200 4 Management Report on Internal Control over Financial Reporting The Board of Directors and Stockholders Fastenal Company:  Management is responsible for establishing and maintaining adequate internal control over financial  reporting as defined in Rules 13a15-(f) and 15d-15(f) under the Securities Exchange Act of 1934. The  Company’s internal control over financial reporting is designed to provide reasonable assurance regarding  the reliability of financial reporting and the preparation of financial statements for external purposes in  accordance with U.S. generally accepted accounting principles. The Company’s internal control over  financial reporting includes those policies and procedures that:  Because of its inherent limitations, internal control over financial reporting may not prevent or detect  misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk  that controls may become inadequate because of changes in conditions, or that the degree of compliance  with the policies or procedures may deteriorate.  Under the supervision of our principal executive officer and our principal financial officer, we conducted  an evaluation of the effectiveness of our internal control over financial reporting based on the framework in  Internal Control – Integrated Framework issued by the Committee of Sponsoring Organization of the  Treadway Commission. Based on our assessment and those criteria, management believes that the  Company maintained effective internal control over financial reporting as of December 31, 2004. There  was no change in the Company’s internal control over financial reporting during the Company’s most  recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the  Company’s internal control over financial reporting.  KPMG LLP, the independent registered public accounting firm that audited the financial statements in this  Annual Report, has issued an attestation report on management’s assessment of the effectiveness of our  internal control over financial reporting, which report is included in this Annual Report.  Winona, Minnesota  February 18, 2005  2004 ANNUAL REPORT – PAGE 34  Chief Executive Officer & President Executive Vice-President &  Chief Financial Officer  (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized  acquisition, use or disposition of the Company’s assets that could have a material effect  on the financial statements.  (ii) provide reasonable assurance that the transactions are recorded as necessary to permit  preparation of financial statements in accordance with U.S. generally accepted  accounting principles, and that receipts and expenditures of the Company are being made  only in accordance with authorizations of management and directors of the Company;  and  (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly  reflect the transactions and dispositions of the assets of the Company; 