<SUBMISSION>
<ACCESSION-NUMBER>0000927016-00-001999
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20000710
<FILING-DATE>20000524
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>STAPLES INC
<CIK>0000791519
<ASSIGNED-SIC>5940
<IRS-NUMBER>042896127
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0127
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-17586
<FILM-NUMBER>643071
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>500 STAPLES DRIVE
<STREET2>P O BOX 9328
<CITY>FRAMINGHAM
<STATE>MA
<ZIP>01702
<PHONE>5082535000
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<DESCRIPTION>NOTICE & PROXY STATEMENT
<TEXT>

<HTML>
<HEAD>
 <TITLE>NOTICE & PROXY STATEMENT</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
 <DIV ALIGN="center"> <P><B>SCHEDULE 14A INFORMATION
 <BR>
 </B></P>
 <P><B> PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE
 <BR>
 SECURITIES EXCHANGE ACT OF 1934
 <BR>
 (AMENDMENT NO. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
 <BR>
 </B></P>
 <P ALIGN="left">Filed by the Registrant&nbsp; [X]
 <BR>
 Filed by a Party other than the Registrant&nbsp; [_]
 <BR>
 Check the appropriate box:
 <BR>
 [_] &nbsp;Preliminary Proxy Statement
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp; [_] Confidential, for Use of the Commission Only
 <BR>

   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(as permitted by Rule 14a-6(e)(2))
 <BR>
 [X] &nbsp;Definitive Proxy Statement
 <BR>
 [_] &nbsp;Definitive Additional Materials
 <BR>
 [_] &nbsp;Soliciting Material Pursuant to (S)240.14a-11(c) or (S)240.14a-12
 <BR>
 </P>
 <P ALIGN="center"><B>Staples, Inc. </B></P>
 <HR NOSHADE ALIGN="center"> <P ALIGN="center">(Name of Registrant as Specified
   in Its Charter)
 <BR>
 <FONT
 SIZE="1"> </FONT><FONT
 SIZE="2"> </FONT> </P>
 <P><B>Staples, Inc.</B> </P>
 <HR NOSHADE> <P ALIGN="center">(Name of Person(s) Filing Proxy Statement)
 <BR>
 </P>
 <P ALIGN="left">Payment of Filing Fee (check the appropriate box):
 <BR>
 [X] &nbsp;No fee required
 <BR>
 [_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
 <BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(1) Title of each class of securities to
   which transaction applies:</P>
 <HR NOSHADE> <P ALIGN="left"> &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(2)
   Aggregate number of securities to which transaction applies:</P>
 <HR NOSHADE> <P ALIGN="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Per
   unit price or other underlying value of transaction computed pursuant to
   Exchange Act
 <BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rule
   0-11 (Set forth the amount on which the filing fee is calculated and state
   how it was
 <BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   determined):</P>
 <HR NOSHADE> <P ALIGN="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
   Proposed maximum aggregate value of transaction:</P>
 </DIV>
 <DIV ALIGN="left"> <HR NOSHADE>
   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Total fee paid:</P>
 <HR NOSHADE> <P> [_] &nbsp;Fee paid previously with preliminary materials.
 <BR>
 [_] &nbsp;Check box if any part of the fee is offset as provided by Exchange
   Act Rule 0-11(a)(2) and identify
 <BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the filing for which the offsetting fee
   was paid previously. Identify the previous filing by registration
 <BR>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; statement number, or the Form or Schedule
   and the date of its filing.
 <BR>
 </P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount Previously Paid:</P>
 <HR NOSHADE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Form, Schedule
   or Registration Statement No.:</P>
 <HR NOSHADE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Filing Party:</P>
 <HR NOSHADE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Date Filed:</P>
 <HR NOSHADE> <P>Notes: </P>
 </DIV>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">STAPLES, INC.
 <BR>
 500 Staples Drive
 <BR>
 Framingham, Massachusetts 01702</FONT></B></P>
 <P ALIGN="CENTER"><B><I><FONT
 FACE="Arial">Notice of Annual Meeting of Stockholders to be Held
 <BR>
 on Monday, July 10, 2000</FONT></I></B></P>
 <P><FONT
 FACE="Arial">The Annual Meeting of Stockholders of Staples, Inc. will be held
   at The FleetBoston Financial Building (formerly BankBoston, N.A.), 100
   Federal Street, Boston, Massachusetts, on Monday, July 10, 2000 at
   2:00&#160;p.m., local time, to consider and act upon the following
   matters:</FONT></P>
 <TABLE WIDTH="100%" BORDER="0">
  <TR>
   <TD WIDTH="4%"><FONT
   FACE="Arial">(1) </FONT></TD>
   <TD WIDTH="96%"><FONT
   FACE="Arial">To elect five Class&#160;3 Directors to serve for a three-year
     term expiring at the 2003 Annual Meeting of Stockholders.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="4%">&nbsp;</TD>
   <TD WIDTH="96%">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="4%"><FONT
   FACE="Arial">(2) </FONT></TD>
   <TD WIDTH="96%"><FONT
   FACE="Arial">To approve amendments to the Company's Amended and Restated
     1990 Director Stock Option Plan.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="4%">&nbsp;</TD>
   <TD WIDTH="96%">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="4%"><FONT
   FACE="Arial">(3)</FONT></TD>
   <TD WIDTH="96%"><FONT
   FACE="Arial">To ratify the selection of Ernst &amp; Young LLP as Staples'
     independent auditors for the current fiscal year.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="4%">&nbsp;</TD>
   <TD WIDTH="96%">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="4%"><FONT
   FACE="Arial">(4) </FONT></TD>
   <TD WIDTH="96%"><FONT
   FACE="Arial">To transact such other business as may properly come before the
     meeting or any adjournment thereof.</FONT></TD>
  </TR>
 </TABLE>
 <P><FONT
 FACE="Arial">Stockholders of record at the close of business on May 12, 2000
   will be entitled to notice of and to vote at the meeting or any adjournment
   thereof. The stock transfer books will remain open. </FONT></P>

 <TABLE WIDTH="75%" BORDER="0" ALIGN="center">
  <TR>
   <TD HEIGHT="24" WIDTH="59%">&nbsp;</TD>
   <TD HEIGHT="24" WIDTH="41%"><FONT
   FACE="Arial">By Order of the Board of Directors,</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="59%">&nbsp;</TD>
   <TD WIDTH="41%"> <DIV ALIGN="center"></DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="59%">&nbsp;</TD>
   <TD WIDTH="41%"><FONT
   FACE="Arial">Jack A. VanWoerkom,
   <BR>
   <I><FONT
   FACE="Arial">Secretary</FONT></I> </FONT></TD>
  </TR>
 </TABLE>
 <DIV ALIGN="center"></DIV>
 <P><FONT
 FACE="Arial">Framingham, Massachusetts
 <BR>
 May 25, 2000</FONT></P>
 <P><B><FONT
 FACE="Arial">IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED AT THE MEETING.
   THEREFORE, WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE SUBMIT
   YOUR PROXY (1) OVER THE INTERNET, (2) BY TELEPHONE OR (3) BY MAIL. FOR
   SPECIFIC INSTRUCTIONS, PLEASE REFER TO THE QUESTIONS AND ANSWERS BEGINNING
   ON PAGE 1 OF THIS PROXY STATEMENT AND THE INSTRUCTIONS ON THE ENCLOSED PROXY
   CARD.</FONT></B></P>
 <P><B><FONT
 FACE="Arial">&quot;STREET NAME&quot; HOLDERS WHO PLAN TO ATTEND THE MEETING
   WILL NEED TO BRING A COPY OF A BROKERAGE STATEMENT REFLECTING STOCK
   OWNERSHIP AS OF THE RECORD DATE.</FONT></B></P>
 <P> </P>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">STAPLES, INC.
 <BR>
 500 Staples Drive
 <BR>
 Framingham, Massachusetts 01702</FONT></B></P>
 <P ALIGN="CENTER"><B><I><FONT
 FACE="Arial">PROXY STATEMENT</FONT></I></B></P>
 <P ALIGN="CENTER"><B><I><FONT
 FACE="Arial">for the Annual Meeting of Stockholders
 <BR>
 on July 10, 2000</FONT></I></B></P>
 <P><FONT
 FACE="Arial">This Proxy Statement is furnished in connection with the
   solicitation of proxies by the Board of Directors of Staples, Inc.
   (&quot;Staples&quot; or the &quot;Company&quot;) for use at the Annual
   Meeting of Stockholders to be held on Monday, July 10, 2000 beginning at
   2:00 p.m. at The FleetBoston Financial Building (formerly BankBoston, N.A.),
   100 Federal Street, Boston, Massachusetts, and at any adjournment of that
   meeting. </FONT></P>
 <P><FONT
 FACE="Arial">Staples' Annual Report for the fiscal year ended January 29, 2000
   was mailed to stockholders, along with these proxy materials on or about May
   25, 2000. Staples will, upon written request of any stockholder, furnish
   without charge a copy of its Annual Report on Form 10-K/A for the fiscal
   year ended January 29, 2000, as filed with the Securities and Exchange
   Commission, without exhibits. Please address all such requests to Staples,
   Inc., Attention: Corporate Secretary, 500 Staples Drive, Framingham,
   Massachusetts 01702.</FONT></P>
 <P><FONT
 FACE="Arial"><B><I>What is the purpose of the Annual
   Meeting?</I></B></FONT></P>
 <P><FONT
 FACE="Arial"> At the Company's Annual Meeting, stockholders will act upon the
   matters outlined in the accompanying notice of meeting, including the
   election of directors, approval of amendments to the Company's Amended and
   Restated 1990 Director Stock Option Plan, ratification of the Company's
   independent auditors and consideration of such other business as may
   properly come before the meeting.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">Who is entitled to vote?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">Only stockholders of record at the close of business on the
   record date, May 12, 2000, are entitled to receive notice of the Annual
   Meeting and to vote the shares of common stock that they held on that date
   at the meeting, or any postponement or adjournment of the meeting. Holders
   of common stock are entitled to one vote per share.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">Who can attend the meeting?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">All stockholders as of the record date, or their duly appointed
   proxies, may attend the meeting. Please note that if you hold your shares in
   &quot;street name&quot; (that is, through a broker or other nominee), you
   will need to bring a copy of a brokerage statement reflecting your stock
   ownership as of the record date. </FONT></P>
 <P><B><I><FONT
 FACE="Arial">What constitutes a quorum?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">The presence at the meeting, in person or by proxy, of the
   holders of a majority of the shares of common stock outstanding on the
   record date will constitute a quorum, permitting business to be conducted at
   the meeting. As of the record date, 470,916,327 shares of common stock of
   the Company were outstanding and entitled to vote. Proxies received, but
   marked as withhold authority, abstentions and broker non-votes, will be
   included in the calculation of the number of shares considered to be present
   at the meeting.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">How do I vote?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">If you complete, sign and return the accompanying proxy card, it
   will be voted as you direct. If no choice is specified on a signed proxy
   card, the persons named as proxies will vote in favor of the matters to be
   voted upon. If you are a stockholder as of the record date and attend the
   meeting you may deliver your completed proxy card or vote in person at the
   meeting.</FONT></P>
 <P></P>
 <P><B><I><FONT
 FACE="Arial">Can I vote by the Internet or by telephone?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">If you are a registered stockholder (you hold your stock in your
   own name), you may vote by the Internet by following the instructions at
   </FONT><U><FONT
 FACE="Arial" COLOR="#0000ff">http://www.eproxy.com/SPLS</FONT></U><FONT
 FACE="Arial"> or by telephone by calling 1-800-840-1208. If your shares are
   held in &quot;street name&quot; you will need to contact your broker or
   other nominee to determine whether you will be able to vote by the Internet
   or by telephone.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">Can I change my vote after I return my proxy
   card?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">Yes. Any proxy may be revoked by a stockholder at any time before
   it is exercised by delivering to the Secretary of the Company a written
   notice of revocation or a duly executed proxy bearing a later date, or by
   voting in person at the meeting. </FONT></P>
 <P><B><I><FONT
 FACE="Arial">What is the vote required to approve each
   matter?</FONT></I></B></P>
 <P><FONT
 FACE="Arial"><B>Election of Directors - </B>The affirmative vote of the
   holders of a plurality of the shares of common stock voting on the matter is
   required for the election of directors. A properly executed proxy marked
   &quot;WITHHOLD AUTHORITY&quot; with respect to the election of one or more
   directors will not be counted as a vote cast on such matter, although it
   will be counted for purposes of determining whether there is a
   quorum.</FONT></P>
 <P><FONT
 FACE="Arial"><B>Amendments to the Company's Amended and Restated 1990 Director
   Stock Option Plan</B>- The affirmative vote of the holders of a majority of
   the shares of common stock voting on the matter is required to approve the
   amendments to the Company's Amended and Restated 1990 Director Stock Option
   Plan. A properly executed proxy marked &quot;ABSTAIN&quot; will not be
   counted as a vote cast on such matter, although it will be counted for
   purposes of determining whether there is a quorum. Accordingly, abstentions
   and &quot;broker non-votes&quot; will have no effect on the vote to approve
   the amendments to the Company's Amended and Restated 1990 Director Stock
   Option Plan.</FONT></P>
 <P><FONT
 FACE="Arial"><B>Independent Auditors</B> - The affirmative vote of the holders
   of a majority of the shares of common stock voting on the matter is required
   for the ratification of the selection of Ernst &amp; Young LLP as the
   Company's independent auditors for the current fiscal year. A properly
   executed proxy marked &quot;ABSTAIN&quot; will not be counted as a vote cast
   on such matter, although it will be counted for purposes of determining
   whether there is a quorum. Accordingly, abstentions will have no effect on
   the vote to ratify the selection of Ernst &amp; Young LLP.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">Are there other matters to be voted on at the
   meeting?</FONT></I></B></P>
 <P><FONT
 FACE="Arial">The Board of Directors does not know of any other matters which
   may come before the meeting. If any other matters are properly presented to
   the meeting, it is the intention of the persons named in the accompanying
   proxy card to vote, or otherwise act, in accordance with their
   judgment.</FONT></P>
 <P><FONT
 FACE="Arial">All references in this Proxy Statement to historical transactions
   in common stock reflect the three-for-two stock splits of Staples Retail and
   Delivery common stock effected in the form of 50% stock dividends
   distributed on January 30, 1998 and January 28, 1999 and the
   recapitalization effected through a one-for-two reverse stock split of
   Staples.com common stock that was effective on April 5, 2000.</FONT></P>
 <P></P>
 <P>&nbsp;</P>
 <TABLE WIDTH="100%" BORDER="0" HEIGHT="286">
  <TR>
   <TD> <P> </P>
   <P ALIGN="CENTER"><B><FONT
   FACE="Arial">PROPOSAL 1 - ELECTION OF DIRECTORS</FONT></B></P>
   <P><FONT
   FACE="Arial">Staples' Board of Directors is divided into three classes, with
     members of each class holding office for staggered three-year terms (in
     all cases subject to the election and qualification of their successors or
     to the earlier of their death, resignation or removal). The persons named
     in the enclosed proxy will, upon receipt of a properly executed proxy,
     vote to elect Basil L. Anderson, George J. Mitchell, Robert C. Nakasone,
     Ronald L. Sargent and Thomas G. Stemberg as Class 3 Directors for a term
     expiring at the 2003 Annual Meeting, unless authority to vote for the
     election of any or all of the nominees is withheld by marking the proxy to
     that effect. Each of the nominees is currently a Class&#160;3 Director of
     Staples. All of the nominees have indicated their willingness to serve if
     elected, but if any should be unable or unwilling to stand for election,
     proxies may be voted for a substitute nominee designated by the Board of
     Directors. </FONT></P>
   <P><FONT
   FACE="Arial">Set forth below are the names and certain information with
     respect to each of the nominees to serve as Director of Staples.
     </FONT></P>
   <P><B><FONT
   FACE="Arial">Nominees To Serve As Directors For A Three-Year Term Expiring
     At The 2003 Annual Meeting
   <BR>
   (Class 3 Directors)</FONT></B></P>
   </TD>
  </TR>
 </TABLE>
 <TABLE WIDTH="100%" HEIGHT="70%">
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="107"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">Served as
   <BR>
   Director
   <BR>
   <U>Since</U></FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644"> <FONT
   FACE="Arial"><B>Basil L. Anderson</B>, age 55</FONT>
   <BR>
   <FONT
   FACE="Arial">&nbsp;&nbsp;&nbsp;Executive Vice President - Finance and Chief
     Financial Officer of Campbell Soup Company, a food products manufacturer,
     since April 1996. Prior to joining Campbell Soup, Mr. Anderson was with
     Scott Paper Company where he served in a variety of capacities beginning
     in 1975, including Vice President and Chief Financial Officer from
     February 1993 to December 1995.</FONT> </TD>
   <TD VALIGN="TOP" WIDTH="107"> <DIV ALIGN="center"><FONT
   FACE="Arial">1997</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="107">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644"><FONT
   FACE="Arial"><B>George J. Mitchell, </B>age 66</FONT>
   <BR>
   <FONT
   FACE="Arial">&nbsp;&nbsp;&nbsp;Special Counsel at the law firm of Verner,
     Liipfert, Bernhard, McPherson and Hand since 1995. Appointed to the United
     States Senate in 1980, Senator Mitchell served until he left the Senate in
     1995 as Majority Leader, a position he had held since January 1989.
     Senator Mitchell is also a Director of The Walt Disney Company; Xerox
     Corporation; Fed EX Corporation; UNUMProvident Corporation; Casella Waste
     Systems, Inc.; Starwood Hotels and Resorts and Unilever. </FONT> </TD>
   <TD VALIGN="TOP" WIDTH="107"> <DIV ALIGN="center"><FONT
   FACE="Arial">1998</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="107">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644"> <DIV ALIGN="left"><FONT
   FACE="Arial"><B>Robert C. Nakasone</B>, age 52</FONT>
   <BR>
   <FONT
   FACE="Arial">&nbsp;&nbsp;&nbsp;Mr. Nakasone served as Chief Executive
     Officer of Toys &quot;R&quot; Us, Inc., a retail store chain, from
     February 1998 to August 1999. Previously, Mr. Nakasone served in other
     positions with Toys &quot;R&quot; Us including President and Chief
     Operating Officer from January 1994 to February 1998 and Vice Chairman and
     President of Worldwide Toy Stores from January 1989 to January 1994.
     </FONT> </DIV>
   </TD>
   <TD VALIGN="TOP" WIDTH="107"> <DIV ALIGN="center"><FONT
   FACE="Arial">1986</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="107">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644"><FONT
   FACE="Arial"><B>Ronald L. Sargent, </B>age 44</FONT>
   <BR>
   <FONT
   FACE="Arial">&nbsp;&nbsp;&nbsp;President and Chief Operating Officer of
     Staples since November 1998. Prior to that he served in various capacities
     since joining Staples in March 1989, including President - North American
     Operations from October 1997 to November 1998, President - Staples
     Contract &amp; Commercial from June 1994 to October 1997, and Vice
     President - Staples Direct and Executive Vice President - Contract &amp;
     Commercial from September 1991 until June 1994. Mr. Sargent is also a
     Director of Yankee Candle Corporation. </FONT> </TD>
   <TD VALIGN="TOP" WIDTH="107"> <DIV ALIGN="center"><FONT
   FACE="Arial">1999</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="107">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644"><FONT
   FACE="Arial"><B>Thomas G. Stemberg</B>, age 51
   <BR>
   &nbsp;&nbsp;&nbsp;Chairman of the Board of Directors and Chief Executive
     Officer of Staples since February 1988. Mr. Stemberg is also a Director of
     PETsMART, Inc. </FONT></TD>
   <TD VALIGN="TOP" WIDTH="107"> <DIV ALIGN="center"><FONT
   FACE="Arial">1986</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="644">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="107">&nbsp;</TD>
  </TR>
 </TABLE>
 <TABLE WIDTH="100%" BORDER="0" HEIGHT="48">
  <TR>
   <TD HEIGHT="40"><B><I><FONT
   FACE="Arial">THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR ELECTION OF ALL
     NOMINEES AS DIRECTORS.</FONT></I></B></TD>
  </TR>
 </TABLE>
 <P>&nbsp;</P>
 <P>&nbsp;</P>
 <P>&nbsp;</P>
 <P>&nbsp;</P>
 <P><P><B><I></I></B></P>
 <P></P>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">PROPOSAL 2 - APPROVAL OF AMENDMENTS TO THE COMPANY'S
 <BR>
 AMENDED AND RESTATED 1990 DIRECTOR STOCK OPTION PLAN </FONT></B></P>
 <P><FONT
 FACE="Arial">On March 7, 2000, the Board of Directors adopted, subject to
   stockholder approval, amendments to the Company's Amended and Restated 1990
   Director Stock Option Plan (the &quot;Plan&quot;). The purpose of the
   amendments to the Plan is to provide non-employee Directors of the Company
   (&quot;Outside Directors&quot;) with further incentive to remain and/or
   become Directors and to compensate Outside Directors for their services as
   Directors.</FONT></P>
 <P><FONT
 FACE="Arial">The following is a brief summary of the provisions of the Plan.
   This summary is qualified in all respects by reference to the full text of
   the Plan, copies of which are attached to the electronic copy of this Proxy
   Statement filed with the SEC, and may be accessed from the SEC's home page.
   In addition, a copy of the Plan may be obtained by making a written request
   to the Secretary of the Company. </FONT></P>
 <P><B><I><FONT
 FACE="Arial">Summary of the Plan </FONT></I></B></P>
 <P><FONT
 FACE="Arial">Under the existing Plan, grants of options and awards of
   performance accelerated restricted stock (&quot;PARS&quot;) may be made, at
   the sole discretion of the Board of Directors, with respect to either series
   of Staples' common stock, or a combination of both, which include Staples
   Retail and Delivery common stock (&quot;Staples RD Stock&quot;) or
   Staples.com common stock (&quot;Staples.com Stock&quot;)</FONT></P>
 <P><FONT
 FACE="Arial">Under the existing Plan, Outside Directors automatically receive,
   upon initial election as a member of the Board of Directors, a grant of
   options to purchase 15,000 shares of common stock, and on the date of the
   first regularly scheduled Board of Directors meeting following the end of
   each Staples fiscal year, Outside Directors also automatically receive a
   grant of options to purchase 3,000<B> </B>shares of common stock for each
   regularly scheduled meeting day of the Board of Directors that such Outside
   Director attended, up to a maximum of 15,000 shares. </FONT></P>
 <P><FONT
 FACE="Arial">In addition, under the existing Plan, at the first regularly
   scheduled Board of Directors meeting following the end of each fiscal year,
   in which performance targets are established relating to PARS awarded to
   executive officers, (i) each Outside Director is granted 400 PARS of common
   stock for each regularly scheduled meeting day of the Board of Directors
   attended by such Director in the previous 12 months (up to a maximum of
   2,000 PARS) and (ii) in addition, the Lead Director (as defined in the Plan)
   and the Chairman of each of the Audit, Compensation, and Governance
   Committees of the Board of Directors is granted 200 PARS of common stock for
   each regularly scheduled meeting day of the Board of Directors attended by
   such Outside Director in the previous 12 months (up to a maximum of 1,000
   PARS). </FONT></P>
 <P><FONT
 FACE="Arial">The proposed amendments to the Plan will (i) fix the number of
   option shares granted in each series of common stock, and (ii) increase the
   number of option shares Outside Directors receive upon initial election to
   the Board of Directors and for each meeting attended. Under the amended
   Plan, Outside Directors will automatically receive, upon initial election as
   a member of the Board of Directors, a grant of options to purchase 15,000
   shares of Staples RD Stock and 5,000 shares of Staples.com Stock. In
   addition, on the date of the first regularly scheduled Board of Directors
   meeting following the end of each fiscal year Outside Directors will
   automatically receive (i) a grant of options to purchase 3,000 shares of
   Staples RD Stock for each regularly scheduled meeting day of the Board of
   Directors that such Outside Director attended, up to a maximum of 15,000
   shares of Staples RD Stock and (ii) a grant of options to purchase 650
   shares of Staples.com Stock for each regularly scheduled meeting day of the
   Board of Directors that such Outside Director attended, up to a maximum of
   3,250 shares of Staples.com Stock.</FONT></P>
 <P><FONT
 FACE="Arial">In addition, the proposed amendments to the Plan (i) fix the
   number of PARS of Staples RD Stock awarded to Outside Directors for
   attending meetings of the Board of Directors and (ii) provide the Board of
   Directors with the discretion to award additional PARS of Staples.com Stock
   to Outside Directors for attending meetings of the Board of Directors. The
   Board of Directors has no current plans to award </FONT></P>
 <P>
 additional PARS of Staples.com Stock to Outside Directors for attending
   meetings of the Board of Directors. Under the amended Plan, at the first
   regularly scheduled Board of Directors meeting following the end of each
   fiscal year of Staples, at which performance targets are established
   relating to PARS awarded to executive officers of Staples, (x) each Outside
   Director shall be granted 400 PARS of Staples RD Stock for each regularly
   scheduled meeting day of the Board of Directors attended by such Director in
   the previous 12 months (up to a maximum of 2,000 PARS), and (y) each Outside
   Director may be granted up to 100 PARS of Staples.com Stock for each
   regularly scheduled meeting day of the Board of Directors attended by such
   Director in the previous 12 months (up to a maximum of 500 PARS). The Lead
   Director (as defined in the Plan) and the Chairman of each of the Audit,
   Compensation, and Governance Committees of the Board of Directors shall
   continue to be granted 200 PARS of common stock (of either, or a combination
   of both, series of common stock) for each regularly scheduled meeting day of
   the Board of Directors attended by such Outside Director in the previous 12
   months (up to a maximum of 1,000 PARS). </FONT></P>
 <P><FONT
 FACE="Arial">All stock options granted under the Plan are granted at an
   exercise price equal to the fair market value of the common stock on the
   date of grant. Options to purchase Staples RD Stock generally become
   exercisable on a cumulative basis in four equal annual installments,
   commencing on the first anniversary of the date of grant. Options to
   purchase Staples.com Stock are exercisable in full on the date of grant and,
   prior to vesting, are subject to repurchase by the Company at a price equal
   to the exercise price. The shares are restricted by the following vesting
   schedule: 25% of such shares will vest one year after the date of grant and
   the remaining 75% of such shares will vest in equal monthly installments
   (2.083% per month) over the following 36 months, provided that the optionee
   continues to serve as a Director of</FONT><FONT
 FACE="Arial" SIZE="-1"> </FONT><FONT
 FACE="Arial">Staples on such dates. Recipients of PARS own shares of common
   stock (which may be issued on a deferred basis) under terms that provide for
   vesting over a period of time and a right to repurchase in favor of Staples
   with respect to unvested stock, at a price equal to their original purchase
   price (if any), when the recipient ceases to be a director of Staples.
   Except as otherwise determined by the Board of Directors, all PARS issued
   under the Plan shall be issued without the payment of any cash purchase
   price by the recipient. The restrictions on transfer and forfeiture
   provisions of the PARS to be granted to the Outside Directors shall lapse on
   the same basis as PARS awarded to Staples' executive officers. </FONT></P>
 <P><FONT
 FACE="Arial">The following table summarizes the existing Plan and the changes
   proposed in the amendments to the Plan.</FONT></P>
 <P></P>
 <P>
 <TABLE WIDTH="100%">
  <TR>
   <TD VALIGN="TOP" WIDTH="327">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="215">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="223">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="202">&#160; </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P ALIGN="CENTER"><B><FONT
   FACE="Arial" SIZE="-1">EXISTING PLAN </FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P ALIGN="RIGHT"><B><FONT
   FACE="Arial" SIZE="-1">AMENDED</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P><B><FONT
   FACE="Arial" SIZE="-1">PLAN</FONT></B></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327"> <P ALIGN="CENTER"><B><FONT
   FACE="Arial" SIZE="-1">Event</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P><B><FONT
   FACE="Arial" SIZE="-1">Options to Purchase Shares of Common Stock
     (1)</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P><B><FONT
   FACE="Arial" SIZE="-1">Options to Purchase Shares of Staples RD
     Stock</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P><B><FONT
   FACE="Arial" SIZE="-1">Options to Purchase Shares of Staples.com
     Stock</FONT></B></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327"> <P><FONT
   FACE="Arial" SIZE="-1">Initial election to the Board</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">15,000</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">15,000</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">5,000</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327"> <P><FONT
   FACE="Arial" SIZE="-1">Each meeting day attended</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">3,000 (maximum of 15,000)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">3,000 (maximum of 15,000)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">650 (maximum of 3,250)</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="215">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="223">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="202">&#160; </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P><B><FONT
   FACE="Arial" SIZE="-1">Awards of Restricted Common Stock
   <BR>
   (PARS) (1)</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P><B><FONT
   FACE="Arial" SIZE="-1">Awards of Restricted
   <BR>
   Staples RD Stock (PARS)</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P><B><FONT
   FACE="Arial" SIZE="-1">Awards of Restricted
   <BR>
   Staples.com Stock (PARS)</FONT></B></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327"> <P><FONT
   FACE="Arial" SIZE="-1">Each meeting day attended</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">400 (maximum of 2,000)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">400 (maximum of 2,000)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">up to 100 (maximum of 500)</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="327"> <P><FONT
   FACE="Arial" SIZE="-1">Lead Director; Chairman of Audit,
   <BR>
   Compensation and Governance
   <BR>
   Committees for each meeting
   <BR>
   day attended</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="215"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">200 (maximum of 1,000)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="223"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">no change</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="202"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">no change</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" COLSPAN="4"><FONT
   FACE="Arial" SIZE="-1">(1) Under the existing Plan, all options or PARS may
     be granted with respect to either series of common stock, or a combination
     of both series, as determined in the sole discretion of the Board of
     Directors.</FONT></TD>
  </TR>
 </TABLE>
 <P><FONT
 FACE="Arial"><B><I>Federal Income Tax Consequences</I></B> </FONT></P>
 <P><FONT
 FACE="Arial">The following is a brief summary of the federal income tax
   consequences generally arising with respect to Options and PARS granted
   under the Plan. </FONT></P>
 <P><FONT
 FACE="Arial"><I>Options</I>. The grant of an Option will create no tax
   consequences for the outside director or Staples. Upon exercising an Option,
   the outside director generally must recognize ordinary income equal
   </FONT></P>
 <P>
 </I>to the difference between the exercise price and fair market value of the
   shares acquired on the date of exercise, and Staples generally will be
   entitled to a tax deduction equal to the amount recognized as ordinary
   income by the outside director. The disposition of shares acquired upon the
   exercise of an Option generally will result in capital gain or loss measured
   by the difference between the sale price and the outside director's tax
   basis in such shares (the tax basis generally being the exercise price plus
   any amount recognized as ordinary income in connection with the exercise of
   the Option). This capital gain or loss will be a long-term capital gain or
   loss if the shares are held for more than one year prior to the date of the
   sale and will be a short-term capital gain or loss if held for a shorter
   period.</FONT></P>
 <P><FONT
 FACE="Arial"><I>PARS</I>. An outside director will not recognize taxable
   income upon the grant of PARS, unless the director makes an election under
   Section 83(b) of the Code (a &quot;Section 83(b) Election&quot;). If the
   director makes a Section 83(b) Election within 30 days of the date of the
   grant, then the director will recognize ordinary compensation income for the
   year in which the PARS is granted, in an amount equal to the difference
   between the fair market value of the Common Stock at the time the PARS is
   granted and the purchase price paid for the Common Stock. If a Section 83(b)
   Election is not made, then the director will recognize ordinary compensation
   income, at the time that the forfeiture provisions or restrictions on
   transfer lapse, in an amount equal to the difference between the fair market
   value of the Common Stock at the time of such lapse and the original
   purchase price paid for the Common Stock. The director will have a tax basis
   in the Common Stock acquired equal to the sum of the price paid and the
   amount of ordinary compensation income recognized.</FONT></P>
 <P><FONT
 FACE="Arial">Upon the disposition of the Common Stock acquired pursuant to a
   PARS award, the director will recognize a capital gain or loss equal to the
   difference between the sale price of the Common Stock and the director's tax
   basis in the Common Stock. The gain or loss will be a long-term capital gain
   or loss if the shares are held for more than one year. For this purpose, the
   holding period shall begin just after the date on which the forfeiture
   provisions or restrictions lapse if a Section 83(b) Election is not made, or
   just after PARS award is granted if a Section 83(b) Election is
   made.</FONT></P>
 <P ALIGN="CENTER"><B><I><FONT
 FACE="Arial">THE BOARD OF DIRECTORS RECOMMENDS A VOTE
 <BR>
 FOR THE APPROVAL OF THE AMENDMENTS TO THE
 <BR>
 COMPANY'S AMENDED AND RESTATED 1990 DIRECTOR STOCK OPTION
   PLAN</FONT></I></B></P>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">PROPOSAL 3 - RATIFICATION OF SELECTION OF INDEPENDENT
   AUDITORS</FONT></B></P>
 <P><FONT
 FACE="Arial">The Board of Directors, at the recommendation of the Audit
   Committee, has selected the firm of Ernst &amp; Young LLP as Staples'
   independent auditors for the current fiscal year. Ernst &amp; Young LLP has
   served as Staples' independent auditors since Staples' inception. Although
   stockholder approval of the Board of Directors' selection of Ernst &amp;
   Young LLP is not required by law, the Board of Directors believes that it is
   advisable to give stockholders an opportunity to ratify this selection. If
   this proposal is not approved at the Annual Meeting, the Board of Directors
   may reconsider its selection.</FONT></P>
 <P><FONT
 FACE="Arial">Representatives of Ernst &amp; Young LLP are expected to be
   present at the Annual Meeting and will have the opportunity to make a
   statement if they desire to do so and will also be available to respond to
   appropriate questions from stockholders.</FONT></P>
 <P><B><I><FONT
 FACE="Arial">THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR RATIFICATION OF
   ERNST &amp; YOUNG LLP AS THE COMPANY'S INDEPENDENT AUDITORS FOR THE CURRENT
   FISCAL YEAR.</FONT></I></B></P>
 <P></P>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">OTHER MATTERS</FONT></B></P>
 <P><FONT
 FACE="Arial">The Board of Directors does not know of any other matters which
   may come before the Annual Meeting. However, if any other matters are
   properly presented at the Annual Meeting, it is the intention of the persons
   named in the accompanying proxy to vote, or otherwise act, in accordance
   with their judgment on such matters.</FONT></P>
 <P><FONT
 FACE="Arial">All costs of solicitation of proxies will be borne by Staples. In
   addition to solicitations by mail, Staples' Directors, officers and regular
   employees, without additional remuneration, may solicit proxies by
   telephone, telegraph and personal interviews. Staples has also engaged
   ChaseMellon Shareholder Services, L.L.C. to solicit proxies on behalf of
   Staples. For these services, Staples will pay ChaseMellon Shareholder
   Services, L.L.C. a fee of $5,000 plus reimbursement of its reasonable
   out-of-pocket expenses. Brokers, custodians and fiduciaries will be
   requested to forward proxy soliciting material to the owners of stock held
   in their names, and Staples will reimburse them for their related
   out-of-pocket expenses in this connection.</FONT></P>
 <P><FONT
 FACE="Arial">Proposals of stockholders intended to be presented at the 2001
   Annual Meeting of Stockholders should be directed to the Corporate Secretary
   at 500 Staples Drive, Framingham, MA 01702, and must be received not later
   than January 26, 2001 for inclusion in the proxy statement for that
   meeting.</FONT></P>
 <P><FONT
 FACE="Arial">The Company's By-laws require that the Company be given advance
   written notice of matters which stockholders wish to present for action at
   an annual meeting of stockholders (other than matters included in the
   Company's proxy materials in accordance with Rule 14a-8 under the Exchange
   Act). For the 2001 Annual Meeting of Stockholders, the Secretary of the
   Company must receive such notice at the address noted above on or after
   March 6, 2001 but prior to April 5, 2001; provided, however, if less than 70
   days' notice or prior public disclosure of the date of the meeting is given
   or made to stockholders, such matter shall have been mailed or delivered to
   the secretary not later than the close of business on the 10<SUP>th</SUP>
 day following the date on which the notice of the meeting was mailed or public
   disclosure was made, whichever occurs first. If a stockholder proposal is
   not presented within these timeframes, then management proxies would be
   allowed to use their discretionary voting authority to vote on the proposal
   when the proposal is raised at the 2001 Annual Meeting, even though there is
   no discussion of the proposal in the 2001 proxy statement.</FONT></P>
 <P><FONT
 FACE="Arial"><B>THE BOARD OF DIRECTORS ENCOURAGES STOCKHOLDERS TO ATTEND THE
   MEETING. WHETHER OR NOT YOU PLAN TO ATTEND, YOU ARE URGED TO SUBMIT YOUR
   PROXY. PROMPT RESPONSE WILL GREATLY FACILITATE ARRANGEMENTS FOR THE MEETING
   AND YOUR COOPERATION WILL BE APPRECIATED. STOCKHOLDERS WHO ATTEND THE
   MEETING MAY VOTE THEIR STOCK PERSONALLY EVEN THOUGH THEY HAVE SENT IN THEIR
   PROXIES.</B> </FONT></P>
 <P></P>
 <P ALIGN="CENTER"><B><FONT
 FACE="Arial">BENEFICIAL OWNERSHIP OF COMMON STOCK</FONT></B></P>
 <P><FONT
 FACE="Arial">The following table sets forth the beneficial ownership of
   Staples RD Stock and Staples.com Stock as of April 12, 2000 (i)&#160;by each
   person who is known by Staples to beneficially own more than 5% of the
   outstanding shares of either series of common stock, (ii)&#160;by each
   Director and nominee for Director, (iii)&#160;by each of the Senior
   Executives named in the Summary Compensation Table set forth under the
   caption &quot;Executive Compensation&quot; below, and (iv) by all current
   Directors and executive officers as a group:</FONT> </P>
 <P>
 <TABLE WIDTH="80%">
  <TR>
   <TD WIDTH="175"></TD>
   <TD WIDTH="88"></TD>
   <TD WIDTH="67"></TD>
   <TD WIDTH="72"></TD>
   <TD WIDTH="76"></TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="155" COLSPAN="2"> <DIV ALIGN="center"><FONT
   FACE="Arial" SIZE="-1"><B>Staples RD Stock</B></FONT></DIV>
   </TD>
   <TD VALIGN="TOP" WIDTH="148" COLSPAN="2"> <DIV ALIGN="center"><B><FONT
   FACE="Arial" SIZE="-1">Staples.com Stock</FONT></B></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><B><FONT
   FACE="Arial" SIZE="-1">Name of Beneficial Owner
   <BR>
   5% Stockholders</FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P><FONT
   FACE="Arial" SIZE="-1">Number of
   <BR>
   shares
   <BR>
   beneficially
   <BR>
   owned (1)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P><FONT
   FACE="Arial" SIZE="-1">Percentage
   <BR>
   of shares
   <BR>
   beneficially
   <BR>
   owned (2)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P><FONT
   FACE="Arial" SIZE="-1">Number of
   <BR>
   shares
   <BR>
   beneficially
   <BR>
   owned (1)(3)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P><FONT
   FACE="Arial" SIZE="-1">Percentage of
   <BR>
   shares
   <BR>
   beneficially
   <BR>
   owned (4)</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Janus Capital Corporation (5)
   <BR>
   &nbsp;&nbsp;100 Fillmore Street
   <BR>
   &nbsp;&nbsp;Denver, CO 80206 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 49,655,755 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">10.87</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">FMR Corp. (6)
   <BR>
   &nbsp;&nbsp;82 Devonshire Street
   <BR>
   &nbsp;&nbsp;Boston, MA 02109 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">45,986,184 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">10.06</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">General Atlantic Partners (7)
   <BR>
   &nbsp;&nbsp;3 Pickwick Plaza, Suite 200
   <BR>
   &nbsp;&nbsp;Greenwich, CT 06830 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">2,307,693 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">2.02</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Highland Capital Partners (8)
   <BR>
   &nbsp;&nbsp;2 International Place
   <BR>
   &nbsp;&nbsp;Boston, MA 02110 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">1,538,462 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">1.35</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Greylock IX Limited Partnership
   <BR>
   &nbsp;&nbsp;One Federal Street
   <BR>
   &nbsp;&nbsp;Boston, MA 02110 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">923,077 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Jeanne B. Lewis (9)
   <BR>
   &nbsp;&nbsp;Staples.com
   <BR>
   &nbsp;&nbsp;500 Staples Drive
   <BR>
   &nbsp;&nbsp;Framingham, MA 01702 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">25,601 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">1,012,912 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD COLSPAN="2" VALIGN="TOP" WIDTH="264"> <P><B><FONT
   FACE="Arial" SIZE="-1">Directors and Senior
   <BR>
   Executives </FONT></B></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="72">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="76">&#160; </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Thomas G. Stemberg (10)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 5,259,486 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">1.15</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">1,064,560</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Martin Trust (11)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 2,763,244 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Ronald L. Sargent (12)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 899,204 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">548,420 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Robert C. Nakasone (13)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 500,061 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Rowland T. Moriarty (14)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 393,539 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Mary Elizabeth Burton (15)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 195,719 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Paul F. Walsh (16)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 119,057 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">James L. Moody, Jr. (17)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 82,218 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">W. Lawrence Heisey (18)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">96,219 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">W. Mitt Romney (19)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 66,439 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Basil L. Anderson (20)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 32,950 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Margaret C. Whitman (21)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 17,691 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">George J. Mitchell (22)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 7,457 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 50,000 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">John C. Bingleman (23)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 1,322,805 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> - </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">John J. Mahoney (24)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 576,478 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 319,368 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">Joseph S. Vassalluzzo (25)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1"> 1,535,512 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">319,368 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">*</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="175"> <P><FONT
   FACE="Arial" SIZE="-1">All current Directors and Executive
   <BR>
   Officers as a group
   <BR>
   (31 persons) (26)</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="88"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">15,033,475 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="67"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">3.24</FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="72"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">5,591,786 </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="76"> <P ALIGN="RIGHT"><FONT
   FACE="Arial" SIZE="-1">4.90</FONT></P>
   </TD>
  </TR>
 </TABLE>
 <P><FONT
 FACE="Arial">_________________</FONT>
 <BR>
 * Less than 1% </P>
 <TABLE WIDTH="100%" BORDER="0">
  <TR>
   <TD WIDTH="2%" ALIGN="left" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(1)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Each person has sole investment and voting power with
     respect to the shares indicated, except as otherwise noted. The inclusion
     herein of any shares as beneficially owned does not constitute an
     admission of beneficial ownership. Each person </FONT></TD>
  </TR>
 </TABLE>
 <P>&nbsp; </P>

 <TABLE WIDTH="100%" BORDER="0">
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1"> </FONT></TD>
   <TD WIDTH="3%">&nbsp;</TD>
   <TD WIDTH="95%"><FONT
   FACE="Arial" SIZE="-1">or entity listed is deemed to beneficially own shares
     issuable upon the exercise of stock&nbsp;options that are exercisable
     within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
 </TABLE>
 <TABLE WIDTH="100%" BORDER="0">
 </TABLE>
 <TABLE WIDTH="100%" BORDER="0">
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(2) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Number of shares deemed outstanding includes
     457,019,286 shares of Staples RD Stock outstanding as of April 12, 2000
     and any shares of Staples RD Stock that are exercisable within
     60&#160;days after April 12, 2000 held by the person or entity in
     question.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(3) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">All amounts reflect a recapitalization effected
     through a one-for-two reverse stock split approved by the Board on March
     7, 2000 and effective on April 5, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(4) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes shares issuable in respect to Staples RD
     retained interest. This is based on 114,028,672 shares of Staples.com
     Stock deemed outstanding as of April 12, 2000, which includes 14,028,672
     shares of Staples.com Stock outstanding as of such date and the
     100,000,000 shares of Staples.com Stock issuable in respect of Staples
     RD's retained interest in Staples.com.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(5)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Based on Janus Capital Corporation's Schedule 13G
     filed with the Securities and Exchange Commission as of March 31,
     2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(6) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Based on FMR Corp.'s Schedule 13G filed with the
     Securities and Exchange Commission as of February 14, 2000. </FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(7) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 1,947,209 shares beneficially owned by
     General Atlantic Partners 59, L.P. and 360,484 shares beneficially owned
     by GAP Coinvestment Partners II, L.P.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(8)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 1,476,923 shares beneficially owned by
     Highland Capital Partners IV Limited Partnership and 61,539 shares
     beneficially owned by Highland Entrepreneurs' IV Limited
     Partnership.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(9)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 8,620 shares of Staples RD Stock and 705,219
     shares of Staples.com stock that are exercisable within 60&#160;days<B><I>
     </I></B>after April 12, 2000. </FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(10)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 1,940,544 shares of Staples RD Stock that
     are exercisable within 60&#160;days<B><I> </I></B>after April 12, 2000.
     Also includes 254,046 shares of Staples RD Stock owned by Thomas G.
     Stemberg 1998 Trust; 5,692 shares of Staples RD Stock owned by Mr.
     Stemberg's wife; 100,000 shares of Staples RD Stock owned by Thomas G.
     Stemberg 1999 Trust; and 150,000 shares of Staples RD Stock owned by
     Thomas G. Stemberg L.P.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(11)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 58,124 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 17,083
     shares of Staples RD Stock owned by Mr. Trust's wife; 2,358,106 shares of
     Staples RD Stock owned by Trust Investments; and 24,136 shares of Staples
     RD Stock and 50,000 shares of Staples.com Stock owned by 1999 MTDT
     Descendants' Trust of which Mr. Trust is a Trustee.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(12)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 685,313 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(13)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 96,565 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top" HEIGHT="38"><FONT
   FACE="Arial" SIZE="-1">(14)</FONT></TD>
   <TD WIDTH="1%" HEIGHT="38">&nbsp;</TD>
   <TD WIDTH="97%" HEIGHT="38"> <P><FONT
   FACE="Arial" SIZE="-1">Includes 153,044 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 39,480
     shares of Staples RD Stock beneficially owned by Mr. Moriarty's children
     and 50,000 shares of Staples.com Stock beneficially owned by the Rowland
     T. Moriarty Qualified Annuity Trust.</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(15)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 133,719 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 50,000
     shares of Staples.com Stock owned by Jennifer Ann Burton Irrevocable
     Trust.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(16)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"> <P><FONT
   FACE="Arial" SIZE="-1">Includes 96,092 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 165
     shares of Staples RD Stock held by Paul F. Walsh, IRA.</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(17) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 53,063 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(18) </FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 58,230 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 12,500
     shares of Staples.com stock beneficially owned by Two Cents Worth, Inc.,
     of which Mr. Heisey is a controlling shareholder.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(19)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 23,182 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(20)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"> <P><FONT
   FACE="Arial" SIZE="-1">Includes 17,250 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 50,000
     shares of Staples.com stock beneficially owned by the Basil Anderson
     Revocable Trust.</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(21)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 3,750 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(22)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 4,500 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000. Also includes 50,000
     shares of Staples.com stock owned by Senator Mitchell's son.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(23)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 1,035,842 shares of Staples RD Stock that
     are exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(24)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 416,250 shares of Staples RD Stock that are
     exercisable within 60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
 </TABLE>

 <TABLE WIDTH="100%" BORDER="0">
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(25)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"> <P><FONT
   FACE="Arial" SIZE="-1">Includes 1,322,872 shares of Staples RD Stock that
     are exercisable within 60&#160;days after April 12, 2000.</FONT></P>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="2%" VALIGN="top"><FONT
   FACE="Arial" SIZE="-1">(26)</FONT></TD>
   <TD WIDTH="1%">&nbsp;</TD>
   <TD WIDTH="97%"><FONT
   FACE="Arial" SIZE="-1">Includes 6,784,085 shares of Staples RD Stock and
     1,021,924 shares of Staples.com stock that are exercisable within
     60&#160;days after April 12, 2000.</FONT></TD>
  </TR>
 </TABLE>
 <P ALIGN="center"> <FONT
 FACE="Arial" SIZE="-1"> </FONT><FONT
 FACE="Arial" SIZE="-1"> </FONT><B><FONT
 FACE="Arial">DIRECTORS AND EXECUTIVE OFFICERS OF STAPLES</FONT></B></P>
 <P><FONT
 FACE="Arial">Set forth below are the names and certain information with
   respect to each current Director (other than the nominees) and executive
   officer of Staples. </FONT></P>
 <P ALIGN="left"><B><FONT
 FACE="Arial">Directors Serving A Term Expiring At The 2001 Annual Meeting
   (Class 1 Directors)</FONT></B></P>
 <TABLE WIDTH="100%">
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&#160; </TD>
   <TD VALIGN="TOP" WIDTH="161"> <P ALIGN="CENTER"><FONT
   FACE="Arial" SIZE="-1">Served as
   <BR>
   Director
   <BR>
   <U>Since</U></FONT></P>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"> <P> <P><FONT
   FACE="Arial"><B>W. Lawrence Heisey, </B> age 69
   <BR>
   Chairman Emeritus of Harlequin Enterprises Ltd. of Toronto, Canada, a
     publishing company, since July 1990. Mr. Heisey was a Director of The
     Business Depot, Ltd. prior to its acquisition by Staples in August 1994.
     </FONT></P>
   </TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial">1994</FONT> </DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"><FONT
   FACE="Arial"><B>James L. Moody, Jr</B>., Lead Director, age 68</FONT>
   <BR>
   <FONT
   FACE="Arial">Chairman of the Board of Hannaford Bros. Co., a food retailer,
     from May 1984 until his retirement in May 1997. Mr. Moody is a Director of
     UNUM/Provident Corporation; IDEXX Laboratories, Inc.; Liberty Colonial
     Group of Mutual Funds and Empire Company Limited, a publicly traded
     Canadian company. </FONT> </TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial">1995</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"><FONT
   FACE="Arial"><B>Martin Trust</B>, age 65
   <BR>
   President and Chief Executive Officer of Mast Industries, Inc., a contract
     manufacturer, importer and wholesaler of women's apparel, and wholly-owned
     subsidiary of The Limited, Inc., since 1970. Mr. Trust is also a Director
     of The Limited, Inc. </FONT></TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial">1987</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"> <FONT
   FACE="Arial"><B>Paul F. Walsh</B>, age 50</FONT>
   <BR>
   <FONT
   FACE="Arial">Chairman and Chief Executive Officer of MaineStay Holdings, a
     private equity investment firm, since September 1998. In January 1999,
     MaineStay Holdings formed a partnership with Berkshire Partners and
     BancBoston Capital, two equity investment firms in Boston, resulting in
     the creation of iDEAL Partners, of which Mr. Walsh was named as Chairman
     and Chief Executive Officer. From February 1995 to September 1998, Mr.
     Walsh was President and Chief Executive Officer of Wright Express
     Corporation, an information and financial services company. From January
     1990 to January 1995, Mr. Walsh was Chairman of BancOne Investor Services
     Corporation, a financial services company. He is also a Director of
     Intelligent Controls, Inc. </FONT> </TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial">1990 </FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="975" COLSPAN="2"><B><FONT
   FACE="Arial">Directors Serving A Term Expiring At The 2002 Annual Meeting
     (Class 2 Directors)</FONT></B></TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial" SIZE="-1">Served as
   <BR>
   Director
   <BR>
   <U>Since</U></FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"><FONT
   FACE="Arial"><B>Mary Elizabeth Burton</B>, age 48</FONT>
   <BR>
   <FONT
   FACE="Arial">Chief Executive Officer of BB Capital, Inc., an investment and
     consulting company, since July 1992. Ms. Burton was Chief Executive
     Officer of the Cosmetic Center, Inc., a chain of 250 specialty retail
     stores from June 1998 to April 1999. Prior to joining the Cosmetic Center,
     Ms. Burton served as Chief Executive Officer of PIP Printing from July
     1991 to July 1992 and Supercuts, Inc. from September 1987 to June 1991.
     She is also a Director of The Sports Authority, Inc. </FONT></TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial, Helvetica, sans-serif">1993</FONT></DIV>
   </TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814">&nbsp;</TD>
   <TD VALIGN="TOP" WIDTH="161">&nbsp;</TD>
  </TR>
  <TR>
   <TD VALIGN="TOP" WIDTH="814"><B><FONT
   FACE="Arial, Helvetica, sans-serif">Rowland T. Moriarty</FONT></B><FONT
   FACE="Arial, Helvetica, sans-serif">, age 53
   <BR>
   Chairman and Chief Executive Officer of Cubex Corporation, a consulting
     company, since 1981. Mr. Moriarty was a professor at Harvard Business
     School from September 1982 to September 1992. He is also a Director of
     Trammel Crow Company and Charles River Associates, Inc.</FONT></TD>
   <TD VALIGN="TOP" WIDTH="161"> <DIV ALIGN="center"><FONT
   FACE="Arial, Helvetica, sans-serif">1986</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <P>&nbsp;</P>
 <TR>
  <TD VALIGN="TOP" WIDTH="814">
  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD WIDTH="82%"> <FONT
    FACE="Arial, Helvetica, sans-serif"><B>W. Mitt Romney</B>, age 53
    <BR>
    As of February 19, 1999, Mr. Romney became the President and Chief
      Executive Officer of the Salt Lake Olympic Committee. Mr. Romney has also
      been Chief Executive Officer of Bain Capital, Inc., a firm that manages
      certain venture capital funds, since May 1992. Mr. Romney has been a
      general partner and the managing partner of each of Bain Capital Partners
      and Bain Venture Capital, both general partners of venture capital
      limited partnerships, since September 1984 and October 1987,
      respectively. He served as Chief Executive Officer of Bain Company, Inc.,
      a &nbsp;management consulting firm, from 1991 to 1993. Mr. Romney is also
      a Director of Marriott International, Inc.</FONT></TD>
    <TD WIDTH="18%" VALIGN="top"> <DIV ALIGN="center"><FONT
    FACE="Arial, Helvetica, sans-serif">1986</FONT></DIV>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="82%">&nbsp;</TD>
    <TD WIDTH="18%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="82%"><FONT
    FACE="Arial"><B>Margaret C. Whitman</B>, age 43</FONT>
    <BR>
    <FONT
    FACE="Arial">President and Chief Executive Officer of eBay, Inc., an
      on-line auction company, since February 1998 and a Director since March
      1998. From January 1997 to February 1998, Ms. Whitman was General Manager
      of the Preschool Division of Hasbro, Inc. From February 1995 to December
      1996, Ms. Whitman was employed by FTD, Inc., most recently as President,
      Chief Executive Officer and a Director. From October 1992 to February
      1995, Ms. Whitman was employed by the The Stride Rite Corporation, in
      various capacities, including President, Stride &nbsp;&nbsp;Rite
      Children's Group and Executive Vice President, Product Development,
      Marketing &amp; Merchandising, Keds Division</FONT></TD>
    <TD WIDTH="18%" VALIGN="top"> <DIV ALIGN="center">1999</DIV>
    </TD>
   </TR>
  </TABLE>
  <P>&nbsp; </P>
  <P><B><FONT
  FACE="Arial">Board and Committee Meetings</FONT></B> </P>
  <P><FONT
  FACE="Arial">The Board of Directors has five standing committees: the Audit
    Committee, the Compensation Committee, the Corporate Governance Committee,
    the Executive Committee and the Capital Stock Committee.<B> </B>Committee
    membership as of the record date was as follows:</FONT></P>
  <UL>
  <TABLE WIDTH="80%" BORDER="0" ALIGN="center">
   <TR>
    <TD COLSPAN="2" VALIGN="top"><FONT
    FACE="Arial"><U>Audit Committee
    <BR>
    </U> Basil L. Anderson, Chairman
    <BR>
    Mary Elizabeth Burton </FONT>
    <BR>
    <FONT
    FACE="Arial">Paul F. Walsh </FONT></TD>
    <TD WIDTH="4%">&nbsp;</TD>
    <TD WIDTH="44%"><FONT
    FACE="Arial"><U>Compensation Committee</U>
    <BR>
    Martin Trust, Chairman
    <BR>
    W. Lawrence Heisey
    <BR>
    Robert C. Nakasone</FONT> <FONT
    FACE="Arial">
    <BR>
    </FONT><FONT
    FACE="Arial">Margaret C. Whitman </FONT></TD>
   </TR>
   <TR>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD WIDTH="4%">&nbsp;</TD>
    <TD WIDTH="44%">&nbsp;</TD>
   </TR>
   <TR>
    <TD COLSPAN="2" VALIGN="top"><FONT
    FACE="Arial"><U>Corporate Governance Committee</U>
    <BR>
    James L. Moody, Jr., Chairman
    <BR>
    George J. Mitchell
    <BR>
    Rowland T. Moriarty
    <BR>
    W. Mitt Romney</FONT> <FONT
    FACE="Arial"> </FONT></TD>
    <TD WIDTH="4%">&nbsp;</TD>
    <TD WIDTH="44%" VALIGN="top"><U><FONT
    FACE="Arial">Executive Committee</FONT></U>
    <BR>
    <FONT
    FACE="Arial">Robert C. Nakasone</FONT>
    <BR>
    <FONT
    FACE="Arial">W. Mitt Romney</FONT>
    <BR>
    <FONT
    FACE="Arial">Thomas G. Stemberg</FONT>
    <BR>
    </TD>
   </TR>
   <TR>
    <TD COLSPAN="2" VALIGN="top">&nbsp;</TD>
    <TD WIDTH="4%">&nbsp;</TD>
    <TD WIDTH="44%">&nbsp;</TD>
   </TR>
   <TR>
    <TD COLSPAN="2" VALIGN="top"><FONT
    FACE="Arial"><U>Capital Stock Committee</U></FONT>
    <BR>
    <FONT
    FACE="Arial">Basil L. Anderson</FONT>
    <BR>
    <FONT
    FACE="Arial">George J. Mitchell</FONT>
    <BR>
    <FONT
    FACE="Arial">James L. Moody, Jr.</FONT> </TD>
    <TD WIDTH="4%">&nbsp;</TD>
    <TD WIDTH="44%">&nbsp;</TD>
   </TR>
  </TABLE>
  <UL> <UL> <UL> <UL> <UL> <UL> </UL>
  </UL>
  </UL>
  </UL>
  </UL>
  </UL>
  </UL>
  <P><U><FONT
  FACE="Arial"> </FONT></U><FONT
  FACE="Arial">The Audit Committee provides the opportunity for direct contact
    between Staples' independent auditors and the Board. This Committee reviews
    the auditors' performance in the annual audit and in assignments unrelated
    to the audit, reviews auditors' fees, discusses Staples' internal
    accounting control policies and procedures and considers and recommends the
    selection of Staples' independent auditors. The Audit Committee met five
    times during the fiscal year ended January&#160;29, 2000. </FONT></P>
  <P><FONT
  FACE="Arial">The Compensation Committee sets the compensation levels of
    executive officers (subject to review by the Board of Directors), provides
    recommendations to the Board regarding compensation programs, administers
    Staples' equity incentive, stock purchase and other employee benefit plans
    and authorizes option and restricted stock grants under the Amended and
    Restated 1992 Equity Incentive </FONT></P>
  <P><FONT
  FACE="Arial">Plan and option grants under the 1997 United Kingdom Company
    Share Option Scheme. The Compensation Committee met four times during the
    fiscal year ended January 29, 2000. </FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial">The Corporate Governance Committee provides recommendations to
    the Board regarding nominees for Director, membership on the Board
    committees, and succession matters for the Chief Executive Officer. This
    Committee will consider Director nominees recommended by stockholders.
    Stockholders who wish to recommend nominees for Director should submit
    recommendations to the Secretary who will forward them to the Corporate
    Governance Committee for consideration. The Corporate Governance Committee
    met three times during the fiscal year ended January 29, 2000. </FONT></P>
  <P><FONT
  FACE="Arial">The Executive Committee of the Board of Directors is authorized,
    with certain exceptions, to exercise all of the powers of the Board in the
    management and affairs of Staples. It is intended that the Executive
    Committee shall take action only when reasonably necessary to expedite
    Staples' interests between regularly scheduled Board meetings. The
    Executive Committee did not meet during the fiscal year ended January 29,
    2000.</FONT></P>
  <P><FONT
  FACE="Arial">The Capital Stock Committee oversees the implementation of the
    cash management and allocation policies and inter-business arrangements,
    and when called upon by the Board assesses and advises the Board as to the
    fairness of matters that may have disparate impacts on holders of Staples
    RD Stock and Staples.com Stock. Any such decision will be made by the
    committee in good faith and in a manner consistent with its fiduciary
    duties to Staples and to all of Staples' common stockholders after giving
    fair consideration to the potentially divergent interests and all other
    relevant interests of the holders of the separate classes of Staples common
    stock, including the holders of Staples.com Stock. The Capital Stock
    Committee may call its own meetings or the Board of Directors may request
    the committee to meet. The Capital Stock Committee was formed in September
    1999 and did not meet during the fiscal year ended January 29,
    2000.</FONT></P>
  <P><FONT
  FACE="Arial">The Board of Directors met five times during the fiscal year
    ended January 29, 2000. During the fiscal year ended January 29, 2000, each
    incumbent Director attended at least 75% of the aggregate number of Board
    meetings and meetings of committees on which he or she then served.
    </FONT></P>
  <P><B><FONT
  FACE="Arial">Director Compensation</FONT></B></P>
  <P><FONT
  FACE="Arial">Under the Amended and Restated 1990 Director Stock Option Plan
    (the &quot;Amended and Restated Director Plan&quot;) during the fiscal year
    ended January 29, 2000, Directors were compensated exclusively through
    equity rather than receiving a portion of their compensation in cash.
    Accordingly, other than as indicated below and for reimbursement for
    expenses incurred in attending meetings of the Directors, non-employee
    Directors (&quot;Outside Directors&quot;) did not receive any fees or other
    cash compensation for their services as Directors. Senator Mitchell
    provides consulting services to the Company in return for an annual fee of
    $75,000, which during the fiscal year ended January 29, 2000 the Company
    paid to Senator Mitchell in Staples RD Stock. <B> </B></FONT></P>
  <P><FONT
  FACE="Arial">Under the Amended and Restated Director Plan, options and
    Performance Accelerated Restricted Stock (&quot;PARS&quot;) awards may be
    granted with respect to either Staples RD Stock or Staples.com Stock, or a
    combination of both series, as determined in the sole discretion of the
    Board of Directors. Each new member of the Board of Directors is granted an
    option to purchase 15,000 shares of common stock upon such person's initial
    election to the Board. The Amended and Restated Director Plan also provides
    for an annual stock option grant to each Outside Director to purchase a
    number of shares of common stock equal to 3,000 multiplied by the number of
    regularly scheduled meeting days attended by such Outside Director during
    the preceding year (up to a maximum of 15,000 shares). In addition, at the
    first regularly scheduled Board of Directors meeting following the end of
    each fiscal year of the Company in which performance targets are
    established relating to PARS awarded to executive officers of the Company,
    each Outside Director is granted 400 PARS for each regularly scheduled
    meeting day attended by such Director during the preceding year (up to a
    maximum of 2,000 PARS); and each of the Lead Director and the Chairman of
    the Audit, Compensation and Governance Committees of </FONT></P>
  <P><FONT
  FACE="Arial">the Board of Directors is granted 200 PARS of common stock for
    each regularly scheduled meeting day of the Board of Directors attended by
    such Director during the previous twelve months (up to a maximum of 1,000
    PARS).</FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial">With respect to the fiscal year ended January 29, 2000 and in
    accordance with the Amended and Restated Director Plan, on March 7, 2000,
    each of Ms. Burton and Messrs. Anderson, Heisey, Moriarty, Nakasone, Trust
    and Walsh was granted an option to purchase 15,000 shares of Staples RD
    Stock; each of Messrs. Mitchell, Moody and Romney was granted an option to
    purchase 12,000 shares of Staples RD Stock; and Ms. Whitman was granted an
    option to purchase 9,000 shares of Staples RD Stock, each at an exercise
    price of $19.375</FONT><FONT
  FACE="Arial" COLOR="#0000ff"> </FONT><FONT
  FACE="Arial">per share. Pursuant to the Amended and Restated Director Plan,
    at the next Board of Directors meeting in which performance targets are
    established relating to PARS, the following will be awarded: Mr. Moody will
    be awarded 3,200 PARS of Staples RD Stock; Mr. Anderson will be awarded
    3,000 PARS of Staples RD Stock; Mr. Trust will be awarded 2,600 PARS of
    Staples RD Stock; Mr. Nakasone will be awarded 2,400 PARS of Staples RD
    Stock; Ms. Burton and Messrs. Heisey, Moriarty and Walsh will each be
    awarded 2,000 PARS of Staples RD Stock; Senator Mitchell and Mr. Romney
    will each be awarded 1,600 PARS of Staples RD Stock and Ms. Whitman will be
    awarded 1,200 PARS of Staples RD Stock. In addition, on March 7, 2000, the
    Board of Directors approved amendments to the Amended and Restated Director
    Plan, which, upon stockholder approval, will entitle the Outside Directors
    to receive options to purchase Staples.com Stock. Accordingly, upon
    stockholder approval of such amendments, each of Ms. Burton and Messrs.
    Anderson, Heisey, Moriarty, Nakasone, Trust and Walsh will be granted an
    option to purchase 3,250 shares of Staples.com Stock; Messrs. Mitchell,
    Moody and Romney will each be granted an option to purchase 2,600 shares of
    Staples.com Stock; and Ms. Whitman will be granted an option to purchase
    1,950 shares of Staples.com Stock. </FONT></P>
  <P><FONT
  FACE="Arial">All stock options under the Amended and Restated Director Plan
    are granted at an exercise price equal to the fair market value of the
    Common Stock on the date of grant. Options to purchase Staples RD Stock
    generally become exercisable on a cumulative basis in four equal annual
    installments, commencing on the first anniversary of the date of grant.
    Options to purchase Staples.com Stock are exercisable in full on the date
    of grant and, prior to vesting, are subject to repurchase by the Company at
    a price equal to the exercise price. The shares are restricted by the
    following vesting schedule: 25% of such shares will vest one year after the
    date of grant and the remaining 75% of such shares will vest in equal
    monthly installments (2.083% per month) over the following 36 months,
    provided that the optionee continues to serve as a Director of Staples on
    such dates.</FONT></P>
  <P><FONT
  FACE="Arial">Recipients of PARS own shares of Staples RD Stock under terms
    that provide for vesting over a period of time and a right to repurchase in
    favor of the Company with respect to unvested stock, at a price equal to
    their original purchase price (if any), when the recipient ceases to be a
    Director of the Company. Except as otherwise determined by the Board of
    Directors, all PARS issued under the Amended and Restated Director Plan
    shall be issued without the payment of any cash purchase price by the
    recipient. The restrictions on transfer and forfeiture provisions of the
    PARS to be granted to the Outside Directors will lapse on the same basis as
    PARS awarded to the Company's executive officers for the fiscal year ended
    January 29, 2000. &quot;See &quot;Executive Compensation - Performance
    Accelerated Restricted Stock Awards&quot;.</FONT></P>
  <P></P>
  <P><B><FONT
  FACE="Arial">Executive Officers</FONT></B></P>
  <UL> <P><FONT
  FACE="Arial">In addition to Messrs. Stemberg and Sargent, the following are
    the executive officers of Staples:</FONT></P>
  </UL>
  <P><FONT
  FACE="Arial"><B>John C. Bingleman</B>, age 57
  <BR>
  Mr. Bingleman has served as President - Staples International since February
    1997. Prior to that he was President - North American Superstores from
    August 1994 to February 1997. Mr. Bingleman was President of The Business
    Depot, Ltd. from its founding in 1990 until its acquisition by Staples in
    August 1994. Mr. Bingleman announced his retirement effective June 30,
    2000.</FONT></P>
  <P><FONT
  FACE="Arial"><B>David B. Crosier</B>, age 50
  <BR>
  Mr. Crosier has served as Executive Vice President - Supply Chain Management
    since June 1998. Prior to that he was Vice President, Logistics for A.W.
    Chesterton from April 1994 to May 1998. From December 1973 to March 1994,
    he was with Digital Equipment Corporation where he served in a variety of
    roles, most recently as Group Business Manager.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Joseph G. Doody</B>, age 47
  <BR>
  Mr. Doody has served as President - Staples Contract &amp; Commercial since
    November 1998. Prior to joining Staples, Mr. Doody was Vice President of
    Sutherland Group, a call center outsourcing company from January 1998 to
    November 1998. From January 1997 to September 1997, Mr. Doody served as
    President, North American Office Imaging of Danka, P.L.C. From December
    1992 to December 1996, Mr. Doody was with Eastman Kodak Company where he
    served as General Manager and Vice President Office Imaging.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Deborah G. Ellinger,</B> age 41
  <BR>
  Ms. Ellinger has served as Senior Vice President - Strategic Planning &amp;
    New Business Development since June 1999. Prior to joining Staples, Ms.
    Ellinger was a Partner at The Boston Consulting Group from 1990 to 1999,
    where she focused on strategy development for Fortune 500
    companies.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Richard R. Gentry</B>, age 50
  <BR>
  Mr. Gentry has served as Executive Vice President - Merchandising since
    February 1996. Prior to joining Staples, Mr. Gentry was with Lechmere, Inc.
    from 1987 to January 1996 where he served as Executive Vice President
    Merchandising from 1993 to January 1996.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Edward C. Harsant</B>, age 55
  <BR>
  Mr. Harsant has served as President - The Business Depot since January 1995.
    Prior to joining Staples, Mr. Harsant was with K-Mart Corp. where he served
    as Vice President Merchandise from October 1991 to December 1994.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Patrick Hickey</B>, age 42
  <BR>
  Mr. Hickey has served as Senior Vice President - Corporate Controller since
    November 1999. Prior to that he served in various capacities since joining
    Staples in October 1994, including Vice President and Treasurer from
    September 1997 to November 1999, Vice President - Financial Planning,
    Analysis &amp; Reporting from January 1996 to September 1997 and Director
    of Financial Planning from October 1994 to January 1996.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Susan S. Hoyt</B>, age 56
  <BR>
  Ms. Hoyt has served as Executive Vice President - Human Resources since July
    1996. Prior to joining Staples, Ms. Hoyt was with Dayton Hudson Department
    Stores, a clothing retailer in Minneapolis, Minnesota, where she served as
    Executive Vice President of Store Operations from 1993 to 1996.</FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial"><B>Jeffrey L. Levitan</B>, age 45
  <BR>
  Mr. Levitan has served as Executive Vice President - Strategy/Business
    Development for Staples.com since September 1999. Prior to that he served
    as Senior Vice President - Strategy, New Business Development and
    Staples.com from November 1998 to September 1999 and as Senior Vice
    President - Strategic Planning and Business Development from August 1996 to
    November 1998. From 1988 to 1996, he was </FONT><FONT
  FACE="Arial">with The Boston Consulting Group where he served as a strategic
    management consultant. </FONT></P>
  <P><FONT
  FACE="Arial"><B>Jacques Levy</B>, age 50
  <BR>
  Mr. Levy has served as President - Staples International since April 2000.
    Prior to joining Staples, Mr. Levy was with Walt Disney Company where he
    served in a variety of capacities beginning in 1995, including Vice
    President of Stores, The Disney Store Europe from March 1995 to March 1997,
    Vice President and General Manager, Global Franchise The Disney Store, Inc.
    from March 1997 to September 1998 and Vice President Retail Business
    Development, Disney Consumer Products from October 1998 to February
    2000.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Jeanne B. Lewis</B>, age 36
  <BR>
  Ms. Lewis has served as President - Staples.com since September 1999. Prior
    to that she served in various capacities since joining Staples in April
    1993, including Executive Vice President - Marketing from November 1998 to
    September 1999, Senior Vice President - Marketing &nbsp;&nbsp;from February
    1998 to November 1998, Senior Vice President - Marketing and Small Business
    from April 1997 to February 1998, Vice President/Divisional Merchandise
    Manager from 1996 to April 1997, Director of Operations and Director of
    Sales and Marketing from 1994 to 1996.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Brian T. Light</B>, age 36
  <BR>
  Mr. Light has served as Executive Vice President and Chief Information
    Officer since February 2000. Prior to that he served as Senior Vice
    President and Chief Information Officer from February 1998 to February
    2000. From 1986 to January 1998, he was an associate partner at Andersen
    Consulting where he served as a business and technology
    consultant.</FONT></P>
  <P><FONT
  FACE="Arial"><B>John J. Mahoney</B>, age 48
  <BR>
  Mr. Mahoney has served as Executive Vice President, Chief Administrative
    Officer and Chief Financial Officer since October 1997. Prior to that he
    was Executive Vice President and Chief Financial Officer from September
    1996 to October 1997. From June 1996 to August 1996, Mr. Mahoney was
    Executive Vice President and Chief Financial Officer at Hill, Holliday,
    Connors, Cosmopulos, an advertising agency. Prior to joining Hill,
    Holliday, Mr. Mahoney was a partner with Ernst &amp; Young LLP, where he
    served in various capacities in its accounting and auditing groups from
    1975 to June 1996. </FONT></P>
  <P><FONT
  FACE="Arial"><B>Robert J. Moore</B>, age 43
  <BR>
  Mr. Moore has served as Executive Vice President - Marketing since November
    1999. Prior to joining Staples, Mr. Moore was with Bausch &amp; Lomb
    Incorporated where he served in a variety of capacities beginning in 1989,
    including Global Vice President of Business Strategy &amp; Marketing,
    Sunglasses from October 1996 to October 1999 and President, U.S. Health
    Care from April 1993 to October 1996.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Lawrence J. Morse, </B>age 50
  <BR>
  Mr. Morse has served as President - Quill Corporation since February 2000.
    Previously he served as Senior Vice President of Operations - Quill
    Corporation from November 1998 to January 2000 and Vice President of
    Operations - Quill Corporation from June 1989 to November 1998. </FONT></P>
  <P><FONT
  FACE="Arial"><B>James C. Peters</B>, age 38
  <BR>
  Mr. Peters has served as President - U.S. Stores since March 1998. Previously
    he served as Executive Vice President - U.S. Stores from September 1997 to
    March 1998. Prior to joining Staples, Mr. Peters was with Office Depot,
    Inc. where he served as Senior Vice President, Western Division from 1993
    to September 1997.</FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial"><B>Jack A. VanWoerkom</B>, age 46
  <BR>
  Mr. VanWoerkom has served as Senior Vice President, General Counsel and
    Secretary since March 1999. Prior to that he served as General Counsel of
    Teradyne, Inc. from January 1998 to March 1999. From January 1994 to June
    1997, Mr. VanWoerkom was Chief Legal Counsel, Vice President of Development
    and Managing Director of Europe for A.W. Chesterton.</FONT></P>
  <P><FONT
  FACE="Arial"><B>Joseph S. Vassalluzzo</B>, age 52
  <BR>
  Mr. Vassalluzzo has served as Vice Chairman since December 1999. Prior to
    that he served in various capacities since joining Staples in September
    1989, including President, Realty and Development from October 1997 to
    December 1999, President - Staples Realty from September 1996 to October
    1997, Executive Vice President - Growth and Development from November 1993
    to September 1996, and Executive Vice President - Growth and Support
    Services from April 1993 to November 1993.</FONT></P>
  <P><FONT
  FACE="Arial">Staples' Chairman of the Board of Directors and all other
    executive officers are elected annually by the Board of Directors and serve
    at the discretion of the Board. No family relationships exist between any
    of the executive officers or Directors of Staples. </FONT></P>
  <P><FONT
  FACE="Arial"><B>Executive Compensation
  <BR>
  </B> <I>Summary Compensation</I></FONT></P>
  <P><FONT
  FACE="Arial">The following table sets forth certain information concerning
    the compensation for each of the last three fiscal years of Staples' Chief
    Executive Officer and the four other most highly compensated executive
    officers during the fiscal year ended January 29, 2000 (the &quot;Senior
    Executives&quot;). </FONT></P>
  <P>
  <TABLE>
   <TR>
    <TD WIDTH="129"></TD>
    <TD WIDTH="52"></TD>
    <TD WIDTH="63"></TD>
    <TD WIDTH="26"></TD>
    <TD WIDTH="63"></TD>
    <TD WIDTH="74"></TD>
    <TD WIDTH="40"></TD>
    <TD WIDTH="4"></TD>
    <TD WIDTH="74"></TD>
    <TD WIDTH="26"></TD>
    <TD WIDTH="82"></TD>
    <TD WIDTH="4"></TD>
    <TD WIDTH="100"></TD>
    <TD WIDTH="39"></TD>
    <TD WIDTH="1"></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" COLSPAN="15" HEIGHT="24"> <DIV ALIGN="center"><B><FONT
    FACE="Arial">SUMMARY COMPENSATION TABLE</FONT></B></DIV>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="52">&#160; </TD>
    <TD COLSPAN="3" VALIGN="TOP"> <P><FONT
    FACE="Arial" SIZE="-1">Annual Compensation (1)</FONT></P>
    </TD>
    <TD COLSPAN="10" VALIGN="TOP"> <P><FONT
    FACE="Arial" SIZE="-1">Long Term Compensation</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1">Name and Principal
    <BR>
    Position</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Fiscal
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">Year</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Salary ($)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26"> <DIV ALIGN="center">&#160; </DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Bonus
    <BR>
    ($) (2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" COLSPAN="3"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Restricted Stock
    <BR>
    Awards ($) (3) </FONT></P>
    </TD>
    <TD VALIGN="TOP" COLSPAN="2"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Staples RD
    <BR>
    Stock Options
    <BR>
    (#) (3)</FONT></P>
    </TD>
    <TD VALIGN="TOP" COLSPAN="2"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">Staples.com
    <BR>
    Stock Options
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(#)(4)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">All Other
    <BR>
    Compensation
    <BR>
    ($) </FONT><FONT
    FACE="Arial" SIZE="-1">(5)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="52"> <DIV ALIGN="center">&#160; </DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="63">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="74">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="40">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129" HEIGHT="71"> <P><FONT
    FACE="Arial" SIZE="-1">Thomas G. Stemberg
    <BR>
    &nbsp;&nbsp;Chairman &amp; CEO</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52" HEIGHT="71"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1999
    <BR>
    1998
    <BR>
    1997 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63" HEIGHT="71"> <P ALIGN="right"><FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">682,083
    <BR>
    645,883
    <BR>
    587,500</FONT> </P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26" HEIGHT="71"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63" HEIGHT="71"> <P ALIGN="right"><FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">525,147
    <BR>
    673,556
    <BR>
    446,172 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74" HEIGHT="71"> <P ALIGN="right"><FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">2,075,000
    <BR>
    2,606,250
    <BR>
    1,543,434 </FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40" HEIGHT="71"> <P>&nbsp;&nbsp;<FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">(6)
    <BR>
    &nbsp;&nbsp;(7)
    <BR>
    &nbsp;&nbsp;(8) </FONT></P>
    <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4" HEIGHT="71"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74" HEIGHT="71"> <P ALIGN="right"><FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">300,000
    <BR>
    2,400,000
    <BR>
    360,000 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26" HEIGHT="71"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="82" HEIGHT="71"> <P ALIGN="center"><FONT
    SIZE="-1" FACE="Arial, Helvetica, sans-serif">1,064,560
    <BR>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
    <BR>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4" HEIGHT="71"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="100" HEIGHT="71"> <P ALIGN="right"><FONT
    FACE="Arial, Helvetica, sans-serif" SIZE="-1">22,844
    <BR>
    17,769
    <BR>
    13,924 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39" HEIGHT="71">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1" HEIGHT="71">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="52">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="63">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="63">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74">&nbsp;</TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1">Ronald L. Sargent
    <BR>
    &nbsp;&nbsp;President &amp; Chief
    <BR>
    &nbsp;&nbsp;Operating Officer </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1999
    <BR>
    1998
    <BR>
    1997 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">522,917
    <BR>
    449,083
    <BR>
    392,084 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">322,078
    <BR>
    349,261
    <BR>
    218,235 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">1,556,250
    <BR>
    1,282,032
    <BR>
    1,005,552</FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"> <P><FONT
    SIZE="-1" FACE="Arial,">&nbsp;&nbsp;(9)
    <BR>
    (10)
    <BR>
    (11) </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">225,000
    <BR>
    1,361,250
    <BR>
    375,000 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">548,420
    <BR>
    -
    <BR>
    - </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">31,934
    <BR>
    32,193
    <BR>
    29,583 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1">John J. Mahoney
    <BR>
    &nbsp;&nbsp;Exec. Vice &nbsp;President,
    <BR>
    &nbsp; &nbsp;Chief &nbsp;Financial </FONT><FONT
    FACE="Arial" SIZE="-1">Officer, &amp;
    <BR>
    &nbsp;&nbsp;&nbsp;Chief Administrative
    <BR>
    &nbsp;&nbsp;&nbsp;Officer </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1999
    <BR>
    1998
    <BR>
    1997 </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">463,000
    <BR>
    439,250
    <BR>
    395,834 </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">261,413
    <BR>
    335,880
    <BR>
    220,160 </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">933,750
    <BR>
    1,172,813
    <BR>
    1,033,614</FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" ALIGN="left" WIDTH="40"> <P><FONT
    SIZE="-1" FACE="Arial,">(12)
    <BR>
    (13)
    <BR>
    (14) </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">90,000
    <BR>
    585,000
    <BR>
    330,000 </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="82"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">319,368 </FONT>
    <BR>
    <FONT
    FACE="Arial" SIZE="-1">-</FONT>
    <BR>
    <FONT
    FACE="Arial" SIZE="-1">-</FONT> </P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="100"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">41,876
    <BR>
    42,848
    <BR>
    35,553 </FONT></P>
    </TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" HEIGHT="97" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1">Joseph S. Vassalluzzo
    <BR>
    &nbsp;&nbsp;Vice Chairman</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1999
    <BR>
    1998
    <BR>
    1997 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">463,000
    <BR>
    439,250
    <BR>
    391,250 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">261,413
    <BR>
    325,636
    <BR>
    198,007 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">933,750
    <BR>
    1,064,202
    <BR>
    776,394</FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"> <P><FONT
    SIZE="-1" FACE="Arial">(15)
    <BR>
    (16)
    <BR>
    (17) </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">90,000
    <BR>
    585,000
    <BR>
    220,312 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">319,368
    <BR>
    -
    <BR>
    - </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">46,947
    <BR>
    48,150
    <BR>
    43,774 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&#160; </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="26">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1"> </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="39">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="1">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="129"> <P><FONT
    FACE="Arial" SIZE="-1">John C. Bingleman
    <BR>
    &nbsp;&nbsp;President - Staples
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;International </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="52"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1999
    <BR>
    1998
    <BR>
    1997 </FONT></P>
    <P ALIGN="center">&nbsp;</P>
    </TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">428,292
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">410,735
    <BR>
    385,883</FONT></P>
    <P ALIGN="RIGHT"></P>
    </TD>
    <TD VALIGN="top" ALIGN="left" HEIGHT="28" WIDTH="26"> <FONT
    FACE="Arial" SIZE="-1">
    <BR>
    <BR>
    (20) </FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT></TD>
    <TD VALIGN="TOP" WIDTH="63"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">225,865
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">311,889
    <BR>
    215,555 </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="right"><FONT
    FACE="Arial" SIZE="-1"> - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">5,460,947
    <BR>
    -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="40"> <P><FONT
    SIZE="-1" FACE="Arial">
    <BR>
    (18)
    <BR>
    (21) </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="74"> <P ALIGN="right"><FONT
    FACE="Arial" SIZE="-1"> -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">450,000
    <BR>
    -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="26"> <P>
    <BR>
    <FONT
    SIZE="-1">
    <BR>
    </FONT><FONT
    SIZE="-1" FACE="Arial">(21) </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="82"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1"> -
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">-
    <BR>
    - </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="4">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="100"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">51,966
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">150,152
    <BR>
    56,976 </FONT></P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="39"> <P><FONT
    FACE="Arial">
    <BR>
    <FONT
    SIZE="-1">(19)
    <BR>
    </FONT></FONT><FONT
    SIZE="-1" FACE="Arial"></FONT> </P>
    </TD>
    <TD VALIGN="TOP" ALIGN="left" WIDTH="1">&nbsp;</TD>
   </TR>
  </TABLE>

  <BR>
  <P><FONT
  FACE="Arial" SIZE="-1">(1) In accordance with the rules of the Securities and
    Exchange Commission, other compensation in the form of perquisites and
    other personal benefits has been omitted because such perquisites and other
    personal benefits constituted less than the lesser of $50,000 or 10% of the
    total annual salary and bonus for the Senior Executive for each year
    shown.</FONT></P>
  <P><FONT
  FACE="Arial" SIZE="-1"></FONT></P>
  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD WIDTH="3%" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">(2) </FONT></P>
    </TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Represents amounts paid under Staples' Executive
      Officer Incentive plan or executive bonus plan for the relevant fiscal
      year.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">(3) </FONT></P>
    </TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Amounts reflect the three-for-two stock splits
      effected on January 30, 1998 and January 28, 1999, as
      applicable</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">(4) </FONT></P>
    </TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">All amounts reflect a recapitalization effected
      through a one-for-two reverse stock split approved by the Board on March
      7, 2000 and effective on April 5, 2000.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">(5) </FONT></P>
    </TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1"> Except as noted below, represents an actuarial
      equivalent benefit to the Senior Executive from payment of annual
      premiums by the Company under a split dollar insurance program. Because
      of differences in Mr. Stemberg's insurance policy, Mr. Stemberg's benefit
      is calculated using a method that, at this time, results in a lower
      benefit. </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(6) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1999, Mr. Stemberg was awarded 100,000
      shares of PARS with a per share value of $20.75. As of January 29, 2000,
      these restricted shares owned by Mr. Stemberg had a total value of
      $2,150,000. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(7) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1998, Mr. Stemberg was awarded 150,000
      shares of PARS with a per share value of $17.375. As of January 29, 2000,
      these restricted shares owned by Mr. Stemberg had a total value of
      $3,225,000. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(8) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1997, Mr. Stemberg was awarded 123,750
      shares of PARS with a per share value of $12.4722. As of May 1, 1999,
      these shares were no longer restricted and had a total value of
      $3,712,500. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26">&nbsp;</TD>
    <TD WIDTH="97%" HEIGHT="26">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(9) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1999, Mr. Sargent was awarded 75,000
      shares of PARS with a per share value of $20.75. As of January 29, 2000,
      these restricted shares owned by Mr. Sargent had a total value of
      $1,612,500. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(10)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1998, Mr. Sargent was awarded 67,500
      shares of PARS with a per share value of $17.375. On January 1, 1999, Mr.
      Sargent was awarded 3,750 shares of PARS with a per share value of
      $29.125. As of January 29, 2000, these restricted shares owned by Mr.
      Sargent had a combined total value of $1,531,875. See &quot;Performance
      Accelerated Restricted Stock Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(11) </FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1997, Mr. Sargent was awarded 80,623
      shares of PARS with a per share value of $12.4722. As of May 1, 1999,
      these shares were no longer restricted </FONT><FONT
    FACE="Arial" SIZE="-1">and had a total value of $2,418,690. See
      &quot;Performance Accelerated Restricted Stock Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(12) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1"> On October 1, 1999, Mr. Mahoney was awarded 45,000
      shares of PARS with a per share value of $20.75. As of January 29, 2000,
      these restricted shares owned by Mr. Mahoney had a total value of
      $967,500. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(13)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1998, Mr. Mahoney was awarded 67,500
      shares of PARS with a per share value of $17.375. As of January 29, 2000,
      these restricted shares owned by Mr. Mahoney had a total value of
      $1,451,250. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(14)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1997, Mr. Mahoney was awarded 82,873
      shares of PARS with a per share value of $12.4722. As of May 1, 1999,
      these shares were no longer restricted and had a total value of
      $2,486,190. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(15)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1999, Mr. Vassalluzzo was awarded
      45,000 shares of PARS with a per share value of $20.75. As of January 29,
      2000, these restricted shares owned by Mr. Vassalluzzo had a total value
      of $967,500. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(16)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1998, Mr. Vassalluzzo was awarded
      61,249 shares of PARS with a per share value of $17.375. As of January
      29, 2000, these restricted shares owned by Mr. Vassalluzzo had a total
      value of $1,316,854. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot;</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(17)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">On October 1, 1997, Mr. Vassalluzzo was awarded
      62,250 shares of PARS with a per share value of $12.4722. As of May 1,
      1999, these shares were no longer restricted and had a total value of
      $1,867,500. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot;</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26">&nbsp;</TD>
    <TD WIDTH="97%" HEIGHT="26">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(18)</FONT></TD>
    <TD WIDTH="97%" HEIGHT="26"><FONT
    FACE="Arial" SIZE="-1"> On September 1, 1998, Mr. Bingleman was awarded
      281,250 shares of PARS with a per share value of $19.4167. As of January
      29, 2000, these restricted shares owned by Mr. Bingleman had a total
      value of $6,046,875. See &quot;Performance Accelerated Restricted Stock
      Awards.&quot; </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26" VALIGN="top">&nbsp;</TD>
    <TD WIDTH="97%" HEIGHT="26">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(19)</FONT></TD>
    <TD WIDTH="97%" HEIGHT="26" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">Includes reimbursement of $95,886 for relocation
      expenses.</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26" VALIGN="top">&nbsp;</TD>
    <TD WIDTH="97%" HEIGHT="26">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" HEIGHT="26" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(20)</FONT></TD>
    <TD WIDTH="97%" HEIGHT="26" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">Includes payment of $25,420 paid to Mr. Bingleman by
      Staples' Canadian subsidiary, The Business Depot, Ltd.</FONT></TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial" SIZE="-1"> </FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(21) Mr. Bingleman was not granted options or PARS
    during fiscal 1997 as a result of his assumption of new responsibilities
    for international operations. Staples developed a long-term compensation
    strategy for certain international executives, including Mr. Bingleman,
    that was implemented during fiscal 1998.</FONT></P>
  <P><I><FONT
  FACE="Arial">Performance Accelerated Restricted Stock (&quot;PARS&quot;)
    Awards</FONT></I></P>
  <P><FONT
  FACE="Arial">In order to maintain Staples' high risk-high reward philosophy,
    the Compensation Committee adopted, as part of the Amended and Restated
    1992 Equity Incentive Plan, a PARS plan (the &quot;Plan&quot;) for certain
    key executives. Under the Plan, shares of Staples RD Stock are granted to
    executives in consideration for services. The shares are
    &quot;restricted&quot; in that they may not be sold or transferred by the
    executive until they &quot;vest.&quot; Staples' PARS issued in fiscal 1999
    will vest on February 1, 2004 subject to acceleration upon achievement of
    certain pre-determined earnings per share (&quot;EPS&quot;) growth targets
    over the next two to five fiscal years. Staples' PARS issued in fiscal 1998
    vested on May 18, 2000 as a result of Staples exceeding EPS targets for
    fiscal 1999. Staples' PARS that were issued in fiscal 1997 vested on May 1,
    1999 as a result of Staples exceeding target EPS for such PARS for fiscal
    1998. EPS growth targets are determined by the Compensation Committee and
    approved by the Board of Directors each year for grants under the Plan in
    that year. Once the PARS have vested, they become &quot;unrestricted&quot;
    and may be freely sold or transferred. Generally, the PARS are forfeited if
    the executive's employment with Staples terminates prior to
    vesting.</FONT></P>
  <P><B><I><FONT
  FACE="Arial">Option Grants</FONT></I></B></P>
  <UL> <P><FONT
  FACE="Arial">The following table sets forth certain information concerning
    grants of stock options during the fiscal year ended January 29, 2000 for
    each of the Senior Executives.</FONT></P>
  </UL>
  <P ALIGN="CENTER"><B><FONT
  FACE="Arial">OPTION GRANTS IN LAST FISCAL YEAR</FONT></B></P>
  <P>
  <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
   <TR>
    <TD WIDTH="27%"></TD>
    <TD WIDTH="16%"></TD>
    <TD WIDTH="13%"></TD>
    <TD WIDTH="16%"></TD>
    <TD WIDTH="12%"></TD>
    <TD WIDTH="16%"></TD>
   </TR>
   <TR>
    <TD COLSPAN="2" VALIGN="TOP"> <DIV ALIGN="center"><B><U></U></B></DIV>
    </TD>
    <TD VALIGN="TOP" COLSPAN="2"> <BLOCKQUOTE> <P><B><U><FONT
    FACE="Arial" SIZE="-1">Individual Grants</FONT></U></B></P>
    </BLOCKQUOTE>
    </TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD COLSPAN="6" VALIGN="TOP"> <P><B><U></U></B></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="bottom" WIDTH="27%"> <P><B><U><FONT
    FACE="Arial" SIZE="-1">Name</FONT></U></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="16%"> <B><FONT
    FACE="Arial" SIZE="-1">Number of
    <BR>
    Options
    <BR>
    </FONT></B><B><U><FONT
    FACE="Arial" SIZE="-1">Granted (1)</FONT></U></B> </TD>
    <TD VALIGN="bottom" WIDTH="13%"> <P><B><FONT
    FACE="Arial" SIZE="-1">Percent of
    <BR>
    Total
    <BR>
    Options
    <BR>
    Granted to
    <BR>
    Employees
    <BR>
    in Fiscal<U>
    <BR>
    Year</U></FONT></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="16%"> <P><B><FONT
    FACE="Arial" SIZE="-1">Exercise
    <BR>
    Price per<U>
    <BR>
    Share (3)</U></FONT></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="12%"> <P><B><FONT
    FACE="Arial" SIZE="-1">Expiration
    <BR>
    <U>Date</U></FONT></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="16%"> <P><B><FONT
    FACE="Arial" SIZE="-1">Grant Date
    <BR>
    </FONT></B><B><U><FONT
    FACE="Arial" SIZE="-1">Present Value (4)</FONT></U></B></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;</TD>
    <TD VALIGN="bottom" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="middle" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1">Thomas G. Stemberg </FONT></TD>
    <TD VALIGN="bottom" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="middle" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1"> &nbsp;&nbsp;Staples RD Stock </FONT></TD>
    <TD VALIGN="bottom" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;300,000</FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT></TD>
    <TD VALIGN="middle" WIDTH="13%"><FONT
    FACE="Arial" SIZE="-1">4.33%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$30.9375</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;7/1/2009</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$2,784,000</FONT></TD>
   </TR>
   <TR VALIGN="top">
    <TD WIDTH="27%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%" VALIGN="top"> <FONT
    FACE="Arial" SIZE="-1">1,064,560 (2)</FONT></TD>
    <TD WIDTH="13%"> <FONT
    FACE="Arial" SIZE="-1">8.42%</FONT></TD>
    <TD WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$ 3.25</FONT></TD>
    <TD WIDTH="12%"> <P><FONT
    FACE="Arial" SIZE="-1">11/9/2009</FONT></P>
    </TD>
    <TD WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$1,064,560</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1">Ronald L. Sargent </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;225,000</FONT></TD>
    <TD VALIGN="TOP" WIDTH="13%"><FONT
    FACE="Arial" SIZE="-1">3.25%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$30.9375</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;7/1/2009</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$2,088,000</FONT></TD>
   </TR>
   <TR VALIGN="top">
    <TD WIDTH="27%"> <P><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;548,420 (2)</FONT></TD>
    <TD WIDTH="13%"><FONT
    FACE="Arial" SIZE="-1">4.34%</FONT></TD>
    <TD WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$ 3.25</FONT></TD>
    <TD WIDTH="12%"><FONT
    FACE="Arial" SIZE="-1">11/9/2009</FONT></TD>
    <TD WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$<FONT
    COLOR="#FFFFFF"> &nbsp;&nbsp;</FONT>548,420</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1">John J. Mahoney</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,000</FONT></TD>
    <TD VALIGN="TOP" WIDTH="13%"><FONT
    FACE="Arial" SIZE="-1">1.30%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$30.9375</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;7/1/2009</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">$ &nbsp;&nbsp;835,200</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"> <P>&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;319,368 (2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="13%"> <FONT
    FACE="Arial" SIZE="-1">2.53%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$ 3.25</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%"> <P><FONT
    FACE="Arial" SIZE="-1">11/9/2009</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$<FONT
    COLOR="#FFFFFF"> &nbsp; </FONT>319,368</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1">Joseph S.&nbsp;Vassalluzzo </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%" HEIGHT="15">&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="15"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,000</FONT></TD>
    <TD VALIGN="TOP" WIDTH="13%" HEIGHT="15"><FONT
    FACE="Arial" SIZE="-1">1.30%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="15"><FONT
    FACE="Arial" SIZE="-1">$30.9375</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%" HEIGHT="15"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;7/1/2009</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="15"><FONT
    FACE="Arial" SIZE="-1">$&nbsp;&nbsp; 835,200</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"> <P>&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples.com Stock</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;319,368 (2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="13%"> <FONT
    FACE="Arial" SIZE="-1">2.53%</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$ 3.25</FONT></TD>
    <TD VALIGN="TOP" WIDTH="12%"> <P><FONT
    FACE="Arial" SIZE="-1">11/9/2009</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <FONT
    FACE="Arial" SIZE="-1">$&nbsp;&nbsp; 319,368</FONT></TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%"><FONT
    FACE="Arial" SIZE="-1">John C. Bingleman </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="13%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="12%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="27%" HEIGHT="21">&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="21"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="13%" HEIGHT="21"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="21"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="12%" HEIGHT="21"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%" HEIGHT="21"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
   </TR>
   <TR VALIGN="bottom">
    <TD WIDTH="27%"> <P><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD WIDTH="13%"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD WIDTH="16%"> <P ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></P>
    </TD>
    <TD WIDTH="12%"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
    <TD WIDTH="16%"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;-</FONT></DIV>
    </TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial" SIZE="-1">(1) Each of the Staples RD Stock options granted
    becomes exercisable in full on the third anniversary of the date of grant,
    provided that the optionee continues to be employed by Staples on such
    date. Each of the Staples.com Stock options granted is exercisable in full
    on the date of grant and, prior to vesting, are subject to repurchase by
    the Company at a price equal to the exercise price. The shares are
    restricted by the following vesting schedule: 25% of such shares will vest
    one year after the date of grant and the remaining 75% of such shares will
    vest in equal monthly installments (2.083% per month) over the following 36
    months, provided that the optionee continues to be employed by Staples on
    such dates. The exercisability of the Staples RD stock options and the
    vesting of the Staples.com stock options are accelerated under certain
    circumstances. See &quot;Employment Contracts, Termination of Employment
    and Change-in-Control Agreements with Senior Executives.&quot;</FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(2) All amounts reflect a recapitalization effected
    through a one-for-two reverse stock split approved by the Board on March 7,
    2000 and effective on April 5, 2000.</FONT></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(3) The exercise price of options to purchase shares
    of Staples RD Stock is equal to the fair market value per share of Staples
    RD Stock on the date of grant as reported on NASDAQ. The exercise price of
    options to purchase shares of Staples.com Stock is equal to the fair market
    value per share of Staples.com Stock on the date of grant as determined by
    the Board of Directors.</FONT></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(4) The estimated present value at grant date has been
    calculated using a Black-Scholes option pricing model, based upon the
    following assumptions: a six year expected life of option; a dividend yield
    of 0.0%; expected volatility of 36.1% for Staples RD Stock options and
    35.8% for Staples.com Stock options; and a risk-free interest rate of 5.82%
    for Staples RD Stock options and 6.11% for Staples.com Stock options,
    representing the interest rate on a U.S. Government zero-coupon bond on the
    date of grant, with a maturity corresponding to the expected life of the
    option. Values are adjusted to reflect a risk of forfeiture due to vesting
    requirements.</FONT></P>
  <P><I><FONT
  FACE="Arial">Option Exercises and Holdings</FONT></I></P>
  <P><FONT
  FACE="Arial">The following table sets forth certain information concerning
    each exercise of stock options during the fiscal year ended January 29,
    2000 by each of the Senior Executives and the number and value of
    unexercised options held by each of the Senior Executives on January 29,
    2000.</FONT></P>

  <BR>
  <P ALIGN="CENTER"><B><FONT
  FACE="Arial">AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND
  <BR>
  FISCAL YEAR END OPTION VALUES</FONT></B></P>
  <P>&nbsp; </P>
  <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0" HEIGHT="490">
   <TR>
    <TD WIDTH="24%"></TD>
    <TD WIDTH="16%"></TD>
    <TD WIDTH="11%"></TD>
    <TD WIDTH="26%"></TD>
    <TD WIDTH="23%"></TD>
   </TR>
   <TR>
    <TD VALIGN="bottom" WIDTH="24%"> <P><B><U><FONT
    FACE="Arial" SIZE="-1">Name</FONT></U></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="16%"><B><FONT
    FACE="Arial" SIZE="-1">No. of Shares
    <BR>
    of Common
    <BR>
    Stock
    <BR>
    Acquired
    <BR>
    <U>On Exercise</U></FONT></B> </TD>
    <TD VALIGN="bottom" WIDTH="11%"> <P><B><FONT
    FACE="Arial" SIZE="-1">Value
    <BR>
    <U>Realized&#160;(1)</U></FONT></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="26%" ALIGN="center"> <P><B><FONT
    FACE="Arial" SIZE="-1">No. of Shares of Common
    <BR>
    Stock Underlying
    <BR>
    Unexercised Options at
    <BR>
    Fiscal Year End
    <BR>
    <U>Exercisable/Unexercisable</U></FONT></B></P>
    </TD>
    <TD VALIGN="bottom" WIDTH="23%" ALIGN="center"> <P><B><FONT
    FACE="Arial" SIZE="-1">Value of Unexercised
    <BR>
    In-The-Money Options at
    <BR>
    Fiscal Year End (3)
    <BR>
    <U>Exercisable/Unexercisable</U></FONT></B></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;</TD>
    <TD VALIGN="bottom" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="middle" WIDTH="11%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="26%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="23%">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%" HEIGHT="18"><FONT
    FACE="Arial" SIZE="-1">Thomas G. Stemberg </FONT></TD>
    <TD VALIGN="bottom" WIDTH="16%" HEIGHT="18">&nbsp;</TD>
    <TD VALIGN="middle" WIDTH="11%" HEIGHT="18">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="26%" HEIGHT="18">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="23%" HEIGHT="18">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%" HEIGHT="19"><FONT
    FACE="Arial" SIZE="-1"> &nbsp;&nbsp;Staples RD Stock </FONT></TD>
    <TD VALIGN="bottom" WIDTH="16%" HEIGHT="19"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;500,000</FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT></TD>
    <TD VALIGN="middle" WIDTH="11%" HEIGHT="19"> <P><FONT
    FACE="Arial" SIZE="-1">$8,298,100</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" HEIGHT="19" ALIGN="center"> <DIV
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1,940,544/3,060,000</FONT></DIV>
    </TD>
    <TD VALIGN="top" WIDTH="23%" HEIGHT="19" ALIGN="center"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$30,418,808/$7,440,072</FONT></P>
    </TD>
   </TR>
   <TR VALIGN="top">
    <TD WIDTH="24%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%" VALIGN="top"> <FONT
    FACE="Arial" SIZE="-1">1,064,560 (2)</FONT></TD>
    <TD WIDTH="11%"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </TD>
    <TD WIDTH="26%" ALIGN="center" VALIGN="top"> <DIV ALIGN="center"> <P><FONT
    FACE="Arial" SIZE="-1">0/0</FONT></P>
    </DIV>
    </TD>
    <TD WIDTH="23%" ALIGN="center" VALIGN="top"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$0/$0</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center">&nbsp;</TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"><FONT
    FACE="Arial" SIZE="-1">Ronald L. Sargent </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center">&nbsp;</TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,029</FONT></TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P><FONT
    FACE="Arial" SIZE="-1">$2,917,612</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">685,313/1,792,500</FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$7,386,441/$4,627,407</FONT></P>
    </TD>
   </TR>
   <TR VALIGN="top">
    <TD WIDTH="24%" HEIGHT="17"> <P><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%" HEIGHT="17"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;548,420 (2)</FONT></TD>
    <TD WIDTH="11%" HEIGHT="17"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </TD>
    <TD WIDTH="26%" HEIGHT="17" ALIGN="center" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">0/0</FONT></TD>
    <TD WIDTH="23%" HEIGHT="17" ALIGN="center" VALIGN="top"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$0/$0</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"><FONT
    FACE="Arial" SIZE="-1">John J. Mahoney</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;0</FONT></TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">416,250/1,792,500</FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$4,559,362/$4,178,658</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"> <P>&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;319,368 (2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0 </FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">0/0 </FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$0/$0</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"><FONT
    FACE="Arial" SIZE="-1">Joseph S.&nbsp;Vassalluzzo </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples RD Stock</FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;0</FONT></TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">1,322,872/827,812</FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$21,139,028/$3,028,577</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"> <P>&nbsp;&nbsp;<FONT
    FACE="Arial" SIZE="-1">Staples.com Stock</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="16%"> <P><FONT
    FACE="Arial" SIZE="-1"> </FONT><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;319,368 (2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    FACE="Arial" SIZE="-1"> 0/0</FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$0/$0</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%"><FONT
    FACE="Arial" SIZE="-1">John C. Bingleman </FONT></TD>
    <TD VALIGN="TOP" WIDTH="16%">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="11%"> <P>&nbsp;</P>
    </TD>
    <TD VALIGN="top" WIDTH="26%" ALIGN="center"><FONT
    SIZE="-1"></FONT></TD>
    <TD VALIGN="top" WIDTH="23%" ALIGN="center"> <P ALIGN="center">&nbsp;</P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="24%" HEIGHT="16">&nbsp;<FONT
    FACE="Arial" SIZE="-1">&nbsp;Staples RD Stock</FONT></TD>
    <TD VALIGN="top" WIDTH="16%" HEIGHT="16"> <DIV ALIGN="left"><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;123,750</FONT></DIV>
    </TD>
    <TD VALIGN="TOP" WIDTH="11%" HEIGHT="16"> <DIV ALIGN="left"> <P><FONT
    FACE="Arial" SIZE="-1">$2,058,565</FONT></P>
    </DIV>
    </TD>
    <TD VALIGN="top" WIDTH="26%" HEIGHT="16" ALIGN="center"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">810,842/450,000</FONT></P>
    </TD>
    <TD VALIGN="top" WIDTH="23%" HEIGHT="16" ALIGN="center"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$13,882,742/$637,515</FONT></P>
    </TD>
   </TR>
   <TR VALIGN="bottom">
    <TD WIDTH="24%" HEIGHT="25" VALIGN="top"> <P><FONT
    FACE="Arial" SIZE="-1">&nbsp;&nbsp;Staples.com Stock</FONT></P>
    </TD>
    <TD WIDTH="16%" HEIGHT="25" VALIGN="top"> <DIV ALIGN="left"><FONT
    FACE="Arial"
      SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</FONT></DIV>
    </TD>
    <TD WIDTH="11%" VALIGN="top"> <DIV ALIGN="left"> <P><FONT
    FACE="Arial"
      SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;0</FONT></P>
    </DIV>
    </TD>
    <TD WIDTH="26%" HEIGHT="25" ALIGN="center" VALIGN="top"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">0/0</FONT></P>
    </TD>
    <TD WIDTH="23%" HEIGHT="25" ALIGN="center" VALIGN="top"> <P
      ALIGN="center"><FONT
    FACE="Arial" SIZE="-1">$0/$0</FONT></P>
    </TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial" SIZE="-1">(1) Represents the difference between the exercise
    price and the fair market value of the common stock on the date of
    exercise.</FONT></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(2) All amounts reflect a recapitalization effected
    through a one-for-two reverse stock split approved by the Board on March 7,
    2000 and effective on April 5, 2000</FONT></P>
  <P><FONT
  FACE="Arial" SIZE="-1">(3) Based on the fair market value of the Staples RD
    Stock on January 29, 2000 ($21.50 per share), less the option exercise
    price.</FONT></P>
  <P></P>
  <P><B><FONT
  FACE="Arial">Employment Contracts, Termination of Employment and
    Change-in-Control Agreements with Senior Executives </FONT></B></P>
  <P><FONT
  FACE="Arial">Staples has entered into Severance Benefit Agreements (the
    &quot;Severance Agreements&quot;) with each of the Senior Executives. Under
    the Severance Agreements, the Senior Executives would be entitled to
    continuation of salary and other benefits for (i) 18 months in the case of
    Mr. Stemberg, and (ii) 12 months in the case of Messrs. Bingleman, Mahoney,
    Sargent and Vassalluzzo, following termination of employment by Staples
    without cause (or &quot;constructive discharge&quot; as provided in the
    Severance Agreements). Each Senior Executive would receive such benefits
    for an additional period of six months if such termination occurred within
    two years following a &quot;change in control&quot; of Staples (as defined
    in the Severance Agreements). A change in control of Staples also results
    in a partial acceleration of the exercisability of outstanding options held
    by the Senior Executives (and all Staples associates) and a discharge
    without cause (or resignation for good reason) within one year after a
    change in control results in the acceleration in full of all options and
    PARS. In the event Mr. Mahoney is terminated without cause within one year
    after a change of control, Staples would also guarantee to him that the sum
    of all severance payments plus the total gain realized and realizable upon
    the sale and/or exercise of his PARS and/or options would equal at least
    $2,000,000.</FONT></P>
  <P><B><FONT
  FACE="Arial">Compliance with Section 16(a) of the Securities Exchange Act of
    1934.</FONT></B></P>
  <P><FONT
  FACE="Arial">Based solely on its review of copies of reports filed by persons
    (&quot;Reporting Persons&quot;) required to file such reports pursuant to
    Section 16(a) under the Exchange Act, Staples believes that all filings
    required to be made by Reporting Persons of the Company were timely made in
    accordance with the requirements of the Exchange Act, with the exception of
    (i) the sale in January 1999 by Mr. Bingleman of 339 shares of Staples RD
    Stock which was reported in June 1999, (ii) the acquisition in August 1999
    by Senator Mitchell of 2,557 shares of Staples RD Stock, in lieu of
    consulting fees, which was reported in December 1999, (iii) the award to
    Senator Mitchell of 400 PARS in June 1999, pursuant to the Amended and
    Restated 1990 Director Stock Option Plan, which was reported in August
    1999, (iv) the purchase by Senator Mitchell of 100,000 shares of
    Staples.com Stock on December 9, 1999 which was reported on January 11,
    2000 (v) the purchase by Mr. Heisey and Two Cents Worth, Inc., of which Mr.
    Heisey is the controlling stockholder, on December 9, 1999 of 100,000
    shares of Staples.com Stock which was reported on January 13, 2000 and (vi)
    the purchase by Ms. Burton in December 1999 of 100,000 shares of
    Staples.com Stock which was reported in February 2000.</FONT></P>
  <P><FONT
  FACE="Times New Roman"> </FONT><B><FONT
  FACE="Arial">Compensation Committee Interlocks and Insider
    Participation</FONT></B></P>
  <P><FONT
  FACE="Arial">Messrs. Heisey, Nakasone and Trust, all non-employee Directors
    of Staples, served on the Compensation Committee for the entire fiscal year
    ended January 29, 2000. Ms. Whitman joined the Committee in June
    1999.</FONT></P>
  <P><B><FONT
  FACE="Arial">Certain Relationships and Related Transactions</FONT></B></P>
  <P><FONT
  FACE="Arial">See &quot;Director Compensation&quot; regarding Senator
    Mitchell's consulting agreement with the Company.</FONT></P>
  <P><FONT
  FACE="Arial">Staples has a policy that transactions and loans, if any,
    between Staples and its officers, Directors and affiliates will be on terms
    no less favorable to Staples than could be obtained from unrelated third
    parties and will be approved by a majority of the members of the Board of
    Directors and by a majority of the disinterested members of the Board of
    Directors. In addition, this policy mandates that Staples may make loans to
    such officers, Directors and affiliates for bona fide business purposes
    only.</FONT></P>
  <P><FONT
  FACE="Arial">Between December 1999 and February 2000, Staples sold an
    aggregate of 1,100,000 shares of Staples.com Stock to the non-employee
    directors of Staples at a purchase price of $1.625 per share. </FONT></P>
  <P><FONT
  FACE="Arial"></FONT></P>
  <P><FONT
  FACE="Arial">These shares of Staples.com Stock were purchased on the same
    terms as shares purchased by an independent group of venture capital firms
    during the same time period.</FONT></P>
  <P><FONT
  FACE="Arial">Certain executive officers of Staples have acquired shares of
    Staples.com Stock upon exercise of stock options. Staples has the right to
    repurchase a portion of the shares at their purchase price in the event the
    officer ceases to be employed by Staples. Thirteen executive officers
    borrowed an aggregate of $7.8 million from Boston Safe Deposit and Trust
    Company in order to pay for their shares. In addition, three of the
    executive officers deferred the interest payments on their loans for two
    years. The principal amount of the loans are 50% non-recourse to the
    individuals; the interest payable on the loans is with full recourse to the
    individuals. Each of the executive officers entered into a pledge agreement
    with Boston Safe Deposit and Bank Company pursuant to which they pledged
    their shares of Staples.com Stock as collateral for the loan they received.
    Staples entered into a Line of Credit and Guaranty Agreement with Boston
    Safe Deposit and Trust Company pursuant to which Staples agreed to
    guarantee these loans.</FONT></P>
  <P><FONT
  FACE="Arial">The following table identifies the executive officers who
    received loans to purchase their Staples.com Stock, the original loan
    amount and the balance of each loan as of April 12, 2000.</FONT></P>
  <P>
  <TABLE BORDER="0" WIDTH="100%">
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Name</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Title</FONT></P>
    </TD>
    <TD VALIGN="TOP" COLSPAN="2"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1">Original Loan Amount
    <BR>
    (1)</FONT></P>
    </TD>
    <TD VALIGN="TOP" COLSPAN="2"> <P ALIGN="CENTER"><FONT
    FACE="Arial" SIZE="-1">Loan Balance as of
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">April 12, 2000</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">David B, Crosier</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President - Supply
    <BR>
    Chain Management</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$241,488</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$241,488</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Joseph G. Doody</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">President - Staples Contract &amp;
    <BR>
    Commercial </FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$500,000
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(2)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$509,014
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(3)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Deborah G. Ellinger</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Senior Vice President - Strategic
    <BR>
    Planning &amp; New Business Development</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$172,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$172,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Susan S. Hoyt</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President -
    <BR>
    Human Resources</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$522,470</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$522,470</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Jeffrey L. Levitan</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President -
    <BR>
    Strategy/Business Development
    <BR>
    for Staples.com</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,331,473
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(4)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,331,473</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Jeanne B. Lewis</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">President - Staples.com</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,000,000
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(5)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,014,957
    <BR>
    </FONT><FONT
    FACE="Arial" SIZE="-1">(6)</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Brian Light</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President and
    <BR>
    Chief Information Officer</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$237,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$237,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">John J. Mahoney</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President, Chief
    <BR>
    Administrative Officer &amp; Chief
    <BR>
    Financial Officer</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,037,946</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,037,946</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Robert J. Moore</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Executive Vice President -
    <BR>
    Marketing</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$241,488</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$241,488</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">James C. Peters</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">President - U. S. Stores</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$522,470</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$522,470</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Ronald L. Sargent</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">President and Chief Operating
    <BR>
    Officer</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$782,365</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$782,365</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Jack A. VanWoerkom</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Senior Vice President - General
    <BR>
    Counsel and Secretary</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$172,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$172,991</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
   <TR>
    <TD VALIGN="TOP" WIDTH="256"> <P><FONT
    FACE="Arial" SIZE="-1">Joseph S. Vassalluzzo</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="301"> <P><FONT
    FACE="Arial" SIZE="-1">Vice Chairman</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="145"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,037,946</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="32">&nbsp;</TD>
    <TD VALIGN="TOP" WIDTH="180"> <P ALIGN="RIGHT"><FONT
    FACE="Arial" SIZE="-1">$1,037,946</FONT></P>
    </TD>
    <TD VALIGN="TOP" WIDTH="47">&nbsp;</TD>
   </TR>
  </TABLE>

  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(1)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">All loans accrue interest at a floating annual rate
      equal to the rate quoted as &quot;Call Money&quot; from time to time in
      the &quot;Money Rates&quot; Section of <I><U>The Wall Street
      Journal</U></I>, or if no such rate is quoted or <I><U>The Wall Street
      Journal</U></I> is not available, the generally prevailing rate for loans
      to members of the New York Stock Exchange secured by stock exchange
      collateral provided by Reuters or a similar source of recognized standing
      selected by the Boston Safe Deposit and Trust Company (the
      &quot;Bank&quot;). In the event the Bank determines that for any reason
      no rate comparable to &quot;Call Money&quot; is available on a given day,
      the loans shall bear interest on such date at the &quot;Prime Rate&quot;
      minus 1% per annum. &quot;Prime Rate&quot; means the rate quoted as the
      &quot;Prime Rate&quot; in the &quot;Money Rates&quot; section of
      <I><U>The Wall Street Journal</U></I>. In the event &quot;Call
      Money&quot; or the &quot;Prime Rate&quot; is reported as a range of
      rates, the rate used to calculate the interest rates under the notes will
      be the highest such rate reported.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(2)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Does not include a $100,000 credit line to pay
      interest on the loan.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(3)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Includes $9,014 borrowed to pay interest on the
      loan</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(4) </FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Does not include a $266,295 credit line to pay
      interest on the loan.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(5)</FONT></TD>
    <TD WIDTH="97%"> <P><FONT
    FACE="Arial" SIZE="-1">Does not include a $200,000 credit line to pay
      interest on the loan.</FONT></P>
    </TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial" SIZE="-1">(6)</FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial" SIZE="-1">Includes $14,957 borrowed to pay interest on the
      loan.</FONT></TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial" SIZE="-1"> </FONT></P>
  <P></P>
  <P ALIGN="left"><B><FONT
  FACE="Arial">Compensation Committee Report on Executive Compensation
    </FONT></B></P>
  <P><FONT
  FACE="Arial">Staples' executive compensation program is administered by the
    Compensation Committee composed of the non-employee Directors listed below.
    Staples' executive compensation program is designed to retain and reward
    executives who are responsible for leading Staples in achieving its
    business objectives. All decisions by the Compensation Committee relating
    to the compensation of Staples' executive officers are reviewed by the full
    Board. This report is submitted by the Compensation Committee and addresses
    Staples' compensation policies for fiscal 1999 and forward as they affected
    the Chief Executive Officer and the other executive officers of Staples.
    </FONT></P>
  <P ALIGN="left"><I><FONT
  FACE="Arial">Compensation Philosophy </FONT></I></P>
  <P><FONT
  FACE="Arial">The objectives of the executive compensation program are to (i)
    align compensation with business objectives, individual performance and the
    interests of Staples' stockholders, (ii) motivate and reward high levels of
    performance, (iii) recognize and reward the achievement of Company and/or
    business unit goals, and (iv) enable Staples to attract, retain and reward
    executive officers who contribute to the long-term success of Staples.
    </FONT></P>
  <P><FONT
  FACE="Arial">The Committee's executive compensation philosophy is that a
    significant portion of executive compensation should be tied directly to
    the performance of Staples as a whole. The base salaries paid to executives
    are targeted by the Committee to fall at or below the 40th percentile of
    the pay practices of publicly traded companies in the retail industry
    (including companies in the Standard &amp; Poor's Retail Composite Index
    contained in the stock performance graph contained in this Proxy Statement,
    as determined by The Hay Group (&quot;Hay&quot;), an international
    compensation and human resource consulting firm. The Committee seeks,
    however, to provide its executives with opportunities for compensation
    substantially higher than base salary through performance-based bonuses,
    stock options and Performance Accelerated Restricted Stock
    (&quot;PARS&quot;). The Committee also believes that bonus awards tied to
    achievement of pre-approved performance goals serve as an influential
    motivator to its executives and help to align the executives' interests
    with those of the stockholders of Staples. The Committee also continues to
    believe that a substantial portion of the compensation of Staples'
    executives should be linked through Staples' stock option and PARS program
    to the success of Staples' stock in the marketplace. Stock options and PARS
    further align the interests of management and stockholders and assist in
    the retention of valued executives. </FONT></P>
  <P><I><FONT
  FACE="Arial">Status of the Executive Compensation Program </FONT></I></P>
  <P><FONT
  FACE="Arial">Based on information provided by Hay and consistent with
    Staples' objectives and philosophy, the Committee targeted total annual
    compensation (salary, cash bonus and stock) to fall above the median for
    total annual compensation for similar positions in the group of retail
    companies used in the Hay study. </FONT></P>
  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD WIDTH="2%" VALIGN="top"><FONT
    FACE="Arial"><B>&#149;</B></FONT></TD>
    <TD WIDTH="98%"><FONT
    FACE="Arial"><B>Salaries:</B> The Committee targets base annual salary for
      executive officers including the Senior Executives to be at the 40th
      percentile of the annual base salary for comparable positions in the Hay
      study group.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="2%">&nbsp;</TD>
    <TD WIDTH="98%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="2%" VALIGN="top"><FONT
    FACE="arial"><B> &#149;</B></FONT></TD>
    <TD WIDTH="98%"><FONT
    FACE="Arial"><B>Bonus:</B> Each of Staples' executive officers, including
      the Senior Executives, was eligible to participate in Staples' Executive
      Officer Incentive Plan in fiscal 1999 (the &quot;Bonus Plan&quot;). The
      Bonus Plan provided for the payment of a range of cash bonuses to
      executive officers based on &quot;stretch&quot; objectives relating to
      company-wide earnings per share, return on net assets, and customer
      service goals. </FONT></TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial">The earnings per share, return on net assets and customer
    service goals for the Bonus Plan were determined by the Committee and
    approved by the Board of Directors at the beginning of fiscal 1999. In each
    case, these bonus goals represented &quot;stretch&quot; objectives,
    requiring performance in excess of amounts set for budget purposes to
    achieve target bonus payouts. The Committee established target bonus
    payouts for executives in an attempt to bring the cash portion of total
    annual compensation </FONT></P>
  <P></P>
  <P><FONT
  FACE="Arial"></FONT></P>
  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial">(base salary plus target bonus) to approximately the median of
      the cash compensation paid to the Hay comparison group. </FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial">For fiscal 1999, Staples exceeded stretch objectives for
      earnings per share and fell short of the customer service and return on
      net assets objectives.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial"><B>&#149; </B></FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial"><B>Stock Options</B>: In addition to base salary and bonus,
      Staples' executives are also granted annually performance-based long-term
      incentives represented by stock options. The intent of these awards is to
      further encourage retention and promote identity of interest with
      Staples' stockholders. The 1992 Equity Incentive Plan was amended and
      restated in 1999 to provide for awards of options of either Staples RD
      Stock and/or Staples.com Stock. In determining whether awards of Staples
      RD Stock or Staples.com Stock, or both, will be made to specific
      employees, consideration is given to, among other things, the identity of
      the business to which the employee provides services. The incentive
      compensation committee also considers the fact that in the emerging
      Internet economy in which Staples competes for executives, stock options
      are an important part of executive compensation packages and are
      frequently offered in substantial amounts to attract talented and
      experienced executives to join startups and other less established
      businesses. The continued future success of Staples, in general, and
      Staples.com, in particular, is dependent on the ability to attract and
      retain key executives. Accordingly, the incentive plan committee
      considers data about the level of stock options awarded, not only in
      companies in its competitive business group, but also in the competitive
      labor market in which we compete for executive talent. Annual stock
      option awards were made to executive officers in July 1999, the same time
      that stock option awards were made to all stock option eligible employees
      of the Company. At that time, Staples RD Stock was the only authorized
      series of Company common stock. In November 1999, subsequent to
      shareholder approval of the Amended and Restated 1992 Equity Incentive
      Plan, options to purchase shares of Staples.com Stock were granted to all
      stock option eligible employees, including the Senior Executives. In
      granting these options, the Committee considered the influence and
      business drivers within each executives' area of responsibility on the
      Staples.com business and Staples Retail and Delivery business. Loans were
      arranged through a third party for certain senior executives to encourage
      and promote the purchase of Staples.com options.</FONT></TD>
   </TR>
   <TR>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="97%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="3%" VALIGN="top"><FONT
    FACE="Arial"><B>&#149; </B></FONT></TD>
    <TD WIDTH="97%"><FONT
    FACE="Arial"><B>Performance Accelerated Restricted Stock (PARS):</B> In
      order to maintain Staples' high risk-high reward philosophy, help retain
      key executives, maintain focus on stockholder returns and deliver the
      possibility of total direct compensation above the median of the Hay
      comparison group, the Committee has adopted the use of PARS for certain
      key management, including its executive officers. The shares are
      &quot;restricted&quot; in that they may not be sold or transferred by the
      executive until they &quot;vest&quot;. Staples' PARS issued in fiscal
      1999<B> </B>will vest on February 1, 2004 subject to acceleration if
      Staples achieves certain pre-determined compound EPS growth over the next
      two to five fiscal years. EPS growth targets are determined by the
      Committee and approved by the Board of Directors each year for grants of
      PARS in that year. Once the PARS have vested, they become
      &quot;unrestricted&quot; and may be sold or transferred. </FONT></TD>
   </TR>
  </TABLE>
  <P><FONT
  FACE="Arial">In 1998, Staples developed a long term compensation strategy
    specifically for Mr. Bingleman, President - International. This plan
    provided Mr. Bingleman with a restricted stock grant vesting five years
    from date of grant, subject to accelerated vesting based on the attainment
    of certain event based and financial objectives relating to Mr. Bingleman's
    responsibilities for certain of Staples international operations. This
    grant is in lieu of certain annual stock options and PARS grants under the
    stock option/PARS program.</FONT></P>
  <P><FONT
  FACE="Arial">Mr. Stemberg, Staples' Chief Executive Officer, is eligible to
    participate in the same executive compensation program available to other
    Staples executives, and his total annual compensation, including
    compensation derived from the Bonus Plan and stock option/PARS program, was
    set by the Committee in accordance with the same criteria. Mr. Stemberg's
    annual salary was increased in fiscal 1999 from $650,000 to $685,000. Mr.
    Stemberg's annual salary remained below the 25<SUP>th</SUP>
  percentile for the Chief Executive Officer position within the Hay comparison
    group. Under the Bonus Plan, Mr. Stemberg</FONT></P>
  <P></P>
  <P><I><FONT
  FACE="Arial"></FONT></I></P>
  <P><FONT
  FACE="Arial"> was paid a bonus of $526,567 placing his total cash
    compensation below the 40<SUP>th</SUP>
  percentile of the Hay comparison group. In fiscal 1999, the Committee granted
    Mr. Stemberg 100,000 PARS, and options to purchase 300,000 shares of
    Staples RD Stock under the options/PARS program. In addition, Mr. Stemberg
    was granted an option to purchase 2,129,120 shares of Staples.com Stock in
    November 1999. These grants were valued and based on the same factors the
    Committee considered in fixing the size of other executive PARS and stock
    option grants. Using the Hay/Black-Scholes valuation method for options,
    total annual compensation to Mr. Stemberg in fiscal 1999 placed him above
    the median of the Hay comparison group. </FONT></P>
  <P><I><FONT
  FACE="Arial">Tax Considerations</FONT></I></P>
  <P><FONT
  FACE="Arial">Under Section 162(m) of the Internal Revenue Code of 1986, as
    amended, certain executive compensation in excess of $1 million paid to any
    of a public company's five most highly-paid executives is not deductible
    for federal income tax purposes unless the executive compensation is
    awarded under a performance-based plan approved by the stockholders. In
    1998, the Committee adopted and Staples shareholders approved the Bonus
    Plan in compliance with Section 162 (m). The Company's stock option plans
    are performance based, and accordingly, comply with Section 162(m).
    Finally, while the Company's PARS program has a significant performance
    component, it cannot be qualified under 162(m) without compromising
    valuable executive incentives which the Committee believes outweigh any tax
    benefit to the Company. </FONT></P>

  <TABLE WIDTH="80%" BORDER="0">
   <TR>
    <TD WIDTH="11%">&nbsp;</TD>
    <TD WIDTH="45%">&nbsp;</TD>
    <TD WIDTH="6%">&nbsp;</TD>
    <TD WIDTH="38%">&nbsp;</TD>
   </TR>
   <TR>
    <TD WIDTH="11%">&nbsp;</TD>
    <TD WIDTH="45%" VALIGN="top"><FONT
    FACE="Arial"><B>Compensation Committee:</B></FONT></TD>
    <TD WIDTH="6%">&nbsp;</TD>
    <TD WIDTH="38%"><FONT
    FACE="Arial">Martin Trust, Chairman </FONT>
    <BR>
    <FONT
    FACE="Arial">W. Lawrence Heisey </FONT>
    <BR>
    <FONT
    FACE="Arial">Robert C. Nakasone</FONT>
    <BR>
    <FONT
    FACE="Arial">Margaret C. Whitman</FONT> </TD>
   </TR>
   <TR>
    <TD WIDTH="11%">&nbsp;</TD>
    <TD WIDTH="45%">&nbsp;</TD>
    <TD WIDTH="6%">&nbsp;</TD>
    <TD WIDTH="38%">&nbsp;</TD>
   </TR>
  </TABLE>
  <P>&nbsp;</P>
  <P><FONT
  FACE="Arial"><B> </B> </FONT></P>
  <P>&nbsp;</P>
  <P>&nbsp;</P>
  <P>&nbsp;</P>
  <P ALIGN="left"></P>
  <P ALIGN="CENTER"><B><FONT
  FACE="Arial">STOCK PERFORMANCE GRAPH</FONT></B></P>
  <UL> <P><FONT
  FACE="Arial">The following graph compares the cumulative total stockholder
    return on Staples RD Stock between January 28, 1995 and January 29, 2000
    (the end of fiscal 1999) with the cumulative total return of
    (i)&#160;Standard &amp; Poor's 500 Composite Index and (ii)&#160;the
    Standard &amp; Poor's Retail Store Composite Index. This graph assumes the
    investment of $100.00 on January 28, 1995 in Staples RD Stock, the Standard
    &amp; Poor's 500 Composite Index and the Standard &amp; Poor's Retail Store
    Composite Index, and assumes dividends are reinvested. Measurement points
    are February 3, 1996, February 1, 1997, January 31, 1998, January 30, 1999
    and January 29, 2000 (Staples' last five fiscal year ends). </FONT></P>
  <P>&nbsp;</P>
  <P ALIGN="center">[CHART]</P>
  <P ALIGN="center"><FONT
  FACE="Arial"><B>Dividends Reinvested
  <BR>
  </B></FONT><B>TOTAL RETURN TO STOCKHOLDERS</B></P>
  </UL>
  <TABLE WIDTH="100%" BORDER="0">
   <TR>
    <TD>&nbsp;</TD>
    <TD> <DIV ALIGN="right"><B>28-Jan-95</B></DIV>
    </TD>
    <TD> <DIV ALIGN="right"><B>03-Feb-96</B></DIV>
    </TD>
    <TD> <DIV ALIGN="right"><B>01-Feb-97</B></DIV>
    </TD>
    <TD> <DIV ALIGN="right"><B>31-Jan-98</B></DIV>
    </TD>
    <TD> <DIV ALIGN="right"><B>30-Jan-99</B></DIV>
    </TD>
    <TD> <DIV ALIGN="right"><B>29-Jan-00</B></DIV>
    </TD>
   </TR>
   <TR>
    <TD> <P>SPLS</P>
    </TD>
    <TD> <DIV ALIGN="right">100.00</DIV>
    </TD>
    <TD> <DIV ALIGN="right">157.73</DIV>
    </TD>
    <TD> <DIV ALIGN="right">190.21</DIV>
    </TD>
    <TD> <DIV ALIGN="right">252.84</DIV>
    </TD>
    <TD> <DIV ALIGN="right">597.58</DIV>
    </TD>
    <TD> <DIV ALIGN="right">448.84</DIV>
    </TD>
   </TR>
   <TR>
    <TD>S &amp; P Retail Composite</TD>
    <TD> <DIV ALIGN="right">100.00</DIV>
    </TD>
    <TD> <DIV ALIGN="right">106.90</DIV>
    </TD>
    <TD> <DIV ALIGN="right">123.92</DIV>
    </TD>
    <TD> <DIV ALIGN="right">184.69</DIV>
    </TD>
    <TD> <DIV ALIGN="right">301.05</DIV>
    </TD>
    <TD> <DIV ALIGN="right">296.03</DIV>
    </TD>
   </TR>
   <TR>
    <TD>S &amp; P 500</TD>
    <TD> <DIV ALIGN="right">100.00</DIV>
    </TD>
    <TD> <DIV ALIGN="right">135.17</DIV>
    </TD>
    <TD> <DIV ALIGN="right">167.13</DIV>
    </TD>
    <TD> <DIV ALIGN="right">208.40</DIV>
    </TD>
    <TD> <DIV ALIGN="right">272.04</DIV>
    </TD>
    <TD> <DIV ALIGN="right">289.16</DIV>
    </TD>
   </TR>
  </TABLE>
  <P>&nbsp;</P>
  <P>&nbsp;</P>
  <P ALIGN="left"><FONT
  SIZE="2"></FONT></P>
  <P ALIGN="center"><B>STAPLES, INC. </B></P>
  <P ALIGN="center"><B>AMENDED AND RESTATED 1990 DIRECTOR STOCK OPTION PLAN
    </B></P>
  <P ALIGN=JUSTIFY>1. <B>Purpose</B>.</P>
  <P ALIGN=JUSTIFY>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Amended
    and Restated 1990 Director Stock Option Plan (the ''Plan'') of Staples,
    Inc. (the ''Company'') is to encourage ownership in the Company by the
    Company's outside directors, whose continued services the Company considers
    essential to its future progress, and to provide these individuals with a
    further incentive to remain as directors of the Company. </P>
  <P ALIGN=JUSTIFY>2. <B>Administration</B>.</P>
  <P ALIGN=JUSTIFY>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors shall
    supervise and administer the Plan. Grants of stock options (''Options'')
    and awards of performance accelerated restricted stock (''PARS'') under the
    Plan and the amount and nature of the Options and PARS to be granted shall
    be made by the Board of Directors in accordance with Section 4. All
    questions concerning interpretation of the Plan or any Options or PARS
    issued under it shall be resolved by the Board of Directors and such
    resolution shall be final and binding upon all persons having an interest
    in the Plan. </P>
  <P ALIGN=JUSTIFY>3. <B>Participation in the Plan</B>.</P>
  <P ALIGN=JUSTIFY>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors of the Company who
    are not employees of the Company or any subsidiary of the Company
    (''outside directors'') shall be eligible to receive Options and PARS under
    the Plan. </P>
  <P ALIGN=JUSTIFY>4. <B>Terms, Conditions and Form of Options and PARS</B>.</P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Options and PARS granted under the Plan
    shall be evidenced by a written agreement in such form as the Board of
    Directors shall from time to time approve, which agreements shall comply
    with and be subject to the following terms and conditions. </P>
  <BLOCKQUOTE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Stock Subject to Plan.
    Options and PARS may be granted under the Plan with respect to either
    Staples Retail and Delivery common stock or Staples.com common stock
    (collectively, ''Common Stock''). Subject to adjustment as provided in the
    Plan, the maximum number of shares of Common Stock which may be issued
    under the Plan is 3,350,000 shares of Common Stock (regardless of series).
    All Options or PARS granted under the Plan, as provided below, shall be
    granted with respect to either series of Common Stock, or a combination of
    both series, as determined in the sole discretion of the Board of
    Directors. If an Option shall expire or terminate for any reason without
    having been exercised in full, the unpurchased shares subject to such
    Option shall again be available for subsequent Option grants or PARS under
    the Plan; and if the shares subject to a PARS shall be repurchased by the
    Company, the repurchased shares shall again be available for subsequent
    Option grants or PARS under the Plan. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Grants of Options and PARS. </P>
  <BLOCKQUOTE>
    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
    <I>Initial Option Grant.</I> An Option to purchase 15,000 shares of Staples
    Retail and Delivery common stock and an Option to purchase 5,000 shares of
    Staples.com common stock shall be granted automatically to outside
    directors who are initially elected to the Board of Directors
  subsequent to the approval of the Plan by the Company's stockholders at the
    close of business on the date of such director's initial election to the
    Board of Directors. </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <BLOCKQUOTE> <BLOCKQUOTE>
    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
    <I>Annual Option Grants. </I></P>

    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;(1) On the date of the first regularly scheduled Board of
    Directors meeting following the end of each fiscal year of the Company,
    commencing with the fiscal year ending January 30, 1999, an Option shall be
    granted automatically to each outside director to purchase a number of
    shares of Staples Retail and Delivery common stock equal to 3,000
    multiplied by the number of regularly scheduled meeting days of the Board
    of Directors attended by such director in the previous 12 months (up to a
    maximum of 15,000 shares). </P>

    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;(2) On the date of the first regularly scheduled Board of
    Directors meeting following the end of each fiscal year of the Company,
    commencing with the fiscal year ending January 29, 2000, an Option shall be
    granted automatically to each outside director to purchase a number of
    shares of Staples.com common stock equal to 650 multiplied by the number of
    regularly scheduled meeting days of the Board of Directors attended by such
    director in the previous 12 months (up to a maximum of 3,250 shares). </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
    <I>Annual Awards of PARS</I>. At the first regularly scheduled Board of
    Directors meeting following the end of each fiscal year of the Company, at
    which performance targets are established for PARS awarded to executive
    officers of the Company, but no later than July 31 of each year (each, an
    ''Award Date), (x) the Company shall grant to each outside director 400
    PARS with respect to Staples Retail and Delivery common stock for each
    regularly scheduled meeting day of the Board of Directors attended by such
    director in the previous 12 months (up to a maximum of 2,000 PARS), (y) the
    Company may grant to each outside director up to 100 PARS with respect to
    Staples.com common stock for each regularly scheduled meeting day of the
    Board of Directors attended by such director in the previous 12 months (up
    to a maximum of 500 PARS), and (z) in addition, the Company shall grant to
    the Lead Director and the Chairman of each of the Audit, Compensation, and
    Governance Committee of the Board of Directors 200 PARS for each regularly
    scheduled meeting day of the Board of Directors attended by such director
    in the previous 12 months (up to a maximum of 1,000 PARS). </P>
  <P>(c) Terms of Options. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <I>Option
    Exercise Price</I>. The option exercise price per share for each Option
    granted under the Plan shall be determined as follows: if such series of
    Common Stock is listed on the Nasdaq National Market on the date of grant,
    the option exercise price per share shall be equal to the last reported
    sale price per share of such series of Common Stock on the Nasdaq National
    Market on the date of grant (or, if no such price is reported on such date,
    such price as is reported on the nearest preceding date); if the applicable
    series of Common Stock is not listed on the Nasdaq National Market on the
    date of grant, the option exercise price per share shall be the fair market
    value per share of such series of Common Stock on the date of grant, as
    determined in good faith by the Board of Directors. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <I>Nature
    of Options</I>. All Options granted under the Plan shall be nonstatutory
    options not entitled to special tax treatment under Section 422 of the
    Internal Revenue Code of 1986, as amended (the ''Code'').</P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
    <I>Vesting.</I> Except as otherwise provided in the Plan, (A) each Option
    to purchase shares of Staples Retail and Delivery common stock shall become
    exercisable, on a cumulative basis, in four equal annual installments on
    each of the first, second, third and fourth anniversary dates of its date
    of grant, provided the optionee continues to serve as a director of the
    Company on such dates, and (B) each Option to purchase shares of
    Staples.com common stock shall become exercisable in full on the date of
    grant, provided, however, 25% of such shares shall vest one year after the
    date of grant and the remaining 75% of such shares shall vest in equal
    monthly
  installments over the following 36months, provided the optionee continues to
    serve as a director of the Company on such dates. Notwithstanding the
    foregoing, each outstanding Option shall immediately become exercisable in
    full in the event (A) a Change in Control (as defined in Section 8) of the
    Company occurs or (B) the optionee ceases to serve as a director of the
    Company due to his or her death, disability (within the meaning of Section
    22(e)(3) of the Code or any successor provision) or retires pursuant to a
    retirement policy adopted by the Company. </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <BLOCKQUOTE>
    <BLOCKQUOTE><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;(iv) <I>Option Exercise Procedure</I>. An Option may be exercised
    only by written notice to the Company at its principal office accompanied
    by payment in cash of the exercise price with respect to the Option being
    exercised or by the tender (actual or constructive) of shares of Common
    Stock owned by the director having a value as of the date of exercise equal
    to the exercise price. In the case of a constructive tender of shares of
    Common Stock, the optionee and the Company may enter into an agreement to
    defer until an agreed-upon date the issuance, transfer and delivery of
    shares of Common Stock with a value equal to the difference between the
    fair market value of the Common Stock on the date of exercise and the
    exercise price of the Option being exercised. The Board of Directors may
    impose such restrictions on the tender of shares as it deems
    appropriate.</P>
  <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
    <I>Termination</I>. Each Option shall terminate, and may no longer be
    exercised, on the date six months after the optionee ceases to serve as a
    director of the Company; provided that, in the event (A) an optionee ceases
    to serve as a director due to his or her death or disability (within the
    meaning of Section 22(e)(3) of the Code or any successor provision), or (B)
    an optionee dies within six months after he or she ceases to serve as a
    director of the Company, then the exercisable portion of the Option may be
    exercised, within the period of one year following the date the optionee
    ceases to serve as a director, by the optionee or by the person to whom the
    Option is transferred by will, by the laws of descent and distribution, or
    by written notice pursuant to Section 4(c)(vii). Notwithstanding the
    foregoing, each Option shall terminate, and may no longer be exercised, on
    the date 10 years after the date of grant. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)
    <I>Options Nontransferable</I>. Except as otherwise provided by the Board
    of Directors, each Option granted under the Plan by its terms shall not be
    transferable by the optionee otherwise than by will or the laws of descent
    and distribution, and shall be exercised during the lifetime of the
    optionee only by the optionee or his or her legal representative. No Option
    or interest therein may be transferred, assigned, pledged or hypothecated
    by the optionee during his or her lifetime, whether by operation of law or
    otherwise, or be made subject to execution, attachment or similar process.
    </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)
    <I>Option Exercise by Representative Following Death of Director</I>. An
    optionee, by written notice to the Company, may designate one or more
    persons (and from time to time change such designation), including his or
    her legal representative, who, by reason of the optionee's death, shall
    acquire the right to exercise all or a portion of the Option. If the person
    or persons so designated wish to exercise any portion of the Option, they
    must do so within the term of the Option as provided herein. Any exercise
    by a representative shall be subject to the provisions of the Plan. </P>
  <P>(d) Terms of PARS. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <I>Nature
    of PARS</I>. All PARS hereunder shall consist of the issuance by the
    Company of shares of Common Stock or an agreement for the future delivery
    of shares of Common Stock at an agreed-upon date (''PARS Deferred Units'')
    and the purchase by the recipient thereof of such shares, subject to the
    terms, conditions and restrictions described in the document evidencing the
    PARS and in this Plan.</P>
  <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
    <I>Execution of PARS Agreement</I>. In the case of the actual issuance of
    Common Stock, the Company shall, upon the date of the PARS grant, issue the
    shares of Common Stock subject to the PARS by registering such shares in
    book entry form with the Company's transfer agent in the </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <P></P>
  <BLOCKQUOTE> <BLOCKQUOTE> <P>name of the recipient. No certificate(s)
    representing all or a part of such shares shall be issued until the
    conclusion of the vesting period described in paragraph (iv) below. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
    <I>Price</I>. Except as otherwise determined by the Board of Directors, all
    PARS issued hereunder shall be issued without the payment of any cash
    purchase price by the recipients (in which case the ''price per share
    originally paid'' for purposes of clause (2) of paragraph (v) below shall
    be zero). </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
    <I>Vesting</I>. Except as otherwise provided in the Plan, the restrictions
    on transfer and the forfeiture provisions of each PARS shall lapse on the
    same basis as PARS that have been awarded to the Company's executive
    officers for the fiscal year in which the Award Date relating to such PARS
    occurs. If no PARS have been awarded to any executive officer of the
    Company during the six months preceding an Award Date, then the
    restrictions on transfer and the forfeiture provisions of all PARS granted
    pursuant to this Plan on such Award Date shall lapse on such terms as shall
    be determined by the Board of Directors. Notwithstanding the foregoing, the
    restrictions on transfer and the forfeiture provisions of all PARS granted
    under this Plan shall immediately lapse in the event (A) a Change in
    Control of the Company occurs, or (B) the recipient ceases to serve as a
    director of the Company due to his or her death, disability (within the
    meaning of Section 22(e)(3) of the Code or any successor provision) or
    retires pursuant to a retirement policy adopted by the Company. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
    <I>Restrictions on Transfer</I>. In addition to such other terms,
    conditions and restrictions on PARS contained in the Plan or the applicable
    PARS Agreement, all PARS shall be subject to the following restrictions:
    </P>

    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;(1) No PARS shall be sold, assigned, transferred,
    pledged, hypothecated or otherwise disposed of until they become vested
    pursuant to paragraph (iv) above. The period during which such restrictions
    are applicable is referred to as the ''Restricted Period.''</P>

    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp; (2) Except as set forth in the last sentence of
    paragraph (iv) above, if a recipient ceases to be a director of the Company
    within the Restricted Period for any reason, the Company shall have the
    right and option for a period of three months following the date of such
    cessation to buy for cash that number of PARS as to which the restrictions
    on transfer and the forfeiture provisions contained in the PARS have not
    then lapsed, at a price equal to the price per share originally paid by the
    recipient. If such cessation occurs within the last three months of the
    applicable Restricted Period, the restrictions and repurchase rights of the
    Company shall continue to apply until the expiration of the Company's three
    month option period. </P>

    <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;(3) Notwithstanding subparagraphs (1) and (2) above, the
    Board of Directors may, in its discretion, either at the time that PARS are
    awarded or at any time thereafter, waive the Company's right to repurchase
    shares of Common Stock or PARS Deferred Units upon the occurrence of any of
    the events described in this paragraph (v) or remove or modify any part or
    all of the restrictions. In addition, the Board of Directors may, in its
    discretion, impose upon the recipient of PARS at the time that such PARS
    are granted such other restrictions on any PARS as the Board of Directors
    may deem advisable. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)
    <I>Additional Shares.</I> Any shares received by a recipient of PARS as a
    stock dividend or any PARS Deferred Units received in respect of a stock
    dividend, or as a result of stock splits, combinations, exchanges of
    shares, reorganizations, mergers, consolidations or otherwise with respect
    to such PARS shall have the same status and shall bear the same
    restrictions, all on a proportionate basis, as the shares or PARS Deferred
    Units initially subject to such. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)<I>
    Transfers in Breach of PARS.</I> If any transfer of PARS is made or
    attempted contrary to the terms of the Plan and of such PARS, the Board of
    Directors shall have the right to purchase for the account of the Company
    those shares from the owner thereof or his or her </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <P></P>
  <BLOCKQUOTE> <BLOCKQUOTE> <P>transferee at any time before or after the
    transfer at the price paid for such shares by the person to whom they were
    awarded under the Plan. In addition to any other legal or equitable
    remedies which it may have, the Company may enforce its rights by specific
    performance to the extent permitted by law. The Company may refuse for any
    purpose to recognize as a shareholder of the Company any transferee who
    receives any shares contrary to the provisions of the Plan and the
    applicable PARS or any recipient of PARS who breaches his or her obligation
    to resell shares as required by the provisions of the Plan and the
    applicable PARS, and the Company may retain and/or recover all dividends on
    such shares which were paid or payable subsequent to the date on which the
    prohibited transfer or breach was made or attempted. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)
    <I>Additional PARS Provisions.</I> The Board of Directors may, in its sole
    discretion, include additional provisions in any PARS granted under the
    Plan. </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <P>5. <B>Limitation of Rights</B>. </P>
  <BLOCKQUOTE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>No Right to Continue as
    a Director.</I> Neither the Plan, nor the granting of an Option or PARS nor
    any other action taken pursuant to the Plan, shall constitute or be
    evidence of any agreement or understanding, express or implied, that the
    Company will retain the optionee or recipient of PARS as a director for any
    period of time. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Rights as a Stockholder.</I></P>
  <BLOCKQUOTE> <P>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
    <I>Options.</I> An optionee shall have no rights as a stockholder with
    respect to the shares covered by his or her Option until the date of the
    issuance to him or her of a stock certificate therefor, and no adjustment
    will be made for dividends or other rights (except as provided in Section
    6) for which the record date is prior to the date such certificate is
    issued. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<I>
    PARS.</I> Subject to the limitations set forth in Section 4(d) and except
    as otherwise provided herein, a recipient of PARS, other than PARS Deferred
    Units, shall have all rights as a shareholder with respect to the shares
    subject to such PARS including, without limitation, any rights to receive
    dividends or non-cash distributions with respect to such shares and to vote
    such shares and act in respect of such shares at any meeting of
    shareholders. A recipient of PARS Deferred Units shall have no rights as a
    shareholder with respect to the Common Stock until the date of issuance to
    him or her of a stock certificate therefor, but the agreement evidencing
    the PARS Deferred Units may include the crediting of additional PARS
    Deferred Units equal in value to the cash amount of dividends paid with
    respect to same number of shares of Common Stock as the PARS Deferred
    Units. </P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  <P>6. <B>Adjustment Provisions for Recapitalizations and Related
    Transactions.</B> </P>
  <BLOCKQUOTE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, through or as a result
    of any merger, consolidation, sale of all or substantially all of the
    assets of the Company, reorganization, recapitalization, reclassification,
    stock dividend, stock split, reverse stock split, or other similar
    transaction, (i) the outstanding shares of one or both series of Common
    Stock are increased or decreased or are exchanged for a different number or
    kind of shares or other securities of the Company, or (ii) additional
    shares or new or different shares or other securities of the Company or
    other non-cash assets are distributed with respect to one or both series of
    Common Stock or other securities, except as otherwise determined by the
    Board of Directors, an appropriate and proportionate adjustment shall be
    made in (x) the number and kind of shares of such series of Common Stock
    subject to Options or the number and kind of shares of such series of
    Common Stock or PARS Deferred Units subject to PARS to be granted to
    outside directors after such event pursuant to Section 4(b), (y) the number
    and kind of shares of such series of Common Stock subject to then
    outstanding Options or the number and kind of shares of such series of
    Common Stock or PARS Deferred Units subject to any then outstanding PARS
    under the Plan, and (z) the exercise price for each share of such</P>
  </BLOCKQUOTE>
  <P></P>
  <BLOCKQUOTE> <P> series of Common Stock subject to any then outstanding
    Options or repurchase rights of the Company under the Plan, without
    changing the aggregate purchase price as to which such Options or
    repurchase rights of the Company remain exercisable. No fractional shares
    or PARS Deferred Units will be issued under the Plan on account of any such
    adjustments. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All share numbers herein have been
    adjusted to reflect the three-for-two stock split declared on November 12,
    1998and the recapitalization effected through a one-for-two reverse stock
    split of Staples.com Stock that was effective on April 5, 2000. </P>
  </BLOCKQUOTE>
  <P>7. <B>Mergers, Consolidations, Asset Sales, Liquidations, etc. </B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of Section
    4(c)(iii) and 4(d)(iv), in the event of a merger or consolidation or sale
    of all or substantially all of the assets of the Company in which
    outstanding shares of one or both series of Common Stock are exchanged for
    securities, cash or other property of any other corporation or business
    entity or in the event of a liquidation of the Company, the Board of
    Directors of the Company, or the board of directors of any corporation
    assuming the obligations of the Company, shall take one or more of the
    following actions, as to outstanding Options for such series of Common
    Stock: (i) provide that such Options shall be assumed, or equivalent
    Options shall be substituted, by the acquiring or succeeding corporation
    (or an affiliate thereof); (ii) upon written notice to the optionees,
    provide that all unexercised Options shall (A) immediately become
    exercisable in full and (B) terminate immediately prior to the consummation
    of such transaction unless exercised by the optionee within a specified
    period following the date of such notice; or (iii) in the event of a merger
    under the terms of which holders of one or both series of Common Stock of
    the Company will receive upon consummation thereof a cash payment for each
    share surrendered in the merger (the ''Merger Price''), make or provide for
    a cash payment to such optionees equal to the difference between (A) the
    Merger Price times the number of shares of Common Stock subject to such
    outstanding Options (to the extent then exercisable) with exercise prices
    not in excess of the Merger Price and (B) the aggregate exercise price of
    all such Options, in exchange for the termination of such Options. </P>
  <P>8. <B>Change in Control. </B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the Plan, a ''Change in
    Control'' shall be deemed to have occurred if (i) any ''person'', as such
    term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
    1934, as amended (the ''Exchange Act'') (other than the Company, any
    trustee or other fiduciary holding securities under an employee benefit
    plan of the Company, or any corporation owned directly or indirectly by the
    stockholders of the Company in substantially the same proportion as their
    ownership of stock of the Company), is or becomes the ''beneficial owner''
    (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
    of securities of the Company representing 30% or more of the combined
    voting power of the Company's then outstanding securities (other than
    pursuant to a merger or consolidation described in clause (A) or (B) of
    subsection (iii) below); (ii) during any period of two consecutive years
    ending during the term of the Plan (not including any period prior to the
    adoption of the Plan), individuals who at the beginning of such period
    constitute the Board of Directors of the Company, and any new director
    (other than a director designated by a person who has entered into an
    agreement with the Company to effect any transaction described in clause
    (i), (iii) or (iv) of this Section 8) whose election by the Board of
    Directors or nomination for election by the Company's stockholders was
    approved by a vote of at least two-thirds of the directors then still in
    office who were either directors at the beginning of the period or whose
    election or nomination for election was previously so approved
    (collectively, the ''Disinterested Directors''), cease for any reason to
    constitute a majority of the Board of Directors; (iii) the closing of a
    merger or consolidation of the Company or any subsidiary of the Company
    with any other corporation, other than (A) a merger or consolidation which
    would result in the voting securities of the Company outstanding
    immediately prior thereto continuing to represent (either by remaining
    outstanding or by being converted into voting securities of the surviving
    entity) more than 50% of the combined voting power of the voting securities
    of the Company or such surviving entity outstanding immediately after such
    merger or consolidation or (B) a merger or consolidation effected to
    implement a recapitalization of the Company (or similar transaction) in</P>
  <P></P>
  <P> which no ''person'' (as defined above) acquires more than 30% of the
    combined voting power of the Company's then outstanding securities; or (iv)
    a complete liquidation of the Company or a sale by the Company of all or
    substantially all of the Company's assets. </P>
  <P>9. <B>Modification, Extension and Renewal of Options and PARS. </B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors shall have the power
    to modify or amend outstanding Options and PARS; provided, however, that no
    modification or amendment may (i) have the effect of altering or impairing
    any rights or obligations of any Option or PARS previously granted without
    the consent of the optionee or holder thereof, as the case may be, (ii)
    modify the number of shares of Common Stock subject to the Option or number
    of shares of Common Stock or PARS Deferred Units subject to the PARS
    (except as provided in Section 6) or (iii) reprice, replace or regrant
    options issued through cancellation or by lowering the option exercise
    price of a previously granted award unless approved by the stockholders of
    the Company .</P>
  <P> 10.<B> Amendment of the Plan.</B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors may suspend or
    discontinue the Plan or amend it in any respect whatsoever; provided,
    however, that without approval of the stockholders of the Company, no
    amendment may (i) materially modify the requirements as to eligibility to
    receive Options or PARS under the Plan, or (ii) materially increase the
    benefits accruing to participants in the Plan. </P>
  <P>11. <B>Withholding.</B> </P>
  <BLOCKQUOTE> <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall have the
    right to deduct from payments of any kind otherwise due to the optionee or
    recipient of PARS any federal, state or local taxes of any kind required by
    law to be withheld with respect to any shares issued upon exercise of
    Options under the Plan or upon the expiration or termination of the
    Restricted Period relating to the PARS. Subject to the prior approval of
    the Company, the optionee or recipient of PARS may elect to satisfy such
    obligations, in whole or in part, (i) by causing the Company to withhold
    shares of Common Stock otherwise issuable pursuant to the exercise of an
    Option or upon the expiration or termination of the Restricted Period
    relating to the PARS or (ii) by delivering to the Company shares of Common
    Stock already owned by the optionee or PARS recipient. The shares so
    delivered or withheld shall have a fair market value equal to such
    withholding obligation. The fair market value of the shares used to satisfy
    such withholding obligation shall be determined by the Company as of the
    date that the amount of tax to be withheld is to be determined. An optionee
    or PARS recipient who has made an election pursuant to this Section 11(a)
    may only satisfy his or her withholding obligation with shares of Common
    Stock which are not subject to any repurchase, forfeiture, unfulfilled
    vesting or other similar requirements. </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the recipient of PARS under the Plan
    elects, in accordance with Section 83(b) of the Code, to recognize ordinary
    income in the year of acquisition of any shares awarded under the Plan, the
    Company will require at the time of such election an additional payment for
    withholding tax purposes based on the difference, if any, between the
    purchase price of such shares and the fair market value of such shares as
    of the date immediately preceding the date on which the PARS are awarded.
    </P>
  </BLOCKQUOTE>
  <P>12. <B>Notice. </B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any written notice to the Company required
    by any of the provisions of the Plan shall be addressed to the Treasurer of
    the Company and shall become effective when it is received. </P>
  <P><FONT
  SIZE="2"></FONT></P>
  <P>13. <B>Governing Law. </B></P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan and all determinations made and
    actions taken pursuant hereto shall be governed by the laws of the State of
    Delaware. </P>
  <P>14. <B>Stockholder Approval.</B> </P>
  <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is conditional upon stockholder
    approval of the Plan, and the Plan shall be null and void if the Plan is
    not so approved by the Company's stockholders. </P>
  <P></P>
  <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
   <TR>
    <TD WIDTH="50%">&nbsp;</TD>
    <TD>Amended and restated by the Board of Directors on September 10, 1998
      and approved by stockholders on January 21, 1999; amended by the Board of
      Directors on September 14, 1999 and approved by stockholders on November
      9, 1999; and amended by the Board of Directors on March 7, 2000 and
      approved by stockholders on ______________, 2000.</TD>
   </TR>
  </TABLE>
  <P>&nbsp;</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<DESCRIPTION>PROXY CARD
<TEXT>

<PAGE>

                                                                      EXHIBIT 99


                                 STAPLES, INC.

             PROXY FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD
                                ON JULY 10, 2000

           THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
                                 OF THE COMPANY


      The undersigned, revoking all prior proxies, hereby appoint(s) Thomas G.
Stemberg, John J. Mahoney and Jack A. VanWoerkom, and each of them, with full
power of substitution, as proxies to represent and vote, as designated herein,
all shares of Common Stock of Staples, Inc. (the "Company") which the
undersigned would be entitled to vote if personally present at the Annual
Meeting of Stockholders of the Company to be held at the FleetBoston Financial
Building (formerly BankBoston, N.A.) 100 Federal Street, Boston, Massachusetts,
at 2:00 p.m., local time, and at any adjournment thereof.

      In their discretion, the proxies are authorized to vote upon such other
matters as may properly come before the meeting or any adjournment thereof.

      This proxy, when properly executed, will be voted in the manner directed
by the undersigned stockholder(s). If no direction is given, this proxy will be
voted FOR the election of Directors, and FOR Proposals 2 and 3. Attendance of
the undersigned at the meeting or any adjournments thereof will not be deemed to
revoke this proxy unless the undersigned shall revoke this proxy in writing or
affirmatively indicate the intent to vote in person.


                 CONTINUED AND TO BE SIGNED ON THE REVERSE SIDE

------------------                                          ------------------
 SEE REVERSE SIDE                                            SEE REVERSE SIDE
------------------                                          ------------------


<PAGE>

1. To elect five Class 3 Directors to serve for a three-year term expiring at
   the 2003 Annual Meeting of Stockholders.

Nominees: 01 Basil L. Anderson, 02 George J. Mitchell, 03 Robert C. Nakasone,
04 Ronald L. Sargent, 05 Thomas G. Stemberg

   FOR                    WITHHELD
   ALL                    FROM ALL
NOMINEES                  NOMINEES

----------------------------------------------
For all nominees except as noted above

MARK HERE FOR ADDRESS             MARK HERE IF YOU PLAN
CHANGE AND NOTE BELOW             TO ATTEND THE MEETING

                                                           FOR  AGAINST  ABSTAIN
2.  To approve amendments to the Company's Amended and
    Restated 1990 Director Stock Option Plan.

3.  To ratify the selection of Ernst & Young LLP as the
    Company's independent auditors for the current fiscal
    year.

By checking the box to the right, I consent to future access of
the Company's Annual Report, proxy statements, prospectuses and other
communications electronically via the Internet. I understand that the Company
may no longer distribute printed materials to me in connection with any future
stockholder meeting until such consent is revoked. I understand that I may
revoke any consent at any time by contacting the Company's transfer agent,
ChaseMellon Shareholder Services, Ridgefield Park, NJ and that costs typically
associated with electronic access, such as usage and telephone charges, will be
my sole responsibility.

Signature                    Signature                   Date
          ------------------           -----------------      --------------
Please sign exactly as name appears hereon. When shares are held by joint
owners, both should sign. When signing as attorney, executor, administrator,
trustee or guardian, please give title as such. If a corporation or a
partnership, please sign by authorized person.

                           * FOLD AND DETACH HERE *

                            YOUR VOTE IS IMPORTANT!
                      YOU CAN VOTE IN ONE OF THREE WAYS:
--------------------------------------------------------------------------------
                               VOTE BY INTERNET
                         24 hours a day, 7 days a week
  Follow the instructions at our Internet Address: http://www.eproxy.com/SPLS
--------------------------------------------------------------------------------

                                      or

--------------------------------------------------------------------------------
                                 VOTE BY PHONE
                         HAVE YOUR PROXY CARD IN HAND.
           Call toll-free 1-800-840-1208 on a touch tone telephone
                        24 hours a day, 7 days a week.
                   There is NO CHARGE to you for this call.
  You will be asked to enter your 11-digit Control Number, which is located
           in the box in the lower right hand corner of this form.
                       Follow the recorded instructions.
--------------------------------------------------------------------------------

                                      or

--------------------------------------------------------------------------------
                              VOTE BY PROXY CARD
           Mark, sign and date your proxy card and return promptly
                           in the enclosed envelope.
--------------------------------------------------------------------------------
If you wish to access future Annual Reports, Proxy Statements, Prospectuses and
  other communications electronically via the Internet and no longer receive
     printed materials, please provide your consent with your proxy vote.
--------------------------------------------------------------------------------

                 NOTE: If you voted by Internet or telephone,
                THERE IS NO NEED TO MAIL BACK your proxy card.

THANK YOU FOR VOTING.
</TEXT>
</DOCUMENT>
</SUBMISSION>
