EXHIBIT 99.1


Nu-kote Holding Inc. announced today that as part of its overall strategic
objective of restructuring its operations,  Nu-kote International, Inc.
("International"), a wholly owned subsidiary of Nu-kote, has sold certain
of its wholly owned subsidiaries to Pelikan Hardcopy Europe Limited
("Pelikan"), a Scottish corporation.  The subsidiaries sold include Pelikan
Productions A.G., Pelikan Scotland Limited, Greif-Werke GmbH, Pelikan
Hardcopy Asia Pacific Limited, and Dongguan Pelikan Hardcopy Limited (the
"Companies").

Under the terms of the agreement, Pelikan will pay $16.5 million at the
close of the transaction in exchange for all of the capital stock or equity
interests of the Companies.   The Company has filed a motion in the United
Bankruptcy Court for the Middle District of Tennessee and received approval
for the sale.  This disposition is part of Nukote's efforts to dispose of
non-essential assets and focus on the restructuring  of its core business
in the North America.

Nu-kote's North American Operations will retain the rights to market its
products under the Pelikan brand name in the United States, Canada and
Mexico, with the purchaser having the right to market its products under
the Pelikan brand name throughout the rest of the world.  In addition, Nu-
kote will continue to market its products under the Nu-kote brand name
anywhere in the world.  The Company will also maintain its business forms
operations in France.

Through its operating subsidiaries, Nu-kote produces supplies for printers,
copiers, fax machines and ink jet printers, sold primarily in North America
and Europe.