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February 21, 2006

Boosted by acquisitions in distribution, The Home Depot, Atlanta, GA, had $81.5 billion in sales in 2005, an 11.5% increase over fiscal year 2004. Comparable store sales grew 3.8%.

The Home Depot Supply represented about 5%, or $4.08 billion, of Home Depot’s sales in 2005. The supply division saw triple-digit growth in 2005, strengthening its position in MRO, builder and professional supply platforms.

Acquisitions in the fourth quarter of 2005 included:

• Southwest Rebar, a rebar fabricator and construction supply distributor with three locations in Arizona.  With Southwest Rebar, White Cap Construction Supply now operates 103 branches in 23 states.
• Traditional Floor Covering, a flooring installer with four locations in Florida.  With Traditional Floor Covering, Creative Touch Interiors now operates 37 branches in 14 states and sells to 18 of the top 20 home builders.
• Sesco/Quesco Electric Supply, an 80-year old distributor of electrical supplies with four locations in Toronto, Ontario. With Sesco/Quesco Electric Supply, the MRO companies operate 206 branches in 45 states and provinces in the United States and Canada.

In January 2006, Home Depot announced its intent to acquire Hughes Supply, a $4.4 billion distributor of construction and repair products. Hughes Supply will more than double the size of Home Depot Supply, with projected 2006 combined sales approaching $12 billion. The acquisition is anticipated to close in April.

For the fourth quarter of fiscal 2005, The Home Depot overall saw net earnings of $1.3 billion, compared with net earnings of $1 billion reported for the same period in fiscal 2004. Sales for the fourth quarter of fiscal 2005 totaled $19.5 billion, a 15.9% increase from the fourth quarter of fiscal 2004. Comparable store sales for the fourth quarter of fiscal 2005 increased 5.5%.

For fiscal 2005, HD had net earnings of $5.8 billion, compared with net earnings of $5 billion in fiscal 2004.

At the end of fiscal 2005, The Home Depot reported total assets of $44 billion and a return on invested capital of 22.4%, up 90 basis points from the prior year.

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