Businesses Respond Positively to Daisytek's Reseller Toolkit; More Than 3,500 Dealers Take Advantage of Web Site's Tips, Training Materials and Marketing Tools.

Business Editors

ALLEN, Texas--(BUSINESS WIRE)--Jan. 21, 2003

Competition is stiff for small business owner Farieda Reardon, who owns Space Coast Laser Connection, a Florida firm that sells and services printers, copiers, fax machines and provides related supplies.

"Since I opened my shop seven years ago, four new office superstores have opened in my area," said Reardon, who is located in Merritt Island near the Kennedy Space Center. "I'm very pleased to have access to the Daisytek sales and training tools, which help me compete better in my community."

Daisytek International (Nasdaq:DZTK) is a Fortune 1000 global distributor of computer supplies, office products and accessories with projected annual revenues approaching $2 billion.

Reardon has found the best support from Daisytek International's 2003 Reseller Toolkit (www.daisytek.com/reseller), a comprehensive, Web-based marketing and training package geared to help independent stores raise awareness and enhance sales.

As often as seven times a week, Reardon goes to the Daisytek Web site to research the latest products, check out the educational materials or download free marketing materials, such as the fax, brochure and flyer templates, which she customizes and sends to her customers. She can even order consumer catalogs that can be personalized with her company information and pricing.

And Reardon's not alone. Since Daisytek unveiled its new, expanded Reseller Toolkit Web site in August 2002, almost 3,500 dealers have registered at the site, which is averaging 1,700 visits per week. The most frequently viewed pages are marketing tools, deals, product listings and promotions.

"I particularly like the promotions, because I can pass on the savings to my customers," said Reardon. "No matter the size of your business, Daisytek gives you all the tools you need to compete successfully."

Daisytek's Toolkit offers product information, online presentations from select manufacturers showcasing product features and benefits, and sales tips and strategies. Marketing templates that resellers can customize include postcards, brochures, ad slicks, rebates, emails and more. The "deals" section offers e-bidding on special products, bargains and manufacturers' rebates. An entertainment section has games that test industry knowledge and a weekly poll to solicit customer suggestions.

"Ultimately, our goal is to help resellers like Farieda Reardon grow their business," said Jim Powell, president and CEO of Daisytek International. "And we've received excellent feedback -- particularly from small and mid-sized businesses -- because they lack the vast resources and marketing expertise of the big stores. They are grateful to find everything they need in one spot at our Web site."

Toolkit Introduces Office Products

Powell says the Reseller Toolkit also helps inform dealers of the company's new focus on office products. Earlier this month, Daisytek began distributing office supplies -- everything from paper clips and pens to file folders and notepads -- on a major scale nationally from three regional warehouses located in Memphis, Tenn.; Albany, N.Y.; and Bakersfield, Calif. Powell considers the initiative one of the most important moves in Daisytek's history.

"We have had extensive information on the Web site about computer and printing supplies, but this is the first time customers will also find educational materials, deals and rebates for office products," said Powell. "Our major office supply vendors are already on the Web site, and we will add many more in the next several months."

The Office Products section includes 11 categories, from "mailroom/break/janitor" to "filing/organizers." Vendors currently featured include 3M, Acco, Fellowes, Avery Dennison, Energizer, Pentel and many others.

In an interview in the "Sales Tools" section of the "Why and How OP" link, Gordon Zdeblick, Daisytek's vice president of office products, explains Daisytek's decision to expand into office products and discusses the advantages the company offers over traditional wholesalers. He answers questions regarding the lower cost structure, the simplicity of order taking, the higher margins for resellers and more (see http://reseller.daisytek.com/officeproducts/why_how.aspx). Other highlights include the Sales Tips section, which features motivational articles by popular authors, such as this month's selections entitled "Words Count" and "Making the Buying Decision Easily."

"Because dealer response has been so positive, we will continue to seek ways to improve and expand the Reseller Toolkit," said Powell. "This is a prime example of how Daisytek strives to service its customers through innovation."

About Daisytek

Daisytek International is a worldwide distributor of computer and office supplies, peripherals and professional tape media. In addition, it offers fee-based marketing, demand-generation and fulfillment services. Daisytek sells its products and services in North America, South America, Europe and Australia, distributing more than 25,000 products from about 500 manufacturers, including printer supplies, magnetic and data storage media, video and motion picture film. This news release and Daisytek's annual report are available at www.daisytek.com. The Web site is not part of this release. Daisytek is a registered trademark of Daisytek, Incorporated. All rights reserved.

The matters discussed in this news release contain both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. You can identify these statements by the fact that they do not relate strictly to historical or current facts, but rather reflect our current expectations concerning future results and events. Forward-looking statements relating to such matters as our financial condition and operations, including forecasted information, are based on our management's current intent, belief or expectations regarding our industry or us. These forward-looking statements including forecasts are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. In addition, some forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

Certain factors, including but not limited to, general economic conditions, industry trends, the loss of or inability to hire skilled personnel, the loss of key suppliers or customers, the loss or material decline in service of strategic product shipping relationships, customer demand, product availability, competition (including pricing and availability), risks inherent in acquiring, integrating and operating new businesses and investments, concentrations of credit risk, distribution efficiencies, capacity constraints, technological difficulties (including equipment failure or a breach of our security measures), the volatility of our common stock, economic and political uncertainties arising as a result of terrorist attacks, seasonality, exchange rate fluctuations, foreign currency devaluations, economic and political uncertainties in international markets, potential obligations under operating lease commitments of our former subsidiary PFSweb and the regulatory and trade environment (both domestic and foreign) could cause our actual results to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. There may be additional risks that we do not currently view as material or that are not presently known.

Other factors that could affect Daisytek are set forth in Daisytek's 10-K for the fiscal year ended March 31, 2002.