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     CONTACT:
     Richard T. Takata, President & CEO
     Ronald P. Maccarone, Chief Financial Officer
     (425) 227-5740

               EAGLE HARDWARE & GARDEN ANNOUNCES CALL OF 6 1/4%
                     CONVERTIBLE SUBORDINATED DEBENTURES

     RENTON, Washington (December 29, 1998) -- Eagle Hardware & Garden, Inc.
     (Nasdaq NM:EAGL) announced today that it will call for redemption on
     January 29, 1999 all of its outstanding 6 1/4% Convertible Subordinated
     Debentures Due 2001.

          The redemption price of the debentures is 102.68% of the principal 
     amount plus accrued and unpaid interest to January 29, 1999, or 
     $1,050.41 for each $1,000 principal amount of debentures.

          Debenture holders also have the option of converting their 
     debentures into Eagle Hardware & Garden common stock at a conversion 
     price of $18.00 per share (or 55.5556 shares for each $1,000 principal 
     amount of debentures).  Based on the last reported sale price of Eagle 
     Hardware & Garden common stock on The Nasdaq Stock Market on December 
     28, 1998 ($32.125), this number of shares has a market value of 
     $1,784.72 (including cash in lieu of fractional shares). Accrued 
     interest will not be paid upon conversion of debentures.  The conversion 
     privilege expires on January 28, 1999 at 5:00 p.m. Eastern Standard Time.

          The aggregate principal amount of debentures outstanding at the 
     close of business on December 28, 1998 was approximately $86 million.

          Details concerning the terms and conditions of redemption or 
     conversion are described in a notice being mailed to debenture holders.  
     Redemption and conversion transactions will be handled by U.S. Bank 
     Trust National Association.

          Eagle Hardware & Garden operates 35 warehouse home improvement 
     centers in ten western states.  The Company's home centers average 

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     129,000 square feet of retail selling space and feature over 70,000 
     products under its "More of Everything"-Registered Trademark-merchandising
     philosophy.  

          On November 22, 1998, the Company announced the signing of a 
     definitive merger agreement with Lowe's Companies, Inc., the nation's 
     second largest retailer of home improvement products, pursuant to which 
     the Company would become a wholly-owned subsidiary of Lowe's.  The 
     transaction is subject to certain regulatory approvals and other 
     conditions and is currently expected to close in the first quarter of 
     fiscal 1999.  

          Some of the information in this press release constitutes 
     forward-looking statements.  These statements are subject to a number of 
     risks and uncertainties that might cause actual results to differ 
     materially from stated expectations. These risks include, among others, 
     the highly competitive environment in the retail home improvement 
     industry, the effect of general economic conditions and weather in the 
     Company's markets and the Company's ability to achieve its expansion 
     plans and successfully manage growth.  These risks are described in 
     detail in the Company's Annual Report on Form 10-K and other SEC 
     filings.  

