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News Release

Staples Inc. to Redeem Convertible Debentures
WESTBOROUGH, Mass.--(BUSINESS WIRE)--Nov. 12, 1998--Staples Inc. (NASDAQ:SPLS), announced today the call for redemption on Dec. 9, 1998, of all of its 4 1/2 percent Convertible Subordinated Debentures due Oct. 1, 2000. Debentures in aggregate principal amount of $285 million are currently outstanding.

"Our decision to call the debentures will strengthen our balance sheet and lower our interest costs," said John J. Mahoney, executive vice president and chief administrative officer.

The redemption price of the debentures is $1,018 per $1,000 principal amount of the debentures plus accrued and unpaid interest of $8.50 to the redemption date, for a total of $1,026.50 for each $1,000 principal amount of debentures.

As an alternative to redemption, holders of debentures have the option, until 5 p.m. Eastern Standard Time on Dec. 2, 1998, of converting their debentures into Staples common stock at a conversion price of $14.67 per share. Each $1,000 principal amount of debentures will be convertible into 68.17 shares of common stock.

Based on the last reported sale price of the company's stock on NASDAQ on Nov. 11, 1998, the 68.17 shares have a current market value of approximately $2,402.99 which substantial exceeds the redemption price. Holders who convert their debentures will not receive any interest payment in respect of interest accrued from October 1, 1998, -- the most recent interest payment date.

Details concerning terms and conditions of redemption or conversion are fully described in a Notice of Redemption and Termination of Conversion Right being given to holders of record of debentures on Nov. 13, 1998. Redemption and conversion transactions will be handled through Marine Midland Bank, as trustee.

Staples Inc. is a $5 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 United 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 878 office superstores, mail order catalogs and a contract business. More information is available on the company at

     CONTACT: Media Contact:
              Staples Inc. 
              Dan Kaferle 
              (508) 370-8635
              Investor Contact: 
              Staples Inc.
              Catherine Woods 
              (508) 424-7342