8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  July 30, 2010 (July 29, 2010)

UNITED STATIONERS INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-10653	36-3141189
(State or Other Jurisdiction	(Commission File Number)	(I.R.S. Employer
Of Incorporation)		Identification No.)

One Parkway North Boulevard
Suite 100
Deerfield, Illinois	60015-2559
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:  (847) 627-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

United Stationers Inc.

Item 2.02               Results of Operations and Financial Condition.

The following information, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” hereunder for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 29, 2010, the Registrant issued a press release announcing its financial results for the three- and six-month periods ended June 30, 2010. A copy of the Registrant’s press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference. In addition, a slide presentation summarizing earnings and financial results is attached as Exhibit 99.2 hereto and is incorporated herein by reference.

Item 9.01               Financial Statements and Exhibits.

(d) Exhibits
Exhibit No.	Description
99.1*	Press Release, dated July 29, 2010, announcing financial results for the three- and six-month periods ended June 30, 2010.
99.2*	Earnings Presentation, a slide presentation summarizing earnings and financial results.

* — Included herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	UNITED STATIONERS INC.
	(Registrant)
Dated:  July 29, 2010	/s/ Victoria J. Reich
	Victoria J. Reich
	Senior Vice President and Chief Financial Officer

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EXHIBIT INDEX

(d) Exhibits

Exhibit No.	Description
99.1*	Press Release, dated July 29, 2010, announcing financial results for the three- and six-month periods ended June 30, 2010.
99.2*	Earnings Presentation, a slide presentation summarizing earnings and financial results.

* — Included herewith.

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EX-99.1

Exhibit 99.1

news release

Executive Offices	For Further Information Contact:
One Parkway North Blvd.
Suite 100
Deerfield, IL 60015-2559	Richard W. Gochnauer
	President and Chief Executive Officer
	or
	Victoria J. Reich
	Sr. Vice President and Chief Financial Officer
	United Stationers Inc.
	(847) 627-7000

UNITED STATIONERS REPORTS INCREASED SALES AND EARNINGS
FOR SECOND QUARTER 2010

DEERFIELD, Ill., July 29, 2010 — United Stationers Inc. (NASDAQ: USTR), a leading North American wholesale distributor of business products, today reported second quarter 2010 results.

Second Quarter Financial Highlights

·Diluted earnings per share were $1.10.  Adjusted to exclude a non-cash $2.8 million pre-tax reversal of actuarially based liabilities resulting from the termination of a post-retirement medical plan, second quarter 2010 diluted earnings per share were $1.03(1), up 17%, compared with $0.88 a year ago.

·Net sales for the second quarter increased 5.3% to $1.22 billion, compared with $1.16 billion in the prior-year quarter.

·Gross margin in the second quarter of 2010 was 14.7% of sales, up 60 basis points, compared with 14.1% in the prior-year quarter.

·Operating expenses in 2010 were $128.9 million, or 10.6% of sales.  Adjusted operating expenses in 2010 were $131.7 million(1), or 10.8%(1) of sales, compared with $122.2 million, or 10.5% of sales in the 2009 quarter.

·Operating income was $50.3 million, or 4.1% of sales.  Adjusted operating income was $47.5 million(1), or 3.9%(1) of sales, versus $41.2 million, or 3.6% of sales, in the prior-year quarter.

·Net income was $27.0 million in 2010.  Adjusted net income in the second quarter of 2010 was up 19% to $25.3 million(1) versus $21.2 million in the prior-year quarter.

·Net cash provided by operating activities for the latest six months totaled $54.7 million, versus net cash provided of $243.0 million for the same period last year.

·Share repurchases during the second quarter of 2010 totaled 1.1 million shares for $63.0 million.

“Successful execution of our growth strategies, together with modestly improving economic conditions, drove our positive second quarter sales performance,” said Richard W. Gochnauer, president and chief executive officer. “Disciplined cost management, coupled with higher supplier allowances, delivered stronger operating margins. We continued to make investments in key initiatives to position us for future growth, and enhanced shareholder value through share repurchases in the quarter.”

Second Quarter Performance

Sales in the second quarter of 2010 increased by 5.3% to $1.22 billion, compared with last year’s $1.16 billion.  Sales within the technology and office product categories grew 8.6% and 5.6%, respectively, versus the prior-year quarter.  In addition, sales of industrial supplies showed significant growth in the quarter of 27.9% versus the prior-year quarter.  Lower sales of flu-related products contributed to a 2.1% reduction in sales of janitorial/breakroom supplies. Furniture sales were down 2.1%, an improvement from the prior quarter’s decline.

Gross margin in the second quarter of 2010 reached $179.2 million, compared with $163.4 million in the same period last year. Gross margin as a percent of sales for the second quarter of 2010 was 14.7%, compared with 14.1% in the prior-year quarter.  The increase was due to higher inventory purchase-related supplier allowances versus the prior-year quarter.  Also, modestly higher product cost inflation compared with last year, and improved leverage of occupancy costs positively affected gross margin.  These items were partially offset by competitive pricing pressures and a lower-margin product mix.

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Operating expenses for the latest quarter were $128.9 million, or 10.6% of sales, including a non-cash $2.8 million favorable adjustment related to the termination of the post-retirement medical plan.  Excluding this item, operating expenses were $131.7 million(1), or 10.8%(1) of sales, compared with $122.2 million, or 10.5% of sales, in the same quarter last year.  Sales growth, investments in strategic growth initiatives, and the reinstatement of employee-related benefits in the second quarter contributed to the increase in operating expenses.  These cost increases were somewhat offset by lower bad debt costs, lower depreciation and continued success with War on Waste (WOW) efforts.

Operating income for the latest quarter was $50.3 million, or 4.1% of sales.  Excluding the favorable item mentioned above, operating income was $47.5 million(1), or 3.9%(1), compared with $41.2 million, or 3.6% of sales, in the second quarter of 2009.

Diluted earnings per share for the 2010 quarter were $1.10.  Excluding the effect of the plan termination referenced above, diluted earnings per share were $1.03(1) up from $0.88 in the prior-year quarter.

Six-Month Performance

Sales in the first half of 2010 were $2.38 billion, up 4.1%, led by double-digit increases in industrial supplies and growth in technology and office products, and a slight increase in janitorial/breakroom.  These were partially offset by lower furniture sales.

Gross margin for the first half of 2010 increased to $346.1 million or 14.6% of sales compared to $327.7 million or 14.4% in the same prior-year period.  The increase was due to higher inventory purchase-related supplier allowances as well as improved leverage on occupancy costs.  These favorable items were partially offset by lower product cost inflation, competitive pricing pressures and a lower-margin product mix.

Operating expenses in 2010 were $260.0 million or 11.0% of sales, including a non-cash $2.8 million favorable effect of terminating the post-retirement medical plan, compared with $257.6 million, or 11.3% of sales, last year, which included a severance charge of $3.4 million.  Excluding these items, operating expenses in 2010 were $262.8 million(1), or 11.1%(1) of sales, compared with the prior year of $254.2 million(1) or 11.2%(1) of sales.  The operating expense ratio declined slightly due to lower bad debt costs, lower depreciation expense and War on Waste savings partially offset by the reinstatement of several employee-related benefits and spending on growth initiatives.

Operating income for the first half of 2010 was $86.1 million or 3.6% of sales.  Excluding the items mentioned above, operating income in 2010 was $83.3 million(1), or 3.5%(1) of sales, compared with $73.5 million(1) or 3.2%(1) of sales, in the prior year.

Diluted earnings per share for the first half of 2010 were $1.83 versus $1.45 in the first half of 2009.  Excluding the items mentioned above, diluted earnings per share for the first half of 2010 were $1.76(1), compared with $1.54(1) in the prior-year period.

Cash Flow, Debt Trends and Share Repurchases

Net cash provided by operating activities totaled $54.7 million for the six months ended June 30, 2010, versus $243.0 million a year ago.  Last year’s cash flow was positively affected by a significant reduction in inventory, compared with the current year’s re-investment to support sales growth.  Cash flow used in investing activities totaled $26.2 million in 2010, up from $4.7 million in the first half of 2009.  Included in 2010 investing activities is $15.5 million related to acquisitions and investments.  Capital spending through the six months ended June 30, 2010 was $10.7 million and is expected to be approximately $30 million for 2010.

The company has approximately $850 million of total committed debt capacity with $453.4 million outstanding as of June 30, 2010, which is down slightly from $471.8 million at June 30, 2009. Also, during that same period debt-to-total capitalization declined to 39.0% from 43.2%. Through the first half of 2010, the company repurchased 1.3 million shares for $74.7 million, which was partially offset by the collection of $25.9 million from the exercise of stock options.

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Outlook

Third quarter sales to date are trending up about 4%.  “Our first-half performance gives us confidence that our sales initiatives will help drive growth and overcome lower flu-related product sales and the effects of continued uncertain economic conditions,” commented Gochnauer.  “Further, the work our associates have done to deliver high-value services to our customers and suppliers, and drive cost structure improvements through our War on Waste initiatives, supports our margin improvement objectives.  Our focus remains on sales initiatives, cost management, working capital efficiency gains and cash generation to maintain our strong financial position and flexibility, while enabling continued investment in growth strategies, opportunistic investment buys, and share repurchases.”

Conference Call

United Stationers will hold a conference call followed by a question and answer session on Friday, July 30, 2010, at 10:00 a.m. CT, to discuss second quarter and first-half 2010 results. To participate, callers within the U.S. and Canada should dial (800) 588-4973, and international callers should dial (847) 413-2407 approximately 10 minutes before the presentation.  The confirmation number is “27488704.”  To listen to the webcast, participants should visit the Investor Information section of the company’s website at ir.unitedstationers.com several minutes before the event is broadcast and follow the instructions provided to ensure that the necessary audio application is downloaded and installed.  This program is provided at no charge to the user.  In addition, interested parties can access an archived version of the call, also located on the Investor Information section of United Stationers’ website, about two hours after the call ends.  This news release, along with a financial slide presentation and other information relating to the call, also will be available on United’s website.

Forward-Looking Statements

This news release contains forward-looking statements, including references to goals, plans, strategies, objectives, projected costs or savings, anticipated future performance, results or events and other statements that are not strictly historical in nature. These statements are based on management’s current expectations, forecasts and assumptions. This means they involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied here. These risks and uncertainties include, but are not limited to the following: United’s ability to effectively manage its operations and to implement general cost-reduction and margin-enhancement initiatives; United’s reliance on key customers, and the business, credit and other risks inherent in continuing or increased customer concentration; United’s reliance on independent dealers for a significant percentage of its net sales and therefore the importance of the continued independence, viability and success of these dealers; prevailing economic conditions and changes affecting the business products industry and the general economy; continuing or increasing competitive activity and pricing pressures within existing or expanded product categories, including competition from product manufacturers who sell directly to United’s customers; United’s reliance on key suppliers and the supplier allowances and promotional incentives they provide; the impact of variability in supplier pricing, allowance programs, promotional incentives and other terms, conditions and policies; the availability of financing sources to meet United’s business needs; the impact of variability in customer and end-user demand patterns on United’s product offerings and sales mix and, in turn, on customer rebates payable and supplier allowances earned by United; United’s ability to maintain its existing information technology e-commerce systems and to successfully procure and implement new systems without business disruption or other unanticipated difficulties or costs; United’s ability to effectively identify, consummate and integrate acquisitions; United’s reliance on key management personnel, both in day-to-day operations and in execution of new business initiatives; and the effects of hurricanes, acts of terrorism and other natural or man-made disruptions.

Shareholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For additional information about risks and uncertainties that could materially affect United’s results, please see the company’s Securities and Exchange Commission filings.  The forward-looking information in this news release is made as of this date only, and the Company does not undertake to update any forward-looking statement.  Investors are advised to consult any further disclosure by United regarding the matters discussed in this release in its filings with the Securities and Exchange Commission and in other written statements it makes from time to time.  It is not possible to anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete.

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Company Overview

United Stationers Inc. is a leading wholesale distributor of business products, with 2009 net sales of approximately $4.7 billion.  The company stocks approximately 100,000 items, including technology products, traditional office products, janitorial and breakroom supplies, office furniture, and industrial supplies.  A network of 64 distribution centers allows it to deliver these products to over 25,000 reseller customers.  This network, combined with United’s depth and breadth of inventory, enables the company to ship most products overnight to more than 90% of the U.S. and major cities in Mexico. For more information, visit www.unitedstationers.com.

United Stationers’ common stock trades on the NASDAQ Global Select Market under the symbol USTR.

(1)This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America and may not be consistent with measures used by other companies. It should be considered supplemental data. A reconciliation of these items to the most comparable GAAP measures is presented at the end of this news release.

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4

United Stationers Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except per share data)

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2010		2009		2010		2009
Net sales	$	1,220,759	$	1,159,195	$	2,375,068	$	2,280,502
Cost of goods sold	1,041,520		995,782		2,028,963		1,952,753
Gross profit	179,239		163,413		346,105		327,749
Operating expenses:
Warehousing, marketing and administrative expenses	128,918		122,173		259,986		257,625
Operating income	50,321		41,240		86,119		70,124
Interest expense, net	6,436		6,949		12,665		14,129
Other expense, net	—		—		—		204
Income before income taxes	43,885		34,291		73,454		55,791
Income tax expense	16,883		13,133		28,227		21,112
Net income	$	27,002	$	21,158	$	45,227	$	34,679
Net income per common share — diluted	$	1.10	$	0.88	$	1.83	$	1.45
Weighted average number of common shares — diluted	24,636		23,952		24,723		23,839

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United Stationers Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(dollars in thousands, except share data)

	As of June 30,						As of
	2010			2009			Dec. 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	13,393		$	57,978		$	18,555
Accounts receivable and retained interest in receivables sold, net*	642,607			595,612			641,317
Inventories	639,192			519,039			590,854
Other current assets	28,347			24,029			33,026
Total current assets	1,323,539			1,196,658			1,283,752
Property, plant and equipment, net	129,204			138,434			135,032
Intangible assets, net	64,003			65,501			62,932
Goodwill	328,445			314,222			314,429
Other long-term assets	16,097			11,375			12,371
Total assets	$	1,861,288		$	1,726,190		$	1,808,516
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	443,857		$	374,044		$	390,883
Accrued liabilities	164,921			152,625			171,366
Total current liabilities	608,778			526,669			562,249
Deferred income taxes	199			3,447			4,052
Long-term debt	453,400			471,800			441,800
Other long-term liabilities	88,319			104,385			93,702
Total liabilities	1,150,696			1,106,301			1,101,803
Stockholders’ equity:
Common stock, $0.10 par value; authorized — 100,000,000 shares, issued — 37,217,814 shares in 2010 and 2009	3,722			3,722			3,722
Additional paid-in capital	398,178			383,722			387,131
Treasury stock, at cost — shares 13,850,940 and 13,502,541 shares at June 30, 2010 and 2009, respectively and 13,237,495 shares at December 31, 2009	(750,106		)	(707,891		)	(700,294		)
Retained earnings	1,103,301			991,768			1,058,074
Accumulated other comprehensive loss	(44,503		)	(51,432		)	(41,920		)
Total stockholders’ equity	710,592			619,889			706,713
Total liabilities and stockholders’ equity	$	1,861,288		$	1,726,190		$	1,808,516

*Retained interest in accounts receivable sold was $444.2 million at June 30, 2010, $416.9 million at June 30, 2009 and $445.3 million at December 31, 2009.

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United Stationers Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

	For the Six Months Ended June 30,
	2010			2009
Cash Flows From Operating Activities:
Net income	$	45,227		$	34,679
Adjustments to reconcile net income to net cash provided byoperating activities:
Depreciation and amortization	18,441			20,813
Share-based compensation	6,811			5,861
Loss on the disposition of property, plant and equipment	4			25
Amortization of capitalized financing costs	366			462
Excess tax benefits related to share-based compensation	(3,480		)	(57		)
Deferred income taxes	(2,827		)	(7,429		)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable and retained interest in receivables sold, net	(815		)	14,566
(Increase) decrease in inventory	(47,528		)	161,671
Decrease in other assets	5,450			9,840
Increase in accounts payable	104,284			44,157
Decrease in checks in-transit	(51,872		)	(11,113		)
Decrease in accrued liabilities	(7,561		)	(30,712		)
(Decrease) increase in other liabilities	(11,792		)	189
Net cash provided by operating activities	54,708			242,952
Cash Flows From Investing Activities:
Capital expenditures	(10,684		)	(4,756		)
Acquisitions and investments, net of cash acquired	(15,527		)	—
Proceeds from the disposition of property, plant and equipment	38			95
Net cash used in investing activities	(26,173		)	(4,661		)
Cash Flows From Financing Activities:
Borrowings (repayments) under Revolving Credit Facility	11,600			(191,300		)
Net proceeds from share-based compensation arrangements	25,941			315
Acquisition of treasury stock, at cost	(74,675		)	—
Excess tax benefits related to share-based compensation	3,480			57
Payment of debt issuance costs	(39		)	(51		)
Net cash used in financing activities	(33,693		)	(190,979		)
Effect of exchange rate changes on cash and cash equivalents	(4		)	4
Net change in cash and cash equivalents	(5,162		)	47,316
Cash and cash equivalents, beginning of period	18,555			10,662
Cash and cash equivalents, end of period	$	13,393		$	57,978

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United Stationers Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Adjusted Operating Income, Net Income and Diluted Earnings Per Share

 (in millions, except per share data)

	For the Three Months Ended June 30,
	2010					2009
				% to				% to
	Amount			Net Sales		Amount		Net Sales
Sales	$	1,220.8		100.00	%	$	1,159.2	100.00	%
Gross profit	$	179.2		14.68	%	$	163.4	14.10	%
Operating expenses	$	128.9		10.56	%	$	122.2	10.54	%
Post-retirement medical plan termination	2.8			0.23	%	—		—
Adjusted operating expenses	$	131.7		10.79	%	$	122.2	10.54	%
Operating income	$	50.3		4.12	%	$	41.2	3.56	%
Operating expense item noted above	(2.8		)	-0.23	%	—		—
Adjusted operating income	$	47.5		3.89	%	$	41.2	3.56	%
Net income	$	27.0				$	21.2
Operating expense item noted above	(1.7		)			—
Adjusted net income	$	25.3				$	21.2
Net income per share — diluted	$	1.10				$	0.88
Per share operating expense item noted above	(0.07		)			—
Adjusted net income per share — diluted	$	1.03				$	0.88
Weighted average number of common shares — diluted	24.6					24.0

Note: Adjusted Operating Income, Net Income and Earnings Per Share exclude the effects of terminating the post-retirement medical plan.  Generally Accepted Accounting Principles require that the effects of this item be included in the Condensed Consolidated Statements of Income.  The company believes that excluding this item is an appropriate comparison of its ongoing operating results to last year and that it is helpful to provide readers of its financial statements with a reconciliation of this item to its Condensed Consolidated Statements of Income reported in accordance with Generally Accepted Accounting Principles.

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United Stationers Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Adjusted Operating Income, Net Income and Diluted Earnings Per Share

 (in millions, except per share data)

	For the Six Months Ended June 30,
	2010					2009
				% to					% to
	Amount			Net Sales		Amount			Net Sales
Sales	$	2,375.1		100.00	%	$	2,280.5		100.00	%
Gross profit	$	346.1		14.57	%	$	327.7		14.37	%
Operating Expenses	$	260.0		10.94	%	$	257.6		11.30	%
Post-retirement medical plan termination	2.8			0.12	%	—			—
Severance charge	—			—		(3.4		)	(0.15	)%
Adjusted operating expenses	$	262.8		11.06	%	$	254.2		11.15	%
Operating income	$	86.1		3.63	%	$	70.1		3.07	%
Operating expense items noted above	(2.8		)	-0.12	%	3.4			0.15	%
Adjusted operating income	$	83.3		3.51	%	$	73.5		3.22	%
Net income	$	45.2				$	34.7
Operating expense items noted above	(1.7		)			2.1
Adjusted net income	$	43.5				$	36.8
Net income per share — diluted	$	1.83				$	1.45
Per share operating expense items noted above	(0.07		)			0.09
Adjusted net income per share — diluted	$	1.76				$	1.54
Weighted average number of common shares — diluted	24.7					23.8

Note: Adjusted Operating Income, Net Income and Earnings Per Share exclude the effects of terminating the post-retirement medical plan in 2010 and a severance charge in the first quarter of 2009.  Generally Accepted Accounting Principles require that the effects of these items be included in the Condensed Consolidated Statements of Income.  The company believes that excluding these items is an appropriate comparison of its ongoing operating results to last year and that it is helpful to provide readers of its financial statements with a reconciliation of these items to its Condensed Consolidated Statements of Income reported in accordance with Generally Accepted Accounting Principles.

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9

EX-99.2

Exhibit 99.2

United Stationers Inc. Earnings Presentation Second Quarter 2010 TO BE FILED IN CONJUNCTION WITH PRESS RELEASE

Forward Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements, including references to goals, plans, strategies, objectives, anticipated future performance, results or events and other statements that are not strictly historical in nature. These statements are based on management’s current expectations, forecasts and assumptions. This means they involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied here. These risks and uncertainties include, but are not limited to, the following: United’s ability to effectively manage its operations and to implement general cost-reduction and margin-enhancement initiatives; United’s reliance on key customers, and the business, credit and other risks inherent in continuing or increased customer concentration; United’s reliance on independent dealers for a significant percentage of its net sales and therefore the importance of the continued independence, viability and success of these dealers; prevailing economic conditions and changes affecting the business products industry and the general economy; continuing or increasing competitive activity and pricing pressures within existing or expanded product categories, including competition from product manufacturers who sell directly to United’s customers; United’s reliance on key suppliers and the supplier allowances and promotional incentives they provide; the impact of variability in supplier pricing, allowance programs, promotional incentives and other terms, conditions and policies; the availability of financing sources to meet United’s business needs; the impact of variability in customer and end-user demand patterns on United’s product offerings and sales mix and, in turn, on customer rebates payable and supplier allowances earned by United; United’s ability to maintain its existing information technology and e-commerce systems and to successfully procure and implement new systems without business disruption or other unanticipated difficulties or costs; United’s ability to effectively identify, consummate and integrate acquisitions; United’s reliance on key management personnel, both in day-to-day operations and in execution of new business initiatives; and the effects of hurricanes, acts of terrorism and other natural or man-made disruptions. Shareholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For additional information about risks and uncertainties that could materially affect United’s results, please see the company’s Securities and Exchange Commission filings. The forward-looking information in this presentation is made as of this date only, and the Company does not undertake to update any forward-looking statement. Investors are advised to consult any further disclosure by United regarding the matters discussed in this release in its filings with the Securities and Exchange Commission and in other written statements it makes from time to time. It is not possible to anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete. * This is non-GAAP information. A reconciliation of these items to the most comparable GAAP measures is presented on the company’s Website (www.unitedstationers.com) under the Investor Information section. Except as noted, all references to financial results within this presentation are presented in accordance with U.S. Generally Accepted Accounting Principles.

Q2 2010 Headlines Sales increased 5.3% from Q2 2009 to $1.22 billion. Earnings per diluted share were $1.03*, up 17% from Q2 2009 EPS of $0.88. Gross Margin rate of 14.7% was up from 14.1% last year. Operating expenses in Q2 2010 were $131.7 million*, up from $122.2 million in the prior-year quarter, and were 10.8%* of sales versus 10.5% in the prior-year quarter. Operating income was 3.9%*, up from 3.6% in Q2 2009. Net income increased 19% to $25.3 million* from $21.2 million in Q2 2009. Net cash used in operating activities was $28.3 million in Q2 2010 as working capital was used to support sales growth in Q2 2010. Debt was down $18.4 million during the past twelve months to $453.4 million. The Company repurchased 1.1 million shares for $63.0 million in the quarter.

Second Quarter 2010 P&L % to sales change $ % to Sales $ % to Sales $ change % change Fav (Unfav) $ Millions (except EPS) QTD Q2 2010 QTD Q2 2010 QTD Q2 2009 QTD Q2 2009 Fav (Unfav) Fav (Unfav) basis points Net Sales 1,220.8 1,159.2 61.6 5.3% Gross Margin 179.2 14.68% 163.4 14.10% 15.8 9.7% 58 Operating Expense 128.9 10.56% 122.2 10.54% (6.7) (5.5%) (2) Operating Income 50.3 4.12% 41.2 3.56% 9.1 22.1% 56 Interest & Other 6.4 6.9 0.5 Taxes 16.9 13.1 (3.8) Net Income 27.0 21.2 5.8 Diluted Shares (000s) 24,636 23,952 Diluted EPS 1.10 $ 0.88 $ 0.22 $ 25.0% Effective Tax Rate 38.5% 38.3% Adjusted to exclude termination of the post-retirement medical plan* Adjusted Operating Income 47.5 3.89% 41.2 3.56% 6.3 15.3% 33 Adjusted Net Income 25.3 21.2 4.1 19.3% Adjusted Diluted EPS 1.03 $ 0.88 $ 0.15 $ 17.0%

YTD June 2010 Headlines Sales increased 4.1% from YTD June 2009 to $2.38 billion. Earnings per diluted share were $1.76*, up 14% from YTD June 2009 EPS of $1.54*. Gross Margin rate of 14.6% was up from 14.4% last year. Operating expenses in YTD June 2010 were $262.8 million*, up from $254.2 million* in the prior-year period, and were 11.1%* of sales versus 11.2%* in the prior-year period. Operating income was 3.5%*, up from 3.2%* in YTD June 2009. Net income increased 18% to $43.5 million* from $36.8 million* in YTD June 2009. Net cash provided by operating activities was $54.7 million YTD June 2010 compared to $266.0 million* YTD June 2009. The Company repurchased 1.3 million shares for $74.7 million YTD June 2010.

Year-to-Date 2010 P&L % to sales change $ % to Sales $ % to Sales $ change % change Fav (Unfav) $ Millions (except EPS) YTD Q2 2010 YTD Q2 2010 YTD Q2 2009 YTD Q2 2009 Fav (Unfav) Fav (Unfav) basis points Net Sales 2,375.1 2,280.5 94.6 4.1% Gross Margin 346.1 14.57% 327.7 14.37% 18.4 5.6% 20 Operating Expense 260.0 10.94% 257.6 11.30% (2.4) (0.9%) 36 Operating Income 86.1 3.63% 70.1 3.07% 16.0 22.8% 56 Interest & Other 12.7 14.3 1.6 Taxes 28.2 21.1 (7.1) Net Income 45.2 34.7 10.5 Diluted Shares (000s) 24,723 23,839 Diluted EPS 1.83 $ 1.45 $ 0.38 $ 26.2% Effective Tax Rate 38.4% 37.8% Adjusted to exclude termination of the post-retirement medical plan in 2010 and severance charges in 2009* Adjusted Operating Income 83.3 3.51% 73.5 3.22% 9.8 13.3% 29 Adjusted Net Income 43.5 36.8 6.7 18.2% 21 Adjusted Diluted EPS 1.76 $ 1.54 $ 0.22 $ 14.3%

Sales by Product Category – Q2 2010 Technology sales increased versus the prior-year quarter due to higher printer imaging purchases and solid growth in hardware. Office Products sales benefited from mid-single digit growth in traditional office products and higher cut sheet paper sales. Janitorial/Breakroom sales declined as Q2 2009 benefited significantly from H1N1-related product sales. Furniture sales showed sequential quarterly improvement despite uncertain economic conditions. Industrial sales grew significantly as strategic initiatives came to fruition and the category rebounded from the difficult economy that hampered sales in 2009. Sales Sales Sales Sales growth (decline) growth (decline) growth (decline) growth (decline) from Q2 2010 from Q1 2010 from Q4 2009 from Q3 2009 Category vs Q2 2009 vs Q1 2009 vs Q4 2008 vs Q3 2008 Technology 8.6% 3.5% 11.7% (7.2%) Office Products 5.6% 2.7% 1.9% (4.6%) Janitorial/Breakroom (2.1%) 5.0% 9.8% 9.5% Furniture (2.1%) (10.0%) (22.2%) (29.4%) Industrial 27.9% 8.0% (18.1%) (28.3%) Q2 2010 Technology 37% Office Products 27% Janitorial/ Breakroom 23% Furniture 7% Industrial 6%

Sales by Channel – Q2 2010 Independent/Other channel sales include double digit growth with new channel customers, including E-tail. National accounts sales decline was partially due to high demand last year for flu-related products and the shift of some volume direct to the manufacturer. Sales growth Sales growth Sales growth Sales growth (decline) Q2 2010 (decline) Q1 2010 (decline) Q4 2009 (decline) Q3 2009 Channel vs Q2 2009 vs Q1 2009 vs Q4 2008 vs Q3 2008 Independent & Other 8.2% 3.4% 3.6% (7.3%) Nationals (8.9%) 0.8% 1.6% (4.2%) Q2 2010 Independent & Other 85% Nationals 15%

Gross Margin During Q2 2010, higher inventory purchase-related supplier allowances, higher product cost inflation and improved leverage in occupancy costs contributed to increased margins. These items were partially offset by competitive pricing pressures and lower-margin product mix. dollars in millions $- $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 $175.0 $200.0 10.0% 12.5% 15.0% 17.5% 20.0% Dollars $164.3 $163.4 $184.9 $178.0 $166.9 $179.2 Rate 14.7% 14.1% 14.8% 15.1% 14.5% 14.7% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Operating Expense* Operating expense dollars were up $9.5 million versus last year. This reflects sales growth, investments in growth initiatives and the reinstatement of certain employee-related benefits. Operating expense ratio increased by 25 basis points. This unfavorable change was partially offset by lower depreciation and lower bad debt expense as the need for additional reserves stabilized. dollars in millions $- $25.0 $50.0 $75.0 $100.0 $125.0 $150.0 7.5% 10.0% 12.5% 15.0% Dollars $132.0 $122.2 $126.3 $133.1 $131.1 $131.7 Rate 11.8% 10.5% 10.1% 11.3% 11.4% 10.8% Q1 09 * Q2 09 Q3 09 Q4 09 * Q1 10 Q2 10 *

Operating Income* dollars in millions $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Dollars $32.3 $41.2 $58.6 $44.9 $35.8 $47.5 Rate 2.9% 3.6% 4.7% 3.8% 3.1% 3.9% Q1 09 * Q2 09 Q3 09 Q4 09 * Q1 10 Q2 10 *

Earnings per Share* shares in millions $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 EPS $0.66 $0.88 $1.38 $0.98 $0.73 $1.03 Diluted Shares 23.8 24.0 24.2 24.6 24.8 24.6 Q1 09 * Q2 09 Q3 09 Q4 09 * Q1 10 Q2 10 *

Working Capital Summary Trade A/R DSO improved slightly since year-end 2009. Inventories were up 23% versus Q2 2009 driven by continued ramp-up of purchases to support sales growth, selective inflation-related investment buys, and last year’s supply constraints in flu-related products and printer imaging supplies. Payables leverage ratios were in line with typical levels. $ Millions 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 Accounts Receivable, adjusted 573.4 595.6 645.7 641.3 606.2 642.6 Inventories (LIFO) 572.2 519.0 533.9 590.9 610.1 639.2 Accounts Payable 318.9 374.0 431.8 390.9 433.8 443.9 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net Trade A/R DSO 43 42 42 43 43 42 Inventory Turns 6.1 7.3 8.1 7.1 6.6 6.7 A/P as % Inventory (LIFO) 56% 72% 81% 66% 71% 69% A/P as % Inventory (FIFO) 48% 62% 70% 58% 63% 61%

Cash Flows Cash flow results reflect working capital contraction during 2009, and rebuilding during 2010 to support sales growth and make selective inflation-related investment buys. QTD QTD QTD QTD 2009 QTD QTD 6 mos. end. $ Millions Q1 09 * Q2 09 * Q3 09 * Q4 09 * Total Year * Q1 10 Q2 10 6/30/2010 Net Income 13.5 21.2 33.5 32.8 101.0 18.2 27.0 45.2 Depreciation & Amortization 10.6 10.2 10.9 10.0 41.7 9.3 9.5 18.8 Share-based compensation 2.9 3.0 3.8 2.6 12.3 3.3 3.5 6.8 Change in Accounts Receivable * 59.4 (21.8) (50.3) 4.5 (8.2) 35.9 (36.7) (0.8) Change in Inventory 108.1 53.6 (15.1) (56.8) 89.8 (18.1) (29.4) (47.5) Change in Accounts Payable (22.3) 55.4 57.7 (40.9) 49.9 42.5 9.9 52.4 Change in Other Working Capital (30.0) 6.9 20.0 (8.9) (12.0) (4.1) 1.1 (3.0) Change in Working Capital 115.2 94.1 12.3 (102.1) 119.5 56.2 (55.1) 1.1 Other (3.4) (1.3) (8.9) 1.5 (12.1) (4.0) (13.2) (17.2) Adjusted cash provided by (used in) operating activities * 138.8 127.2 51.6 (55.2) 262.4 83.0 (28.3) 54.7 Capital Expenditures (2.0) (2.8) (4.1) (6.0) (14.9) (5.7) (5.0) (10.7) Proceeds from disposition of fixed assets - 0.1 (0.0) - 0.1 - - - Net cash used for capital expenditures * (2.0) (2.7) (4.1) (6.0) (14.8) (5.7) (5.0) (10.7) Free Cash Flow * 136.8 124.5 47.5 (61.2) 247.6 77.3 (33.3) 44.0

Debt and Capitalization Operating cash flow generated in the past twelve months was used for share repurchases, acquisitions and debt reduction. Total debt down $18.4 million during the past 12 months. Share repurchases totaled 1.3M shares, or $74.7 million, in the last 12 months. $ Millions 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 Debt 552.5 471.8 441.8 441.8 441.8 453.4 Equity 589.5 619.9 655.2 706.7 730.5 710.6 Total capitalization 1,142.0 1,091.7 1,097.0 1,148.5 1,172.3 1,164.0 Debt-to-total capitalization 48.4% 43.2% 40.3% 38.5% 37.7% 39.0%