Lowe's Warns at Lower End of Prior Guidance

Charlotte, NC, September 24, 2007--Lowe's has lowered its earning guidance for the year due to lower than expected sales.

 The company said that drought conditions in the mid-Atlantic, Southeastern and Western regions of the country have hurt sales of outdoor products.

The company now anticipates that earning will come in at the low end, or below, its previous guidance of $1.97 to 2.01.

"Even as we face easier prior year sales comparisons as we progress through the year, many uncertainties remain, and it seems prudent to further temper our sales and earnings outlook," commented Robert A. Niblock, Lowe's chairman and CEO. "While sales trends remain pressured in many parts of the country, we are focused on leveraging Lowe's assets of solid customer relationships, dedicated employees and the best stores in the industry to capture market share and position the company for continued long-term success," Niblock added.

The company also said it will discuss how the company's culture of customer service and its key initiatives position it for continued growth when Lowe's meets with analysts and investors tomorrow in Charlotte at its annual conference.

Robert F. Hull, Jr., executive vice president and CFO, will provide an outlook for fiscal years 2008 through 2010 and share Lowe's future store growth plans.

"External pressures weigh on our near-term performance, but looking past the current cycle, we see many opportunities for continued sales and earnings growth and increasing cash flow from operations," said Hull. "For the three year period, total sales are expected to increase between 8 and 11% per year, while earnings per share are expected to average 12 to 15% growth per year across the three years. Improving earnings and solid working capital management will drive compound annual growth in cash flow from operations of approximately 15%."

Hull expedts current pressures to continue into next year.