SAN DIEGO--(BUSINESS WIRE)--Aug. 24, 1998--Mail Boxes Etc. (MBE), a wholly owned subsidiary of U.S. Office Products Co. (NASDAQ:OFIS), recently announced plans to expand into the Japanese market through a master license agreement with a wholly owned subsidiary of FamilyMart Co. Ltd., a leading franchisor of retail convenience stores in Asia.

Preliminary plans by the master licensee call for the development of more than 1,000 MBE centers in Japan during the next 10 years.

This agreement brings together the strength of two leading franchise groups who believe that the current economic and market trends in Japan are creating a rapidly increasing number of small businesses that require retail business support services. This demand is expected to increase as these businesses grow and others are created.

As a result of this agreement, MBE, the world's largest franchisor of retail business, communication and postal service centers, is positioned to become the provider of choice for the small-office/home-office (SOHO) market and convenience-oriented consumers in Japan. MBE currently has more than 3,600 franchises operating worldwide, of which more than 600 operate outside the United States.

"Mail Boxes Etc. is particularly pleased to have our network extend into Japan," said James Amos, MBE president and chief executive officer. "We believe economic trends in Japan indicate that its SOHO market will grow rapidly. MBE is now poised to offer support and world-class customer service to these Japanese businesses and consumers."

FamilyMart, established in 1981, is a leader in the Japanese convenience store industry. There are more than 5,000 franchised FamilyMart convenience stores in Japan and more than 1,000 in other Asian countries.

"FamilyMart plans to expand its business base through its wholly-owned subsidiary by now developing the MBE system in Japan," said Shigeru Goto, president and chief executive officer, FamilyMart. "We feel the MBE concept is ideally suited for the Japanese consumer who requires business, communication and postal services of high quality at convenient retail centers."

"Our entry into Japan demonstrates the confidence that the MBE concept has gained throughout the world," said Peter Holt, MBE senior vice president of international. "Our global expansion represents our dedication to taking MBE across the globe, creating the largest service-oriented retail distribution system in the world."

MBE is actively seeking master licensees in Taiwan, Hong Kong and South Korea for future development of the MBE concept in Asia.

Mail Boxes Etc., a wholly owned subsidiary of U.S. Office Products Co. (NASDAQ:OFIS), is the world's largest franchisor of retail business communication and postal service centers. There are more than 3,600 MBE Centers operating worldwide, with master licensing agreements in place for the development of the MBE business in 61 countries and operating in 26 countries. In the United States, MBE centers are owned and operated by licensed franchisees of Mail Boxes Etc., USA, Inc. Outside the United States, MBE centers are owned and operated by master licensees or their franchisees. MBE maintains a Web site at http://www.mbe.com.

US Office Products is one of North America's leading providers of office supplies, office furniture, and office breakroom products featuring Starbucks(R) coffee. It also owns and operates Mail Boxes Etc. (MBE), the world's largest franchiser of business communications and postal service centers, with approximately 3,600 centers operating in 26 countries, and Blue Star Group Limited, a leading supplier of office products and business services in New Zealand and Australia. In addition, USOP owns a 49% interest in Dudley Stationery Limited, the second largest contract stationer in the United Kingdom.

Since its establishment in 1981, FamilyMart Co., Ltd., has grown to become a leader in the Japanese convenience store industry. The Company has steadily expanded its store network, which now comprises more than 6,000 stores in Japan, Taiwan, South Korea and Thailand. FamilyMart is working to strengthen its distinctive character while enhancing the convenience store's function as a facility that supports the lifestyles of consumers in the local community.

CONTACT: Mail Boxes Etc., Global Headquarters

Karen Gajewski, 619/642-7968

or

Hadeler White Public Relations

Monica Feid, 972/776-8054