On Jan. 17, 2007, Standard&Poor's Ratings Services revised its outlook on Office Depot Inc. to positive from stable and affirmed its 'BBB-' corporate credit and other ratings. This action reflects Standard&Poor's increased comfort with the company's financial policy and strategic plans, and our expectation that share repurchase activity will continue to be funded primarily with cash generated from operations, operating performance will continue to moderately improve, and that management is committed to managing credit metrics at appropriate levels. The ratings on Delray Beach, Fla.-based Office Depot reflect the company's solid position in the North American office products industry, diverse distribution channels, recent operating improvement in its North American retail business, and adequate financial measures. However, the
