The desiccant air conditioner that can supply the cool and dry air in summer and the heated and humidified air in winter is proposed in order to be popularized as the residential applications. The evaporative cooler is used due to the increase in the cooling capacity and the humidification amount. The results of the enthalpy and exergy analyses with the process simulator showed that the significant exergy losses occurred at the blower, heater and desiccant rotor. In addition, the exergy loss also occurred at the direct evaporative cooler in the heating humidification. Furthermore, it is found that there is the optimal exergy efficiency of the desiccant rotor for the hot water temperature.