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                                                                    Exhibit 99.1


Friday June 29, 1:26 am Eastern Time
Press Release
Daisytek Redeploys Capital to Higher Return Opportunities
Decision to Exit Contract Enables Immediate Strategic Acquisitions

ALLEN, Texas--(BUSINESS WIRE)--June 29, 2001--Management at Daisytek
International (Nasdaq:DZTK - news), a $1.2 billion wholesale distributor of
computer and office supplies and provider of marketing and demand-generation
services, announced that its subsidiary, Business Supplies Distributors (BSD),
has notified PFSweb, Inc. and IBM of its intent not to renew the master
distribution agreements with IBM expiring later this year.

Officials said the decision's impact on net income will not be material and, in
fact, will provide Daisytek several benefits that are expected to lead to
earnings improvements over the next few quarters. Daisytek plans to reinvest the
working capital freed by terminating these agreements into strategic business
opportunities that are expected to be much more profitable and accretive to
earnings for the current fiscal year.

"We are in the final stages of negotiating transactions that are expected to
deliver revenues to offset those Daisytek will forgo in ending these contracts.
New guidance based on this improved financial outlook will be provided within
the next few weeks," said Jim Powell, president and CEO.

The BSD/IBM contracts were legacy agreements with Daisytek's former subsidiary
PFSweb to provide an off-balance sheet financing mechanism to enable PFSweb to
service logistics contracts with IBM. Daisytek carries significant debt on its
balance sheet related to the master distribution agreements. Upon complete
withdrawal from the agreements, debt will be reduced and available cash will be
utilized more profitably.

"This contract has never provided Daisytek shareholders with a meaningful return
on capital," said Powell. "By not renewing these agreements, Daisytek will free
up considerable working capital that we intend to redeploy almost immediately
into lines of business that will be accretive to earnings and essentially
replace these revenues."

Transactions being negotiated are designed to support Daisytek's stated intent
to pursue strategic acquisitions to support the company's goals such as
expansion in office products and growth in profitable international markets.

"The non-renewal of BSD's IBM master distribution agreements does not affect
Daisytek's ability to source and sell IBM products. Daisytek values its
longstanding partnership with IBM and will continue to be a distributor of their
products to our reseller customers," Powell said. "This represents one of the
final components of our separation from PFSweb and gives us the opportunity to
use our financial resources in ways that should enhance shareholder value,"
Powell said.

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About Daisytek

Daisytek is a leading wholesale distributor of computer and office supplies and
professional tape products, in addition to providing marketing and demand
generation services. Daisytek sells its products and services in the United
States, Canada, Australia, Mexico and South America. Daisytek distributes more
than 17,000 nationally known, name-brand computer and office supplies products
and over 2,800 professional tape products from numerous manufacturers. Daisytek
is headquartered in Allen, Texas. Daisytek is a registered trademark of
Daisytek, Incorporated. All rights reserved. This news release and more
information about Daisytek are available at www.daisytek.com. This Web site is
not part of this release. Daisytek is a registered trademark of Daisytek,
Incorporated. All rights reserved.

The matters discussed in this news release contain both historical and
forward-looking statements. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking information within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. You can identify these statements by the
fact that they do not relate strictly to historical or current facts, but rather
reflect our current expectations concerning future results and events.
Forward-looking statements relating to such matters as our financial condition
and operations, including forecasted information, are based on our management's
current intent, belief or expectations regarding our industry or us. These
forward-looking statements including forecasts are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult
to predict. In addition, some forward-looking statements are based upon
assumptions as to future events that may not prove to be accurate. Therefore,
actual outcomes and results may differ materially from what is expected or
forecasted in such forward-looking statements. We undertake no obligation to
update publicly any forward-looking statement for any reason, even if new
information becomes available or other events occur in the future.

Certain factors, including but not limited to, general economic conditions,
industry trends, the loss of key suppliers or customers, the loss of strategic
product shipping relationships, customer demand, product availability,
competition (including pricing and availability), risks inherent in acquiring,
integrating and operating new businesses, concentrations of credit risk,
distribution efficiencies, capacity constraints, technological difficulties,
exchange rate fluctuations, and the regulatory and trade environment (both
domestic and foreign) could cause our actual results to differ materially from
the anticipated results or other expectations expressed in our forward-looking
statements. In addition, statements in this press release relating to the
expected benefits of the contemplated transaction are subject to risks relating
to the timing and successful completion of transitioning certain information
technology, integration of the acquired assets into Daisytek's operations,
unanticipated expenditures and changing relationships with customers, suppliers
and strategic partners. There may be additional risks that we do not currently
view as material or that are not presently known.

Other factors that could affect Daisytek are set forth in Daisytek's 10-K for
the fiscal year ended March 31, 2001.

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Contact:

     Daisytek International
     Jim Powell, 972/881-4700

     or

     Michael A. Burns & Associates
     Craig McDaniel, 214/521-8596
     cellular, 214/616-7186
     cmcdaniel@mbapr.com