United Stationers Inc. reported net capital spending of -$388,000 for the three months ended June 30, 2004, compared to $1,544,000 for the same period in 2003. For the six months ended June 30, 2004, net capital spending was -$2,046,000 versus $2,999,000 for the prior year period. The company forecasts net capital spending of $12,000,000 for the full year ending December 31, 2004. Net capital spending is provided as an additional measure of investing activities and includes capital expenditures as well as proceeds from asset sales and capitalized software.

1. United Stationers Inc. and Subsidiaries
Reconciliations of Non-GAAP Financial Measures
(unaudited)
Net Capital Spending
(in thousands)
For the Three Months Ended For the Six Months Ended Forecast
June 30, June 30, Year Ending
2004 2003 2004 2003 2004
Capital expenditures $ 3,940 $ 4,235 $ 6,298 $ 5,322 $ 16,000
Proceeds from the disposition of
property, plant and equipment (5,265) (3,583) (9,967) (3,609) (10,000)
Net cash (provided by) used in
investing activities (1,325) 652 (3,669) 1,713 6,000
Capitalized software 937 892 1,623 1,286 6,000
Net capital spending $ (388) $ 1,544 $ (2,046) $ 2,999 $ 12,000
Note: Net capital spending is provided as an additional measure of investing activities. The company’s accounting policy is
to include capitalized software in “Other Assets.” GAAP requires that changes in “Other Assets” be included on the cash
flow statements under the caption “Net Cash Provided by Operating Activities.” The company internally measures its
capital spending by including capitalized software. The company believes that it is helpful to provide readers of its
financial statements with this same information.