CoStar Corporation Acquired by Esselte Office Products -- Leading Label Printer Aims to Grow Sales, Share Technology --.

GREENWICH, Conn.--(BUSINESS WIRE)--June 1, 1998--In a move that will increase the distribution of its products worldwide, CoStar Corporation, a leading manufacturer of paper label printers, print supplies and associated computer software, today announced the completion of its acquisition by Esselte Office Products Company, a unit of Esselte AB. Esselte is listed on the Stockholm and London Exchanges. The terms of the agreement were not disclosed.

Under the agreement, CoStar will continue to market its product line under its current management and in its current headquarters in Greenwich, Conn. The company will operate as a wholly owned subsidiary of Esselte, a global supplier, and Esselte will utilize CoStar's patented printer technology in its Dymo brand labeling products, which are currently sold throughout Europe.

"Esselte's strong presence in the global office will strengthen our relationships with major U.S. office distribution outlets, as well as offer us the opportunity to expand the use of CoStar technology in the global marketplace." Said Andrew Newmark, CoStar Chairman and co-founder. "We could not have a better partner to help us grow our distribution."

"CoStar has significant product design and software expertise which we have developed in the Microsoft Windows(R) and Macintosh markets for office professionals. We also offer solutions to address the needs of vertical markets such as medical and manufacturing," explained Phil Damiano, President, CEO and a co-founder of CoStar. "We look forward to putting our advanced technology to work for Esselte in the world-wide printer marketplace."

The CoStar product line integrates reliable, easy-to-use printer products, driven by Windows(R) based applications software," said Bob Hawkes, Executive Vice President of Esselte. "It's a win/win situation for both companies."

CoStar Corporation, founded in 1989, is one of the world's leading manufacturers of personal desktop label printers sold through the computer and office products distribution channels. For more information on CoStar, visit the website at http://www.costar.com.

Esselte Office Products, based in Garden City, New York, is a division of Esselte AB, a worldwide supplier of products designed to increase efficiency and organization in the office. Esselte AB stock is listed on the Stockholm and London Exchanges.

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