PRO Group Inc., PROflash December 22, 2008

A TRIBUTE TO JOHN D. WALLACE OF WALLACE HARDWARE COMPANY

John D. Wallace

John Doyle Wallace, president of Wallace Hardware Company, Inc. lived a life of purpose, grace and good deeds. Mr. Wallace died November 27, 2008 at the age of 81.

Wallace was born in Morristown, Tennessee on February 9, 1927 and started with the Morristown-based Wallace Hardware on a part-time basis in 1936 at the age of eight. During his tenure, the Wallace group of companies grew to more than $100 million in annual sales. He actively contributed his time and talents within all areas of the company, plowing profits back into the business. Wallace graduated from Morristown High School, attended Mars Hill College and received a BBA from Baylor University. He served in the United States Navy during WWII. He was a member of First Baptist Church of Morristown for over 70 years, serving as a Sunday school teacher, Deacon and contributor on numerous committees. Under Wallace’s leadership, Wallace Hardware, a member of PRO Group since 1963, strived to be a Christian organization whose actions reflect its values. He wanted the company to stand for the values and principles of the highest order in honesty, integrity and witness by example.

Steve Synnott, president and CEO of PRO Group, Inc., said the way Wallace led served as an incentive for many to be better people. “John Wallace led a great company and great family with high expectations, consistency, compassion and excellence. I count myself among those who were inspired to do better just by knowing Mr. Wallace,” Synnott said. Synnott particularly admired Mr. Wallace’s generosity and gratitude. “A well- known example of his generous spirit is the tradition he established at Wallace Hardware Markets, giving children money to go spend on Christmas gifts. He was also known for taking the time, particularly at Thanksgiving, to thank his customers and employees for all that they did for Wallace Hardware. Mr. Wallace was both generous and grateful to his family, his community, his church, his business and his country.”

Richard Paige, chairman of the board for PRO Group, Inc., said Mr. Wallace took great pleasure in helping others to succeed and that he was always faithful in providing a word of encouragement or advice. “John lived his life with integrity and purpose and he and Paula passed that legacy along to their children,” Paige said. “John was a man solid in his principles. I am reminded of Matthew 7: 24-25: 24 - ‘So then, everyone who hears my words and puts them into practice is like a wise man. He builds his house on the rock. 25 - The rain comes down. The water rises. The winds blow and beat against that house. But it does not fall. It is built on the rock.’ ”

Mr. Wallace died of congestive heart failure and donations in his memory may be made to the First Baptist Church "Legacy of Promise" building fund, P.O. Box 1899, Morristown, TN, 37816

Source: Hardware Retailing contributed to this tribute

HIGHLY ACCOMPLISHED PRO HARDWARE RETAILERS TRAVEL TO MONTEGO BAY, JAMAICA

More than 62 PRO Hardware Retailers from across the country joined Distributor personnel on the PRO Hardware Achievers Club trip this fall. The Achievers Club, established in 1989, recognizes and rewards the best PRO Hardware Retailers for outstanding sales performance and participation in PRO Hardware Marketing Programs. This year Retailers traveled to the Half Moon Resort in Montego Bay, Jamaica. Retailers representing The Bostwick-Braun Company, Horizon Distribution, Inc., Long-Lewis Hardware Company and Wallace Hardware Company, Inc. enjoyed the event along with Distributor representatives; Aearo Co., Chapin International, Genova Products and Seymour Manufacturing as well as PRO Group team members. Jim Dion from Dion Co. Inc. spoke at the business meeting on future Retailing trends and actions that Retailers could immediately take today to improve business during slow economic times.

Shari Kalbach, PRO Group managing director said the annual Achievers Club event is a way to thank loyal Retailers for their business and recognize their achievements. Retailers are selected to attend the event based upon their purchases through Manufacturer partners and participation in programs such as advertising circulars. To be eligible, Retailers must earn at least 500,000 program points and be in good standing with their PRO Distributor up through the actual beginning date of the trip.

Housing starts dove 18.9 percent in November, according to data released by the Commerce Department. New starts fell to a seasonally adjusted annual rate of 625,000, the lowest since the DOC began keeping track in 1959. Compared to the November 2007 figure of 1.179 million new housing starts, the current figure marks a 47 percent year-over-year decline. All four regions of the country posted double-digit negative percentage changes in both year-over-year and month-to-month comparisons. The most dramatic percent-change decline came in the Northeast, where November housing starts fell 59.8 percent compared to November of last year. November stats fell well below consensus estimates, which had predicted starts to come in at about 740,000 units. In October, starts were revised to a record-low annual rate of 771,000 from 791,000 previously. Building permits also declined in November, falling to 616,000. That's down 15.6 percent from October's figure, and down 48.1 percent from a year ago. The Commerce Department report follows on the heels of the record low reading of home builder’s confidence. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) remained unchanged from November’s all-time low reading of 9. A reading above 50 indicates that more builders view sales conditions as good than poor. Read the full story here: http://www.homechannelnews.com/story.aspx?id=88633

Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 616,000. This is approximately 15.6 percent below the revised October rate of 730,000 and is approximately 48.1 percent below the revised November 2007 estimate of 1,187,000. Single-family authorizations in November were at a rate of 412,000; this is approximately 12.3 percent below the October figure of 470,000. Authorizations of units in buildings with five units or more were at a rate of 182,000 in November. Read the full press release here: http://www.census.gov/const/newresconst.pdf

Privately-owned housing completions in November were at a seasonally adjusted annual rate of 1,084,000. This is approximately 3.3 percent above the revised October estimate of 1,049,000, but is approximately 22.8 percent below the revised November 2007 rate of 1,404,000. Single-family housing completions in November were at a rate of 760,000; this is approximately 0.9 percent above the October figure of 753,000. The November rate for units in buildings with five units or more was 301,000. Read the full press release here: http://www.census.gov/const/newresconst.pdf

The Stanley Works announced that its board of directors has elected the following individuals to serve in new roles within the company's executive management team. The changes will take effect on January 1, 2009. James M. Loree, Executive Vice President and Chief Financial Officer, has been elected to serve as Executive Vice President and Chief Operating Officer. Mr. Loree joined Stanley from the General Electric Company in 1999 and has held a number of senior finance and business leadership positions during his career. Donald Allan, Jr., Vice President and Controller, has been elected to serve as Vice President and Chief Financial Officer. Mr. Allan joined Stanley in 1999 as Director of Financial Reporting and was named Corporate Controller in 2000 and a Corporate Vice President in 2002. Prior to joining Stanley he held financial management positions with Loctite Corporation and Ernst & Young LLP. In addition to the promotions noted above, Donald J. McIlnay, Senior Vice President and President - Industrial Tools Group and Emerging Markets has decided to retire at the end of 2008. Read the full press release here:

General Electric Co. has announced that it will abandon immediate plans to sell its Consumer and Industrial operations, which produce appliances and lighting products. The company also reconfirmed its December 2, 2008, fourth quarter EPS outlook of $.50-.52, excluding the previously announced $1.0-1.4 billion of charges ($.36-.42 including charges). The company said it expects full-year 2008 EPS of $1.78-1.84 from $185 billion in revenue. “While 2008 has been a challenging year for the global economy and for many of our businesses, we still expect to earn over $18 billion and outperform the S&P 500 Industrials and Financials sectors,” Chairman and CEO Jeff Immelt said. “We expect the difficult market conditions to continue in 2009.” “We have taken a number of decisive actions to respond to the tough environment and position the Company for 2009 and beyond,” Immelt said. “Our industrial businesses have superior technology, multiple revenue streams, geographic diversity and substantial backlogs. In addition, we are aggressively reducing costs and improving cash generation. In 2009, we have set forth a framework of industrial businesses’ earnings growth of 0-5%. And we will continue to run our Consumer & Industrial business as part of the portfolio,” Immelt said. Source: AMHA Read the full press release here: http://www.genewscenter.com/Content/Detail.asp?ReleaseID=5030&NewsAreaID=2&MenuSearchCategoryID

Beth brings PGM Integrated, a PRO Group, Inc. affiliate, over 10 years of experience in graphic design. As a senior graphic designer, Beth is responsible for the design and production of three national programs for PRO Group, Inc. Her creative talent and design work also assists in the production of collateral materials, packaging and print design. She has been a key component in the branding of PRO Hardware and Proven Brands. Prior to joining PGM Integrated in 1998, she worked for a leading corporate communications agency in Chicago. There she performed creative work for Culligan, Dean Foods, O’Neil Industries, Inc. and Marketing News. Beth earned a Bachelor of Science in Art from the University of Wisconsin-Madison.

PROfiles – JOE LENTZ
Joe Lentz has been with PRO Group Distribution Services, LLC, a PRO Group affiliate, since 1998 as merchandiser for special markets and currently as merchandise manager. Prior to PRO Group, Joe was a buyer for SuperValu at their Aurora, CO location.