Revised HD Supply Sale Terms Confirmed

Atlanta, GA, August 28, 2007--Home Depot confirmed today.  that it will sell its HD Supply unit for $8.5 billion to Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice. In addition, Home Depot will purchase a 12.5% equity interest for $325 million and guarantee a $1 billion senior secured loan of HD Supply.

Merrill Lynch, JP Morgan and Lehman Brothers will provide third party debt financing. The closing will take place on August 30, 2007.

Home Depot said it expects to net approximately $7.9 billion in cash proceeds from the sale.

Home Depot CEO Frank Blake said the transaction is good for Home Depot shareholders because they will continue to have a stake in HD Supply. He also said the transaction allows the company to focus on its core retail business.

The company reiterated that it expects its earnings per share from continuing operations to decline by 12-15% this year. Consolidated earnings per share are expected to decline by 15-18% for fiscal 2007.

The company said that the sale of HD Supply is not expected to have a material impact on its 2007 financial results.