subsidiary Staples Ltd.

The announcement was made to the Bermuda Stock Exchange as a formality. It stated that the Bank of Bermuda Ltd. had exercised its right to sell the stock in office supplier Staples Ltd. upon payment default on a demand promissory note of April 5, 1995.

In May, Staples Holdings Ltd. had announced the pending sale of the subsidiary to businessman Fernance Perry. Mr. Perry, chairman of the Bermuda Broadcasting Co., was also said to be considering buying medical suppliers Atlantic Medical International, the other operating subsidiary of Staples Holdings. In a deal with senior management, Mr. Perry was to step in as the new owner of the two subsidiaries. Shares in cash-strapped Staples Holding Ltd. were suspended from trading on the BSX.

The company endured a 19 percent drop in sales for the first half of its fiscal year to September 30, 1998, and declared a six month loss of $236,019 before warning shareholders to expect further losses.

According to their last annual report Staples Holding Limited owed about $3.32 million in short and long term loans to the Bank of Bermuda and the Bank of N.T. Butterfield at September 30.

Some 290 holders of preferred shares in Staples Holdings Ltd. were told they will lose the $5 million they invested in 1995.