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United Stationers Inc. and Subsidiaries
                                   Reconciliations of Non-GAAP Financial Measures
                                                           (unaudited)

                              Net Income and Diluted EPS Excluding Charges (Net of Tax)
                                     (unaudited; in thousands, except per share data)

                                                        For the Three Months Ended  For the Six Months Ended
                                                                  June 30,                   June 30,
                                                            2004           2003       2004            2003
Net income                                             $ 21,029       $ 15,106     $ 44,408      $ 27,782
Add: Loss on early retirement of debt                                      3,649                      4,150
      Cumulative effect of a change in accounting
       principle                                                 --              --            --           6,108
      Net income excluding charges                     $     21,029      $   18,755    $   44,408      $   38,040

Earnings per share under GAAP                          $       0.62      $    0.46     $     1.30      $      0.85
Add: Loss on early retirement of debt                            --           0.11            --              0.13
    Cumulative effect of a change in accounting
      principle                                                  --              --           --              0.18
    EPS excluding charges                              $        0.62     $     0.57    $     1.30      $      1.16
Weighted average number of common shares –
 diluted                                                     34,049          33,108        34,250          32,873

Note: Net income and diluted EPS excluding charges, are provided as additional financial measures. GAAP requires that
the loss on early retirement of debt and the cumulative effect of a change in accounting principle be included in net income.
The company believes, for comparative purposes, it is helpful to provide readers of its financial statements with net income
excluding charges and diluted EPS excluding charges.

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  • 1. United Stationers Inc. and Subsidiaries Reconciliations of Non-GAAP Financial Measures (unaudited) Net Income and Diluted EPS Excluding Charges (Net of Tax) (unaudited; in thousands, except per share data) For the Three Months Ended For the Six Months Ended June 30, June 30, 2004 2003 2004 2003 Net income $ 21,029 $ 15,106 $ 44,408 $ 27,782 Add: Loss on early retirement of debt 3,649 4,150 Cumulative effect of a change in accounting principle -- -- -- 6,108 Net income excluding charges $ 21,029 $ 18,755 $ 44,408 $ 38,040 Earnings per share under GAAP $ 0.62 $ 0.46 $ 1.30 $ 0.85 Add: Loss on early retirement of debt -- 0.11 -- 0.13 Cumulative effect of a change in accounting principle -- -- -- 0.18 EPS excluding charges $ 0.62 $ 0.57 $ 1.30 $ 1.16 Weighted average number of common shares – diluted 34,049 33,108 34,250 32,873 Note: Net income and diluted EPS excluding charges, are provided as additional financial measures. GAAP requires that the loss on early retirement of debt and the cumulative effect of a change in accounting principle be included in net income. The company believes, for comparative purposes, it is helpful to provide readers of its financial statements with net income excluding charges and diluted EPS excluding charges.