winding down operations under Midsea Limited and recently signed away the exclusive distributorship of 3M Corporation products.

Discussions commenced between the two companies months ago, although serious talks began only about four weeks ago. The terms of the deal were not disclosed.

Mrs. Card was not available for comment yesterday.

An inventory of goods and the Washington Mall retail store have been sold to Staples Ltd. Midsea appears set to maintain their Serpentine Road premises.

President of the three year old Staples Ltd., Mr. Mark White said, "Currently Staples is Bermuda's largest distributor of office supplies. We sell directly to our customers and we will continue to do so. However, opening a retail store at Washington Mall gives us an entry into another sales channel. We're excited with our prospects.'' Nine Midsea employees lost their jobs, although about four were offered positions with Staples Ltd.

"I know that we extended offers to about half of them,'' said Mr. White. "We are still negotiating with two of them. There have been a couple that have accepted.'' Although the deal is already done, Mr. White said he understood that Midsea staff may stay on until the end of the month.

Staples will continue to operate out of its Dundonald Street headquarters and warehouse and 3M outlet at Cox's Hill, in addition to the new city outlet. Mr.

White said, "3M is a $14 billion corporation known worldwide for its product diversity, storehouse of technologies and its relentless pursuit of innovation.

"From post-it notes to Scotchgard fabric protector, from medical diagnostic products to fibre optic connectors, 3M innovation is changing the way people do things. Staples are proud to represent 3M on the Island.''