Daisytek Organizes Leadership Structure to Manage Growth; CEO Jim Powell Appoints Executives to Lead New Worldwide Divisions.

Business Editors & High Tech Writers

ALLEN, Texas--(BUSINESS WIRE)--June 6, 2002

In a move to provide more depth of leadership and to align the company for expected growth, Daisytek International Corporation (Nasdaq:DZTK) President and CEO Jim Powell has divided the computer and office supplies wholesaler into three geographic divisions, each with its own president.

Effective immediately Mike Scannell becomes president of all U.S. business and subsidiaries and Peter Wharf is president of international operations, excluding Europe. Assuming that Daisytek's earlier announced offer to acquire ISA International plc (London AIM:ISA.L) is successful, Bruce Robinson will oversee all aspects of European business. Robinson is now CEO of ISA, one of the largest pan-European computer supplies distributors.

"We are well on our way to achieving our goal of making Daisytek the largest low-cost distributor of computer and office supplies in the world. Creating distinct operating units, led by company veterans with decades of experience, puts us ahead of the curve to manage growth opportunities," Powell said. "These moves position Daisytek to go to the next level in our 25-year history of corporate growth with the potential for increased revenues and profits."

Powell, 41 and a 14-year Daisytek veteran, said each of the new division presidents has broad international experience in computer and office supplies sales and marketing. They also have held senior management positions at ISA, which bodes well for joining the two companies if the acquisition moves forward as expected.

-- Scannell, 40, is responsible for Daisytek's domestic core business of
computer supplies and office product sales, as well as the fee-based marketing
and demand-generation services unit VirtualDemand. Daisytek's U.S. subsidiaries
report to him and include: Digital Storage Inc., a value-added distributor of
computer media, hardware, and supplies founded in 1986 and headquartered near
Columbus, Ohio; Arlington Industries Inc., based in suburban Chicago, a
30-year-old distributor specializing in printer, fax and copier supplies; and
The Tape Company, a film and tape media supplier also near Chicago. Scannell
was previously with Daisytek from 1984 until 1994, serving as president of the
company for eight years. He was managing director of ISA International from
1995 to 1997. Scannell also served as a director of Kusadsi Ltd (Jersey), an
investment company based in the Channel Isles with investments in office
supplies and children's educational products, before returning to Daisytek in
the summer of 2001.

-- Wharf, 43, has been a Daisytek executive since 1992 and is a company
director. He has 23 years of experience in the computer supplies industry, most
of that in the international business arena with experience in more than 25
countries. Before joining Daisytek, Wharf held several positions in export
management and sales at ISA. Wharf's focus is on Daisytek's expanding
operations in Australia, Canada, Latin America and Mexico, markets that
delivered revenue growth last fiscal year of 21% in local currencies. Since
joining Daisytek 10 years ago, Wharf and his team have grown the international
business from approximately $32 million to over $400 million annually.

-- Robinson, 46, is CEO of ISA International and will continue to run
pan-European operations when Daisytek completes its planned acquisition of the
$510 million supplies wholesaler, which serves markets in the United Kingdom,
Ireland, Germany, France, Norway and Sweden. Robinson joined ISA in 1999 and
became CEO the following year. He has held various senior roles in the office
products industry during the past 16 years, and before leading ISA was CEO of
Corporate Express (UK). ISA, which had revenue growth of 22% in calendar year
2001, also owns a 47% interest in Kingfield-Heath, a $290 million office
products wholesaler in the U.K. market.

"Each of these individuals brings many years of experience and I admire their dedication, knowledge and market savvy. Our team is unmatched in shared experience, focus and eagerness to spread Daisytek's low-cost business model, commitment to customer service and shareholder value worldwide," Powell said.

"Two years ago this month," he added, "the new Daisytek established growth strategies to better serve our shareholders, customers and employees. We've not wavered from our goals of expanding our product line to include office products; pioneering emerging customer channels, such as drug and grocery stores; leveraging our core competencies in customer care and demand generation; opening new international markets; and pursuing acquisitions to support our operating and financial strategies."

Before accounting for the consolidation of ISA, Daisytek expects corporate revenue growth for the Fiscal Year 2003, to be 10% to 15%, in the range of $1.3 billion to $1.4 billion, achieving revenue growth targets in the United States of 10% to 15% and internationally of 15% to 20%. Upon completion of the ISA transaction, Daisytek anticipates that ISA's revenues of approximately $510 million will grow at the market rate of 10% to 15%. Given this, Daisytek's combined revenue for Fiscal 2003 is projected to be $1.8 billion to $1.9 billion.

Also reporting to Powell as part of the international corporate management team are Jack Kearney, executive vice president of corporate development, and director, primarily responsible for mergers and acquisitions; Ralph Mitchell, executive vice president and chief financial officer; and Ralph Doherty, executive vice president of worldwide team development.

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 20,000 nationally known, name-brand computer and office supplies products and over 2,800 professional tape products from numerous manufacturers. Daisytek is headquartered near Dallas. This news release and more information about Daisytek are available at www.daisytek.com. The company's annual report is at www.dztkannualreport.com. These Web sites are 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 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, exchange rate fluctuations, currency devaluations 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, 2001.