Staples, Inc. Announces First Quarter Performance

Staples, Inc. (Nasdaq: SPLS) announced today the results for its first

quarter ended May 3, 2008. Total company sales increased six percent to

$4.9 billion compared to the first quarter of 2007. Net income rose two

percent year over year to $212 million, and earnings per share, on a

diluted basis, increased three percent to $0.30, from the $0.29 achieved

in the first quarter of last year. North American Retail sales grew two percent in the first quarter, and

comparable store sales decreased six percent versus 2007, reflecting

declines in customer traffic and average order size. North American

Delivery continued its industry–leading growth, increasing sales eight

percent versus last year´s first quarter.

Total International sales increased 19 percent in US dollars, benefiting

from a $72 million foreign currency impact, and increased eight percent

in local currency. International comparable store sales increased four

percent versus 2007. "We are pleased to deliver solid results in a

challenging quarter," said Ron Sargent

Staples´ chairman and chief executive

officer. "We continue to gain share while we

invest in growth ideas to strengthen our market position." Highlights for the first quarter include: Total Company

Achieved record first quarter sales of $4.9 billion.

Operating income rate declined 44 basis points to 6.59 percent

reflecting operating expense deleverage offset by a modest improvement

in gross profit rate.

Opened 38 new stores worldwide, ending the first quarter operating

2,076 stores.

Generated first quarter free cash flow of $225 million after $74

million in capital expenditures, compared to free cash flow of $115

million for the same period last year.

Repurchased 2.8 million shares of stock for $65 million during the

first quarter and spent $231 million to pay its annual cash dividend.

North American Retail

Achieved record first quarter sales of $2.4 billion.

Achieved all–time high customer satisfaction scores.

Opened 35 new stores, ending the first quarter with 1,773 stores in

North America.

Reported a 103 basis point decline in operating income rate to 6.99

percent versus 2007, reflecting deleverage in rent and operating

expense despite tight expense control and increased product margin

rate.

Reduced average inventory per store by five percent.

North American Delivery

Achieved record first quarter sales of $1.7 billion, reflecting

continued success in Contract account acquisition and share of wallet

initiatives throughout North American Delivery, including Staples

Promotional Products, Staples Industrial, and copy and print services.

Reported a 4 basis point decline in operating income rate to 9.49

percent versus 2007, reflecting improvement in our supply chain and

product margin rate more than offset by investment in growth

initiatives.

International

Achieved record first quarter sales of $756 million, reflecting

mid–teens growth in US dollars in Europe.

European Retail comparable store sales rose four percent, led by

double–digit comparable stores sales in the UK.

Sustained momentum in China with sales nearly doubling versus the

prior year´s first quarter.

Drove continued profit improvement with operating income rate up 71

basis points year over year to 3.15 percent.

Opened two stores in the UK and one store in Belgium, ending the first

quarter with 271 stores in Europe and 32 stores in China.

Outlook The company expects the weak economic climate to continue throughout

2008. Based on this expectation, and continued investment in growth

initiatives, the company´s previous full year

outlook remains unchanged. The company expects to achieve mid

single–digit sales growth and high single–digit earnings per share

growth for 2008, excluding the previously disclosed impact to 2007

earnings for the $38 million pre–tax charge ($24 million after–tax or

$0.04 per diluted share) related to the settlement of California wage

and hour class action litigation. The company expects flat earnings per

share growth for the second quarter. The company´s

guidance for future periods excludes any potential impact relating to

its previously announced proposal to acquire all of the outstanding

capital stock of Corporate Express N.V. About Staples Staples, Inc. invented the office superstore concept in 1986 and today

is the world´s largest office products company. With 76,000 talented

associates, the company is committed to making it easy to buy a wide

range of office products, including supplies, technology, furniture, and

business services. With 2007 sales of $19.4 billion, Staples serves

consumers and businesses ranging from home–based businesses to Fortune

500 companies in 22 countries throughout North and South America, Europe

and Asia. Headquartered outside of Boston, Staples operates more than

2,000 office superstores and also serves its customers through mail

order catalog, e–commerce and contract businesses. More information is

available at www.staples.com. Staples in Europe In Europe, Staples operates through 2 major distribution channels :

Staples superstores and the delivery business with Staples Europe

Catalogue. Staples employs near 9 000 people in 16 countries. Staples in Europe operate strong brands Strong European Brands Staples European Retail operates with Staples Brand in UK, Germany and

Portugal, with Office Centre in the Netherlands and Belgium Staples Europe Catalogue operates with several brands: JPG and Bernard

in France, Belgium and Luxembourg, Mondoffice in Italy, STAPLES and

Neat–ideas in Great Britain, STAPLES and Pressel in Germany, Pressel in

France, Belgium and Switzerland, Kalamazoo in Spain and Quill

Kontorslagret in Sweden

Pressel Quill in Austria, in The Czech

Republic, in Hungary, Malling Beck in Denmark, Pressel in the Netherlands Certain information contained in this news release constitutes

forward–looking statements for purposes of the safe harbor provisions of

The Private Securities Litigation Reform Act of 1995 including, but not

limited to, the information set forth under the heading "Outlook" and other statements regarding our future business and financial

performance. Actual results may differ materially from those indicated

by such forward–looking statements as a result of risks and

uncertainties, including but not limited to: our market is highly

competitive and we may not continue to compete successfully; economic

conditions may cause a decline in business and consumer spending; we may

be unable to continue to open new stores and enter new markets

successfully; our growth may strain our operations; we may not

consummate our proposed acquisition of Corporate Express N.V. or realize

any benefits if we do complete the acquisition; we may be unable to

attract and retain qualified associates; our quarterly operating results

are subject to significant fluctuation; our expanding international

operations expose us to the unique risks inherent in foreign operations;

our business may be adversely affected by the actions of and risks

associated with our third party vendors; our expanded offering of

proprietary branded products may not improve our financial performance

and may expose us to intellectual property and product liability claims;

our debt level and operating lease commitments may impact our ability to

obtain future financing and continue our growth strategy; our effective

tax rate may fluctuate; our information security may be compromised;

various legal proceedings may adversely affect our business and

financial performance; and those other factors discussed or referenced

in our most recent annual report on Form 10–K filed with the SEC, under

the heading "Risk Factors" and elsewhere, and any subsequent periodic or current reports filed by

us with the SEC. In addition, any forward–looking statements represent

our estimates only as of the date of this release and should not be

relied upon as representing our estimates as of any subsequent date.

While we may elect to update forward–looking statements at some point in

the future, we specifically disclaim any obligation to do so, even if

our estimates change.