RONA INC.
TSX : RON

RONA INC.

December 21, 2006 17:41 ET

RONA Recruits 19 New Affiliate Stores in Canadawide Network

BOUCHERVILLE, QUEBEC--(CCNMatthews - Dec. 21, 2006) - RONA Inc. (TSX:RON) ("RONA"), the largest Canadian retailer and distributor of hardware, home renovation and gardening products, is proud to welcome 19 new affiliate stores to the RONA network, adding nearly $102 million to overall annual retail sales.

Ten of the 19 new affiliate dealer-owners are located in Ontario, three are located in Nova Scotia, two are in Saskatchewan, one in British Columbia, one in Alberta, one in Manitoba and one in Quebec. A complete list of the new affiliates appears below.

With the arrival of these new stores, the total number of stores recruited to date in 2006 has reached 35, for total additional retail sales space of 305,000 square feet and some $197 million in additional retail sales. "This is our best annual result so far," said RONA executive vice-president of proximity and specialized stores Claude Bernier. In 2004, RONA recruited 25 affiliate stores, for an additional retail sales of $105 million, and in 2005, they added 31 affiliate stores, for an additional $191 million in retail sales.

The recruitment campaign is part of the company's 7-07 program, which aims to add $2 billion to RONA's annual retail sales in two years, bringing the network to the $7-billion level by the end of 2007. "We're expecting $400 million of those additional sales to come from newly recruited affiliates," Bernier explained, "and so far we're right on target to achieve our goal."

"We're particularly pleased that these new affiliates are experienced independent dealer-owners and all leaders in their respective markets," he added. "We're glad to welcome them aboard and to share the many RONA advantages: the industry's most advanced merchandising concepts, our innovative marketing programs, our high-tech distribution network, and our unique selection of hardware, home renovation and gardening products, including RONA's own private label."



LIST OF NEW AFFILIATES

British Columbia
North Star Hrdware and Building Supplies, Invermere

Alberta
Cal's Hardware, Elk Point

Saskatchewan
Humbold Lumbermart, Humbold
Pinecrest Lumber, Nipiwan

Manitoba
Interlake Building Supply, Asherm

Ontario
Alton Greenhouse, Alton
Bacc Enterprises, Parry Sound
Barino Construction & Ace Building Centre, Longlac
Direct Door & Trim, Tilsonburg
Dutton Building Products, Dutton
Lloyd Stewart Homecare Building Centre, Mount Forest
Mitchell Building Centre, Parkhill
Rice Road Green House, Fonthill
Switzer Planing Mill, Orillia
Welland Lumber & Building Supply, Welland

Quebec
Quincaillerie Felmax, Gracefield

Nova Scotia
Donevans Home Centre, Ingonish
Don Ray Lumber, Sydney Mines
Stephens Home Centre, Sydney


FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements reflecting RONA's objectives, estimates and expectations. Such statements may be marked by the use of verbs such as "believe," "anticipate," "estimate" and "expect" as well as the use of the future or conditional tense. By their very nature, such statements involve risks and uncertainty. Consequently, results could differ materially from the Company's projections or expectations. For information on the nature of risk factors not specifically discussed in this press release the reader can consult RONA's 2005 annual report under the heading "Risks and Uncertainties," page 31.

ABOUT RONA

RONA Inc. is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network more than 620 franchise, affiliate and corporate stores of various sizes and formats. With over 25,000 employees working under its family of banners in every region of Canada and more than 14 million square feet of retail space, the RONA store network generates $5.7 billion in annual retail sales.

For more information, please visit the RONA website at rona.ca.

Contact Information

  • RONA Inc.
    France Bouffard
    Sphere Communications strategique
    514-286-2772, ext. 10
    Cell.: 514-718-4811