National Home Centers, Inc., a home improvement retail store based in Springdale, Arkansas, announced today that its Board of Directors, upon the recommendation of a special independent committee, approved a revised proposal from the Chairman and Chief Executive Officer, Dwain A. Newman, to purchase all of the outstanding shares of National Home Centers common stock not already owned by him for a price of $1.40 per share. The offer price represents a 22% premium over the closing price of National Home Centers’ common stock on October 4, 2001. The Board voted to recommend that the minority shareholders accept the tender offer when made by Mr. Newman.

On August 14, 2001, the company announced that Mr. Newman had notified the Board that he intended to offer $1.20 per share for approximately 2,607,404 shares of common stock not controlled by Mr. Newman. Duff & Phelps, LLC, a Chicago-based investment banking and financial advisory firm, was engaged by the special committee to act as its financial advisor and to determine whether the offer price was fair to the minority shareholders. After discussions with the special committee, Mr. Newman notified the special committee that he had revised his initial offer price to $1.40. Duff & Phelps has analyzed the offer and intends to render an opinion to the special committee that, as of the date of such opinion, the revised offer price is fair from a financial point of view to the minority shareholders.