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News Release

Staples Selects Southern California Site to Service Growing Customer Base

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Oct. 14, 1999--Staples Inc. (NASDAQ:SPLS) today announced that it has recently signed a lease for a multi-channel distribution center in Ontario, Calif. to serve Staples contract, catalog and e-commerce customers.

"The distribution center will help us better serve our customers in southern California, and allow us to provide more efficient, localized service," said Joseph G. Doody, president of Staples Contract and Commercial division. "By moving to a multi-channel distribution strategy, we will be able to deliver the highest quality of customer service while reducing our distribution overhead costs." The distribution center is a consolidation of several existing sites that each currently only service a single Staples sales channel, and is being designed to provide the most advanced order processing available.

The company is also doubling the number of Staples trucks that deliver office supplies and furniture. It will have 75 vehicles in the greater Los Angeles area alone. "A dedicated delivery service offers definite benefits," Doody said. "In addition to speeding deliveries, it allows us to control an important point of contact." All fleet trucks have the Staples name and toll-free number.

Initially, Staples will employ 120 people in the 450,000 square foot Ontario distribution center, with plans to add more than 200 employees over the next 3 years.

The addition of the Ontario distribution center is part of Staples' overall effort to improve service and cut down on delivery costs throughout the organization. The distribution center will serve customers in southern California, Arizona and Nevada.

Recently, Staples opened a multi-channel distribution center in Stockton, Calif. to serve customers in northern California. Several other existing distribution centers will be converted to serve multiple channels later this year. The first distribution center to be converted to a multi-channel operation was in Putnam, Conn. last year.

Staples Inc. is a $7 billion retailer of office supplies, furniture and technology to consumers and business from home-based businesses to Fortune 500 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 more than 46,000 employees serving customers through more than 1,000 office superstores, mail order catalogs, e-commerce and a contract business. More information about the company can be found at http://www.staples.com.