CLARIFICATION of BW1189 (FEDERAL-EXPRESS).

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 25, 1995--Federal Express Corporation (NYSE:FDX) and Staples, Inc. today announced a strategic alliance designed to help small businesses maximize efficiency.

Beginning in October, FedEx ShipSites will be installed in all of Staples' 346 office products superstores across the United States. Customers will now be able to drop off FedEx packages, photocopy, fax and bind documents, and purchase office supplies under one roof.

This agreement marks the first of its kind between the world's largest express transportation company and the nation's first office supply superstore. Staples will feature newly-designed, self-contained FedEx ShipSites that require a minimum of floor space, compactly store all packaging supplies and are easy to use and accessible for customers.

"FedEx is more than just a transportation company. With Staples, we are helping customers, especially small businesses, maximize their efficiency -- a logical extension of our commitment to customer service," said Glenn D. Sessoms, vice president, Retail Marketing and Operations, Federal Express. "This alliance also makes good business sense, since it is expected to generate substantial incremental revenue for both companies, as has been the case with FedEx's other retail affiliates." A recent study revealed that customers visiting Kinko's SAM's Clubs, and Target Stores specifically to use the FedEx drop-off location made a total of $29 million in purchases annually.

FedEx is the leader in the express industry in customer convenience and continues to expand the network, now with more than 7,000 ShipSites in some of the country's most popular retail stores. This is in addition to more than 33,000 FedEx drop-off locations.

"This alliance is part of Staples' continuing effort to provide our growing customer base of small business, home offices and consumers with one-stop shopping convenience for office supplies and special business services," said Jack Bingleman, president, Staples North American Superstores. "As such, it extends the visionary thinking that has made both companies models in their industries."

Federal Express is the world's largest express transportation company, providing fast and reliable services for nearly 2.4 million items in 204 countries each working day. The company employs more than 112,000 people and operates more than 500 aircraft, 35,000 vehicles and nearly 180,000 Powership(R) and FedEx Ship(TM) automated systems in its integrated global network. Federal Express reported revenues of $9.4 billion for its fiscal year ended May 31, 1995.

Staples, Inc. currently operates 401 office products superstores in approximately 100 markets across the U.S. and Canada under the names "Staples - The Office Superstore," "Staples Express," "Business Depot," and "Bureau en Gross." The company operates a delivery business, Staples Direct, and also has five contract stationer operations under the names "National Office Supply" and "Staples Business Advantage" which serve the needs of medium to large-sized corporations. In addition, Staples, Inc. is a joint venture partner in start-up office supply store chains in the United Kingdom (Staples UK) and Germany (Maxi-Papier-Markt GmbH).

CONTACT: Federal Express Corporation, Memphis

Sonja Whitemon, 901/395-3484

or

Staples, Inc.

Susan Grieb, 508/370-8635