The Staples Difference

Why Staples Advantage?

Staples offers distinct advantages that consistently deliver more value to your company's business.

– Account Management: Count on a dedicated, local Account Manager to provide you with a single point of contact and proactive support for your strategic business objectives.

– E-Procurement Expertise: Streamline ordering and enhance compliance via our proprietary B2B Web site and expertise at third-party platform integrations.

– One Source Solution: Running your organization is “EASY” when you purchase your office supplies, technology, furniture, facility, print and promotional product needs from one trusted and cost-effective source.

– Delivery Excellence: Experience accurate and FREE next-business-day delivery through our best-in-class fulfillment network.

– Customer Service: Keeping your end users satisfied and productive is our highest priority. They’ll enjoy expert and responsive service through our call center network, recognized by J.D. Power and Associates for 7 consecutive years (2004 – 2010).

Distinct Advantages (Continued)

– Retail Store Network: You’ll have a convenient same-day purchasing solution through our 1,500 U.S. retail stores.

– Staples® brand Products: Achieve exceptional savings through our more than 2,000 high-quality and exclusive Staples® brand products.

– Financial Strength: Benefit from the strength and stability of the industry’s financial leader. By constantly investing and reinvesting in our business, our customers experience the very best in technology and service.

– Global Reach: With coverage across 37 countries and 5 continents, you can expect consistent value and quality for all your locations worldwide.

– Staples Soul: We share and complement your company’s core values. Our environmental and diversity supplier solutions help you to meet and/or exceed your corporate responsibility goals and initiatives.

– Our People: From our account managers and Customer Service Reps to our delivery drivers and warehouse associates, we hire only the best and hold them responsible for delivering incomparable results for our customers.

Staples Company Overview

• World’s leading office products company, committed to making it easy for customers to purchase products and services for one trusted source

• Pioneers of the office superstore concept, over 24 years of incredible growth

• Serving customers in 37 countries on 5 continentsthroughout North and South America, Europe,Asia, and Australia

• More than 2200 stores worldwide

• 91,000+ associates worldwide

• #101 on Fortune 500 list (April 2010)

• Publicly traded on NASDAQ - SPLS, listed on S&P 500

• Staples Advantage Call Centers have been recognized by J.D. Power and Associates for providing “An Outstanding Customer Service Experience”, six years in a row (2004 – 2009) *For J.D. Power and Associates 2009 Certified Call Center ProgramSM information, visit www.jdpower.com

Industry Overview

$24.3

$12.1

$7.2

$0

$5

$10

$15

$20

$25

Staples Inc. Office Depot OfficeMax

2009 Annual SalesStrongest in the MarketStrongest in the Market

Strongest Retail PresenceStrongest Retail PresenceNumber of North American Retail Stores

1,871

1,151956

0

500

1000

1500

2000

Staples Inc. Office Depot OfficeMax

Billions $USD

Staples Inc. is larger than Office Depot and OfficeMax combined.

Our best-in-class financial position allows us to continually invest in our delivery business.

Staples has more North American (U.S and Canada) retail locations than anyone else in the industry, and new stores are opened every year.

Staples Advantage customers can make same-day emergency purchases at any of our 1550+ U.S. locations – all at discount pricing.

NAD Sales Growth vs. Industry

Staples NAD

OfficeMax Contract

Office Depot BSD$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2004 2005 2006 2007 2008 2009

Sal

es i

n M

illi

on

s o

f $

Source: SPLS and competitor annual and quarterly financial reports. SPLS 2008 includes corporate express.

Market Segments

North American Delivery is the fastest growing division within Staples

We leverage our entire structure to service our Staples Advantage customers

People know us for our stores, but our world-class delivery business is now as large as our retail business.

Staples Business Delivery

Quill Corporation

International Retail NORTH AMERICAN DELIVERY

The Staples Advantage Account Management Difference

• Set partnership objectives and savings goal with you• Create a custom procurement program to maximize the

savings goals• Follow our proven implementation process for strong

compliance to your new program• Monitor your progress towards the goals through our

regular business review process• Proactively identify new savings opportunities for you

GOALS CREATE IMPLEMENT ANALYZE IMPROVE

E-Procurement Expertise

Staples can customize an e-procurement solution that will help you control your costs, streamline ordering, increase program compliance and save users’ time.

• End users can order through either our award-winning StaplesLink.com web site, or via punch-out technology from Ariba, SAP, Oracle, or other third-party providers

• Our expertise in third-party solutions ensures easy integration with your existing platform

• 4+ million Staples users submit orders online. Staples is the world’s second largest E-Retailer, behind Amazon.com

• E-Commerce proficiency: 93% of Staples’ customers place orders via E-Commerce solutions

DiscoveryDiscovery

Implementation Process

DesignDesign DeploymentDeployment

1. Define goals and objectives – craft the timeline and plan

2. Identify cost saving opportunities

3. Analyze purchasing practices

4. Gather data on users, ship-tos, invoicing and delivery requirements

5. Define reporting requirements

6. Define performance metrics

1. Develop contract product and pricing list

2. Implement online ordering site / third-party platform integration

3. Create end user communications strategy

4. Conduct EDI, connectivity and invoice testing before go live

5. Implement retail program for same-day purchasing needs (as needed)

1. Issue program communications to end users

2. Distribute “Welcome Kits”

3. Register users via e-mail registration forms

4. Conduct training

5. Familiarize end users with the program

6. Establish date for 60-day follow-up meeting

Program Management Overview

Staples’ dedicated Account Managers work relentlessly on your behalf to deliver serious, measurable program savings year after year.

Account Managers’ tools and expertise:• Regular business reviews• Management and product-usage reports• End-user compliance programs• Consolidated billing

The Business Review

Provides an opportunity to monitor your programs’ progresson a regular basis, providing you actionable information tobest manage your procurement objectives.

• Customized program performance metrics, such as spend analysis and ordering methods

• Monitor progress on key objectives, such as:– Opportunities for cost reduction and savings– Program compliance to improve efficiency– Recycled/diversity products spend

• Learn about new products and services to add value to your Staples program

Program Compliance

Staples helps you maximize thebenefits of your program by driving compliance.

Staples Advantage can:– Monitor and modify end user

purchasing behavior – Organize onsite productivity fairs delivered

by Staples and/or our suppliers– Conduct compliance campaigns with our professionally trained

tele-services representatives – Show you how to leverage our vast retail network for same-day

purchasing needs

Supply Chain Strategy

Achieve higher levels of delivery accuracy and next-day service through our

cost efficient network

• A national network of 16 strategically located fulfillment centers serving our Staples Advantage customers.

• Inventory when you need it; a fill rate consistently greater than 97%

• Next-business-day coverage to more than 96% of the population in the continental U.S.

• On-time delivery at the lowest total delivered cost!

• Staples fleet of delivery trucks works seamlessly with partners like UPS to ensure on-time delivery at the lowest total operating cost.

We continually improve our systems, increasing efficiencies and costsavings that benefit you.

Staples In-Store Advantage

When you can’t wait for next-day delivery, take advantage ofStaples 1550+ U.S. retail stores.

• Help drive program compliance and reduce maverick spending

– Emergency and same-day purchases– Copy and Print Centers– UPS Packing and Shipping

• Use your procurement or Staples convenience cards and get your negotiated contract or retail price, whichever is lower.

• Fast authorization and Level III reporting for convenience card transactions

• Regular Customer Appreciation Days for end-user personal purchases

Staples is committed to providing our contract customersthe absolute best in customer service.• Four North American call center locations

provide a centralized customer service experience

• Highly trained Customer Service Representatives (CSRs) manage a variety of inquires, including StaplesLink and product solutions

• ‘One and Done Program’ gives our CSRs the power to resolve your issues on the first phone call

• Proactive customer contact, such as:– Back orders, delays and special order availability

• Collaboration with Staples Account Management to monitor program compliance

Customer Service

J.D. Power and Associates

Staples Advantage Call Centers have been recognized by J.D. Power and Associates for providing “An Outstanding Customer Service Experience”, seven years in a row (2004 – 2010).

• Staples Advantage Customer Service Centers passed a detailed audit of its recruiting, training, employee incentives, management roles and responsibilities and quality-assurance capabilities.

*For J.D. Power and Associates 2010 Certified Call Center ProgramSM information, visit www.jdpower.com

Customer Satisfaction

Customer Satisfaction is Staples’ highest priority.• We continuously track our performance by conducting online, end-user

surveys. Every packing slip on orders over $50 extends an invitation to participate.

• Examples of the metrics we track are:– Helpfulness of

delivery driver– Expected vs.

actual delivery date– Quality of the product

images online– Problem resolution

elapsed time

Staples Soul

• A holistic approach to business that recognizes the close connection between our financial success and our desire to have a positive impact on our associates, communities, and the planet by practicing good corporate citizenship.

– Environment: Operate our business to sustain natural resources and make it easy for our customers to make a difference

– Diversity: Support diversity suppliers and embrace diversity within our workforce

– Community: Give back to the communities where our customers and associates live and work

– Ethics: Act with integrity in everything we do

• Staples leverages its inventory and scope to allow customers to consolidate suppliers and save on administrative expenses.

– Print Solutions– Technology Solutions– Business Interiors by Staples– Promotional Products– Facility Solutions– Staples Brand Products

• Integrated supply solutions yield product cost savings, service anddelivery improvements, superior program management and comprehensive reports

Staples AdvantageYour One Source Solution