|Staples Inc. Invests $7 Million in Register.com|
|...Joint Marketing Agreement To Build E-commerce Business...
FRAMINGHAM, Mass.--(BUSINESS WIRE)--May 18, 1999-- Staples Inc. (NASDAQ:SPLS - news) today announced a strategic partnership with register.com, one of the largest single domain name registration services on the Internet and one of five Internet Corporation for Assigned Names and Numbers (ICANN) accredited test-bed registrars. As part of the agreement, Staples invested $7 million in register.com and has formed an aggressive cross-marketing effort to help its small business customers initiate e-commerce activities and give them easy access to Web site registration.
``This agreement with register.com, along with today's announcement of our partnership with Point.com, follows our strategy of growing the Staples.com business by teaming with leading Web sites that reach our target business customer,'' said Staples Chairman and Chief Executive Officer Thomas G. Stemberg. ``Registering a domain name is a company's first step to becoming e-commerce enabled and providing this service allows us to better serve our customers and slash the cost and hassle of running a business.''
The market for domain names is projected to grow at least 20 fold over the next four years, reaching more than 32 million new registrations and revenues in excess of $2 billion annually by 2002. The recent deregulation of the Internet's domain name and address management is expected to accelerate this growth.
``Since Staples also targets small- to medium-sized businesses, this partnership represents a tremendous growth opportunity for both companies,'' said register.com President and Chief Executive Officer Richard Forman. ``In addition to cross promoting our services to one another's Internet customers, we will also have an opportunity to promote register.com in Staples superstores.''
Through this cross-marketing effort, Staples.com and register.com will host links to one another's sites via a button hosted on their home pages and banner advertisements throughout the sites. In addition, visitors to register.com will be able to link to Staples.com through a link on register.com's tool bar. Staples also will promote register.com's service in its retail stores through marketing materials, and Staples.com will soon be available on PCs in Staples' superstores, giving retail customers in-store access to register.com.
Register.com offers customers the ability to register domain names with a wide array of top-level domain (TLD) extensions, including .com, .net, .org, .md, .co.uk and .sh. The company's partners include GeoCities, theglobe.com, the Infoseek Corporation, USA.NET, First Data Corporation, iMALL, Spree.com, Web Promote and Cybersource.
Register.com is a division of Forman Interactive Corp. (FIC), a leading provider of Internet-based solutions and electronic commerce development tools for small- and medium-sized businesses. Register.com was ranked among the top 100 Web sites by PC Magazine in December 1998 and again in April 1999. Forman Interactive Corp. was founded in 1994 and is based in New York, N.Y.
Launched in the fall of 1998, Staples.com is Staples' e-commerce business unit that serves the home office and small business customer via the Internet. The virtual store offers easy-to-use, customized features and intuitive functions to slash the cost and hassle out of purchasing office supplies. More than 6,000 products are available on Staples.com and it is open for business 24 hours a day, seven days a week. Customers receive free delivery on all orders over $50 and next-business day delivery is available in most U.S. markets.
Staples Inc. is a $7 billion retailer of office supplies, furniture and technology to consumers and business from home-based businesses to Fortune 50 companies in the United States, Canada, the United Kingdom and Germany. Headquartered outside Boston, Staples invented the office superstore concept and today is the largest operator of office superstores in the world. The company has over 44,000 employees serving customers through more than 960 office superstores, mail order catalogs, e-commerce and a contract business. More information about the company is available at http://www.staples.com.
Staples Inc. Diane Basile, 508/253-7963 Director, Investor Relations email@example.com or Shannon Lapierre, 508/253-8468 Manager, Public Relations firstname.lastname@example.org or register.com Sascha Mornell, 212/798-9130 Director of Marketing email@example.com