BULLETIN: Home Depot Expects Continued Negative Same-Store Sales Trends Through 2002

Standard & Poor's Ratings Services said today that Home Depot Inc.'s (AA/Stable/A-1+) announcement of negative 2% same-store sales for the third quarter of 2002 and expected negative 3% to 5% same-store sales for the fourth quarter of 2002 has no immediate impact on the existing rating and outlook. Gross margin improvement through initiatives to improve shrink and reduce other costs helped offset weak sales in the third quarter of 2002. The company's strong market position and conservative financial policy should help offset weak sales trends that may continue through 2002 and at least into the first quarter of 2003. The outlook on Home Depot may be reviewed if Standard & Poor's expects sales trends to continue to be weak throughout

Bulletin