The Home Depot(R) to Establish China Business Operation
Company Names Bill Patterson to New Position as President, The Home Depot Asia, to Lead Expansion Efforts

ATLANTA, Jun 7, 2004 /PRNewswire-FirstCall via COMTEX/ -- The Home Depot, the world's largest home improvement retailer, today announced that it will formally create a business development operation based in China and named Bill E. Patterson to the newly created position of president, The Home Depot Asia. Mr. Patterson will lead the company's expansion into China, one of the largest and fastest growing markets in the world. He will report directly to Bob Nardelli, chairman, president and CEO of The Home Depot.

Patterson, who has served as president, Central Division since 2002, joined The Home Depot in 1999. Prior to The Home Depot, Patterson's experience spanned more than 30 years in retail in the U.S., Asia, Mexico and Europe. Patterson held positions as chairman, president and CEO of Sears Roebuck of Mexico, and president and CEO of HomeBase, then the sixth largest home improvement retailer in the U.S.

"I am confident that Bill's international experience, operational skills and leadership abilities will drive a successful entry into the China market for The Home Depot," said Bob Nardelli.

China's GDP is nearly one and one half trillion dollars. The country's population is growing, along with personal wealth. It is estimated that the Chinese home improvement market today is at nearly $50 billion and growing at a compounded rate of 20 percent.

"About 70 percent of home improvement spending in China is for completion of interior space in new homes. We see that as a solid growth opportunity given The Home Depot's strength in merchandise and services geared to finishing out a home," said Bill Patterson.

The market potential for The Home Depot in China is helped not only by the growing economy there, but by the relatively limited competitive landscape. According to the company, there are few large-format home improvement stores in China today, and the country is largely served by small outdoor markets and shopping malls.

The announcement is the company's latest move as it expands its market presence internationally. The Home Depot just completed its acquisition of Home Mart in Mexico, which doubled the company's presence in that country and firmly establishes it as the leader in Mexico's $15 billion home improvement market. In addition, the company will celebrate its tenth anniversary in Canada this year, where it operates more than 100 stores.

"Based on our success in expanding to international markets, I am confident of the portability of our model to China," added Nardelli.

Concurrent with this move, the company also announced that Troy Rice, senior vice president, Operations since 2002, will replace Patterson as president, Central Division at its Chicago office. Rice, a 14-year veteran of The Home Depot, had previously served as a division president for its former Northwest Division from 2001 to 2002. The Central Division services approximately 600 stores, including the company's 40 stores in Mexico, and employs approximately 80,000 associates.

The company also announced it has promoted Carl Liebert to senior vice president, Operations, replacing Rice. Liebert joined The Home Depot last year from Circuit City, where he had served as a division president. Both appointments are effective immediately.

Last month, The Home Depot reported record first quarter net earnings of $1.1 billion, $0.49 per diluted share, up 26 percent, for the first quarter of fiscal 2004. Comparable store sales rose 7.7 percent, the highest first quarter comparable store sales growth in five years. In addition, the company recently increased its quarterly cash dividend to eight and a half cents per share, an annual increase of 25 percent and a 21 percent increase over the fourth quarter dividend of seven cents. This is the sixty-eighth consecutive quarter the company has paid a cash dividend. Concurrent with the dividend increase, The Home Depot Board of Directors authorized $1 billion to repurchase outstanding stock. Over the past two and a half years, the board has approved $6 billion for share repurchases. As of the end of the first quarter of fiscal 2004, the company repurchased approximately $4.5 billion under this authorization.

Founded in 1978, The Home Depot is the world's largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2003 sales of $64.8 billion. The company employs approximately 300,000 associates and has 1,766 stores in 50 states, the District of Columbia, Puerto Rico, eight Canadian provinces, and Mexico. Its stock is traded on the New York Stock Exchange (HD) and is included in the Dow Jones Industrial Average and Standard & Poor's 500.

SOURCE The Home Depot

Investors & Analysts, Diane Dayhoff, Vice President, Investor
Relations, +1-770-384-2666, or diane_dayhoff@homedepot.com , or News Media,
Jerry Shields, Sr. Public Relations Manager, +1-770-384-2741, or
jerry_shields@homedepot.com , both of The Home Depot
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