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successful Costco supplier:

How to be a Understand our business. Share our commitment to the highest quality. Assist us in lowering costs to provide increased value to our members. Be honest, forthright and open-minded, just as you expect us to be. Agree that safety is always a major requirement.

Costco Wholesale prohibits the acceptance of any gratuity from a supplier.

Costco's Code of

The foundation for everything we do is our Code of Ethics. We don't just talk about the Code; we live it every day.

ethics

Obey the law. Take care of our members. Take care of our employees. Respect our suppliers. If we follow the four principles of our Code of Ethics throughout our organization, then we will achieve our fifth principle and ultimate goal, which is to: Reward our shareholders.

Diverse Supplier Opportunities

A minority-owned business must be certified through either the National Minority Supplier Development Council or a local affiliate. For more information, contact our Supplier Diversity Program coordinator, Lynn Cruz, at (425) 313-8383 or [email protected] For more information about Costco, please visit costco.com and click on Locations, then click on About Costco.

"As a minority-owned business and established vendor, we understand what a valuable opportunity it is to become a supplier for Costco. We have developed a mutually beneficial and meaningful business partnership."

Jerry Lee (in green), Chairman of muLvanny g2 arChiteCture.

President/Ceo, sugar bowL bakery

Andrew Ly,

Costco is committed to providing opportunities to a supplier base as diverse as the communities we serve, while adhering to our established purchasing requirements.

999 Lake Drive, issaquah, Wa 98027

08CR0401 1/08

Dear Prospective Supplier, Thank you for your interest in building a relationship with Costco Wholesale. We are committed to developing a diverse supplier base and we look forward to meeting you and learning about your business. Suppliers like you are the backbone of our business, and for us to succeed as a company, we must help our suppliers succeed with us. We take very seriously our relationship with our suppliers, and we hold them to the same high standards we hold ourselves. Costco's merchandising strategy is centered upon six "right ways" of providing merchandise to our members. They are: The Right Merchandise In the Right Place At the Right Time In the Right Quantity In the Right Condition At the Right Price In order to be a successful Costco supplier, you must be able to work with us to fulfill our goals. Again, thank you for your interest in Costco. Sincerely,

Costco is currently partnered with many minority suppliers providing merchandise, food, supplies and services, totaling hundreds of millions of dollars annually. There are opportunities for additional qualified minority suppliers to provide a variety of products and services beyond the merchandise we currently offer.

"Any vendor calling on Costco needs to understand Costco's business and be prepared to demonstrate how their product or service will be a successful addition. The Supplier Opportunity Forums are very beneficial in explaining the purchasing requirements that are unique to Costco. Unlike many retailers whose success is dependent upon an expanded number of items, Costco has a very limited merchandise selection. In my experience, Costco had the courage and foresight to accept our proposal and take a chance on a new, very different product ­ Caskets. This has resulted in a very successful relationship."

Edward Jones,

universaL Casket Co.

"Over the past 18 years Mooney Farms has built a successful business due to the willingness of Costco to look at new and exciting products for their members. Because we are a small business we have the opportunity to react to Costco's request in bringing their members the highest quality products at the best value. Our family business considers Costco to be an important partner to our success by giving us the opportunity to grow and mature with them. We look forward to expanding our business with Costco and appreciate the support and confidence they have given us throughout the years."

generaL Partner, mooney farms

Mary Mooney

"Costco is a demanding company to do business with, but always fair. Costco demands the best quality, the best schedule and the best pricing. This has resulted in my business becoming more efficient and has allowed us to grow and become a leader in our industry."

President/owner, sPan ConstruCtion & engineering, inC.

King Husein,

Craig Jelinek EVP/COO, Merchandising Costco Wholesale

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