Home Depot May Lower Price of HD Supply

Atlanta, GA, August 9, 2007--Home Depot said it may change the terms and financing of its agreement for the sale of its supply unit, which could result in a drop in the $10.33 billion sale price.

Home Depot said that it is in discussions with affiliates of Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice to restructure the sale.

On July 10, Home Depot announced a modified "Dutch auction" tender offer to purchase up to 250 million shares of its common stock at a price between $39 and $44. However, a revised offer will reduce the price range to between $37 and $42 per share.

The company will also extend the expiration date of the tender offer to August 31 but it is not contingent on the sale of HD Supply.

Home Depot said the tender offer will give shareholders who are considering selling shares the chance to determine the sale price within a range.