US Office Products Announces Organizational Realignment; Jay Mutschler to Head North American Office Supplies and Furniture - Company Operations

Edge: Work-Group Computing Report, April 3, 2000

US Office Products Company (NASDAQ: OFIS) Thursday announced that Jay L. Mutschler, head of the Company's Furniture Division, has been named President of a newly formed business unit, US Office Products - North America.

He will report to Warren D. Feldberg, President and CEO of US Office Products.

The new organization will bring together the Company's North American office supplies and furniture operations under a single senior leadership team, but will continue to have separate, business-line field organizations - one dedicated to office supplies and another to the furniture business.

As part of this reorganization, US Office Products' corporate staff is substantially reducing its size and will focus on strategic direction, operating oversight of the Company's different business units, and public reporting requirements. Robert J. Herbolich, who was the President of the Company's North American office supplies business, has announced his retirement from the business.

The realignment is intended to eliminate administrative redundancy, create clear accountability within the new office supplies and furniture business unit, and reduce corporate expenses by an estimated $5 million annually.

Previously, the North American office supplies and furniture operations functioned with distinct senior management groups and relied on the Company's corporate office for general and administrative support. These businesses will now have a single, complete senior management team and corporate staff.

"With this reorganization, all of our operating units will now be organized as stand-alone businesses," said Mr. Feldberg. "The new leadership team has the ideal mix of industry experience and managerial expertise. Jay has a proven track record of running businesses in this industry. He has done a superb job running our furniture business and will provide strong and clear leadership for all of North America. We greatly appreciate the fine work that Bob Herbolich has done in a number of different roles for our Company, and we wish him well."

"I welcome and appreciate this exciting opportunity," said Mr. Mutschler. "The focus and structure of the new organization is designed to promote a much more direct connection among our senior managers, our field leaders, our sales forces, and our customers. We will continue to have focused professionals in the field dedicated to the two, distinct lines of business - supplies and furniture. But we will operate with a common focus on ensuring that everything we do supports the lifeblood of our business: sales and customer service."

Mr. Mutschler brings over 22 years of experience in the office supplies and furniture industries to his new position. For the past year, he has served as President of US Office Furniture, a division of U S Office Products.

In that role, he successfully organized the Company's diverse furniture businesses into three discrete lines of business based on their unique market segments and created standard operating models and market specific strategies for each line of business. Prior to that, Mr. Mutschler has held several senior management positions within the Company's office supplies business.

Before joining US Office Products in 1996, Mr. Mutschler was an Executive Vice President at Office Depot and the Eastern Regional Manager for its Business Services Division. Earlier in his career, he served for 14 years as Executive Vice President and General Manager of Eastman Inc., a Los Angeles-based provider of office products and contract furniture.

US Office Products is one of North America's leading providers of office supplies, office furniture, and office coffee and vending services. The Company also owns Mail Boxes Etc., the world's largest franchiser of business, communications and postal service centers, with more than 4,100 locations in 29 countries around the world.

In addition, US Office Products owns Blue Star Group Limited, a leading supplier of office products and business services in New Zealand and Australia, and a 49% interest in Dudley Stationery Limited, the second largest contract stationer in the United Kingdom. The Company's corporate web site address is www.usofficeproducts.com.