DALLAS, Jul 28, 2006 / FW/ --- In a statement released today by Wal-Mart, Michael Duke, Vice-Chairman of Wal-Mart Stores, Inc. confirmed that the giant retailer has entered an agreement with Metro AG to sell its German business for an undisclosed amount.

Wal-Mart, which entered the German marketplace through the acquisition of Wertkauf and Interspar hypermarket chains, operates 85 Supercenters in the country, employing 11,000 associates.

Wal-Mart Germany operates 85 Supercenters employing 11,000 associates. Wal-Mart entered the German market eight years ago with the acquisition of the Wertkauf and Interspar hypermarket chains. The transaction is subject to approval by the competent anti-trust authorities.

The Company expects to incur a pre-tax loss related to this transaction of approximately US$1 billion for the Company's second quarter of fiscal year 2007.

Commenting on the sale, Michael Duke said, "As we focus our efforts on where we can have the greatest impact on our growth and return on investment strategies, it has become increasingly clear that in Germany's business environment it would be difficult for us to obtain the scale and results we desire."

"This sale positions us to increase our focus on the markets where we can achieve our objectives." Duke added.

Wal-Mart's international operations comprise 2,700 stores in 14 countries outside the United States. In the past year, the company became majority owner of Seiyu in Japan, completed its acquisition of Sonae in Brazil, and expanded into six new markets including Northern Ireland, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.

Combined with its U.S. and SAM's CLUB divisions, Wal-Mart operates more than 6,600 retail outlets globally with sales of US$312 billion last year.

The sale is still subject to approval by the competent anti-trust authorities.