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Staples Adds Germany to Brand Roster

Westborough, MA, March 25, 1998 -- Staples, Inc. (NASDAQ:SPLS), today announced that Maxi-Papier, its German office supplies subsidiary, will begin operating under the Staples brand name. The change, effective immediately, is viewed as an important step in positioning Staples as a global brand. The company launched its international operations in 1992 when it acquired a 48percent interest in Maxi-Papier, then a chain of five office superstores. By May 1997, that stake had increased to 92 percent, and today Staples operates 18 superstores throughout Germany.

"German consumers are responding very positively to the Staples concept," says Thomas G. Stemberg, chairman and CEO. "We see significant growth opportunity in the German market and consider it a vital part of our growth strategy in Europe." Indeed, the company estimates the total market potential for the European Community to exceed 2,000 office superstores. Strong year-to-date comparable sales bear testament to that point. 15-20 new Staples superstores are planned to open this year, a number that is expected to double in succeeding years.

Demonstrating its commitment to the European market, the company has already invested $170 million in development costs and will add another $40 million this year. It has also created a world-class management team led by Jack Bingleman, president of international operations. Bingleman introduced the office superstore concept in his native Canada, and subsequently was instrumental in Staples' growth throughout North America.

For its most recent fiscal year, ended January 31, 1998, Staples, Inc. reported net income of $131 million (exclusive of merger-related charges), a 23 percent increase from $106 million the previous year. Earnings per share were $0.51, a 19 percent increase from $0.43 the previous year. During the year, the company terminated an agreement to merge with Office Depot.

Staples, Inc. is a $5 billion retailer of office supplies, furniture, and technology to businesses that range from home-based offices to Fortune 500 companies in the United States, Canada, the United Kingdom, and Germany. Staples, headquartered near Boston, MA, originated the concept of the office superstore in 1986 and today is the largest operator of office superstores in the world. The company, whose earnings-per-share grew at a compound annual rate of more than 40 percent during the last five years, employs 30,000 associates who serve its customers through more than 760 superstores, catalog and contract operations.