HUG Hughes Supply

ORLANDO, Fla., March 29 /PRNewswire-FirstCall/ -- Hughes Supply, Inc. (NYSE:HUG) today announced that it has determined the consideration to be paid on its tender offer for its 5.50% Senior Notes due 2014 (the "Public Notes"). The total consideration for each $1,000 principal amount of the Public Notes validly tendered and not withdrawn prior to March 17, 2006 at 5:00 p.m. (New York City time) (the "Consent Payment Deadline") is $1,027.38, including a consent payment of $15.00. In addition, holders who validly tender their notes at or prior to the Expiration Time will receive accrued and unpaid interest to, but excluding, the settlement date. Holders who tender the Public Notes after the Consent Payment Deadline will not be eligible to receive the consent payment. The consideration for the Public Notes was calculated by Morgan Stanley & Co. Incorporated in the manner described in the Offer to Purchase and Consent Solicitation Statement dated February 28, 2006. The Expiration Time for the tender offer is 8:00 a.m. (New York City time) on March 31, 2006. The offer is being conducted in connection with the previously announced definitive merger agreement that provides for the acquisition of Hughes Supply, Inc. by The Home Depot, Inc. The offer is subject to the satisfaction of certain conditions, including the consummation of the acquisition. Hughes Supply, Inc. has retained Morgan Stanley & Co. Incorporated to act as the Dealer Manager for the tender offer and Solicitation Agent for the consent solicitation. Morgan Stanley & Co. Incorporated can be contacted at 212-761-1457 (collect) and 800-624-1808 (toll-free). Copies of the Offer to Purchase and Consent Solicitation Statement may be obtained from D.F. King, the information agent for the offer, at 212-269-5550 (for banks and brokers only) or 800-487-4870 (for all others toll-free). This release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Public Notes. The offer is only being made pursuant to the tender offer and consent solicitation documents, including the Offer to Purchase and Consent Solicitation Statement that Hughes Supply, Inc. has distributed to holders of Public Notes. About Hughes Supply, Inc. Hughes Supply, Inc., founded in 1928, is one of the nation's largest diversified wholesale distributors of construction, repair and maintenance- related products, with over 500 locations in 40 states. Headquartered in Orlando, Florida, Hughes employs approximately 9,700 associates and generated annual net sales of over $5.4 billion in its last fiscal year ended January 31, 2006. Hughes is a Fortune 500 company and was named the #3 Most Admired Company in America in the Wholesalers: Diversified Industry segment by FORTUNE Magazine. For additional information on Hughes Supply, you may visit http://www.hughessupply.com/ . Except for historical information, all other information discussed in this news release consists of forward-looking statements under the Private Securities Litigation Reform Act of 1995. When used in this report, the words "believe," "anticipate," "estimate," "expect," "may," "will," "should," "plan," "intend," "project," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be different from any future results, performance, and achievements expressed or implied by these statements. These risks and uncertainties include, but are not limited to, the ability of the Company and The Home Depot to satisfy the conditions to closing of the pending merger (including Company shareholder approval) and timing of the process; the effect on the Company's business of the pending transaction, the strength of the construction market and the general economy, competition, delay in implementing operating systems, reliance on key personnel who may separate from the Company due to general attrition or due to additional uncertainties created by the pending merger, success in integrating and achieving expected profitability from acquired businesses, achieving enhanced profitability goals, fluctuating commodity prices, the Company's fixed cost structure, customer credit policies, unexpected product shortages, product purchasing and supply, overseas movement of manufacturing facilities, and other factors set forth from time to time in filings with the Securities and Exchange Commission. The forward-looking statements included in this news release are made only as of the date of this news release and under section 27A of the Securities Act and section 21E of the Exchange Act. Hughes Supply does not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances. In connection with the proposed merger, Hughes Supply has filed a definitive proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT, WHICH CONTAINS IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the definitive proxy statement and other documents filed by Hughes Supply at the Securities and Exchange Commission's Web site at http://www.sec.gov/ . The definitive proxy statement and such other documents may also be obtained for free from Hughes Supply by directing such request to Hughes Supply, Attention: Investor Relations, telephone: (407) 822- 2139. Hughes Supply and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information concerning the interests of Hughes Supply's participants in the solicitation is set forth in Hughes Supply's definitive proxy statement dated February 27, 2006, for its Special Meeting of Shareholders relating to the merger. http://www.newscom.com/cgi-bin/prnh/19990803/HUGLOGO http://photoarchive.ap.org/ DATASOURCE: Hughes Supply, Inc. CONTACT: Mark Iskander, Acting Treasurer, Hughes Supply, +1-407-822-2147 Web site: http://www.hughessupply.com/

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