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                                                                    Exhibit 99.1

[LOGO]      ENCOMPASS(SM)
       ALL SYSTEMS GO(SM)

                                                    Encompass Services
                                                    Corporation
                                                    3 Greenway Plaza, Suite 2000
                                                    Houston, Texas 77046
                                                    Phone: 713-860-0100
                                                    Fax: 713-960-8036
                                                    encompass.com

News Release

                     ENCOMPASS FILES PLAN OF REORGANIZATION

           New Company Will Focus Exclusively on Residential Services

HOUSTON, March 6, 2003 - Encompass Services Corporation announced today that it
has taken a significant step toward completion of its restructuring by filing
its Joint Plan of Reorganization and Disclosure Statement with the United States
Bankruptcy Court for the Southern District of Texas.

The plan contemplates that the Residential Services Group of Encompass, which
specializes in installing and servicing heating, ventilation and air
conditioning (HVAC) and plumbing systems in newly constructed and existing
homes, will be reorganized as a new entity. The new company will be
headquartered in Dayton, Ohio, with operations in nine states.

The plan of reorganization is supported by an investment from Wellspring Capital
Management, a New York-based private equity firm. The agreement will result in
Wellspring and the Residential Services Group management team owning all
outstanding shares of the new entity established to carry forward the business.

"Upon confirmation of the reorganization plan, our new company will be focused
exclusively on residential services," said Eric Salzer, who is the designated
Chief Executive Officer of the new organization. "We see tremendous potential
for developing this business going forward."

"Upon confirmation of the plan, the new company will be positioned for solid
growth and profitability with a well-financed balance sheet," said Carl Stanton,
Partner, Wellspring Capital Management. "This business has an experienced
management team, a diversified customer base and a proven financial track
record. We are excited to be associated with the Residential Services Group."

Encompass stated that it has completed the sale of substantially all of the
Company's assets outside of the Residential Services Group during the pendency
of the case.

"We are pleased to be submitting this plan to the Court," said Michael F. Gries,
Chief Restructuring Officer of Encompass Services Corporation. "We have made
significant progress with our restructuring efforts in a short period. We expect
to emerge from Chapter 11 in the second quarter of 2003."

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Hearings on the approval of the Disclosure Statement and confirmation of the
Plan are tentatively scheduled for April 9, 2003 and May 21, 2003, respectively.

The full text of the draft Joint Plan of Reorganization and Disclosure Statement
is available at www.encompass.com and, following the filing of these documents
with the Securities and Exchange Commission, will be available at the SEC's
website at www.sec.gov.

About the Residential Services Group
The Residential Services Group provides heating, ventilation and air
conditioning (HVAC), plumbing and other contracting services primarily in single
family, low-rise multifamily housing units and small commercial buildings. Its
services include new installation and maintenance, repair and replacement work.
The Residential Services Group has approximately 2,300 employees.

About Wellspring Capital Management LLC
Wellspring Capital Management LLC is a New York-based private equity firm. The
firm is focused on acquiring companies where it can realize substantial value by
contributing management expertise, innovative operating and financing
strategies, and capital. For additional information, visit
www.wellspringcapital.com.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on the Company's current expectations and involve risks and uncertainties that
could cause the Company's actual results to differ materially from those set
forth in the statements. The Company can give no assurance that such
expectations will prove to be correct. Factors that could cause the Company's
results to differ materially from current expectations include: failure of the
Company's senior lenders or other constituencies to approve the plan of
reorganization; failure by the Company's vendors to maintain existing credit
terms; failure of the Company to consummate the plan of reorganization; failure
of the Company's customers to make payment on their normal terms; the level of
demand for its services by multi-site customers; the level of interest rates,
which affects demand for the Company's services and its interest expense; the
potential impact of any acquisition, disposition, merger, joint venture or any
other significant financial transactions that could occur in the future; working
capital requirements; general economic conditions; as well as other factors
listed in the Company's Form 10-K for the year ended December 31, 2001, as
amended, and its most recent Form 10-Q.

Contacts:
Andy Brimmer / Laura Smith
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

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