EXHIBIT 99.1


                                 [TRUSERV LOGO]

                                EARNINGS RELEASE


                                             For more information contact:
                                             Shelley Hughes
                                             TruServ Corporation
                                             (773) 695-5258


                    TRUSERV ANNOUNCES SECOND QUARTER EARNINGS
                  CO-OP REPORTS PROFIT FOR SIXTH MONTH IN A ROW


         CHICAGO, AUG. 1, 2002 - TruServ Corporation reported today year-to-date
net margin of $15.1 million versus a net loss of $11.4 million for the same
period a year ago--a profit improvement of $26.5 million on year-to-date revenue
of $1.15 billion versus $1.4 billion for the same period a year ago.
Approximately $72 million of the year-to-date sales decline reflects the effect
of the prior divestitures of the lumber business and the Canadian business.

         TruServ also reported a net margin of $10.4 million for the quarter
ended June 29, 2002, versus $2.6 million for the same period a year ago. The
co-op reported $597.9 million in revenue in the quarter, down from $747.8
million for the same period a year ago.

         The co-op reported a net margin of $6.9 million for the month ended
June 29, 2002 compared to a net income of $0.3 million for the same period a
year ago. TruServ reported revenue of $217.3 million for the month compared to
$280.2 million for the same period a year ago.

         President and Chief Executive Officer Pamela Forbes Lieberman said, "We
are pleased with our bottom-line performance this year. Our restructuring
actions have reduced our year-to-date labor and facility costs by approximately
$18.7 million compared to the same time period last year."

          "Our senior debt level of $343.9 million and our member debt level of
$84.8 million combined is $109.5 million below our combined debt level at the
same time last year," continued Forbes Lieberman.

         TruServ, headquartered in Chicago, is one of the world's largest
member-owned wholesale hardware cooperatives with sales of $2.6 billion in 2001.
The TruServ cooperative includes approximately 6,800 independent retailer
locations worldwide operating under the store identities of True Value, Grand
Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and
Induserve Supply. Additional information on TruServ and its retail identities is
available at www.truserv.com.

This earnings release may contain forward-looking statements that involve risks
and uncertainties. The following factors could cause results to differ
materially from management expectations as projected in such forward-looking
statements: seasonal variations, competition, risks of new business areas, the
availability and cost of real estate and construction, and changes in federal or
state legislation or regulations. Members are referred to the "Cautionary Note
Regarding Forward-Looking Statements" in the company's most recent Form 10-K,
which Note is incorporated into this news release by reference.

                                       ###