Trading Suspension of Staples Holdings Limited Continues - Dividends Temporarily Suspended.

Hamilton, Bermuda, February 16, 1999 - Staples Holdings Limited met with the Bermuda Stock Exchange on Monday, February 8, 1999 to request that trading of the Company's shares be temporarily suspended. This meeting was held on a confidential basis as provided in the BSX Listing Regulations pending the Company's ability to make further announcements. The Company has been advised today by the BSX that the trading suspension would continue in effect until the Company has made such announcements, which are anticipated in the near future.

"The Company is currently in the process of reviewing all its asset values and operational processes, and its financial condition and capital structure, in order to determine the best plan for a complete corporate re-engineering, " stated President Michael Johnson. "Ernst and Young has been engaged to assist with this evaluation and re-engineering process and has been working closely with us. Senior management and Ernst & Young consultants have been in close communication with our banks and will continue to keep them informed during this process".

The Company's capital structure consists of both common and preferred shareholders. Preferred shareholders have timely received each 10% dividend since the Company's inception. "However, the obligation to pay this dividend, in light of the Company's performance in the existing market environment, is impacting the ability of the Company to move forward," stated Chairman William Midon. "A letter has been sent to the Company's preferred shareholders to inform them that, regrettably, payment of the March 31, 1999 and subsequent dividends are being suspended, and that additional changes will be submitted to the preferred shareholders for consideration at the annual general meeting, or a special general meeting held shortly thereafter, contingent upon completion of the process now underway."

"The Company will, in consultation with its financial, banking and other professional advisors, continue to act responsibly and deliberately in the best interests of its shareholders, business partners, suppliers and employees," said Mr. Midon. "We will communicate additional information as soon as practical pending completion of the re-engineering review process. In the meantime, we sincerely thank all of our constituents for their continued support and pledge our ongoing best efforts to our customers and suppliers."

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For further information on Staples Holdings Limited, please contact Marry Mann at telephone: 441 292 1748, facsimile: 441 296 7269.

For more information, contact Christopher Dill at the Bermuda Stock Exchange at phone 1-441-292-7212 or fax 1-441-292-7619. Information is also available at www.bsx.com, on Bloomberg at BSX , and on Reuters at THE BSX.

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