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Staples, Inc. Adopts Further Corporate Governance Best Practices

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Dec. 14, 2004--

Board of Directors Approves Shareholder Rights Plan Policy and Stock Ownership Guidelines for Directors and Senior Executives

Staples, Inc. (Nasdaq: SPLS) today announced that its board of directors, in its commitment to corporate governance best practices, approved a shareholder rights plan policy and stock ownership guidelines for directors and senior executives. These corporate governance measures further align management's interests with the interests of the company's shareholders.

Shareholder Rights Plan Policy

Under Staples' shareholder rights plan policy, the company will only adopt a shareholder rights plan, commonly referred to as a "poison pill," if a plan has been approved by shareholders either in advance or within 12 months of adoption. This policy is consistent with Institutional Shareholder Services' (ISS') corporate governance preferred practices. Staples does not currently have a shareholder rights plan in effect and is not considering adopting one.

Stock Ownership Guidelines

Under the company's new stock ownership guidelines, non-management members of the board are now required to own a minimum level of equity in the company worth at least $200,000. The new guidelines also call for minimum equity ownership levels for all senior executives including the CEO who must own equity worth at least five times his salary.

For more information on the shareholder rights plan policy, the stock ownership guidelines or Staples' other corporate governance practices, visit www.staples.com/about.

About Staples

Staples, Inc. invented the office superstore concept in 1986 and today is the world's largest office products retailer. With 60,000 talented associates, the company is committed to making it easy to buy a wide range of office products, including supplies, technology, furniture, and business services. With 2003 sales of $13 billion, Staples serves consumers and businesses ranging from home-based businesses to Fortune 500 companies in 19 countries throughout North America, Europe and Asia. Headquartered outside of Boston, Staples operates approximately 1,600 office superstores and also serves its customers through mail order catalog, e-commerce and contract businesses. More information is available at www.staples.com.

CONTACT: Staples Inc.
Paul Capelli, 508-253-8530
Paul.capelli@staples.com
or
Owen Davis, 508-253-8468
owen.davis@staples.com

SOURCE: Staples, Inc.