THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

New England Business Service, Inc. (Retired) (NEB.X)

9/19/2003 Proxy Information

The Company paid approximately $2,342,200 to Xerox Corporation during fiscal year 2003, related primarily to the procurement, maintenance and operation of digital presses utilized throughout the Company's plants. Brian E. Stern is a Senior Vice President of Xerox, and is a director of the Company. Each of the transactions between the Company and Xerox was made in the ordinary course of business on an arm's length basis, and management believes that the terms of each such transaction were no less favorable to the Company than could have been obtained from a comparably qualified unrelated third party.

At the end of fiscal year 2003, the Company had outstanding borrowings of approximately $26,625,000 from Fleet National Bank, one of several banks party to an unsecured, revolving credit facility with the Company. Fleet National Bank is a wholly owned subsidiary of FleetBoston Financial Corporation, of which M. Anne Szostak is an executive officer. Ms. Szostak is a director of the Company. The terms of the Company's revolving credit facility were negotiated on an arm's length basis, and management believes that such terms are no less favorable to the Company than could have been obtained from a comparably qualified unrelated third party.

Robert J. Murray was Chief Executive Officer from 1995 thru December 2003.