Class Action Filed Against Jonathan Ledecky, U.S. Office Products Co., and Sands Brothers & Co., Ltd.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--October 29, 1998--A class action was commenced on October 27, 1998 in the United States District Court for the Southern District of New York, 98 Civ. 7640 (Kram), against Jonathan Ledecky, the founder, former Chairman of the Board and Chief Executive Officer of U.S. Office Products Co. (NASDAQ:OFIS)("USOP"); Sands Brothers & Co, Ltd. ("Sands"), a market maker in USOP stock; and USOP. According to plaintiff's attorneys, Lowey Dannenberg Bemporad & Selinger, P.C., the claims are brought under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") against all defendants on behalf of a class of persons (the "Class") who purchased the common stock of USOP between June 5, 1997 and Sept. 2, 1998 (the "Class Period"); under Section 14(a) of the Exchange Act against defendants Ledecky and USOP on behalf of a subclass (the "Subclass") of persons who held USOP stock on March 26, 1998, the record date for a shareholder vote on components of a USOP corporate restructuring complained of in the action; and under Section 20 of the Exchange Act on behalf of the Class and Subclass against defendant Ledecky for control person liability.

6 The Complaint alleges that defendants made representations during the Class Period about USOP's earnings and margins and the value of USOP stock, which they knew were false and misleading in light of Ledecky's existing plan to concentrate on profiting from the creation of additional roll-ups, rather than continue his executive responsibilities at USOP, and cash out a substantial portion of his USOP stock at a premium to an inflated stock price through a corporate buyback. The defendants knew at the time they were touting USOP's consistently improving margins and earnings that the contemplated buyback (and the spin-off of certain of USOP's divisions), both of which were disguised as part of an overall USOP restructuring, would preclude USOP from continuing to take advantage of the pooling-of-interests method of accounting, by which USOP had been able to sustain its purportedly strong financial performance. Once the planned buyback was announced, USOP was required to restate 22 pooling transactions, which were completed in the first and second quarter of fiscal 1998, ended July 26, 1997 and Oct. 25, 1997, respectively, and to reduce materially its gross profit and income for those quarters. The buyback and spin-off also impact negatively USOP's earnings going forward as well as USOP's ability to continue to use the pooling-of-interests method of accounting for future acquisitions made with USOP stock. Ledecky received more than $25 million in the buyback. Unlike the investing public who paid inflated market prices for their stock during the Class Period, Ledecky paid nominal consideration for his stock when he founded USOP.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact: Jill Rosell, Esquire at LOWEY DANNENBERG BEMPORAD & SELINGER, P.C., The Gateway, One North Lexington Avenue, White Plains, New York 10601, [phone], E-mail: [e-mail].

Any member of the proposed Class may move the Court to serve as lead plaintiff no later than Dec. 28, 1998.