Fellowes acquires C-2's computer accessories line: company's second acquisition in nine months creates new leader in computer accessories market.

ITASCA, Ill.--(BUSINESS WIRE)--Jan. 6, 1995--Fellowes Manufacturing Company of Itasca, Illinois, has acquired Chicago-based C-2, Inc., the leading manufacturer of computer dust covers and mouse pads in the country.

The acquisition will add C-2's covers, mouse pads, wrist rests, keyboard protectors, laptop carrying cases and molded products to Fellowes' extensive line of computer accessories. Under the agreement, Fellowes will retain the C-2 brand name and market the company's products alongside its own Fellowes Computerware brand. C-2 will maintain its 90,000-square-foot plant and management team and continue to develop new products.

Purchase price was not disclosed.

The move is part of an aggressive expansion of Fellowes' computer accessories business that has involved both internal product additions and outside acquisitions. Last spring, Fellowes acquired a controlling interest in APT, the manufacturer of Appoint(R) input devices located in Paso Robles, California. Fellowes is actively seeking other acquisitions and developing its own new products in an effort to enhance leadership in the global computer accessories market.

``We expect that computer accessories will become our largest category within two years and help us grow from a $220 million company to a $500 million firm,'' said company president James Fellowes. ``Both C-2 and Fellowes are leaders in their respective categories of computer accessories, and this acquisition will strengthen us both.''

C-2 is a 13-year-old company that began as a small purveyor of computer dust covers and expanded into what is today a $21 million business with 106 employees.

Part of C-2's strategy has been to appeal to consumers' tastes for personal expression by signing licensing agreements to create designer computer products. Its current line includes a wide range of items with Warner Bros. Looney Tunes characters, and the company also has the rights to develop products based on the 1996 Summer Olympics in Atlanta.

``The marriage of our products with Fellowes' will create the leading company in the computer accessories market,'' said Mark Swislow, C-2 president, who with partner Howard Gould will remain at the helm of C-2 as well as becoming a vice president at Fellowes. ``This is a case where there is strength in numbers, and joining forces with Fellowes will also meet the needs of dealers who are looking to consolidate vendors.''

Fellowes' computer accessories business has been growing in the range of 25 percent annually, gradually overtaking the Bankers Box records storage products that have been the company's stock in trade since it was founded in 1917. The company also sells paper shredders, and that business segment has grown dramatically as well. In recent years, Fellowes also has built its business abroad. International sales now account for 25 percent of Fellowes' annual revenues. The company has foreign subsidiaries in Canada, the United Kingdom, Holland, Germany, France and Australia and exports product to more than 50 countries. C-2's alignment with Fellowes will bring C 2's products to the international marketplace for the first time.

CONTACT: Jody Abrams, 708/291-8421, ext. 235