Home Depot Acquires Chem-Dry

Atlanta, GA, January 9, 2006--Home Depot announced that it has acquired Chem-Dry, the franchisor for the world's largest carpet and upholstery cleaning and service provider network. Chem-Dry has nearly 4,000 franchises worldwide, including 2,500 in the U.S. Chem-Dry will be part of The Home Depot's At-Home Services division, which provides a range of expert installations, including flooring, fencing, roofing, cabinetry and a host of other interior and exterior services. At-Home Services is one of the fastest growing businesses of The Home Depot, posting double-digit growth throughout 2005. The Home Depot is the largest installer of flooring in the U.S., making Chem-Dry a natural extension of this service. "Joining forces with Chem-Dry is an important part of our growth strategy to extend into areas adjacent to our core retail business. This acquisition complements our At-Home Services division and underscores the common vision Chem-Dry and its franchisees share with The Home Depot to provide quality products and excellent customer service," said Bob Nardelli, chairman, president & CEO of Home Depot. "Chem-Dry's expertise with the franchising model, in addition to its leadership status in the market, provides us with a world-class entry into franchising and carpet cleaning, which are both solid platforms on which to grow." The transaction will ultimately allow Chem-Dry to extend its best-in-class cleaning services to Home Depot's customer base. Already the leader in the U.S. carpet cleaning industry, Chem-Dry will now have the opportunity to leverage Home Depot's 11,000 daily At-Home Services appointments. In addition, the acquisition automatically makes Home Depot the market leader in carpet and upholstery cleaning, with significant room to grow in a fragmented market. "We are excited to welcome Chem-Dry's leadership, associates and franchisees to Home Depot," said Sam Aquillano, president of At-Home Services for Home Depot. "Our cultures are a great fit--both businesses are dedicated to excellence, to our people and to delivering superior customer service. We look forward to increasing our knowledge of franchise operations while providing Chem-Dry and its franchisees the ability to grow by taking advantage of The Home Depot enterprise." Chem-Dry's leadership team will stay in place and be an integral part of the company's continued growth and operations. Over the next few months, a cross-functional team from both companies will work to integrate Chem-Dry into Home Depot family. "In joining The Home Depot, our franchisees--the backbone of Chem-Dry--will continue to provide high quality service options to their customers, while benefiting from the mutually innovative thinking of these two great companies," said Craig Donaldson, president and CEO of Chem-Dry. Terms of the acquisition were not disclosed. Chem-Dry is the world's leading carpet and upholstery cleaning service. With nearly 4,000 franchises across the globe, Chem-Dry cleans an estimated one billion square feet of carpet each year. For more about Chem-Dry and its related services, visit www.chemdry.com.

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