Exhibit 99.1
                                [TRU-SERV LOGO]

                                EARNINGS RELEASE

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

            TRUSERV ANNOUNCES FIRST HALF AND SECOND QUARTER EARNINGS
                     CO-OP REPORTS CONTINUED DEBT REDUCTION

         CHICAGO, AUG. 1, 2003 - TruServ Corporation reported today June 28,
2003 year-to-date net margin of $20.8 million versus $15.1 million for the same
six-month period a year ago--a profit improvement of $5.7 million on
year-to-date revenue of $1.0 billion versus $1.1 billion for the same period a
year ago.

         TruServ also reported a net margin of $24.7 million for the quarter
ended June 28, 2003, versus $10.4 million for the same period a year ago. The
co-op also reported $566.5 million in revenue for the quarter, down from $588.0
million for the same period a year ago.

         The co-op reported a net margin of $7.7 million for the month ended
June 28, 2003 compared to $6.9 million for the same period a year ago. TruServ
reported revenue of $214.8 million for the month, a slight increase compared to
$214.4 million for the same period a year ago.

         President and Chief Executive Officer Pamela Forbes Lieberman said, "We
continue to lower the breakeven point of our business through a variety of
initiatives, while enhancing our product and service offerings to the
membership. Our second quarter earnings were favorably impacted by $6.9 million
of accelerated gain amortization due to the April exit of our BMA non-compete
agreements."

          "Our total debt on June 28, was $219.8 million and was $208.9 million
below our total debt level of $428.7 million at the same time last year," said
Chief Financial Officer Dave Shadduck. "And for the first time since before the
merger in mid-1997, we didn't have any month-end borrowings on our revolving
credit facility."

         TruServ, headquartered in Chicago, is one of the world's largest
member-owned wholesale hardware cooperatives with sales of $2.2 billion in 2002.
The TruServ cooperative includes approximately 6,400 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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