Under the agreement, Fellowes, a global leader in organizational solutions for home and office, will market NEATO's media labeling line, co-branded Fellowes/NEATO, through its worldwide distribution channels that include major computer and office retail stores, mass merchandisers, and mail order catalogs. The line was launched in the U.S. in June 1999.

Said Peter Tracy, founder and chief executive officer of NEATO, "This marketing and distribution agreement is a natural outgrowth of our business plan of keeping NEATO the number one media labeling solution."

Since it helped pioneer the media labeling market at its founding, in 1995, NEATO has seen a huge growth in demand for labeling of compact discs and other computer data storage media. In 1998, for example, more than 5 million CD writing machines were sold as computer accessories. That number is expected to mushroom to 30 million as sales of personal computers continue to climb and PC users further embrace new digital technologies that require storage and labeling.

"With Fellowes' resources well-positioned in the retail and commercial markets, NEATO now can more strategically focus on new product development and enhancement, and further exploitation of the Internet as a medium for future growth," Tracy added.

Mark Naidoff, vice president and general manager of computer accessories for Fellowes, said, "This strategy is natural for both companies. Fellowes offers a full complement of home and office computer and media storage solutions, and the Fellowes/NEATO media labeling systems are a logical addition to our brand."

NEATO produces media packaging products for production on desktop computers. In addition to CD, most popular storage media are accommodated, including Zip, DAT, Floppy, Audio Cassette, Video Cassette, MiniDisc, Super Disk, Jaz, and Magneto Optical. Anyone with a PC and printer can easily create professional quality packaging by using NEATO's free MediaFACE TM design software and NEATO label products.

Founded in 1917 by Harry Fellowes, Fellowes Manufacturing Co. is a privately held, family owned and operated company headquartered in Itasca, IL. Fellowes has grown from the "Bankers Box Company" to a global manufacturing corporation providing home and office organizational solutions with computer accessories, consumer electronic accessories, paper shredders, desktop organizers and accessories, binding and laminating equipment, and records storage boxes.

Fellowes/NEATO's media labeling systems are carried nationally by quality retailers and are available, along with additional information about the companies, at www.neato.com and www.fellowes.com.