Exhibit 99.1



                                 [TRU-SERV LOGO]
                                EARNINGS RELEASE


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


                          TRUSERV REPORTS JULY EARNINGS
                 CO-OP REPORTS PROFIT FOR SEVENTH MONTH IN A ROW


         CHICAGO, AUG. 19, 2002 - TruServ Corporation reported today
year-to-date net margin of $18.6 million versus a net loss of $13.7 million for
the same period a year ago--a profit improvement of $32.3 million on
year-to-date revenue of $1.3 billion versus $1.6 billion for the same period a
year ago. Approximately $79.6 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 net margin of $3.5 million for the month ended
July 27, 2002 compared to a net loss of $2.3 million for the same period a year
ago. The co-op reported revenue of $164.7 million for the month compared to
$199.5 million for the same period a year ago.

         President and Chief Executive Officer Pamela Forbes Lieberman said,
"Our streamlining and restructuring efforts are definitely making an impact. We
have reduced our year-to-date labor and facility costs by approximately $20.5
million compared to the same time period last year."

         The co-op reported senior debt of $327.8 million at the end of July,
down $89.0 million from the same period a year ago.

          "We are continuing to pay down debt at a rapid rate," said Forbes
Lieberman. "In addition to our earnings, we are vigorously managing our working
capital with very favorable results."

         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.


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