Lancaster/Five Star Group Announces Opening of New State-of-the-Art Distribution Facility in New Jersey

Spartanburg, SC - June 15, 2010 - The Merit Group, Inc, parent company of Lancaster Distributors and Five Star Group, the largest paint sundries distributor in the nation, today announced the plans to open a new state-of-the-art distribution center in Avenel, New Jersey (Woodbridge Township). The new distribution center will replace and consolidate current facilities in Newington, Connecticut, East Hanover, New Jersey and York, Pennsylvania.

Shipping from the new facility is planned to commence in the fourth quarter of 2010.

Following the opening of the new facility and consolidation, Lancaster/Five Star will operate out of eight distribution centers serving a national footprint.

The company said that the consolidation of the three existing facilities will provide an expanded and consistent product offering for the company's northeast market. Additionally, operational and shipping efficiencies will benefit customers and vendor partners.

"The consolidation of our three northeast distribution centers into a state-of-the-art 325,000 square foot facility in Avenel is a significant step in further solidifying our position as the leader in the northeast market for paint sundries and related items," said Jay Baker, President and CEO of The Merit Group. "The Avenel facility will significantly enhance our entire distribution network on the east coast. Consolidation of both paint sundry and hardware related inventories will provide our customers with an efficient, single source for meeting their customer's requests. The new space will also give us the opportunity to strategically expand our product offerings to meet the needs of our customer base."

The 325,000 square foot Avenel facility will stock over 32,000 paint sundry and hardware related products and will provide next day delivery service to the North East market including the New York boroughs, Long Island, New Jersey, Connecticut, New England and the mid-Atlantic region.

The Merit Group, Inc., a South Carolina corporation headquartered in Spartanburg, South Carolina, provides wholesale distribution of paint sundry, hardware and drywall related products through its Lancaster, Five Star, Merit Trade Source and Merit Pro trade names. The Company's customers are located throughout the United States, the Caribbean and Central and South America. The Company services over 15,000 retail locations including leading national, regional and independent paint chains, home improvement centers, hardware stores, lumber yards and drywall yards through its ten regional distribution centers. The Company also offers a broad assortment of paint sundry and drywall related products under its "Merit Pro" brand.

National Hardware Show Press Release

Spartanburg, SC - March 1, 2010 - Lancaster once again will participate in a joint effort with the National Hardware Show to support dealers and participating exhibitors at the 2010 event to be held in Las Vegas this May. This will allow vendors to promote their products at the show and have a venue through which they can sell. Lancaster will have a booth and will be developing special promotions for attending dealers and participating vendors.

The Merit Group Purchases Five Star Products

Spartanburg, SC - December 21, 2009 - The Merit Group, Inc., a Spartanburg, South Carolina-based corporation, has reached an agreement to purchase outstanding shares of Five Star Products, Inc., a distributor of paint supplies, hardware and related products headquartered in East Hanover, New Jersey. The closing of this agreement is anticipated to occur in the first quarter of 2010.

"We are excited at the prospect of Five Star Products joining our group. Five Star has eveloped a reputation over many years for outstanding customer service led by Bruce Sherman and supported by an excellent sales force.  Five Star’s customers will continue to enjoy the benefits of working with the same sales and marketing team made stronger by the combined organizational systems and procurement advantages of what will be the largest paint sundries distributor in the United States,” said Jay Baker, chief executive officer of The Merit Group. “We are committed to building on the foundation that Five Star has built by continuing to offer the product mix, services and promotions that Five Star’s customers have come to expect.”

Mr. Baker continued: “The combined strengths of our two companies will allow us to address the growing number of opportunities for both our vendors and customers in the markets we serve. We look forward to delivering on the promise of this acquisition, as well as building value for our customers, vendors and associates.”

About Five Star
Five Star Products, Inc. distributes in the Northeast and Middle-Atlantic states with particular strength in the greater New York metropolitan area. Five Star distributes products to approximately 3,000 independent retailers, which include paint stores, independent hardware stores, lumber yards and do-it-yourself centers. Five Star offers a range of private label products sold under the “Five Star” name and operates two distribution centers located in East Hanover, New Jersey and Newington, Connecticut.
 
About The Merit Group
The Merit Group, Inc. provides wholesale distribution of paint sundry and drywall-related products through its Lancaster, Merit Trade Source and Merit Pro trade names. The company’s customers are located throughout the United States, Mexico, the Caribbean and Central and South America.  The company services over 10,000 retail locations including leading national, regional and independent paint chains, home improvement centers, hardware stores, lumber yards and drywall yards through its seven regional distribution centers. The company also offers a broad assortment of paint sundry and drywall-related products under its “Merit Pro” brand.

Lancaster Opens New Distribution Center

Spartanburg, SC - May 27, 2008 - Lancaster, a wholly owned subsidiary of The Merit Group, Inc. has opened a new distribution center in Salt Lake City, Utah. The new state-of-the-art 50,000 square foot distribution center officially opened on May 27, 2008. In addition to Utah, the center will also service the states of Montana, North & South Dakota, Idaho, Wyoming, Colorado and Arizona, as well as parts of Nevada.