,999                                                                                          |   |  13,105 |   |  12,904 |
|  Diluted income per share                                                    |  $               0.19 |   |  $               0.51 |   |  $              0.57 |   |  $              1.36 |
| Weighted average common and common   equivalent shares outstanding |  14,004                                                                                          |   |  13,861                                                                                          |   |  13,978 |   |  13,845 |
|  See notes to condensed consolidated financial statements.                   |

----

|                                                                                                                                                   | NINE MONTHS ENDED                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                   | SEPTEMBER 30                                                                                                                         |
|                                                                                                                                                   | 2009                                                                                                                                 |   | 2008 |
| OPERATING ACTIVITIES:                                                                                                                                  |                                                                                                                                 |   |   |
| Net income                                                                                                                                             | $                     8,022 |   | $                   18,838 |
|   Adjustments to reconcile net income to net cash provided                                                                                   |                                                                                                                                 |   |   |
|    by operating activities – net of acquisitions                                                                                  |                                                                                                                                 |   |   |
|     Depreciation                                                                                                                   | 3,354                                                                                                                                |   | 3,195 |
|     Amortization of intangibles                                                                                                    | 5,420                                                                                                                                |   | 3,971 |
|     Compensation expense from restricted stock                                                                                     | 1,243                                                                                                                                |   | 681 |
|     Tax benefit related to exercise of stock options and      vesting of restricted stock            |  (6)                                                                                                                            |   |  (1,229) |
|     Deferred income taxes                                                                                                          | (1,233)                                                                                                                              |   | (219) |
|     Gain on sale of property and equipment                                                                                         | -                                                                                                                                    |   | (116) |
|   Changes in operating assets and liabilities, net of     assets and liabilities acquired in business combinations: |                                                                                                                                 |   |   |
|     Trade accounts receivable                                                                                                      | 22,855                                                                                                                               |   | (17,312) |
|     Inventories                                                                                                                    | 28,009                                                                                                                               |   | (3,962) |
|     Prepaid expenses and other current assets                                                                                      | (2,251)                                                                                                                              |   | (1,171) |
|     Accounts payable and accrued liabilities                                                                                       | (27,264)                                                                                                                             |   | 2,831 |
|     Net cash provided by operating activities                                                                                      | 38,149                                                                                                                               |   | 5,507 |
|                                                                                                                                                   |                                                                                                                                 |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                  |                                                                                                                                 |   |   |
| Purchase of property and equipment                                                                                                                     | (1,482)                                                                                                                              |   | (4,246) |
| Proceeds from sale of property and equipment                                                                                                           | 16                                                                                                                                   |   | 158 |
| Purchase of businesses, net of cash acquired                                                                                                           | (491)                                                                                                                                |   | (69,906) |
|   Net cash used in investing activities                                                                                                      | (1,957)                                                                                                                              |   | (73,994) |
|                                                                                                                                                   |                                                                                                                                 |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                  |                                                                                                                                 |   |   |
| Proceeds from debt                                                                                                                                     | 97,387                                                                                                                               |   | 116,337 |
| Principal payments on revolving line of credit and other long-term  debt                                                                     |  (137,070)                                                                                                                      |   |  (48,385) |
| Dividends paid in cash                                                                                                                                 | (60)                                                                                                                                 |   | (68) |
| Proceeds from exercise of stock options                                                                                                                | 10                                                                                                                                   |   | 105 |
| Tax benefit related to exercise of stock options and vesting of  restricted stock                                                            |  6                                                                                                                              |   |  1,229 |
|   Net cash (used in) provided by financing activities                                                                                        | (39,727)                                                                                                                             |   | 69,218 |
| INCREASE (DECREASE) IN CASH                                                                                                                            | (3,535)                                                                                                                              |   |   731 |
| CASH AT BEGINNING OF PERIOD                                                                                                                            | 5,698                                                                                                                                |   | 3,978 |
| CASH AT END OF PERIOD                                                                                                                                  | $                     2,163 |   | $                     4,709 |
|                                                                                                                                                   |                                                                                                                                 |   |   |
| See notes to condensed consolidated financial statements.                                                                                              |

----

|                                                            | Three Months EndedSeptember 30, |   | Nine months EndedSeptember 30, |
|-----------------------------------------------------------------|---------------------------------|--------|--------------------------------|
|                                                            | 2009                            |   | 2008                           |   | 2009 |   | 2008 |
| Net income                                                      | $2,684                          |   | $7,026                         |   | $8,022 |   | $18,838 |
| Gain (loss) from interest rate swap, net of income taxes        | 181                             |   | 30                             |   | 441 |   | (180) |
| Comprehensive income                                            | $2,865                          |   | $7,056                         |   | $8,463 |   | $18,658 |
|  See notes to condensed consolidated financial statements. |

----

----

----

|                                                                 | Options Outstanding and Exercisable |
|----------------------------------------------------------------------|-------------------------------------|
|                                                                 | Number of Shares                    |   | WeightedAverageExercisePrice |   | Weighted Average Remaining Contractual Term(in years) |   | Aggregate Intrinsic Value |
| Options outstanding  at December 31, 2008                  | 58,000                              |   | $   2.33 |   | 4.5 |   | $    712,000 |
| Granted                                                              | -                                   |   |   |   |   |   |   |
| Exercised                                                            | (8,000)                             |   | $   1.25 |   |   |   |   |
| Options outstanding and  exercisable at September 30, 2009 |  50,000                        |   | $   2.50 |   | 4.3 |   | $    433,000 |

|                    |   | Options Outstanding and Exercisable |
|-------------------------|--------|-------------------------------------|
| Range ofexercise prices |   | Number of OptionsOutstanding        |   | Weighted Average Remaining Contractual Life(in years) |   | Weighted AverageExercisePrice |
| $1.25                   |   |  10,000                        |   | 0.6 |   | $1.25 |
| $2.26 - $3.36           |   | 40,000                              |   | 5.2 |   | $2.81 |
|                    |   |  50,000                        |   | 4.3 |   | $2.50 |

| Number of shares authorized for grants         | 600,000            |
|------------------------------------------------|--------------------|
| Number of shares granted                       | 380,222            |
| Number of shares forfeited                     | 22,074             |
| Number of shares available for future grants   | 241,852            |
| Weighted-average grant price of granted shares | $  15.52 |

----

|                           | Number ofShares |   | Weighted AverageGrant Price |
|--------------------------------|-----------------|--------|-----------------------------|
| Unvested at December 31, 2008  | 215,250         |   | $ 15.91                     |
| Granted                        | 74,200          |   | $ 14.49                     |
| Forfeited                      | (22,074)        |   | $ 13.01                     |
| Vested                         | (45,829)        |   | $ 16.20                     |
| Unvested at September 30, 2009 | 221,547         |   | $ 15.66                     |

|            | September 30, 2009                    |   | December 31, 2008 |
|-----------------|---------------------------------------|--------|------------------------|
|            |                                  |   |                   |
| Finished goods  | $     89,596 |   | $ 117,582              |
| Work in process | 1,492                                 |   | 1,515                  |
| Inventories     | $    91,088       |   | $ 119,097              |

|                                |  Total          |   |  Goodwill                  |   | OtherIntangibles          |
|-------------------------------------|----------------------|--------|---------------------------------|--------|---------------------------|
| Balance as of December 31, 2008     | $  143,945 |   | $    98,718 |   | $   45,227 |
| Acquired during the year            | -                    |   |   -                   |   | -                         |
| Adjustments to prior year estimates | 2,275                |   | 2,275                           |   | -                         |
| Amortization                        | (5,420)              |   | -                               |   | (5,420)                   |
| Balance as of September 30, 2009    | $  140,800 |   | $  100,993            |   | $   39,807 |

|                   | As of September 30, 2009                                           |   | As of December 31, 2008                                            |
|------------------------|--------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                   | GrossCarryingAmount                                                |   |  AccumulatedAmortization                                      |   | GrossCarryingAmount |   |  AccumulatedAmortization |
| Vendor agreements      | $          2,496 |   | $          (675) |   | $          2,496 |   | $          (582) |
| Customer relationships | 50,416                                                             |   | (13,174)                                                           |   | 50,416 |   | (8,289) |
| Non-compete agreements | 1,920                                                              |   | (1,176)                                                            |   | 1,920 |   | (734) |
| Total                  | $        54,832            |   | $     (15,025)                            |   | $        54,832 |   | $       (9,605) |

----

|                                                                                                               | Three Months Ended                                                            |   | Nine months Ended                                                             |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
|                                                                                                               | September 30,                                                                 |   | September 30,                                                                 |
|                                                                                                               | 2009                                                                          |   | 2008(Restated)                                                                |   | 2009 |   | 2008(Restated) |
| Basic:                                                                                                             |                                                                          |   |                                                                          |   |   |   |   |
|   Weighted average shares outstanding                                                                    | 13,131,547                                                                    |   | 12,999,156                                                                    |   | 13,104,622 |   | 12,904,479 |
|   Net income                                                                                             | $   2,684,000                                                  |   | $  7,026,000                                                        |   | $  8,022,000 |   | $ 18,838,000 |
|   Convertible preferred stock dividend                                                                   | (22,000)                                                                      |   | (23,000)                                                                      |   | (60,000) |   | (68,000) |
|   Net income attributable to    common shareholders                                  |  $   2,662,000                                            |   |  $  7,003,000                                                  |   |  $  7,962,000 |   |  $ 18,770,000 |
|   Per share amount                                                                                       | $            0.20 |   | $            0.54 |   | $           0.61 |   | $            1.45 |
|                                                                                                               |                                                                          |   |                                                                          |   |   |   |   |
| Diluted:                                                                                                           |                                                                          |   |                                                                          |   |   |   |   |
|   Weighted average shares outstanding                                                                    | 13,131,547                                                                    |   | 12,999,156                                                                    |   | 13,104,622 |   | 12,904,479 |
|   Net effect of dilutive stock options –    based on the treasury stock method |   32,784                                                            |   |   21,936                                                            |   |  33,522 |   |  100,870 |
|   Assumed conversion of convertible    preferred stock                               |  840,000                                                                 |   |  840,000                                                                 |   |  840,000 |   |  840,000 |
|   Total                                                                                                  | 14,004,331                                                                    |   | 13,861,092                                                                    |   | 13,978,144 |   | 13,845,349 |
|   Net income attributable to    common shareholders                                  |  $   2,662,000                                            |   |  $  7,003,000                                                  |   |  $  7,962,000 |   |  $ 18,770,000 |
|   Convertible preferred stock dividend                                                                   | 22,000                                                                        |   | 23,000                                                                        |   | 60,000 |   | 68,000 |
|   Net income for diluted earnings per share                                                              | $   2,684,000                                                  |   | $  7,026,000                                                        |   | $  8,022,000 |   | $ 18,838,000 |
|   Per share amount                                                                                       | $            0.19 |   | $            0.51 |   | $           0.57 |   | $            1.36 |

----

|                | Three Months ended September 30, |   | Nine Months ended September 30,                                                         |
|---------------------|----------------------------------|--------|-----------------------------------------------------------------------------------------|
|                | MRO                              |   | ElectricalContractor                                                                    |   |  Total |   | MRO |   | ElectricalContractor |   |  Total |
|                |                             |   |                                                                                    |   |   |   |   |   |   |   |   |
| 2008                |                             |   |                                                                                    |   |   |   |   |   |   |   |   |
| Sales               | $  185,962             |   | $            975            |   | $   186,937 |   | $  540,381 |   | $        2,857 |   | $  543,238 |
| Operating income    | 12,647                           |   |               143 |   |      12,790 |   | 34,389 |   | 454 |   | 34,843 |
| Income before taxes | 11,293                           |   | 108                                                                                     |   | 11,401 |   | 30,579 |   | 356 |   | 30,935 |
| 2009                |                             |   |                                                                                    |   |   |   |   |   |   |   |   |
| Sales               | $  142,698             |   | $            724            |   | $   143,422 |   | $  443,283 |   | $        2,117 |   | $   445,400 |
| Operating income    | 5,545                            |   | 88                                                                                      |   | 5,633 |   | 17,223 |   | 223 |   | 17,446 |
| Income before taxes | 4,351                            |   | 59                                                                                      |   | 4,410 |   | 13,364 |   | 133 |   | 13,497 |

| NOTE 9: | ACQUISITIONS |
|---------|--------------|

| Accounts Receivable             | $    1,136 |
|---------------------------------|--------------------------------|
| Inventory                       | 881                            |
| Property and equipment          | 667                            |
| Goodwill and intangibles        | 2,018                          |
| Other assets                    |  10                       |
| Assets acquired                 |  4,712                    |
| Current liabilities assumed     | (753)                          |
| Non-current liabilities assumed | (54)                           |
|   Net assets acquired | $    3,905 |

----

|                         | Three MonthsEndedSeptember 30, 2008 | Nine monthsEndedSeptember 30, 2008 |
|------------------------------|-------------------------------------|------------------------------------|
|                         |                                |                               |
| Net sales                    | $  201,898                | $  600,813               |
| Net income                   | 7,406                               | 20,772                             |
| Per share data               |                                |                               |
|   Basic earnings   | $0.57                               | $1.60                              |
|   Diluted earnings | $0.53                               | $1.50                              |

----

|                                                  | Fair Value Measurement                                      |
|-------------------------------------------------------|----------------------------------------------------------------------------|
| Description (Liabilities)                             | Level 1                                                               |    | Level 2 |    | Level 3 |    | Total |
| Current liabilities – Other accrued liabilities | $            - |    | $            - |    | $       466 |    | $     466 |
| Non-current liabilities                               | -                                                                     |    | - |   | - |   | - |
| Total                                                 | $            - |    | $            - |    | $       466 |    | $     466 |

|                                                                                     | Interest Rate Swap                 |
|------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                     | 2009                               |   | 2008 |
| Three Months Ended September 30                                                          |                               |   |   |
| Fair value at July 1                                                                     | $     768 |   | $     350 |
| Realized and unrealized (gains) losses  included in other comprehensive income |  (302)                        |   |  (50) |
| Fair value at September 30                                                               | $     466 |   | $     300 |
|                                                                                     |                               |   |   |
| Nine Months Ended September 30                                                           |                               |   |   |
| Fair value at January 1                                                                  | $  1,202                 |   | $          - |
| Realized and unrealized (gains) losses  included in other comprehensive income |  (736)                        |   |  300 |
| Fair value at September 30                                                               | $     466 |   | $     300 |

|   | NOTE 11:  OTHER COMPREHENSIVE INCOME |
|--------|------------------------------------------------|

|                                                     | Three Months EndedSeptember 30 |         | Nine months EndedSeptember 30 |
|----------------------------------------------------------|--------------------------------|--------------|-------------------------------|
|                                                     | 2009                           |         | 2008                          |   | 2009 |   | 2008 |
| Net income                                               | $2,684                         |    | $7,026                        |   | $8,022 |   | $18,838 |
| Gain (loss) from interest rate swap, net of income taxes | 181                            |         | 30                            |   | 441 |   | (180) |
| Other comprehensive income                               | $2,865                         |    | $7,056                        |   | $8,463 |   | $18,658 |

----

|   | ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|----------------------------------------------------------------------------------------------|

|   | Impact of Current Economic Conditions |
|--------|---------------------------------------|

|                                                              | Three Months Ended September 30,                         |   | Nine Months Ended September 30, |
|-------------------------------------------------------------------|----------------------------------------------------------|--------|---------------------------------|
|                                                              | 2009                                                     |   | %                               |   | 2008 |   | % |   | 2009 |   | % |   | 2008 |   | % |
|                                                              | (in thousands, except percentages and per share amounts) |
| Sales                                                             | $143,422                                                 |   | 100.0                           |   | $186,937 |   | 100.0 |   | $445,400 |   | 100.0 |   | $543,238 |   | 100.0 |
| Cost of sales                                                     | 102,644                                                  |   | 71.6                            |   | 134,687 |   | 72.0 |   | 317,164 |   | 71.2 |   | 393,166 |   | 72.4 |
| Gross profit                                                      | 40,778                                                   |   | 28.4                            |   | 52,250 |   | 28.0 |   | 128,236 |   | 28.8 |   | 150,072 |   | 27.6 |
| Selling, general and  administrative  expense |   35,145                                       |   |   24.5                |   |   39,460 |   |   21.1 |   |   110,790 |   |   24.9 |   |   115,229 |   |   21.2 |
| Operating income                                                  | 5,633                                                    |   | 3.9                             |   | 12,790 |   | 6.9 |   | 17,446 |   | 3.9 |   | 34,843 |   | 6.4 |
| Interest expense                                                  | (1,232)                                                  |   | (0.8)                           |   | (1,456) |   | (0.8) |   | (4,020) |   | (0.9) |   | (4,015) |   | (0.7) |
| Other income                                                      |  9                                                  |   | -                               |   | 67 |   | - |   | 71 |   | - |   | 107 |   | - |
| Income before  income taxes                             |  4,410                                              |   |  3.1                       |   |  11,401 |   |  6.1 |   |  13,497 |   |  3.0 |   |  30,935 |   |  5.7 |
| Provision for  income taxes                             |  1,726                                              |   |  1.2                       |   |  4,375 |   |  2.3 |   |  5,475 |   |  1.2 |   |  12,097 |   |  2.2 |
| Net income                                                        | $    2,684                           |   | 1.9                             |   | $    7,0263 |   | 3.8 |   | $  8,022 |   | 1.8 |   | 18,838 |   | 3.5 |
| Per share amounts                                                 |                                                     |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings  per share                               |  $0.20                                              |   |                            |   |  $0.54 |   |   |   |  $0.61 |   |   |   |  $1.45 |   |   |
| Diluted earnings  per share                             |  $0.19                                              |   |                            |   |  $0.51 |   |   |   |  $0.57 |   |   |   |  $1.36 |   |   |

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|                                                                    | Four Fiscal Quarter PeriodEndingSeptember 30, 2009 |
|-------------------------------------------------------------------------|----------------------------------------------------|
| Income before income taxes                                              | $   24,846                          |
| Interest expense                                                        | 6,135                                              |
| Depreciation and amortization                                           | 12,600                                             |
| Stock compensation expense                                              | 1,493                                              |
| Pro forma acquisition EBITDA                                            | (12)                                               |
| (A) Defined EBITDA                                                 | 45,062                                             |
|                                                                    |                                               |
| Cash income taxes                                                       | 8,489                                              |
| Capital expenditures                                                    | 2,370                                              |
| (B) Defined EBITDA minus capital expendituresand cash income taxes |  $   34,203                    |
|                                                                    |                                               |
| Interest expense                                                        | $     6,135               |
| Scheduled principal payments                                            | 13,545                                             |
| (C) Fixed charges                                                  | $   19,680                          |
|                                                                    |                                               |
| Fixed Charge Coverage Ratio (B)/(C)                                     | 1.74                                               |
|                                                                    |                                               |
|                                                                    | As ofSeptember 30, 2009                            |
| Total long-term debt                                                    | $  128,876                               |
| Letters of credit outstanding                                           | 868                                                |
| Defined Indebtedness                                                    | $  129,744                               |
|                                                                    |                                               |
| Leverage Ratio (D)/(A)                                                  | 2.88                                               |

|                                                                                                                                                              | September 30,2009                                    |   | December 31, 2008                              |   | Increase(Decrease)                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------------|
|                                                                                                                                                              | (in Thousands)                                       |   |                                           |
| Current portion of long-term debt                                                                                                                                 | $       13,545    |   | $      13,965    |   | $        (420) |
| Long-term debt, less current portion                                                                                                                              |        115,331    |   |       154,591    |   |      (39,260)                 |
| Total long-term debt                                                                                                                                              | $     128,876               |   | $    168,556               |   | $   (39,680) (2)                        |
| Amount available                                                                                                                                                  | $       27,900(1) |   | $      36,951(1) |   | $     (9,051) (3)             |
|  (1) Represents amount available to be borrowed at the indicated date under the Facility.                                                               |
| (2) The funds obtained from operations, including reduced inventory and receivables, were used to reduce debt.                                               |
| (3) The $9.1 million decrease in the amount available is a result of the effect of reduced earnings on the loan     covenant ratio. |

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|                                           | September 30, 2009 |   | Increase |
|------------------------------------------------|--------------------|--------|----------|
|                                           | 2009               |   | 2008     |   | (Decrease) |
| Days of sales outstanding  (in days) | 50.4               |   | 51.5     |   | (1.1) |
| Inventory turns                                | 4.7                |   | 5.5      |   | (0.8) |

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| Accounts Receivable             | $    1,136 |
|---------------------------------|--------------------------------|
| Inventory                       | 881                            |
| Property and equipment          | 667                            |
| Goodwill and intangibles        | 2,018                          |
| Other assets                    | 10                             |
| Assets acquired                 | 4,712                          |
| Current liabilities assumed     | (753)                          |
| Non-current liabilities assumed | (54)                           |
|   Net assets acquired | $    3,905 |

|                       |   | Three MonthsEndedSeptember 30, 2008 |   | Nine monthsEndedSeptember 30, 2008 |
|----------------------------|--------|-------------------------------------|--------|------------------------------------|
| Net sales                  |   | $  201,898                |   | $  600,813               |
| Net income                 |   | 7,406                               |   | 20,772                             |
| Per share data             |   |                                |   |                               |
|   Basic earnings |   | $0.57                               |   | $1.60                              |
|   Diluted        |   | $0.53                               |   | $1.50                              |

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| 1.   | Security and access to key financial spreadsheets |
|----------------|---------------------------------------------------|

| 2.   | Access to and segregation of duties in key financial applications |
|----------------|-------------------------------------------------------------------|

| 3.   | Backup and recovery of financial data |
|----------------|---------------------------------------|

| 4.   | Systems development and change management |
|----------------|-------------------------------------------|

| 5.   | Incident management |
|----------------|---------------------|

| 6.   | Security monitoring |
|----------------|---------------------|

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| 3.1 | Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (Reg. No. 333-61953), filed with the Securities and Exchange Commission on August 20, 1998). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-4 (Reg. No. 333-10021), filed with the Securities and Exchange Commission on August 12, 1996). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Exhibits and schedules to the Credit Agreement by and among DXP Enterprises, Inc., as Borrower, and Wells Fargo Bank, National Association, as Lead Arranger and Administrative Agent for the Lenders, as Bank, dated as of August 28, 2008 (incorporated by reference to the Company’s Current Report on Form 8-K/A Amendment No. 2 (Reg. No. 000-21513) filed with the Securities and Exchange Commission on September 23,2009). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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