Grossman's Inc. Board Elects Three New Directors: Expands Board To Eight Members From Five

Business Wire, Dec 18, 1996

CANTON, Mass.--(BUSINESS WIRE)--Dec. 18, 1996--The Grossman's Inc. (Nasdaq-GROS) board of directors today elected three new directors, expanding its board to eight from five.

Robert K. Swanson, chairman and chief executive officer, said the move is designed to produce "a younger board with additional scope and experience in a variety of disciplines, including strategic planning abilities."

Swanson said Leo Kahn will not stand for reelection at the annual shareholders meeting in September, 1997. Other current directors include Swanson, Russell Cox, John R. Grey and Maurice Grossman. All directors will serve until September when they will stand for reelection.

New directors are:

Thomas E. Arnold, Jr., 52, president of Phoenix-based Thomas E. Arnold & Associates, L.L.C., which has successfully sold more than $2 billion worth of commercial, industrial and residential real estate in 46 states and managed more than $500 million in securities portfolios for major U.S. companies during the past six years.

Arnold previously was president of Phoenix-headquartered Del Webb Corp., where he was responsible for development and management of the internationally famous Sun Cities in Arizona and Nevada.

Arnold also oversaw Del Webb's realty management, leasing and sales; recreational and commercial properties, construction services and negotiations for the sale of more than $500 million in real estate assets throughout the U.S.

Samuel B. Witt III, 60, principal, senior vice president and general counsel of Stateside Associates Inc., a Washington, D.C.-based state government relations and issues management firm.

Witt also maintains a sole law practice and advises a select number of clients on corporate, international crisis management and legislative issues.

Witt previously was vice president, general counsel and secretary of R.J. Reynolds Tobacco International, RJ Reynolds Tobacco Company and special counsel for RJR Nabisco Inc. His RJR experience included responsibility for licensing, export, corporate and special projects in Europe, the Middle East, Canada, Brazil, Hong Kong and Malaysia.

Witt earlier was counsel/director of administration with General Mills Europe in its Brussels office and later European counsel and director of finance in London.

Abraham Zaleznik, 72, Boston, is a Professor of Leadership Emeritus at Harvard Business School and a business and government consultant.

Zaleznik is known internationally for his research and teaching of social psychology in business settings, distinguishing characteristics in leadership and psychological aspects of executive behavior of manager and leaders. A noted author, Zaleznik has published 14 books.

Zaleznik is chairman of the board of King Ranch Inc., and a board member of Ogden Corp., Ardco Inc., Timberland Co., Freedom Communications Inc., American Greetings and Butchers Inc. Zaleznik previously served on Grossman's board from 1986 to 1994.

Swanson said he previously worked with both Arnold and Witt when he was chairman and chief executive officer of Del Webb Corp. and executive vice president of General Mills. "Both will add immeasurable talent to the Grossman's board, as will and Zaleznik, whose overall knowledge and business experience is a definite asset," he said.

Grossman's Inc. operates 42 retail stores which includes 16 Contractors' Warehouse facilities in California, Indiana, Kentucky, Nevada and Ohio, and 26 Grossman's Bargain Outlet in Massachusetts, New York and Rhode Island.

Contractors' Warehouse caters to remodelers, independent contractors, home builders and other professionals. These stores, which range in size from 80,000 to 110,000 square feet, provide value-added specialized services, including 40,000 to 55,000 square- foot covered drive-through lumber yards; multiple varieties, sizes and quantities of lumber and building materials, special order showrooms, computer estimating services, materials list preparation and prices from blueprints, quick bid job quotes, professional tool rental, specialized delivery services, early opening hours and architectural services at some locations.

Mr. 2nd's Bargain Outlets cater to do-it-yourself and professional customers who seek cost-effective alternatives to traditional home improvement centers. These stores offer steep discount pricing on close-outs, seconds, over-stocks in a broad range of building materials and building-related merchandise and non-repeat merchandise in limited quantities.

Grossman's Inc. press releases and public filings can be accessed on the Internet through Business Wire's Home Page: http://www.businesswire.com/cnn/gros.htm

Mr. 2nd's Bargain Outlet maintains a web site for product information, store locations and feedback: http://www.bargain-outlets.com

CONTACT: Robert K. Swanson

Chairman, CEO

(617) 830-4471

or

Michael J. Shea

EVP and CFO

(617) 830-4255

or

Joanne Ralston

Joanne Ralston & Associates

(602) 951-9200

or

Steven L. Shapiro

VP - Controller

(617) 830-4020