Gross profit for the second quarter of 2007 was $96.6 million, including $1.1 million in cigarette inventory holding profits and $2.9 million in LIFO ... Core-Mark Holding Company, Inc. (NASDAQ: CORE) announced today its financial results for the second quarter of 2007.

Second Quarter 2007 Highlights - 2Q 2007 vs. 2Q 2006

• Sales increased 7% to $1.43 billion from $1.35 billion.
• Gross profit increased 31% to $96.6 million from $73.8 million.
• Income from operations increased to $23.7 million from $12.5 million.
• Net income was $13.6 million compared to $6.9 million.
• EPS was $1.20 per diluted share compared to $0.63.

First Six Months of 2007 Highlights - June 30, 2007 vs. June 30, 2006

• Sales increased 7% to $2.71 billion from $2.52 billion.
• Gross profit increased 24% to $172.1 million from $138.3 million.
• Income from operations increased to $27.5 million from $16.4 million.
• Net income was $15.7 million compared to $8.6 million.
• EPS was $1.40 per diluted share compared to $0.79.

"Our results for the second quarter are solid, but I am more pleased about the positioning of the Company for greater relevancy to the convenience retail trade," said Michael Walsh, President and Chief Executive Officer of Core-Mark. "The trends in our performance are good, and we continue to lay the groundwork for future margin improvement and strategic initiatives."

Sales increased 7% for the quarter from $1.35 billion to $1.43 billion and 7% for the six months ended June 30 from $2.52 billion to $2.71 billion. The increases were due primarily to incremental sales from our Pennsylvania division and from organic growth, partially offset by the lost sales resulting from a major Canadian tobacco manufacturer's decision in 2006 to deliver products directly to retailers.

Included in sales was $346 million of excise taxes for the second quarter 2007, compared to $337 million in the second quarter of 2006 and $649 million for the six months ended June 30, 2007 compared to $617 million for the same period in 2006.

Gross profit for the second quarter of 2007 was $96.6 million, including $1.1 million in cigarette inventory holding profits and $2.9 million in LIFO expense. In the second quarter of 2006, gross profit was $73.8 million and included no cigarette inventory holding profits and $1.5 million in LIFO expense. The improvement in gross profit for the second quarter of 2007 included a $13.3 million tax refund from the State of Washington.

Gross profit for the six months ended June 30, 2007 was $172.1 million and included $4.4 million in cigarette holding profits and $4.7 million in LIFO expense. Gross profit for the same time period in 2006 was $138.3 million and included $0.6 million in cigarette holding profits and $2.9 million in LIFO expense. The improvement in gross profit for the first six months of 2007 included the aforementioned $13.3 million tax refund from the State of Washington.

Income from operations for the second quarter of 2007 was $23.7 million compared to $12.5 million for the second quarter of 2006. This improvement was driven significantly by the $13.3 million tax refund, offset slightly by a $0.6 million severance expense. In 2006, second quarter operating income included a $2.5 million reduction in expenses related primarily to workers' compensation.

Income from operations for the six months ended June 30, 2007 was $27.5 million and was impacted by the $13.3 million tax refund and the $0.6 million in severance expense. For the six months ended June 30, 2006 income from operations was $16.4 million and was impacted by a $3.6 million reduction in expense related to workers compensation and favorable settlements of certain payables and receivables.

Management reiterates its guidance of $5.75 billion in revenues and expectations of $24 million in capital expenditures for 2007.

Core-Mark is one of the largest broad-line, full-service wholesale distributors of packaged consumer products to the convenience retail industry in North America. Founded in 1888, Core-Mark provides distribution and logistics services as well as marketing programs to over 21,000 retail locations in 45 states and five Canadian provinces through 24 distribution centers, two of which Core-Mark operate as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.

Except for historical information, the statements made in this press release are forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.

Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Forward-looking statements in some cases can be identified by the use of words such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "believe," "could," "would," "project," "predict," "continue," "plan," "propose" or other similar words or expressions. These forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those discussed in such forward-looking statements.

Factors that might cause or contribute to such differences include, but are not limited to our dependence on the convenience store industry for our revenues; competition; price increases; our dependence on relatively few suppliers; the low-margin nature of cigarette and consumable goods distribution; certain distribution centers' dependence on a few relatively large customers; competition in the labor market and collective bargaining agreements; product liability claims and manufacturer recalls of products; our dependence on our senior management and key personnel; currency exchange rate fluctuations; our ability to borrow additional capital; governmental regulations and changes thereto; earthquake and natural disaster damage; failure or disruptions to our information systems; our material weakness in internal controls over financial reporting; a general decline in cigarette sales volume; competition from sales of deep-discount brands and illicit and other low priced sales of cigarettes. See the "Risk Factors" section included in our Form 10-K, our most recent Form 10-Q and all other information discussed in our filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that may affect our busness. Except as provided by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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