Lowe's to Build Flatbed Distribution Center

MOORESVILLE, N.C., Jan. 10 /PRNewswire-FirstCall/ -- Lowe's Companies, Inc. (NYSE: LOW), the world's second largest home improvement retailer, today announced its plans for a new flatbed distribution center in the Port of Stockton, Calif. The company will retrofit two existing 120,000 square foot buildings located on Luce Avenue in the Port of Stockton. Retrofitting a facility such as this represents an average investment of $16 million including land, construction and equipment. The facility will supply products to more than 40 Lowe's retail stores in northern California, Nevada and Oregon.

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"We are pleased to see the investment of Lowe's in the Port of Stockton," said San Joaquin Partnership President & CEO Michael E. Locke. "This investment represents a further diversification of business strengthening the local economy. This recognition of Stockton and the Port as a positive place for investment is welcomed."

The approximate 240,000-square-foot facility is situated on a 23-acre site. Construction has begun and the facility is expected to begin shipping operations in the first half of 2007. The facility will initially employ 35 people.

"Our flatbed distribution centers play a vital role in the state-of-the- art distribution network that keeps Lowe's stores supplied with the products our customers need," said Mike Mabry, Lowe's executive vice president of logistics and distribution. "Stockton's outstanding workforce, support for this project at both the local and state level, and the geographic proximity to Lowe's growing store base on the West Coast all made this location a win- win solution in helping us continue to meet our goals to better serve our customers."

The flatbed center will receive rail and truck shipments of large, building materials from suppliers. Products will then be quickly loaded as customized orders on flatbed trucks destined for Lowe's stores along the West Coast. Lowe's currently operates 13 regional flatbed centers throughout the United States.

Support for the project was provided by the San Joaquin Partnership, the Port of Stockton and the California Business Investment Services.

"We are very pleased to have such a prestigious tenant locate a major distribution facility at the Port of Stockton. Lowe's recognizes the Port of Stockton's strategic location in northern California, with rail and superior highway connections making their operations more efficient," says Port Director Richard Aschieris.

ABOUT LOWE'S

With fiscal year 2005 sales of $43.2 billion, Lowe's Companies, Inc. is a FORTUNE(R) 50 company that serves approximately 12 million customers a week at more than 1,350 home improvement stores in 49 states. Based in Mooresville, N.C., the 60-year-old company is the second-largest home improvement retailer in the world. For more information, visit Lowes.com.

SOURCE Lowe's Companies, Inc.