Press Release

Office Depot Offically Opens Company's New State-of-the-Art Combination Warehouse

Innovative Facility Helps Create 250 Jobs in Newville, PA

Boca Raton, Fla., July 29, 2010 – Today in Penn Township, Pennsylvania, Office Depot (NYSE: ODP), a leading global provider of office products and services, will celebrate the opening of the Company’s new state-of-the-art combination fulfillment center. The new facility, which brings more than 250 new jobs to the area, represents a complete integration of Office Depot’s supply chain – allowing the Company to service both its North American Retail stores and Business Solutions Division customers from one building. Additionally, the combination facility features one of the largest implementations of the state-of-the-art mobile robotic picking and sorting technology from Kiva Systems.

Located at 950 Centerville Road in Penn Township, Cumberland County – about 30 minutes north of Harrisburg, PA – the 600,000 square-foot operation will act as a hub for the Northeast U.S. region. The facility will support Office Depot’s business to business customers as well as more than 100 store locations in the Northeast U.S. Additionally, the Newville warehouse houses a Regional Print Facility. This new combination approach will allow Office Depot to support its growing business, optimize total supply chain expenses and utilize inventory more efficiently, while maintaining service levels and next-day delivery.

“Office Depot is thrilled to take this next step in our Supply Chain integration,” said Steve Odland, Chairman and CEO of Office Depot. “By merging our cross dock and distribution center operations, the Newville combination facility will allow Office Depot to more effectively serve our retail and business-to-business customers in the Northeast.”

The Newville facility and its 250 associates will be managed by Bob Zelis, Senior Director. Bob will be supported by Gerald Fitzgerald, Director of Inbound Operations and David Bennis, Director of Outbound Operations.

Kiva Systems
Kiva’s innovative approach to order fulfillment uses hundreds of mobile robotic drive units that bring inventory directly to workers, allowing easy and efficient access to all available inventory items at all times. Unlike traditional material handling approaches, Kiva is a parallel-processing system; the robots simultaneously pick all inventory needed for an order at once, so the average cycle time is reduced from two hours to 20 minutes. Kiva system components are mobile and modular, so a Kiva-equipped distribution center has unprecedented flexibility when adding new products or expanding throughput—without disrupting ongoing operations. Additionally, Kiva technology allows prioritization of orders so they are in sync with truck departure times, and tracks orders so that managers have continuous visibility into the status of each order.

The Office Depot Newville facility is the largest greenfield Kiva installation in the world. The Kiva system at this facility supports light-directed label application and customer-specific marketing material insertion for boxes and envelopes. Also, by the end of 2010 Office Depot’s Newville facility will be the first to use Kiva’s newest solution enhancement—a system that seamlessly merges its pallet and split-case picking elements, enabling tighter integration of picking and pallet operations, higher storage density, increased worker productivity, and lower capital investment. This new system feature will also make it possible to pick items directly out of cases on pallets for the fastest moving merchandise, resulting in simpler and leaner operations. Initially, Kiva technology will be used in 110k square feet of the Office Depot facility.

“Replacing their traditional, conveyor-based split-case pick module with a Kiva Mobile-robotic Fulfillment System enabled Office Depot to build a state-of-the-art distribution center that supports both retail and business-to-business operations,” said Amy Villeneuve, president and COO of Kiva Systems. “By dramatically increasing both productivity and flexibility at the same time, Office Depot continues to make its supply chain a major competitive advantage.”

“Green” Benefits
In line with Office Depot’s environmental commitment to increasingly buy green, be green and sell green, the Newville facility features a number of green attributes, including efficiencies in water reduction; energy performance; reused, recycled and low-emitting materials; and thermal comfort as it relates to lighting, temperature and ventilation. The Company is in the process of obtaining Leadership in Energy and Environmental (LEED) Certification from the U.S. Green Building Council (USGBC) for the building. This would be one of many Office Depot facilities to receive certification, but the first warehouse. Specific environmentally sustainable initiatives at the Newville combination center include: • Plumbing fixtures feature low flow, dual flush toilets, ultra low flow urinals – which are expected to reduce the building’s water consumption by 40%; • The warehouse and office area lighting is controlled by occupancy sensors and is designed to reduce power usage 20% below the ASHREA (American Society of Heating, Refrigerating and Air-Conditioning Engineers) 90.1, 2007 standard; • Installation of high efficiency lighting, lighting controls and occupancy sensors, and efficient HVAC systems to reduce energy consumption; • Installation of interior finishes comprised of recycled content, low- or no-VOCs, and recycled materials; • Green power from renewable electricity sources will offset the buildings energy consumption; • A recycling program has been instituted for collection of corrugated cardboard, paper, plastics, glass and metals; and • Preferred parking for carpool/vanpool has been provided. For more information about Office Depot’s overall environmental initiatives, please visit www.officedepot.com/environment.

Commitment to Community
During today’s ceremony, Office Depot will celebrate the opening of the combination facility and the Company’s new entry into the market by showing its commitment to the communities in which its associates live and work. The Office Depot Foundation will donate $1,000 as well as 350 backpacks to The Bulldog Foundation, the educational foundation of the Big Spring School District in Newville, PA.

The backpack donations are part of the Office Depot Foundation’s award-winning National Backpack Program, through which it will donate approximately 300,000 new backpacks this year to deserving children across North America and beyond. The Foundation is celebrating the 10th anniversary of the program in 2010. By the end of this year, Office Depot will have given away more than 2.3 million backpacks since the program began in 2001.

About Office Depot
Every day, Office Depot is Taking Care of Business for millions of customers around the globe. For the local corner store as well as Fortune 500 companies, Office Depot provides products and services to its customers through 1,587 worldwide retail stores, a dedicated sales force, top-rated catalogs and a $4.2 billion e-commerce operation. Office Depot has annual sales of approximately $12.1 billion, and employs about 41,000 associates around the world. The Company provides more office products and services to more customers in more countries than any other company, and currently sells to customers directly or through affiliates in 52 countries.

Office Depot’s common stock is listed on the New York Stock Exchange under the symbol ODP and is included in the S&P 500 Index. General press information can be found at: http://mediarelations.officedepot.com. Media looking to access digital assets and news, please visit http://socialpressofficedepot.com/.

About the Office Depot Foundation
The Office Depot Foundation is an independent foundation (tax exempt under IRC Sec. 501(c)(3)) that serves as the independent charitable giving arm of Office Depot, Inc. In keeping with its mission, Listen Learn Care®, the Foundation supports a variety of programs that help children succeed in school and in life; enable civil society (non-profit) organizations to become more efficient and effective; help people and businesses prepare for disasters, then recover and rebuild afterwards; strengthen local communities through grants, product donations and volunteerism; and encourage community development through entrepreneurship and economic innovation. For more information, visit www.officedepotfoundation.org.

About The Bulldog Foundation
The Bulldog Foundation originally began as the Big Spring School District Educational Foundation in 1994, and the name was changed in 2008 to The Bulldog Foundation. The mission of the foundation is to strengthen and acknowledge the educational, cultural, wellness and athletic awareness programs of the Big Spring School District. The Foundation provides the mechanism for the receipt of gifts in support of the educational pursuits in the Big Spring School District, and further benefits the students in enhancing the overall quality of education as well as to promote community support for public education. The Foundation gives grants to teachers within the district for help with additional classroom expenses as well as providing scholarships for graduating students pursuing post-secondary training. For more information on The Bulldog Foundation, please visit:http://www.bigspringsd.org/www/bigspringsd/site/hosting/bulldogweb/index.htm

About Kiva Systems
Kiva Systems, Inc. uses game-changing automation technology for distribution centers that helps companies simplify operations and reduce costs, while increasing strategic flexibility. Using hundreds of autonomous mobile robots and sophisticated control software, the Kiva Mobile-robotic Fulfillment System enables extremely fast cycle times with reduced labor requirements, from receiving to picking to shipping—all without conveyor. The result is a building that is quick and low-cost to set up, inexpensive to operate and easy to change. For more information about Kiva Systems and its solutions, please visit www.kivasystems.com.

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