Ace Hardware and Egarden.com Team Up in Exclusive B2B Global E-Commerce Alliance

Business Wire, May 17, 2000

Business Editors

SAN FRANCISCO and CHICAGO--(BUSINESS WIRE)--May 17, 2000

Ace's 5,100 Retailers can Quickly Locate and Purchase Lawn and Garden

Products and Outdoor Accessories through a Dedicated Site within

Egarden.com

U.S. Home & Garden Inc. (Nasdaq: USHG) and egarden.com, Inc., its business-to-business e-marketplace subsidiary for the global lawn and garden products industry, today announced that egarden.com has entered into an exclusive long-term strategic e-commerce agreement with Ace Hardware Corporation.

egarden.com will provide Ace's approximately 5,100 independent retailers, in 50 states and 65 countries, a dedicated "room", which will offer a broad selection of lawn and garden products and related accessories, and a convenient method to purchase those products. egarden.com will also enable thousands of independent vendors to list their products for sale to Ace retailers. With approximately $3.1 billion in whole sale sales in 1999, Ace is one of the nation's largest 100 percent retailer owned cooperatives, offering its retailers a selection of more than 60,000 items.

Ace retailers will have access to a broad assortment of products, 24 hours a day, seven days a week, with all electronic transactions resembling the current Ace drop-ship order forms and procedures. egarden.com will provide Ace retailers the ability to search multiple suppliers' products simultaneously, order from multiple companies on one consolidated order form, track order status and aggregate reporting capability. In addition, egarden.com believes it can enhance each retailer's purchasing experience and marketing capability at the local level through unique features including auctions, regional programs, logistic services, industry news and a calendar of events.

"Ace is one of the nation's largest cooperatives to have selected egarden.com as its exclusive global e-commerce partner for its lawn and garden products," commented Robert Kassel, Chairman and CEO of U.S. Home & Garden. "Ace joins a growing list of key strategic buying cooperatives that have recently formed e-commerce alliances with egarden.com. Ace has been successfully providing its retailers with the innovative marketing initiatives and retailer support programs they need in the competitive do-it-yourself marketplace for more than 75 years. Ace's partnership with egarden.com represents a continuation of that commitment, by providing broader product options, real-time market information and sales analysis that will enable them to meet the growing marketplace challenges efficiently and effectively."

Gary Paulson, General Merchandise Manager of Ace Hardware Corporation, stated, "Ace is pleased to partner with egarden.com to provide Ace retailers with extensive product selection, industry expertise, strong marketing and robust technical capabilities that are needed to provide the broadest possible selection of lawn and garden products to their customers. egarden.com's objectives are well matched with the goals at Ace, particularly as our global Internet-based buying and marketing capability expands."

The egarden.com marketplace will begin beta tests in mid-June, and is expected to go live in mid-July. The web site is designed to use the Ariba (Nasdaq: ARBA) B2B Commerce Platform, including Ariba's Commerce Center. The egarden.com marketplace is expected to deliver online supplier information and offer e-commerce transactions to all members of the lawn and garden industry, including small and medium size manufacturers, independent retailers and specialty stores, contractors, and landscapers. Industry participants will have access to a broad range of products, including, barbecue grills, bird feeders, fencing and edging, flower pots and planters, garden tools and supplies, irrigation equipment, landscaping supplies and equipment, outdoor furniture and accessories, and live-goods. In addition to lawn and garden products, egarden.com intends to add other product categories to its e-marketplace, enabling Ace retailers with the capability to source and purchase a greater percentage of their total product offerings through egarden.com.

egarden.com has also created an alliance with GardenTrend, Inc., to register manufacturers and provide in-store and online training for Ace retailers. GardenTrend was created by industry professionals who have extensive experience in providing customer care and marketing/sales support to Ace retailers.

For more information about Ace Hardware Corporation, please visit its web site at acehardware.com.

About egarden.com and U.S. Home & Garden

The Company's Internet subsidiary, egarden.com (www.egarden.com), is the first all-inclusive business-to-business e-commerce Web site focused on the lawn and garden industry.

U.S. Home & Garden Inc. is a leading manufacturer and marketer of a broad range of consumer lawn and garden products including weed preventative landscape fabrics, weed trimmer replacement heads, fertilizer spikes, decorative landscape edging, shade cloth and root feeders which are sold under various recognized brand names including Weedblock(R)", Jobe's(R), Emerald Edge(R), Shade Fabric(TM) Ross(R)" and Tensar(R). The Company markets its products through most large national home improvement and mass merchant retailers.