Graybar Surpasses $5.25 Billion in 2007 Sales

Net income rises more than 45 percent, resulting in strong cash flow from operations

ST. LOUIS, April 21, 2008 - Graybar, one of the nation's leading distributors of electrical and communications products and related supply chain management and logistics services, has announced that it exceeded $5.25 billion in net sales during 2007, an increase of nearly $250 million, or 5 percent, over 2006. The company also posted net income of more than $83 million, up $26 million, or 45 percent, from the previous year.

Income from operations totaled more than $161 million, nearly $40 million, or 33 percent, more than in 2006. The company also reported significantly lower debt levels, which led to reduced interest expense, and finished the year in a strong cash position.

“We had a banner year in 2007 with record sales and profitability,” said Robert A. Reynolds Jr., chairman, president and chief executive officer of Graybar. “Our investments in technology and commitment to organic growth enabled us to improve our bottom-line results.”

Graybar’s Enterprise Resource Planning system continues to help the company boost productivity and rapidly respond to changing market conditions. The information technology platform provides Graybar’s nationwide locations with valuable business data in real-time to enable quick and efficient asset and supply chain management.

“Our strong year-end results reflect the exceptional customer service our employees and employee-owners provide. We continue to raise the bar on performance and value for our customers,” added Reynolds.

The company looks forward to building on the year’s momentum with continued sales growth and profitability in 2008.