Home Depot Announces 250M Share Tender Offer

Atlanta, GA, July 10, 2007--Home Depot today announced the launch of a tender offer for 250 million shares of its common stock at a price range of $39.00 to $44.00 per share. 

"The two key areas of focus for our capital allocation strategy are to invest in our core retail stores and to return capital to our shareholders," said Frank Blake, chairman and CEO. "Despite a challenging housing environment, we remain committed to both, and today's tender launch is a clear demonstration of our commitment to returning cash to shareholders."

On June 19, 2007, the Company announced a recapitalization plan whereby its board of directors authorized a $22.5 billion increase in its share repurchase program. It is the Company's intention to repurchase up to $22.5 billion in shares as soon as practicable. As part of its plan, the Company's board of directors authorized a self-tender offer for the purchase of up to 250 million shares of the Company's common stock.

The tender price range is $39.00 to $44.00 per share. The tender offer is scheduled to expire on August 16, 2007, and is subject to the terms and conditions described in the Offer to Purchase and offering materials.

Under terms of the tender offer, shareholders are given an opportunity to specify prices, within the stated price range, at which they are willing to tender shares. Upon receipt of the tenders, The Home Depot will select a final price that enables it to purchase up to the stated amount of shares from those shareholders who agreed to sell at or below the Company-selected price. There is no guarantee that shares tendered will be purchased. The Home Depot may purchase up to an additional 39.5 million shares in the tender offer without extending the tender offer.

The Home Depot said the tender offer will give shareholders who are considering the sale of all or a portion of their shares an opportunity to determine the price, within a range, at which they are willing to sell. If the Company purchases their shares, the shareholders who tender may avoid the normal transaction costs associated with market sales. The Company is not making any recommendation to its shareholders regarding the tendering of shares.

The purchase price for the shares in the tender is expected to be funded with proceeds from the sale of HD Supply and cash on hand.