PRO Group Inc., Press Release June 18, 2010

Atlanta, Georgia (June 18, 2010) – Manufacturers and distributors were highly optimistic during the Group Merchandising Conference organized by PRO Group, Inc. and Val-Test Distributors, June 14-16, 2010 at the Embassy Suites Hotel in downtown Atlanta.

Steve Synnott, CEO of PRO Group, Inc. said that many of the attending distributors experienced solid growth January through May, which energized the conference, adding to the industry’s anticipation of stronger sales in the second half of 2010.

PRO Group hosts the Group Merchandising Conference annually; this is the fourth year distributors from the Schaumburg, Illinois-based Val-Test have participated. Attendees included 49 Distributor team members, PRO Group and Val-Test corporate office personnel and 95 individuals representing vendors.

The sold-out event included a 10 percent increase in exhibitor attendance. Over the course of just two days, buyers and sellers participated in nearly 1,200 private-scheduled 30-minute meetings, said Synnott.

“The conference featured both new products and new relationships, as suppliers were introduced to the wide array of distributor companies in attendance. This was a winning opportunity for all involved to share best practices, experience new products and strategize for the future,” Synnott said.

In additions to meetings, appointments and networking, featured demos drew big crowds, including live log splitting and chainsaw demonstrations in the hotel parking lot. The conference format also encouraged manufacturers to show products in private suites throughout the Embassy Suites Hotel.

Adam Rives, purchasing manager for Central Farm and Garden Inc. based in Wooster, Ohio, a distributor affiliated with PRO Group, said his goal was to discover new products and categories, and he did just that. He said that the meetings with other distributors were most valuable, particularly with Joy Smith, PRO Group merchandise manager. “The meetings here helped confirm our current direction and focus,” Rives said.

Todd Hermon, national accounts manager for Coleman Cable Inc. based in Waukegan, Illinois, said that the annual conference is a valuable opportunity to meet with customers, old and new. “We attend the conference because it is a great chance to meet with many different customers over the course of two days,” Hermon said. “This is the chance to buy one plane ticket and meet with 20 or more customers—that’s a no-brainer in this economy.” Hermon added that his company’s objective is to strategize, introduce new items and announce upcoming promotions.

The conference also included hour-long pre-conference buyer meetings, which enabled distributors to review categories and opportunities with PRO Group merchandise managers. “It is beneficial for distributors to share best practices as well as industry challenges with one another. That’s the best way to learn and grow in this competitive economy,” said Shari Kalbach, PRO Group managing director.

Current challenges include pointing to the economy’s impact on farm and hardware categories. In addition, the year has seen weather-related obstacles in the areas of lawn and garden. Keeping the mood positive, distributors shared what is selling well in each of their markets. The “grow-it-yourself” trend is still popular in many areas across the country.

Following the Group Merchandising Conference, the PRO Group Merchandise Committee met to discuss upcoming Target Vendor Programs and to hear presentations from new vendors. GardenMaster distributors also met during the conference to discuss a variety of areas, including new vendors, new products and merchandising and marketing programs.

PRO Hardware Stores Program Distributors and FARM MART Distributors also met to review 2010 and preview 2011 advertising and marketing programs. Kalbach presented planned enhancements to the email-marketing program for 2011.

George Hebert, President of Blackstone Supply Company, a PRO Group member, discusses products with Tor Andre Skeie, CEO, and Morton Kristiansen, Sales Director, of Tape Invent, a PRO Group vendor from Bergen, Norway.

Headquartered in Denver, PRO Group, Inc., www.pro-group.com, is a merchandising and marketing organization with purchasing power exceeding $3 billion through its 40 Member Distributors.

Val-Test, www.val-test.com, is a Schaumburg, Illinois-based buying group of 100 independent distributors in hardware, paint sundries, plumbing, electrical, variety and marine products with a volume of $1 billion in sales.

Note to media: Digital photographs of the 2010 Group Merchandising Conference available upon request from Elissa Motley of PRO Group, Inc. elissa.motley@pro-group.com