Corporate Express Press Releases - 1999

Corporate Express (ticker: CEXP, exchange: NASDAQ) News Release - Tuesday, June 01, 1999 Corporate Express Announces Sale of Sofco to U.S. Foodservice

June 1, 1999--BROOMFIELD, Colo. - Corporate Express, Inc. (Nasdaq: CEXP), a leading supplier of essential office and computer products and services to corporations that value innovative procurement solutions, today announced that it has reached a definitive purchase agreement to sell its cleaning and service supply subsidiary, Sofco, Inc., to U.S. Foodservice (NYSE: UFS). Sofco, a wholly owned subsidiary of Corporate Express, Inc., is one of the largest suppliers of janitorial and cleaning supplies in the United States with a strong regional presence in the northeast. This announcement is consistent with Corporate Express’ previously announced intent to divest Sofco as part of the Company’s comprehensive evaluation of its businesses and asset portfolio. This process included a comprehensive review of all of the Company’s operations, lines of business and geographic coverage. Subject to customary regulatory approval and certain other conditions, it is anticipated that the transaction will close by the end of June 1999. Sofco serves the New York markets of Albany, Buffalo and Rochester with net sales of approximately $160 million for the fiscal year ended January 30, 1999. The transaction will be accounted for as a purchase transaction. Jim Gargiulo will continue as President of the Sofco division of U.S. Foodservice. "Corporate Express’ decision to sell Sofco was the result of our goal to focus on operations with the highest strategic fit, greatest potential for sustained, profitable growth, and ability to increase our return on invested capital," said Robert King, President and CEO of Corporate Express. "We are very satisfied with the transaction, and we are pleased that Sofco will be joining U.S. Foodservice, which is an excellent organization." "Sofco has an outstanding reputation and we are delighted that it is joining our company," said Jim Miller, President and CEO of U.S. Foodservice. "The acquisition of Sofco adds the potential of foodservice paper products expertise to our existing base of paper product revenues. In addition, Sofco has an extensive foodservice customer base in upper New York State giving us significant advantages in servicing customers and developing new customers statewide." In its continuing operations, Corporate Express currently operates in nearly 300 locations, including 89 distribution centers, and employs approximately 15,000 people in the United States, Australia, Canada, France, Italy, Germany, the United Kingdom, Switzerland, Ireland, New Zealand, and the Netherlands. U.S. Foodservice is one of the largest broadline foodservice distributors in the United States distributing food and related products to restaurants and institutional foodservice establishments across the entire country. U.S. Foodservice markets and distributes more than 40,000 national and proprietary brand items to over 130,000 foodservice customers, including restaurants, hotels, healthcare facilities, cafeterias and schools and employs more than 12,000 foodservice professionals. U.S. Foodservice’s diverse customer base encompasses both independent and chain businesses. This press release contains forward-looking statements that involve risks and uncertainties. There can be no assurance that the required regulatory approvals will be obtained or that all conditions to closing that are required to close the transactions will be met. Contacts: Linda Dill, Corporate Express Vice President Strategic Planning and Investor Relations, (303) 664-3949 Robert Gillison, U.S. Foodservice * Treasurer/Investor Relations, 410-312-7512 Bonna Walker, U.S. Foodservice * Vice President, Marketing and Public Relations,410-312-7520