ST. JOHN'S, NL, Feb. 17 /CNW Telbec/ - RONA Inc. ("RONA" or the"Company") (TSX: RON) , the leading Canadian distributor and retailer ofhardware, home improvement and gardening products, continues the consolidationof the home improvement market by acquiring 100% of the operating assets ofNewfoundland-based Chester Dawe Limited ("Chester Dawe"). Chester Dawe Limitedis the market leader in the sales of building materials and hardware productsfor the housing industry in the St. John's Metro area and a major supplierthroughout the entire province. The transaction, financed by RONA's existing credit facilities, issubject to usual conditions and regulatory approvals. The deal is expected toclose at the end of February 2006. Chester Dawe Limited is a private companyfounded in 1945 at St. John's by Chester Dawe. It has been managed since 1992by Philip M. Budden and owned since 2001 by P.M.B. Development Limited. Chester Dawe Limited operates eight retail outlets: three in St. John'sand one each in Goulds, Clarkes Beach, Kelligrews, Gander and Fortune. Thestore network consists of approximately 280,000 square feet of combinedretail/warehouse space and some 25 acres of outside lumberyard storage.Chester Dawe also operates a roof and floor truss factory. During peak season,Chester Dawe employs close to 400 staff. Chester Dawe posted sales ofapproximately $80 million in 2005. RONA believes that the acquisition of Chester Dawe will generate a numberof significant strategic advantages: - Provide the company with a solid foothold in Newfoundland and increase its presence in the Atlantic Provinces, where it has held limited market share until now. - Make a positive contribution to earnings per share. - Achieve recurring annual synergies proportionate to those achieved with previous acquisitions. - Accelerate the affiliate recruiting program in Newfoundland and the three other Atlantic Provinces. - Facilitate the construction of new stores in all major cities in the Atlantic Provinces. Robert Dutton, President and CEO of RONA, said that the transaction "fitsperfectly into our business development plan. It gives us the critical mass weneed in Newfoundland to be able to serve this market effectively. Theefficiency of our distribution system and our growing reputation will provideconsiderable support for our recruitment program in this extremely dynamicmarket." Philip M. Budden, General Manager of Chester Dawe Limited, is alsopleased with the transaction. "We are happy to complete the sale of theoperating assets of our company to a Canadian chain that understands how we goto market and one that will continue to serve all our customers in the ChesterDawe Limited tradition going back to 1945. RONA will provide our staff withfurther development and growth opportunities. Our customers will have anenhanced selection of products (including the RONA private label brand) andservices at great prices. RONA's overseas buying offices will bring excitingnew merchandise and outstanding pricing to Chester Dawe retail stores." Mr. Budden will remain with the company as general manager and allemployees will continue to work with RONA. According to Mr. Budden, the sale will enable Chester Dawe Limited tocontinue to grow as a leading player in the residential subdivision businesswithin the St. John's Metro area and throughout the province, providingcontractors and home builders with improved and expanded services in the yearsahead. "It will be business as usual," he concluded. Forward-looking Information This press release contains forward-looking statements reflecting RONA'sobjectives, estimates and expectations. Such statements may be marked by theuse of verbs such as "believe," "anticipate," "estimate" and "expect" as wellas the use of the future or conditional tense. By their very nature, suchstatements involve risks and uncertainty. Consequently, results could differmaterially from the company's projections or expectations. Factors that couldcause results to differ materially from statements include, among otherthings, the fact that the expected closing of the transaction referred to inthis news release is subject to customary closing conditions and certainregulatory approvals. For information on the nature of risk factors notspecifically discussed in this press release, the reader can consult RONA's2004 Annual Report under the heading "Risks and Uncertainties," page 27. TheAnnual Report is available on RONA's website at www.rona.ca or on SEDAR atwww.sedar.com . ABOUT RONA RONA is the largest Canadian distributor and retailer of hardware, homerenovation and gardening products. RONA operates a network of some 580franchise, affiliate and corporate stores of various sizes and formats. Withover 24,000 employees working under its family of banners in all regions ofCanada and more than 13 million square feet of retail space, the RONA storenetwork generates $5 billion in annual sales.

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