Graybar Starts 2008 with 58.7 Percent Increase In First-Quarter Net Income

Company's organic growth strategy continues to deliver top- and bottom-line results

ST. LOUIS, May 12, 2008 - Graybar, one of the nation's leading distributors of electrical and communications products and related supply chain management and logistics services, reported net income of $18.9 million, a 58.7 percent increase over the first quarter of 2007. Net sales grew 4.8 percent during the first quarter of 2008 - to $1.28 billion - compared to the same period in 2007.

The company said the increase is a result of modest growth in electrical market sales coupled with a solid rate of sales growth and competitive performance in the data communications market. First-quarter 2008 income from operations rose 22.8 percent - to $30.5 million - compared to the first quarter of 2007.

"Our focus on organic growth, expense management and process improvement continues to deliver positive results for the company and its customers," said Robert A. Reynolds Jr., chairman, president and chief executive officer of Graybar. "We provide products and supply-chain solutions that make our customers more efficient and productive. During this economic slowdown, we see customers leveraging our distribution services more than ever to lower their total cost of ownership."

Reynolds added that Graybar continues to invest in technical resources to help its customers manage the implementation of complex projects such as data center redesign and energy-efficient facility construction. "We understand these opportunities, especially where it relates to power, energy conservation and faster completion to take advantage of cost savings," Reynolds added. "With our knowledge and use of leading-edge technology, we continue to raise the bar on performance and value for our customers."