Daisytek Forms Strategic Alliance with ECI2; Variety of Technology Tools to Help Office Products Dealers and Resellers.

Business Editors & High-Tech Writers

ALLEN, Texas--(BUSINESS WIRE)--Dec. 20, 2001

Daisytek International (Nasdaq:DZTK), a $1.2 billion wholesale distributor of computer and office supplies and provider of marketing and demand-generation services, has formed a strategic alliance with eCommerce Industries Inc.(TM) (ECI2) of Vienna, Va.

ECI2 provides information technology solutions for the office products, janitorial/sanitary products, industrial paper, and other reseller-intense industries.

This multifaceted relationship includes: the adoption of ECI2's front-end e-commerce solution, Dealer Station xTended(TM), for the Daisytek IT reseller and OP dealer communities; the license of Daisytek computer and office supplies electronic catalog content to ECI2; and formal adoption of ECI2's Private Supply Network solution by Daisytek.

The electronic catalog content license agreement referred to above was signed on Dec. 12, 2001. The content license agreement will enable users of the ECI2 electronic catalog to more easily cross-sell or up-sell computer and office supplies utilizing Daisytek's product cross-reference database. Daisytek has signed a letter of intent with ECI2 for the adoption of Dealer Station xTended and the Private Supply Network and anticipates signing final adoption agreements within the next several weeks.

"ECI2's technology leadership serving the office products industry is a perfect fit with our expert distribution capabilities for the reseller community," said Jim Powell, president and CEO of Daisytek. "Daisytek entered into this relationship to help our customers remain competitive in the marketplace by becoming more technically savvy and cost-efficient. ECI2 was the obvious partner for us when making this decision."

"Daisytek has invested millions of dollars in its own information management systems," said John W. Sidgmore, ECI2's chairman and CEO. "Our alliance creates an unprecedented solution in this marketplace, giving IT resellers and office products dealers the unique capability to exploit much of Daisytek's real-time pricing, product-stocking and tracking information - the only such capability in the office products industry - directly from a dealer's DDMS (back office) business system."

The Private Supply Network for Daisytek is a set of secure, Web-enabled, hosted services that have been built and will be maintained by ECI2. These services enable Daisytek to communicate in real time with their customers via tight application integration. Select customers will be able to view Daisytek inventory and obtain price quotes online, and then instantaneously place orders. The services are modular and can be extended easily and rapidly to incorporate other enhanced features that increase customer loyalty, decrease processing costs for both buyer and seller, and facilitate real-time collaboration. The Private Supply Network is anticipated to be a major differentiator for Daisytek in the office products marketplace.

In addition, any ECI2 customer can now add the Daisytek product catalog, for both IT consumables and office products, to its e-commerce storefronts, giving end-users a broad selection of products.

"Offering dealers choice and giving end-users a breadth of products to select from will aid independent resellers in customer retention and foster greater customer loyalty," said Jim Powell.

"ECI2 looks forward to the joint sales and marketing campaign aimed at Daisytek's current reseller community and its new office products distribution network," said Paula Jagemann, ECI2 president and founder. "We have invested tens of millions of dollars in our e-commerce solutions and provide platforms to the largest number of office products dealers and jan/san distributors in the USA, Canada and the UK to help them to communicate with their corporate end-users. Our customized dealer websites are robust, technology-rich solutions that consistently match or exceed the functionality demanded by corporations wishing to order electronically from their trading partners today."

For more information contact Jim Powell for Daisytek at 972/881-4700 or via email at [e-mail] or Paula Jagemann for ECI2 at 703/270-3881 or via email at [e-mail].

About ECI2

eCommerce Industries, Inc. (ECI2) is the leading provider of information technology solutions to the office products industry and other reseller-intense industries, including the industrial paper and janitorial and sanitary products marketplace. Through the development and application of leading edge e-commerce technologies, the company is changing how products are bought and sold. ECI(2) is the premier developer of Web-based storefronts, related e-commerce technology, and business systems for independent dealers and distributors. Approximately 2,500 independent dealers and distributors use the company's systems software. ECI(2), established in 1999, is privately held and is based in Vienna, Va. For more information, visit www.eci2.com, call 888/499-ECI2, or send email to [e-mail].

About Daisytek

Daisytek is a leading wholesale distributor of computer and office supplies and professional tape products, in addition to providing marketing and demand-generation services. Daisytek sells its products and services in the United States, Canada, Australia, Mexico and South America. Daisytek distributes more than 17,000 nationally known, name-brand computer and office supplies products and over 2,800 professional tape products from numerous manufacturers. Daisytek is headquartered in Allen, Texas. This news release and more information about Daisytek are available at www.daisytek.com. This 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 key suppliers or customers, the loss of strategic product shipping relationships, customer demand, product availability, competition (including pricing and availability), risks inherent in acquiring, integrating and operating new businesses, concentrations of credit risk, distribution efficiencies, capacity constraints, technological difficulties, exchange rate fluctuations, 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. In addition, statements in this press release relating to the expected benefits of the contemplated transaction are subject to risks relating to the timing and successful completion of transitioning certain information technology, integration of the acquired assets into Daisytek's operations, unanticipated expenditures and changing relationships with customers, suppliers and strategic partners. There may be additional risks that we do not currently view as material or that are not presently known.

In addition to the risks and uncertainties listed above, the terrorist attacks that took place in the United States on September 11, 2002 and the resulting war on terrorism are unprecedented events that have created many economic and political uncertainties. There could be further acts of terrorism in the United States or elsewhere that could have a similar impact. In addition, the national global responses to these terrorist attacks and the resulting war on terrorism may materially adversely affect us in ways we cannot predict at the present. Some of the possible material adverse impacts to our business include, but are not limited to: lower order levels from our customers; difficulties or delays related to our receipt or shipment of products by common carrier both within the United States and internationally; the lengthening of our sales cycles and implementations, which might result from a number of factors such as changes in security measures and disruptions to our business as a result of these changes; increased credit and business risk for customers in industries that were severely impacted by the attacks; and further instability in financial markets caused by armed hostilities or further acts of terrorism.

Other factors that could affect Daisytek are set forth in Daisytek's 10-K for the fiscal year ended March 31, 2001.

Note to Editors: The company name ECI2 is written with the "2" in superscript.