Staples Purchases Multi-channel Fulfillment Center in Montgomery, New York; New Site Enables Staples to B etter Serve Contract, Catalog and E-Commerce Customers

Business Wire, Sept 28, 2000

Business Editors

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Sept. 28, 2000

Staples, Inc. today announced the purchase of a multi-channel fulfillment center in Montgomery, N.Y. to serve Staples' contract, catalog and e-commerce customers.

Formerly occupied by Service Merchandise, the fulfillment center is 765,895 square feet and was built in 1986 on 80 acres of land. Staples purchased the location from Service Merchandise under the supervision of the U.S. Bankruptcy Court overseeing the reorganization of Service Merchandise, Inc. Staples will employ more than 300 people at this new facility, with plans to add 150 employees over the next five years.

"The Montgomery fulfillment center will help us better deliver to our customers with more efficient, localized service," said Joseph Doody, president of Staples Contract and Commercial. "We have enjoyed working with Senator Schumer and the Empire State Development Group and hope to continue to build our relationship with the Montgomery community."

"When New Yorkers work together, everyone wins," Governor Pataki said. "The strength of our Upstate business climate, our first-rate infrastructure and top-notch workforce are drawing major distribution centers from the nation's leading retailers. We are proud to welcome Staples and congratulate Senator Schumer and Chairman Gargano for this decisive win for New York state," added the Governor.

Currently, Staples operates multi-channel fulfillment centers in Stockton, Calif., Putnam, Conn., Charlotte, N.C., Ontario, Calif. and has begun construction on a new facility in London, Ohio. Several other existing fulfillment centers will soon be converted to serve multiple channels throughout this year.

Staples Inc., (NASDAQ:SPLS), is a $9 billion provider of office supplies, furniture, technology and services to consumers and businesses of all sizes in the United States, Canada, the United Kingdom, Germany, the Netherlands and Portugal. Headquartered near Boston, Staples invented the office superstore concept and is the largest operator of office superstores in the world. The company has 50,000 employees who help customers slash the cost and hassle of running their businesses through more than 1,200 retail superstores, an e-commerce business, direct mail order operations under the brands of Staples and subsidiary Quill Corporation, and a national accounts contract business. More information about the company is available at http://www.staples.com.