Home Depot To Reevalute HD Supply

Atlanta, GA, February 12, 2007--Home Depot said the company and its board has decided to evaluate strategic alternatives for its HD Supply business, including a possible sale, spin or initial public offering of the business. The company said there can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing.

The company has retained Lehman Brothers as its financial advisor to assist in this process. The Company stated that it does not expect to update its progress or disclose developments with respect to the exploration of HD Supply strategic alternatives unless the board of directors has approved a definitive transaction.

"Today's announcement is a continuation of the strategic review we did in November," said Frank Blake, chairman and CEO of Home Depot. "We are undertaking this action today because of our desire to increase our focus on our retail business. With annual revenues of approximately $12 billion, HD Supply is a healthy, growing and vibrant business, and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value."

HD Supply is the wholesale distribution business of Home Depot, and has nearly 1,000 locations nationwide and in Canada, and employs more than 26,000 associates. HD Supply has leading positions in the infrastructure, construction and maintenance supply industries.

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