Guest Supply, Inc.

MONMOUTH JUNCTION, N.J. / Sept. 6, 2000--Guest Supply, Inc. GSY announced today that it has entered into an agreement to acquire T.J. MacDonald Company. Headquartered in Mississauga, Ontario, Canada, T.J. MacDonald has revenues in excess of $4,000,000 USD and is a leading supplier of textile products to the Canadian hospitality industry. The acquisition is subject to signing a definitive agreement, which is expected to occur in the next sixty days. No terms of the agreement were disclosed.

Commenting on the acquisition, Clifford W. Stanley, President and CEO of Guest Supply said, "T.J. MacDonald Company will be merged with Guest International (Canada) Ltd. to form a full service supplier for the Canadian lodging industry. Together T.J. MacDonald and Guest International will have the resources and critical mass necessary to provide a one-stop shopping resource for hotels throughout Canada. During the past year we have enjoyed working with Tom MacDonald and are pleased to announce that he will become Managing Director of Guest International Canada, working along with Elizabeth Hueston who will remain in her current position. Elizabeth's and Tom's broad business experience and knowledge of the lodging industry make them well qualified to significantly expand the Canadian business."

Guest Supply, Inc. (the "Company") is a leading supplier of housekeeping and other operating supplies to the lodging industry and a premier manufacturer of health and beauty aid products for consumer products companies and retailers. Guest has achieved leading positions in its markets by focusing on excelling at design, product development, manufacturing and distribution.

This press release may contain forward-looking information about the Company. The Company is hereby setting forth statements identifying important factors that may cause the Company's actual results to differ materially from those set forth in any forward-looking statements made by the Company. Some of the most significant factors include an unanticipated downturn in the lodging industry resulting in lower demand for the Company's products, the unanticipated loss of or decline in sales to a major customer, failure to secure new business, unforeseen inefficiencies at the Company's manufacturing facility, and difficulties in implementing the e-commerce initiative.