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Staples Announces Agreement To Offer Prodigy Internet Service
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--January 20, 1999--Prodigy Communications Corporation and Staples, Inc. (NASDAQ: SPLS) announced an agreement today that will promote Prodigy Internet as the Internet service available to Staples customers in all 700 Staples store locations, nationwide.

With this agreement, Prodigy adds a leader in the small- to medium-sized business market to its consumer retail distribution. Staples plans to offer its customers unlimited Prodigy Internet usage for just $14.95 per month when customers prepay three months in advance.

"The Internet has become a vital tool for small businesses and we required an access provider who shares our philosophy of delivering quality and convenience to our customers," said Jonathan Magasanik of Staples. "We selected Prodigy Internet because its subscribers receive fast and reliable access to the Internet. The agreement also extends our corporate mission to the online environment: to provide consumers and small businesses with the same every day low prices that have previously been available only to large corporations."

The Prodigy service offering will include a link to Staples Home Page. With one simple click of the mouse, Prodigy will link co-branded service subscribers to the Staples home page (www.staples.com) where they can shop online, as well as receive information about Staples specials and store locations.

"We look forward to making Prodigy Internet a productive business tool for Staples customers," said David Trachtenberg, Prodigy's President and Chief Operating Officer. "Prodigy is fast, easy to use, and gives members the tools to get online and get the information they need."

About Staples, Inc.:

Staples Inc. is a $6 billion retailer of office supplies, furniture and technology to consumers and businesses from home-based businesses to Fortune 50 companies in the United States, Canada, the Unit Kingdom and Germany. Staples, headquartered outside Boston, invented the office superstore concept and today is the largest operator of office superstores in the world. The company has more than 37,000 associates serving the business customer through 900 office superstores, mail order catalogs, e-commerce and a contract business. More information on the company is available at http://www.staples.com.

About Prodigy Communications Corporation:

Prodigy Communications Corporation is a leading nationwide Internet Services Provider that offers fast and reliable Internet access and related value-added services. Prodigy utilizes a nationwide network covering approximately 600 cities in all 50 states allowing approximately 83% of the United States population to access Prodigy's services with a local telephone call. Prodigy Internet enables the Internet to be used as a productivity tool by allowing subscribers to obtain and communicate desired information quickly and efficiently in an easy and personalized manner.


     CONTACT: For Prodigy: Michael Zakkour
              Middleberg + Associates
              (212) 699-2540
              mike@middleberg.com
                       or
              For Staples:
              Christina Erridge
              Staples Media Relations
              (508) 424-7375