Zep Inc. Launches "Zep® Professional" Product Line and Announces Alignment with World-Class Distributors Providing Access to $6.4 Billion U.S. Industrial Distribution Market

October 13, 2008

ATLANTA, Oct 13, 2008 (BUSINESS WIRE) -- Zep Inc. (NYSE:ZEP) is pleased to announce the launch of its new Zep Professional product line focusing on the industrial distribution market and to announce our alignment with world-class distributors that serve targeted market segments.

Zep Professional

A few short months ago, Zep Inc. announced its goal of obtaining 10 to 15 percent of its revenue from sales of product through industrial distributors. "By focusing on the voice of the customer, it became clear that nearly 40% of the U.S. customer base prefers the services that industrial distributors have to offer," commented John K. Morgan, Chairman, President and Chief Executive Officer. "We are committed to developing products and services desired by customers and making them available in ways most appropriate for the customer."

The strategy began earlier this year with market studies, a new product strategy, and the creation of the Zep Professional brand. These new products will be marketed with the support of dedicated field training, logistics, customer service, marketing, toll-free technical support and electronic ordering tools to enable exclusive distributors ready access to the services of the newly-formed and dedicated Zep Professional organization.

Qualified chemists and segment specialists will also be available to Zep Professional authorized distributors serving a wide range of markets including:

  • Manufacturing
  • Government
  • Schools
  • Hospitality
  • Health Care
  • Food Service

The initial Zep Professional products are professional-strength formulations developed for a variety of applications including:

  • Bathroom Care
  • Drain Care
  • General Purpose Cleaners
  • Industrial Degreasers
  • Lubricants & Penetrants
  • Disinfectants
  • Floor Care
  • Grounds & Building Maintenance
  • Industrial Hand Care
  • Odor Control

"I'm very pleased with the progress William A. (Bill) Holl, our Chief Operating Officer, and the entire distribution team under Philip Snellen's leadership have achieved in such a short time frame. With only a few months in the planning and development stage, we began pilot production of our new Zep Professional product line in late August. It was a great team effort and it was exciting to see the new product line flowing through our factories," continued John K. Morgan.

To learn more about Zep Professional products, call 1-877-7-ZEPPRO.

Zep Inc. Industrial Distributor Partners

Zep is also pleased to announce today that it has entered into agreements with a select group of very impressive distributor partners focusing on strategic market segments to the company. Distribution agreements have been reached with W.W. Grainger, Inc., Lab Safety Supply Inc., Graybar Electric Company, Inc., R3 Reliable Redistribution Resource, a division of Bunzl North America, and VWR International, LLC to offer the new Zep Professional product line to their customers. A distribution agreement has also been reached with SP Richards to distribute select Zep Commercial products. These new partners, along with our existing partner, HD Supply, will expand our customer reach in the industrial maintenance, electrical, food service, jansan and broad-line scientific market industries.

Barry Hentz, Senior Vice President, Redistribution of R3 Reliable Redistribution Resource says, "Zep is a well-established, highly-recognized brand that offers R3 Reliable Redistribution Resource a unique opportunity to further penetrate and grow its core customer base."

"The entire team at Zep Inc. is excited about the opportunity to support these new distributor partners to the benefit of our customers," commented Mr. Holl.

"The distributors we have partnered with to gain access to our target markets are some of the finest in the world. We are proud to have our brands associated with distributors with such fine reputations," added Mr. Morgan. "While we do not expect an immediately significant impact on sales volumes, we are very optimistic about the long-term benefit these agreements will have for our business and our customers," concluded Mr. Morgan.

About Zep Inc.

Zep Inc. (NYSE: ZEP), with fiscal year 2007 net sales of more than $565 million, is a leading producer, marketer, and service provider of a wide range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer endmarkets. Zep's product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products. The Company markets these products and services under well recognized and established brand names, such as Zep®, Zep Commercial®, Zep® Professional, Enforcer®, National Chemical® and Selig&tm;, some of which have been in existence for more than 70 years. Zep is headquartered in Atlanta, Georgia. Visit the company's website at www.zepinc.com.

SOURCE: Zep Inc.

Zep Inc.
Jill A. Gilmer, 404-605-8614
Asst. Corp. Secretary

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