SDI Declares Dividend


BENSALEM, Pa., August 27, 2003 (PRIMEZONE) -- SDI (Strategic Distribution, Inc.) (Nasdaq:STRD), a leading provider of MRO supply chain management services, announced today that its Board has authorized the payment of a cash dividend in the amount of $5.00 per share of common stock. The dividend will be payable on October 6, 2003 to stockholders of record on September 8, 2003.

The Company expects that for most stockholders the majority of the distribution will be treated as a return of capital for tax purposes. The ultimate tax treatment of the dividend will depend, however, on the Company's historical and 2003 fiscal year (tax basis) earnings and profits. Further information as to the taxability of the dividend will be provided to stockholders in 2004 on their Form 1099.

Commenting on the declaration of the dividend, Donald Woodring, CEO, noted that: "The Company is currently in a very strong cash position. The funds to be used for payment of the dividend represent excess cash which is not currently required, nor expected to be required for the ongoing operation of the business." The Company had $44.0 million of cash on hand as of June 30, 2003.

SDI helps customers optimize their business performance and meet strategic goals by providing technology and supply chain solutions to increase productivity and reduce total costs. Commercial and industrial customers, as well as educational institutions, benefit from reduced costs and increased efficiencies in the procurement and management of maintenance, repair and operating (MRO) materials. Additional information about SDI and its In-Plant Store(r) program can be found on the company's Web site at www.in-plantstore.com.

The foregoing paragraphs contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's 2002 annual report as filed on Form 10-K with the Securities and Exchange Commission.


            

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