8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (date of earliest event reported): September 26, 2003

Daisytek International Corporation

(Exact Name of Registrant as Specified in Charter)

Delaware	0-25400	75-2421746
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1025 Central Expressway South, Suite 200

Allen, Texas 75013

(Address of Principal Executive Offices, including zip code)

(972) 881-4700

(Registrant’s Telephone Number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

ITEM 5. Other Events

On May 7, 2003, Daisytek, Incorporated, Arlington Industries, Inc., B.A. Pargh Company, Daisytek Latin America, Inc., Digital Storage, Inc., The Tape Company, Tapebargins.com, Inc. and Virtual Demand, Inc., (collectively, the “Subsidiaries”), all of which are direct or indirect subsidiaries of Daisytek International Corporation (the “Company,” and collectively with the Subsidiaries, the “Debtors”), each filed a voluntary petition for relief under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”), under Case No. 03-34762-HDH-11. On June 3, 2003, the Company filed a voluntary petition for relief under the Bankruptcy Code in the Bankruptcy Court under Case No. 03-35724-SAF-11. Joint administration of the Company’s Chapter 11 case has been granted in connection with the petitions filed by the Subsidiaries. The Debtors remain in possession of their assets and properties, and continue to operate their businesses and manage their properties as “debtors-in-possession” pursuant to the Bankruptcy Code.

On August 20, 2003, the Company and Subsidiaries filed unaudited Monthly Operating Reports for the period August 1, 2003 through August 31, 2003 with the United States Bankruptcy Court. The Monthly Operating Reports are included herewith as Exhibits 99.1, 99.2, 99.3, 99.4, 99.5 and 99.6.

The Company accepted the resignation of Nicholas A. Giordano from the Company’s board of directors, effective as of August 29, 2003.

Cautionary Statement Regarding Operating Reports as Filed with the Bankruptcy Court

The Monthly Operating Reports contain financial statements and other information that has not been audited or reviewed by independent accountants and is subject to revision. The Monthly Operating Reports are in a format prescribed by applicable bankruptcy laws and contain information for periods that may be different from those required in the Company’s reports pursuant to the Securities Exchange Act of 1934 (“the Exchange Act”). The financial information set forth in the Monthly Operating Reports should not be viewed as indicative of future results and should not be used for investment purposes.

Forward-Looking Statements

Certain statements used in this Form 8-K, including the Exhibits furnished herewith, may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements about the financial condition, prospects, operations and business of the Company are generally accompanied by words such as “anticipates,” “expects,” “estimates,” “believes,” “intends,” “plans” or similar

expressions. These forward-looking statements are subject to numerous risks, uncertainties and other factors, some of which are beyond the control of the Debtors that could cause actual results to differ materially from those forecasted or anticipated in such forward-looking statements.

ITEM: 7. FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1	Monthly Operating Report of Daisytek International, for a period from August 1, 2003 through August 31, 2003.
99.2	Monthly Operating Report of Daisytek Incorporated, B.A. Pargh Company and Virtual Demand, Inc., for a period from August 1, 2003 through August 31, 2003.
99.3	Monthly Operating Report of The Tape Company and Tapebargains.com, Inc. for a period from August 1, 2003 through August 31, 2003.
99.4	Monthly Operating Report of Arlington Industries, Inc. for a period from August 1,2003 through August 31, 2003.
99.5	Monthly Operating Report of Daisytek Latin America, Inc. for a period from August 1, 2003 through August 31, 2003.
99.6	Monthly Operating Report of Digital Storage, Inc. for a period from August 1, 2003 through August 31, 2003.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DAISYTEK InTERNATIONAL CORPORATION
By:	/s/    ERIC T. LOGAN
	Eric T. Logan
	Interim Chief Financial Officer

Dated: September 26, 2003

Index to Exhibits

Exhibit Number	Description
99.1	Monthly Operating Report of Daisytek International, for a period from August 1, 2003 through August 31, 2003.
99.2	Monthly Operating Report of Daisytek Incorporated, B.A. Pargh Company and Virtual Demand, Inc., for a period from August 1, 2003 through August 31, 2003.
99.3	Monthly Operating Report of The Tape Company and Tapebargains.com, Inc. for a period from August 1, 2003 through August 31, 2003.
99.4	Monthly Operating Report of Arlington Industries, Inc. for a period from August 1,2003 through August 31, 2003.
99.5	Monthly Operating Report of Daisytek Latin America, Inc. for a period from August 1, 2003 through August 31, 2003.
99.6	Monthly Operating Report of Digital Storage, Inc. for a period from August 1, 2003 through August 31, 2003.

EX-99.1

Exhibit 99.1

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN	DISTRICT OF	TEXAS
	6 DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ Eric T. Logan	Interim Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
Eric T. Logan	September 19, 2003
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Mark Corjay	Vice President, Controller
ORIGINAL SIGNATURE OF PREPARER	TITLE
Mark Corjay	September 19, 2003
PRINTED NAME OF PREPARER	DATE

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-1
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MONTH 6/30/2003			MONTH July 31, 2003			MONTH August 31, 2003
ASSETS
1.	UNRESTRICTED CASH
2.	RESTRICTED CASH
3.	TOTAL CASH	$	0	$	0		$	0		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	0
5.	INVENTORY
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES
8.	OTHER—InterCompany A/R	$	0	$	50,642,641		$	51,018,197		$	51,144,554
9.	TOTAL CURRENT ASSETS	$	0	$	50,642,641		$	51,018,197		$	51,144,554
10.	PROPERTY, PLANT & EQUIPMENT
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION
12.	NET PROPERTY, PLANT & EQUIPMENT	$	0	$	0		$	0		$	0
13.	DUE FROM INSIDERS			$	1,380,999		$	1,380,999		$	1,380,999
14.	OTHER ASSETS—Reserve-due from Insiders			$	(1,380,999	)	$	(1,380,999	)	$	(1,380,999	)
15	OTHER—Investment in Daisytek			$	31,185,325		$	31,185,325		$	31,185,325
16.	TOTAL ASSETS	$	0	$	81,827,966		$	82,203,522		$	82,329,879
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	784,233		$	1,169,138		$	1,206,876
18.	TAXES PAYABLE
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
23.	TOTAL POSTPETITION LIABILITIES			$	784,233		$	1,169,138		$	1,206,876
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT
26.	UNSECURED DEBT	$	0
27.	OTHER—A/P on Behalf of Daisytek International			$	2,663,742		$	2,566,024		$	2,566,024
28.	TOTAL PREPETITION LIABILITIES	$	0	$	2,663,742		$	2,566,024		$	2,566,024
29.	TOTAL LIABILITIES	$	0	$	3,447,975		$	3,735,162		$	3,772,900
EQUITY
30.	PREPETITION OWNERS’ EQUITY			$	78,261,404		$	78,261,404		$	78,261,404
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	118,587		$	206,956		$	295,575
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)—Common Stock			$	0
33.	TOTAL EQUITY	$	0	$	78,379,991		$	78,468,360		$	78,556,979
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	0	$	81,827,966		$	82,203,522		$	82,329,879

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-2
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 6/3/03-6/30/03			MONTH 7/31/2003			MONTH 8/31/2003
REVENUES
1.	GROSS REVENUES	$	0
2.	LESS: RETURNS & DISCOUNTS
3.	NET REVENUE	$	0		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0
8.	GROSS PROFIT	$	0		$	0		$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING
11.	GENERAL & ADMINISTRATIVE
12.	RENT & LEASE
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	0		$	0		$	0
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	0		$	0		$	0
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
17.	NON-OPERATING EXPENSE (ATT. LIST)
18.	(INTEREST INCOME) EXPENSE	$	(191,270	)	$	(142,933	)	$	(142,933	)
19.	DEPRECIATION / DEPLETION
20.	AMORTIZATION
21.	OTHER (ATTACH LIST)
22.	NET OTHER INCOME & EXPENSES	$	(191,270	)	$	(142,933	)	$	(142,933	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES
24.	U.S. TRUSTEE FEES				$	250		$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	250		$	0
27.	INCOME TAX	$	72,683		$	54,314		$	54,314
28.	NET PROFIT (LOSS)	$	118,587		$	88,369		$	88,619

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-3
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96

		MONTH 6/3/03-6/30/03		MONTH 31-Jul-03		MONTH August 31, 2003		QUARTER TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH			$	0	$	0
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION
5.	TOTAL OPERATING RECEIPTS	$	0	$	0	$	0	$	0
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
7.	SALE OF ASSETS	$	0
8.	OTHER (ATTACH LIST)
	TOTAL OTHER	$	0
9.	TOTAL NON-OPERATING RECEIPTS	$	0	$	0	$	0	$	0
10.	TOTAL RECEIPTS	$	0	$	0	$	0	$	0
11.	TOTAL CASH AVAILABLE	$	0	$	0	$	0	$	0
OPERATING DISBURSEMENTS
12.	NET PAYROLL
13.	PAYROLL TAXES PAID
14.	SALES, USE & OTHER TAXES PAID
15.	SECURED / RENTAL / LEASES
16.	UTILITIES
17.	INSURANCE
18.	INVENTORY PURCHASES
19.	VEHICLE EXPENSES
20.	TRAVEL
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES
24.	ADVERTISING
25.	OTHER (ATTACH LIST)
	Bank Fees
	Other operating
	TOTAL OTHER	$	0
26.	TOTAL OPERATING DISBURSEMENTS	$	0	$	0	$	0	$	0
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES
28.	U.S. TRUSTEE FEES
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	0	$	0
31.	TOTAL DISBURSEMENTS	$	0	$	0	$	0	$	0
32.	NET CASH FLOW	$	0	$	0	$	0	$	0
33.	CASH—END OF MONTH	$	0	$	0	$	0	$	0

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-4
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96

				SCHEDULE AMOUNT		MONTH June 30, 2003		MONTH July 31, 2003		MONTH August 31, 2003
ACCOUNTS RECEIVABLE AGING
1.	0-30
2.	31-60
3.	61-90
4.	91+
5.	TOTAL ACCOUNTS RECEIVABLE			$	0	$	0	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE
7.	ACCOUNTS RECEIVABLE (NET)			$	0	$	0	$	0	$	0
AGING OF POSTPETITION TAXES AND PAYABLES							MONTH:	August 31, 2003
		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL			$	0	$	0	$	0	$	0
2.	STATE			$	0	$	0	$	0	$	0
3.	LOCAL			$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0
6.	ACCOUNTS PAYABLE	$	16,998	$	31,031	$	309,598	$	849,248	$	1,206,876
							*Rejected Leases		*Rejected Leases
STATUS OF POSTPETITION TAXES							MONTH:	August 31, 2003
				BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**			$	0					$	0
2.	FICA-EMPLOYEE**			$	0					$	0
3.	FICA-EMPLOYER**			$	0					$	0
4.	UNEMPLOYMENT			$	0					$	0
5.	INCOME			$	0					$	0
6.	OTHER (ATTACH LIST)			$	0					$	0
7.	TOTAL FEDERAL TAXES			$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING			$	0					$	0
9.	SALES			$	0					$	0
10.	EXCISE			$	0					$	0
11.	UNEMPLOYMENT			$	0					$	0
12.	REAL PROPERTY			$	0					$	0
13.	PERSONAL PROPERTY			$	0					$	0
14.	OTHER (ATTACH LIST)			$	0					$	0
15.	TOTAL STATE & LOCAL			$	0	$	0	$	0	$	0
16.	TOTAL TAXES			$	0	$	0	$	0	$	0

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-5
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

		MONTH:	August 31, 2003
BANK RECONCILIATIONS
		Account #1	Account #2	Account #3		TOTAL
A.	BANK:
B.	ACCOUNT NUMBER:
C.	PURPOSE (TYPE):
1.	BALANCE PER BANK STATEMENT					$	0
2.	ADD: TOTAL DEPOSITS NOT CREDITED					$	0
3.	SUBTRACT: OUTSTANDING CHECKS					$	0
4.	OTHER RECONCILING ITEMS					$	0
5.	MONTH END BALANCE PER BOOKS					$	0
6.	NUMBER OF LAST CHECK WRITTEN
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0
CASH
12.	CURRENCY ON HAND
13.	TOTAL CASH—END OF MONTH					$	0

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-6
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96
		MONTH:	August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE	AMOUNTS PAID DURING MONTH	TOTAL UNPAID POSTPETITION
TOTAL	0.00	0.00	0.00

		Monthly Operating Report
CASE NAME:	Daisytek International Corporation	ACCRUAL BASIS-7
CASE NUMBER:	03-35724-SAF-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		x
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		x
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		x
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		x
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		x
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		x
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		x
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		x
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		x
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		x
12.	ARE ANY WAGE PAYMENTS PAST DUE?		x

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Daisytek, Incorporated

EX-99.2

Exhibit 99.2

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN	DISTRICT OF	TEXAS
	6 DIVISION

MONTHLY OPERATING REPORT-REVISED

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ Eric T. Logan	Interim Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
Eric T. Logan	September 19, 2003
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Mark Corjay	Vice President, Controller
ORIGINAL SIGNATURE OF PREPARER	TITLE
Mark Corjay	September 19, 2003
PRINTED NAME OF PREPARER	DATE

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-1
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE			MONTH May 31, 2003			MONTH June 30, 2003			MONTH 07/31/03			MONTH August 31, 2003
ASSETS
1.	UNRESTRICTED CASH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170
2.	RESTRICTED CASH
3.	TOTAL CASH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170
4.	ACCOUNTS RECEIVABLE (NET)	$	17,323,114		$	9,878,718		$	6,087,869		$	5,438,355		$	3,900,921
5.	INVENTORY	$	29,488,615		$	27,836,274		$	19,630,038		$	10,953,376		$	7,311,755
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES	$	4,385,371		$	5,568,105		$	5,867,949		$	4,691,892		$	4,516,438
8.	OTHER (ATTACH LIST)
	Intercompany accounts receivable,net	$	8,302,227		$	8,851,383		$	13,236,298		$	13,036,952		$	10,724,861
	Credit card and other receivables	$	221,169		$	142,089		$	630,864		$	174,832		$	203,515
	Deferred tax asset	$	28,497,969		$	28,239,610		$	28,239,610		$	28,239,610		$	28,239,610
	Taxes receivable	$	8,317,016		$	9,948,656		$	12,348,113		$	16,230,699		$	13,831,291
	Prepaid merchandise	$	0		$	0
	Employee payroll/travel advances	$	23,768		$	13,631		$	21,047		$	23,185		$	26,620
	TOTAL OTHER	$	45,362,149		$	47,195,369		$	54,475,932		$	57,705,278		$	53,025,897
9.	TOTAL CURRENT ASSETS	$	97,855,625		$	94,532,733		$	91,730,133		$	82,876,294		$	75,670,181
10.	PROPERTY, PLANT & EQUIPMENT	$	46,587,581		$	46,627,279		$	46,627,279		$	46,627,279		$	46,618,679
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	18,626,655		$	19,088,891		$	19,638,593		$	20,185,000		$	20,728,502
12.	NET PROPERTY, PLANT & EQUIPMENT	$	27,960,926		$	27,538,388		$	26,988,686		$	26,442,279		$	25,890,177
13.	DUE FROM INSIDERS	$	67,289		$	67,289		$	8,600
14.	OTHER ASSETS—NET OF OTHER AMORTIZATIONS
	Reserve—due from insiders	$	(58,689	)	$	(58,689	)
	Deferred acquisition costs	$	3,196,694		$	3,196,694		$	3,196,684		$	3,196,684		$	3,196,684
	Software development assets	$	366,231		$	0		$	0
	TOTAL OTHER ASSETS—NET OF AMORTIZATION	$	3,504,236		$	3,138,005		$	3,196,684		$	3,196,684		$	3,196,684
15.	OTHER (ATTACH LIST)	$	0		$	0
16.	TOTAL ASSETS	$	129,388,076		$	125,276,415		$	121,924,103		$	112,515,257		$	104,757,042
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE				$	1,022,785		$	1,198,341		$	1,883,043		$	1,684,172
	AP on behalf of Daisytek International							$	(784,233	)	$	(1,169,138	)	$	(1,206,876	)
18.	TAXES PAYABLE				$	47,137		$	58,754		$	108,354		$	214,978
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES				$	802,801		$	1,583,148		$	880,471		$	880,471
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
	Interest payable				$	299,438		$	324,009		$	255,170		$	230,419
	Other accounts payable and prepaid merchandise				$	900,458		$	1,837,869		$	3,039,798		$	2,923,063
	Acrued expenses				$	1,552,867		$	1,960,768		$	722,772		$	1,856,089
	TOTAL OTHER				$	2,752,763		$	4,122,646		$	4,017,740		$	5,009,571
23.	TOTAL POSTPETITION LIABILITIES				$	4,625,486		$	6,178,656		$	5,720,470		$	6,582,316
PREPETITION LIABILITIES
24.	SECURED DEBT	$	58,116,360		$	55,715,579		$	43,380,139		$	39,573,779		$	35,071,653
25.	PRIORITY DEBT	$	631,989		$	2,014
26.	UNSECURED DEBT	$	57,946,614		$	57,863,808		$	56,702,184		$	56,440,125		$	56,138,763
27.	OTHER (ATTACH LIST)
	Other accounts payable and prepaid merchandise	$	(2,863,809	)	$	(4,205,207	)	$	(3,862,006	)	$	(4,146,998	)	$	(4,145,674	)
	Interest payable	$	1,733,255		$	1,733,255
	Accrued expenses	$	6,553,875		$	4,784,273		$	5,299,962		$	5,960,310		$	5,960,310
	Accrued Federal Income Tax							$	499,883		$	1,035,103		$	1,089,417
	Capital lease liability	$	9,163,598		$	9,163,598		$	9,163,598		$	9,163,598		$	9,163,598
	TOTAL OTHER	$	14,586,919		$	11,475,919		$	11,101,437		$	12,012,013		$	12,067,651
28.	TOTAL PREPETITION LIABILITIES	$	131,281,882		$	125,057,320		$	111,183,760		$	108,025,917		$	103,278,067
29.	TOTAL LIABILITIES	$	131,281,882		$	129,682,806		$	117,362,416		$	113,746,387		$	109,860,383
EQUITY
30.	PREPETITION OWNERS’ EQUITY	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)				$	(3,581,423	)	$	5,386,656		$	(637,902	)	$	(4,278,372	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)				$	1,068,838		$	1,068,837		$	1,068,837		$	1,068,837
33.	TOTAL EQUITY	$	(1,893,806	)	$	(4,406,391	)	$	4,561,687		$	(1,462,871	)	$	(5,103,341	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	129,388,076		$	125,276,415		$	121,924,103		$	112,283,516		$	104,757,042

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-2
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 5/7/03-5/31/03			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
REVENUES
1.	GROSS REVENUES	$	391,202		$	4,852,402		$	3,879,858		$	1,673,975
2.	LESS: RETURNS & DISCOUNTS	$	143,807		$	127,419		$	125,849		$	1,564
3.	NET REVENUE	$	247,395		$	4,724,983		$	3,754,009		$	1,672,411
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	311,739		$	8,842,794		$	8,657,295		$	3,659,516
8.	GROSS PROFIT	$	(64,344	)	$	(4,117,811	)	$	(4,903,286	)	$	(1,987,105	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	102,369		$	102,369		$	128,975		$	175,191
10.	SELLING & MARKETING	$	2,507		$	(914	)	$	291		$	6,619
11.	GENERAL & ADMINISTRATIVE	$	830,139		$	1,333,895		$	1,015,309		$	962,118
12.	RENT & LEASE	$	721,600		$	950,650		$	628,622		$	802,664
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	1,656,615		$	2,386,000		$	1,773,197		$	1,946,592
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(1,720,959	)	$	(6,503,811	)	$	(6,676,483	)	$	(3,933,697	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
	Intercompany management fees from subsidiaries	$	101,216		$	(126,521	)
	TOTAL NON-OPERATING INCOME	$	101,216		$	(126,521	)
17.	NON-OPERATING EXPENSE (ATT. LIST)
	Banking fees and other	$	58,878		$	35,400		$	197,186		$	24,616
	Termination of interest rate swap	$	1,644,886
	Write-off of software development costs	$	366,231
	Intercompany management fee to Daisytek International	$	245,022
	TOTAL NON-OPERATING EXPENSE	$	2,315,017
18.	INTEREST EXPENSE	$	299,438		$	295,889		$	391,191		$	366,439
19.	DEPRECIATION / DEPLETION	$	204,853		$	253,528		$	254,050		$	252,551
20.	AMORTIZATION	$	259,028		$	296,174		$	292,358		$	290,951
21.	OTHER (ATTACH LIST)
	(GAIN)/LOSS on sale of DSI US				$	(18,653,312	)	$	(4,660	)	$	0
	OTHER				$	(690,690	)
22.	NET OTHER INCOME & EXPENSES	$	2,977,120		$	(18,589,532	)	$	1,130,125		$	934,557
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES (FROM SCHEDULE)	$	802,801		$	1,036,354		$	1,268,947		$	745,352
24.	U.S. TRUSTEE FEES	$	9,000		$	59,750		$	18,000		$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	811,801		$	1,096,104		$	1,286,947		$	745,352
27	INCOME TAX	$	(1,928,457	)	$	2,021,538		$	(3,068,997	)	$	(1,973,136	)
28.	NET PROFIT (LOSS)	$	(3,581,423	)	$	8,968,079		$	(6,024,558	)	$	(3,640,470	)

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-3
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 5/7/03-5/31/03			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393
RECEIPTS FROM OPERATIONS
2.	CASH SALES
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	7,419,904		$	15,155,755		$	4,681,925		$	2,982,888
5.	TOTAL OPERATING RECEIPTS	$	7,419,904		$	15,155,755		$	4,681,925		$	2,982,888
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
6a.	COLLECTION OF INCOME TAX REC.										$	4,373,149
7.	SALE OF ASSETS				$	7,287,602					$	1,025,000
8.	INTERCOMPANY TRANSFERS	$	(538,473	)	$	(5,260,361	)	$	172,466		$	1,624,933
9.	TOTAL NON-OPERATING RECEIPTS	$	(538,473	)	$	2,027,241		$	172,466		$	7,023,082
10.	TOTAL RECEIPTS	$	6,881,431		$	17,182,996		$	4,854,391		$	10,005,970
11.	TOTAL CASH AVAILABLE	$	8,177,807		$	21,237,263		$	10,522,736		$	14,093,363
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	528,761		$	769,113		$	493,080		$	632,185
13.	PAYROLL TAXES PAID	$	144,275		$	198,934		$	220,214		$	233,604
14	SALES, USE & OTHER TAXES PAID	$	20,107		$	48,212		$	0		$	0
15	SECURED / RENTAL / LEASES	$	350,329		$	618,450		$	0		$	493,159
16.	UTILITIES	$	202,838		$	135,249		$	72,022		$	145,066
17.	INSURANCE	$	37,905		$	82,381		$	8,337		$	0
18.	INVENTORY PURCHASES
19.	VEHICLE EXPENSES
20.	TRAVEL	$	6,637
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES	$	189
24.	ADVERTISING
25	INTEREST				$	380,502
26	OTHER (ATTACH LIST)							$	442,839
	Other employee expenses										$	108,205
	Other operating expenses							$	81,245		$	172,871
	Flexible spending plan reimbursements										$	187,898
	Bank Reconciliation Items				$	293,046
	Bank Fees				$	382,833		$	8,022
	Paydown line of credit	$	2,832,500		$	12,335,441		$	3,806,359		$	4,502,127
26.	TOTAL OPERATING DISBURSEMENTS	$	4,123,540		$	15,244,160		$	5,132,118		$	6,475,115
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES				$	324,757		$	1,232,974		$	695,078
28.	U.S. TRUSTEE FEES							$	70,250		$	8,000
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	324,757		$	1,303,224		$	703,078
31.	TOTAL DISBURSEMENTS	$	4,123,540		$	15,568,917		$	6,435,342		$	7,178,193
32.	NET CASH FLOW	$	2,757,891		$	1,614,079		$	(1,580,952	)	$	2,827,777
33.	CASH—END OF MONTH	$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-4
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		SCHEDULE AMOUNT		MONTH 30-Jun-03		MONTH 31-Jul-03		MONTH 31-Aug-03
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	16,882,250	$	1,063,688	$	1,105,402	$	(714,136	)
2.	31-60	$	1,733,157	$	3,789,793	$	372,107	$	1,230,157
3.	61-90	$	474,006	$	1,780,930	$	3,029,599	$	228,415
4.	91+	$	2,734,808	$	3,773,231	$	5,113,022	$	7,406,390
5.	TOTAL ACCOUNTS RECEIVABLE	$	21,824,221	$	10,407,642	$	9,620,130	$	8,150,826
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	4,501,107	$	4,319,773	$	4,181,775	$	4,249,906
7.	ACCOUNTS RECEIVABLE (NET)	$	17,323,114	$	6,087,869	$	5,438,355	$	3,900,921

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: August 31, 2003

		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	53,688	$	0	$	0	$	0	$	53,688
2.	STATE	$	161,290	$	0	$	0	$	0	$	161,290
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	214,978	$	0	$	0	$	0	$	214,978
6.	ACCOUNTS PAYABLE	$	359,739	$	77,434	$	12,232	$	27,891	$	477,296
							*Rejected Leases		*Rejected Leases

STATUS OF POSTPETITION TAXES MONTH: August 31, 2003

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	56,312	$	121,872	$	140,285	$	37,899
2.	FICA-EMPLOYEE**	$	13,619	$	37,689	$	43,692	$	7,616
3.	FICA-EMPLOYER**	$	13,619	$	38,033	$	43,692	$	7,960
4.	UNEMPLOYMENT	$	172	$	582	$	541	$	213
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	83,722	$	198,176	$	228,210	$	53,688
STATE AND LOCAL
8.	WITHHOLDING	$	821	$	2,890	$	2,835	$	876
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	825	$	2,709	$	2,559	$	975
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	22,986	$	129,807	$	0	$	152,793
14.	OTHER—Tennessee Corporation Annual Reports	$	0	$	6,646	$	0	$	6,646
15.	TOTAL STATE & LOCAL	$	24,632	$	142,052	$	5,394	$	161,290
16.	TOTAL TAXES	$	108,354	$	340,228	$	233,604	$	214,978

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-5
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

			MONTH:			August 31, 2003
BANK RECONCILIATIONS
		Account #1			Account #2		Account #3		Account #4		Account #5		Account #6		TOTAL
A.	BANK:		See Below—A			Guaranty		Chase		Bank of America		Bank One		Bank of America
B.	ACCOUNT NUMBER:		See Below—A			380-1466909		88006320428		3752175743		629438797		3752175772
C.	PURPOSE (TYPE):		See Below—A			Payroll/Benefits		Flex Plan		Petty Cash-Bksfld		Disbursement		Depository
1.	BALANCE PER BANK STATEMENT	$	7,264,602		$	309,742	$	18,218	$	0	$	0	$	0	$	7,592,562
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0												$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	618,387		$	97,416	$	2,744							$	718,546
4.	OTHER RECONCILING ITEMS	$	(33,089	)	$	0	$	0					$	73,639	$	40,550
5.	MONTH END BALANCE PER BOOKS	$	6,613,126		$	212,326	$	15,474	$	0	$	0	$	73,639	$	6,914,565
6.	NUMBER OF LAST CHECK WRITTEN		208515

INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0
CASH
12.	CURRENCY ON HAND					$	605
13.	TOTAL CASH—END OF MONTH					$	6,915,170

Note A:

Daisytek performs a consolidated bank reconciliation. The following is the listing of bank accounts included in this reconciliation:

Bank	Account #	Purpose	Balance per Bank
Bank of America	3752175714	Master Funding	684,126
Bank of America	3752190663	Prof Fee Segr Acct	1,954,640
Bank of America	3752175808	Master Collections	2,508,903
Bank One	10-91081	Accts Payable	2,053,396
Bank One	633680996	Disbursement	44,365
Bank One	11-28503	Master Collections	0
Chase	88-05174651	Operating	17,848
Frost Nat’l Bank	966003966	Emp Benefits	0
Bank One	1571581485	Master Depository	1,323
			7,264,602

Note B: Account #2—Item 6—Last Check Written:

Payroll Manual Checks—Last Check# is 4011.

Payroll Computer Checks—last Check# is 300070.

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-6
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	Dale Booth	Salary	$	23,912	$	153,892
2.	Ralph Doherty	Salary	$	74,868	$	120,808
3.	Jack Kearney	Salary	$	21,969	$	87,877
4.	Eric Logan	Salary	$	13,606	$	59,548
5.	Peter Wharf	Salary	$	40,837	$	86,779
6.	TOTAL PAYMENTS TO INSIDERS		$	175,191	$	508,904

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	Vinson & Elkins		$	1,585,987	$	311,487	$	1,113,434	$	472,554
2.	FTI	n/a	$	267,574	$	248,224	$	242,574	$	25,000
3.	Rochelle Elrod Hutcheson	n/a	$	317,474	$	111,205	$	234,557	$	82,917
4.	Deloitte & Touche	n/a	$	694,163	$	0	$	394,163	$	300,000
5	Kirkpatrick&Lockhart	n/a			$	24,163
6	US Trustee	n/a	$	70,250	$	8,000	$	70,250	$	0
7	Houlihan	n/a	$	100,000			$	100,000	$	0
8	TOTAL PAYMENTS TO PROFESSIONALS		$	3,035,448	$	703,078	$	2,154,977	$	880,471

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR		SCHEDULED MONTHLY PAYMENTS DUE	AMOUNTS PAID DURING MONTH	TOTAL UNPAID POSTPETITION
1.	L&B Depp Entreprises II	130,332.81	130,332.81	0.00
2.	Tejon Dermody Industrial (Augst 1/2 month)	92,756	46,378	46,377.82
3.	New York Life Southpark (August 1/2/ month)	122,908	61,453.85	61,453.85
4.	Selkirk Ventures (August 1/2/ month)	130,095	130,095	0.00
5.	Proterra Properties	Out of Facility
6.	MRE, Inc	185	0.00	185.00
7	Bank One Texas Leasing Corp	897	0.00	896.56
8.	Raymond Leasing (Sch 82369)	3,281	0.00	3,280.75
9.	Raymond Leasing (Sch 823610)	997	0.00	996.64

ACCRUAL BASIS - 6

10.	Raymond Leasing (Sch 823611)	235.00	0.00	235.00
11.	Raymond Leasing (Sch 823613)	1,937.80	0.00	1,937.80
12.	Raymond Leasing (Sch 82614)	3,759.30	0.00	3,759.30
13.	American Business Machines Co	98.67	0.00	98.67
14.	Canon Financial Services	363.51	0.00	363.51
15.	GATX Schedule #10	7,567.77	0.00	7,567.77
16.	GATX Schedule #1	6,213.83	0.00	6,213.83
17.	IOS Capital Inc	667.54	0.00	667.54
18.	IOS Capital Inc	8,579.46	0.00	8,579.46
19.	IOS Capital Inc	525.00	0.00	525.00
20.	Deutsche Financial Services Corporation	6,515.54	0.00	6,515.54
21.	Wells Fargo Equipment Finance	14,165.00	0.00	14,165.00
22	GE Public Finance, Inc Schedule 1	22,655.91	0.00	22,655.91
23	GE Public Finance, Inc Schedule 2	15,304.19	0.00	15,304.19
24	GE Public Finance, Inc Schedule 3	9,550.97	0.00	9,550.97
25.	CitiCorp Del—Lease Inc	363.51	0.00	363.51
26.	General Electric Capital Corporation Sch 2	6,767.19	0.00	6,767.19
27.	General Electric Capital Corporation Sch 3	109,952.08	0.00	109,952.08
28.	General Electric Capital Corporation Sch 4	13,774.08	0.00	13,774.08
29.	General Electric Capital Corporation Sch 5	24,685.45	0.00	24,685.45
30.	General Electric Capital Corporation Sch 6	47,090.79	0.00	47,090.79
31.	General Electric Capital Corporation Sch 7	9,709.96	0.00	9,709.96
32.	General Electric Capital Corporation Sch 8	16,504.55	0.00	16,504.55
33.	General Electric Capital Corporation Sch 9	7,867.78	0.00	7,867.78
34.	General Electric Capital Corporation Sch 10	10,270.06	0.00	10,270.06
35.	General Electric Capital Corporation Sch 11	4,994.75	0.00	4,994.75
36.	Fleet Capital Corporation Schedule 34049-001	18,092.65	0.00	18,092.65
37.	Fleet Capital Corporation Schedule 34049-00902	1,037.22	0.00	1,037.22
38.	Fleet Capital Corporation Schedule 32585-002	13,543.97	0.00	13,543.97
39.	Fleet Capital Corporation Schedule 32585-003	19,936.19	0.00	19,936.19
40.	Fleet Capital Corporation Schedule 32585-004	1,431.20	0.00	1,431.20
41.	IBM Credit Corporation Schedule 001	1,264.00	0.00	1,264.00
42.	IBM Credit Corporation Schedule 002	1,264.00	0.00	1,264.00
43.	IBM Credit Corporation Schedule 003	1,264.00	0.00	1,264.00
44.	IBM Credit Corporation Schedule 004	1,264.00	0.00	1,264.00
45.	IBM Credit Corporation Schedule 005	221.00	0.00	221.00
46.	IBM Credit Corporation Schedule 006	221.00	0.00	221.00
47.	IBM Credit Corporation Schedule 007	775.00	0.00	775.00
48.	IBM Credit Corporation Schedule 008	908.00	0.00	908.00
49.	IBM Credit Corporation Schedule 009	3,073.00	0.00	3,073.00
50.	IBM Credit Corporation Schedule 010	475.00	0.00	475.00
51.	IBM Credit Corporation Schedule 011	810.00	0.00	810.00
52.	IBM Credit Corporation Schedule 012	1,334.00	0.00	1,334.00
53.	IBM Credit Corporation Schedule 013	3,528.00	0.00	3,528.00
54.	IBM Credit Corporation Schedule 014	4,922.00	0.00	4,922.00
55.	IBM Credit Corporation Schedule 015	10,266.00	0.00	10,266.00
56.	IBM Credit Corporation Schedule 016	1,765.00	0.00	1,765.00
57.	IBM Credit Corporation Schedule 017	2,839.00	0.00	2,839.00
58.	IBM Credit Corporation Schedule 018	4,193.00	0.00	4,193.00
59.	IBM Credit Corporation Schedule 019	22,426.00	0.00	22,426.00
60.	IBM Credit Corporation Schedule 020	37,838.00	0.00	37,838.00
61.	IBM Credit Corporation Schedule 021	9,350.00	0.00	9,350.00
62.	IBM Credit Corporation Schedule 022	1,169.00	0.00	1,169.00
63	Plano Parkway Self Storage (July and August)	400.00	400.00	0.00
General Electric Capital Corporation (Adequate Protection Payment)		102,000.00	102,000.00	0.00
GE Public Finance, Inc (Adequate Protection Payment)		22,500.00	22,500.00	0.00
6.	TOTAL	1,121,680.02	493,159.48	628,520.54

ACCRUAL BASIS - 6

		Monthly Operating Report
CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-7
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE                                                                     6/1/03-6/26/03
		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

Question 1 Support: Intangible Assets sold to buyer—received $1,025,000.00 on 8/29.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
Property	Royal Indemnity Company	5/1/03 - 5/1/04	$	409,804	annual
General Liability	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	75,084	annual
Business Auto	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	57,345	annual
Workers’ Compensation	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	297,172	annual
Cargo	Indemnity Insurance Company of North America	5/1/03 - 5/1/04	$	108,500	annual
Umbrella Liability (primary layer)	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	50,974	annual
Umbrella Liability (excess layer)	Federal Insurance Co.	5/1/03 - 5/1/04	$	30,300	annual
Fiduciary Liability	Federal Insurance Co.	4/1/03 - 4/1/04	$	9,000	annual
Primary Directors & Officers	National Union Fire Insurance Company	4/1/03 - 4/1/04	$	1,100,000	annual
Excess D&O (1st layer)	XL Specialty Insurance Co.	4/1/03 - 4/1/04	$	1,250,000	annual
Extended Reporting Period Purchased Excess D&O (1st layer)	St. Paul Mercury Insurance Company	4/1/03 - 4/1/04	$	354,375	annual
Extended Reporting Period Purchased Excess D&O (2nd layer)	Twin City Fire Insurance Company	4/1/03 - 4/1/04	$	187,500	annual
Crime	Gulf Insurance Company	4/1/03 - 4/1/04	$	27,250	annual

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.
CASE NUMBER:	03-34762-HDH-11

July 31, 2003

MOR 7, QUESTION 4 SUPPORT

	AMERICAN WATER	$	157.45
	GHA TECHNOLOGIES	$	362.90
	MAVERICK TRADING CO	$	1,367.83
	TXU ELECTRIC “TDA”	$	86.03
**	Xerox Corp. OmniFax		1,480.00
**	International Laser—AP/AR Offset		266,083.30
**	Royal Consumer		8,959.90
			278,497.41

** Court Approved Contra-AR and AP adjustments

EX-99.3

Exhibit 99.3

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN	DISTRICT OF	TEXAS
	6 DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ Eric T. Logan	Interim Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
Eric T. Logan	September 19, 2003
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Mark Corjay	Vice President, Controller
ORIGINAL SIGNATURE OF PREPARER	TITLE
Mark Corjay	September 19, 2003
PRINTED NAME OF PREPARER	DATE

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-1
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT			MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
ASSETS
1.	UNRESTRICTED CASH	$	0		$	386,670		$	127,967		$	43,032
2.	RESTRICTED CASH	$	0
3.	TOTAL CASH	$	0		$	386,670		$	127,967		$	43,032
4.	ACCOUNTS RECEIVABLE (NET)	$	4,806,174		$	3,741,104		$	2,968,347		$	2,967,410
5.	INVENTORY	$	1,716,285		$	3,376,179		$	3,695,122		$	3,221,316
6.	NOTES RECEIVABLE	$	0
7.	PREPAID EXPENSES	$	203,019		$	196,861		$	112,347		$	107,489
8.	OTHER (ATTACH LIST)
	Credit card and other receivables	$	108,178		$	105,706		$	122,206		$	111,588
	Deferred tax asset	$	104,265		$	104,265		$	104,265		$	104,265
	Taxes receivable	$	3,942,751		$	3,942,751		$	3,942,751		$	3,942,751
	Prepaid merchandise	$	112,499		$	1,320,098		$	2,751,233		$	4,823,938
	Employee payroll and travel advances	$	5,201		$	5,028		$	367		$	(613	)
	TOTAL OTHER	$	4,272,894		$	5,477,848		$	6,920,822		$	8,981,928
9.	TOTAL CURRENT ASSETS	$	10,998,372		$	13,178,662		$	13,824,605		$	15,321,176
10.	PROPERTY, PLANT & EQUIPMENT	$	3,325,332		$	3,318,198		$	3,318,197		$	3,318,197
11.	LESS: ACCUMULATED										$	0
	DEPRECIATION / DEPLETION	$	2,694,116		$	2,729,856		$	2,749,562		$	2,768,821
12.	NET PROPERTY, PLANT & EQUIPMENT	$	631,216		$	588,342		$	568,635		$	549,376
13.	DUE FROM INSIDERS
14.	OTHER ASSETS—NET OF AMORTIZATION (ATTACH LIST)
	Goodwill	$	3,134,437		$	3,134,437		$	3,134,437		$	3,134,437
15.	OTHER (ATTACH LIST)
16.	TOTAL ASSETS	$	14,764,025		$	16,901,441		$	17,527,677		$	19,004,989
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE				$	178,980		$	(562,888	)	$	(567,989	)
18.	TAXES PAYABLE				$	111,002		$	83,532		$	132,126
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
	Vendor receivables and prepaid merchandise				$	(244,657	)	$	(415,807	)	$	(313,530	)
	Accrued expenses				$	610,002		$	727,491		$	927,368
	TOTAL OTHER				$	365,345		$	311,684		$	613,838
23.	TOTAL POSTPETITION LIABILITIES				$	655,327		$	(167,672	)	$	177,975
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT	$	636,667		$	5,076
26.	UNSECURED DEBT	$	5,883,256		$	4,982,955		$	4,902,606		$	4,898,398
27.	OTHER (ATTACH LIST)										$	0
	Vendor receivables and prepaid merchandise	$	(112,104	)	$	(1,595,159	)	$	(1,595,159	)	$	(1,595,159	)
	Bank account overdraft	$	299,324								$	0
	Interest Payable				$	255,089		$	0		$	0
	Accrued expenses	$	508,925		$	345,925		$	345,925		$	345,925
	Deferred Income Tax				$	(12	)	$	(12	)	$	(12	)
	Intercompany payable	$	14,985,063		$	19,912,280		$	21,737,134		$	23,305,092
	TOTAL OTHER	$	15,681,208		$	18,918,123		$	20,487,889		$	22,055,846
28.	TOTAL PREPETITION LIABILITIES	$	22,201,131		$	23,906,154		$	25,390,495		$	26,954,243
29.	TOTAL LIABILITIES	$	22,201,131		$	24,561,481		$	25,222,823		$	27,132,218
EQUITY
30.	PREPETITION OWNERS’ EQUITY	$	(7,437,106	)	$	(7,437,106	)	$	(7,437,106	)	$	(7,437,106	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)				$	(222,934	)	$	(258,040	)	$	(690,123	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)
33.	TOTAL EQUITY	$	(7,437,106	)	$	(7,660,040	)	$	(7,695,146	)	$	(8,127,229	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	14,764,025		$	16,901,441		$	17,527,677		$	19,004,989

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-2
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
REVENUES
1.	GROSS REVENUES	$	3,373,469		$	2,705,427		$	2,500,111
2.	LESS: RETURNS & DISCOUNTS	$	11,222		$	10,001		$	49,731
3.	NET REVENUE	$	3,362,247		$	2,695,426		$	2,450,380
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	2,784,655		$	2,095,718		$	2,267,078
8.	GROSS PROFIT	$	577,592		$	599,708		$	183,302
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING	$	21,149		$	16,770		$	6,415
11.	GENERAL & ADMINISTRATIVE	$	457,660		$	449,570		$	501,518
12.	RENT & LEASE	$	83,046		$	111,083		$	98,085
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	561,855		$	577,423		$	606,018
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	15,737		$	22,285		$	(422,716	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
17.	NON-OPERATING EXPENSE (ATT. LIST)
	BANK FEES AND OTHER	$	16,688		$	19,685		$	(9,892	)
18.	INTEREST EXPENSE
19.	DEPRECIATION / DEPLETION	$	20,244		$	19,706		$	19,259
20.	AMORTIZATION
21.	OTHER (ATTACH LIST)
22.	NET OTHER INCOME & EXPENSES	$	36,932		$	39,391		$	9,367
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES
24.	U.S. TRUSTEE FEES				$	18,000
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	18,000		$	0
27.	INCOME TAX	$	(7,419	)
28.	NET PROFIT (LOSS)	$	(13,776	)	$	(35,106	)	$	(432,083	)

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-3
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 6/1/03-6/30/03			MONTH 7/31/2003			MONTH 8/31/2003			QUARTER TOTAL
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	388,657		$	386,670		$	60,872
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	11,377					$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	3,686,554		$	3,419,216		$	2,743,013
5.	TOTAL OPERATING RECEIPTS	$	3,697,931		$	3,419,216		$	2,743,013
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
7.	SALE OF ASSETS
8.	OTHER (ATTACH LIST)
	Cash receipts transfer to Daisytek Inc	$	(3,673,372	)	$	(3,460,296	)	$	(1,446,708	)
	Payroll funding transfer from Daisytek Inc	$	335,260		$	288,008		$	288,538
	Other cash transfers from Daisytek Inc.	$	5,615,246		$	2,123,037		$	0
	TOTAL OTHER	$	2,277,134		$	(1,049,250	)	$	(1,158,170	)
9.	TOTAL NON-OPERATING RECEIPTS	$	2,277,134		$	(1,049,250	)	$	(1,158,170	)
10.	TOTAL RECEIPTS	$	5,975,065		$	2,369,965		$	1,584,843
11.	TOTAL CASH AVAILABLE	$	6,363,722		$	2,756,636		$	1,645,715
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	246,452		$	212,099		$	212,243
13.	PAYROLL TAXES PAID	$	88,808		$	75,909		$	76,295
14.	SALES, USE & OTHER TAXES PAID	$	85,197		$	72,402		$	58,766
15.	SECURED / RENTAL / LEASES	$	130,665		$	83,715		$	83,715
16.	UTILITIES	$	24,007		$	39,991		$	32,165
17.	INSURANCE
18.	INVENTORY PURCHASES	$	5,171,164		$	1,804,719		$	916,892
19.	VEHICLE EXPENSES
20.	TRAVEL
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES
24.	ADVERTISING
	BANK FEES
25.	OTHER (ATTACH LIST)	$	0
	Bank reconciliation expenses	$	230,759		$	406,929		$	222,607
26.	TOTAL OPERATING DISBURSEMENTS	$	5,977,052		$	2,695,764		$	1,602,683
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES
28.	U.S. TRUSTEE FEES
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0
31.	TOTAL DISBURSEMENTS	$	5,977,052		$	2,695,764		$	1,602,683
32.	NET CASH FLOW	$	(1,987	)	$	(325,798	)	$	(17,840	)
33.	CASH—END OF MONTH	$	386,670		$	60,872		$	43,032

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-4
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

				SCHEDULE AMOUNT			MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
ACCOUNTS RECEIVABLE AGING
1.	0-30			$	4,650,544		$	3,289,127		$	2,869,515		$	2,846,153
2.	31-60			$	226,922		$	395,333		$	145,995		$	219,356
3.	61-90			$	28,518		$	222,350		$	75,650		$	17,644
4.	91+			$	357,098		$	278,089		$	314,035		$	314,467
5.	TOTAL ACCOUNTS RECEIVABLE			$	5,263,082		$	4,184,899		$	3,405,195		$	3,397,620
6.	AMOUNT CONSIDERED UNCOLLECTIBLE			$	456,908		$	443,795		$	436,848		$	430,210
7.	ACCOUNTS RECEIVABLE (NET)			$	4,806,174		$	3,741,104		$	2,968,347		$	2,967,410
AGING OF POSTPETITION TAXES AND PAYABLES								MONTH:		August 31, 2003
		0-30 DAYS		31-60 DAYS			61-90 DAYS			91+ DAYS			TOTAL
TAXES PAYABLE
1.	FEDERAL	$	25,409	$	0		$	0		$	0		$	25,409
2.	STATE	$	106,717	$	0		$	0		$	0		$	106,717
3.	LOCAL	$	0	$	0		$	0		$	0		$	0
4.	OTHER (ATTACH LIST)	$	0	$	0		$	0		$	0		$	0
5.	TOTAL TAXES PAYABLE	$	132,126	$	0		$	0		$	0		$	132,126
6.	ACCOUNTS PAYABLE	$	269,241	$	(177,626	)	$	(504,037	)	$	(155,567	)	$	(567,989	)
STATUS OF POSTPETITION TAXES								MONTH:		August 31, 2003
				BEGINNING TAX LIABILITY*			AMOUNT WITHHELD AND/ 0R ACCRUED			AMOUNT PAID			ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**			$	1,655		$	43,864		$	34,014		$	11,505
2.	FICA-EMPLOYEE**			$	1,872		$	22,007		$	16,984		$	6,895
3.	FICA-EMPLOYER**			$	1,872		$	22,007		$	16,984		$	6,895
4.	UNEMPLOYMENT			$	7		$	270		$	163		$	114
5.	INCOME			$	0		$	0		$	0		$	0
6.	OTHER (ATTACH LIST)			$	0		$	0		$	0		$	0
7.	TOTAL FEDERAL TAXES			$	5,406		$	88,148		$	68,145		$	25,409
STATE AND LOCAL
8.	WITHHOLDING			$	1,975		$	8,015		$	7,233		$	2,757
9.	SALES			$	70,760		$	39,375		$	58,766		$	51,369
10.	EXCISE			$	0		$	0		$	0		$	0
11.	UNEMPLOYMENT			$	189		$	1,368		$	917		$	641
12.	REAL PROPERTY			$	0		$	15,000		$	0		$	15,000
13.	PERSONAL PROPERTY			$	13,106		$	14,403		$	0		$	27,509
14.	OTHER (ATTACH LIST)
	Washington Business and Occupation tax			$	1,000		$	0		$	0		$	1,000
	Los Angeles City Business Tax			$	4,600		$	3,147		$	0		$	7,747
	Ohio Workers Compensation Tax			$	694		$	0		$	0		$	694
	TOTAL OTHER			$	6,294		$	3,147		$	0		$	9,441
15.	TOTAL STATE & LOCAL			$	92,324		$	81,308		$	66,916		$	106,717
16.	TOTAL TAXES			$	97,730		$	169,456		$	135,061		$	132,126

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-5
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

		MONTH:	August 31, 2003
BANK RECONCILIATIONS
		Account #1	Account #2	Account #3		TOTAL
A.	BANK:	Note (A)
B.	ACCOUNT NUMBER:	See Listing Below
C.	PURPOSE (TYPE):	Operating/Dep
1.	BALANCE PER BANK STATEMENT	285,565.26			0.00		285,565.26
2.	ADD: TOTAL DEPOSITS NOT CREDITED						0.00
3.	SUBTRACT: OUTSTANDING CHECKS	399,300.87					399,300.87
4.	OTHER RECONCILING ITEMS	113,735.61			0.00		113,735.61
5.	MONTH END BALANCE PER BOOKS	0.00			0.00		0.00
6.	NUMBER OF LAST CHECK WRITTEN	86372
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE
7.	Bank One #0005330007003	12/16/2002	C.D.		36,000.00		40,932.31
8.
9.
10.
11.	TOTAL INVESTMENTS			$	36,000	$	40,932
CASH
12.	CURRENCY ON HAND					$	2,100
	Petty Cash
13.	TOTAL CASH—END OF MONTH					$	43,032
	Note (A)
	All of the following bank accounts are included in a single general ledger account. Daisytek performs a consolidated bank account reconciliation.
	Listing of Bank Accounts:	Purpose (Type)	Balance per Bank Statement
	Bank One #1091198	Operating			0.00
	Bank One #633681036	Disbursement			73,016.59
	Chase #740-5006179-65	Depository			207,734.92
	Wells Fargo #045-5477414	Depository			4,813.75
	Total Balance All Accounts				285,565.26

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-6
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH:         August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME	DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS	$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE	AMOUNTS PAID DURING MONTH	TOTAL UNPAID POSTPETITION
West Lake Farms #2	27,780	27,780	0.00
Cornell Park TCI	2,600	2,600.00	0.00
Jerome G. Timlim	5,502	5,502.00	0.00
The Henderson “TPH”	3,333	3,333	0.00
Eden Park “TMI”	3,266	3,266.30	0.00
1525-45 Capital Drive	3,455	3,455	0.00
Samson Management	14,583	14,583	0.00
William Sands	8,000	8,000.00	0.00
Richard Schoenberg	7,800	7,800.00	0.00
Albert Sweet Occidental			0.00
Yett Management	825	825.00	0.00
William Sands	6,200	6,200.00	0.00
724 PARKING CORP.	370.00	370.00	0.00
TOTAL	83,714.90	83,714.90	0.00

		Monthly Operating Report
CASE NAME:	The Tape Company Tapebargains.com, Inc.	ACCRUAL BASIS-7
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

See Attachments for MOR-7 Question 4 and 11

INSURANCE

		YES	NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Daisytek, Incorporated

CASE NAME:			The Tape Company Tapebargains.com, Inc.
CASE NUMBER:			03-34762-HDH-11
MOR 7
Question 4	August 31, 2003
BELLSOUTH		$	617.72
BYRD DAVIS & EISENBERG (CC)		$	135.82
CC DIGITAL		$	1,914.63
CERTIFIED VIDEO SERVICES (CC)		$	1,041.45
		$	3,709.62

EX-99.4

Exhibit 99.4

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN	DISTRICT OF	TEXAS
	6 DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ Eric T. Logan	Interim Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
Eric T. Logan	September 19, 2003
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Mark Corjay	Vice President, Controller
ORIGINAL SIGNATURE OF PREPARER	TITLE
Mark Corjay	September 19, 2003
PRINTED NAME OF PREPARER	DATE

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-1
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
ASSETS
1.	UNRESTRICTED CASH	$	19,633	$	1,287,416		$	0		$	0
2.	RESTRICTED CASH
3.	TOTAL CASH	$	19,633	$	1,287,416		$	0		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	11,170,376	$	7,785,748		$	8,640,054		$	9,200,030
5.	INVENTORY	$	11,236,001	$	11,515,732		$	11,361,945		$	10,353,330
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES	$	207,858	$	277,598		$	254,913		$	292,384
8.	OTHER (ATTACH LIST)									$	0
	Credit card and other receivables	$	365,547	$	443,446		$	443,514		$	443,583
	Prepaid merchandise	$	813,207	$	3,157,218		$	2,180,067		$	2,180,067
	TOTAL OTHER	$	1,178,754	$	3,600,664		$	2,623,581		$	2,623,650
9.	TOTAL CURRENT ASSETS	$	23,812,622	$	24,467,158		$	22,880,493		$	22,469,394
10.	PROPERTY, PLANT & EQUIPMENT	$	1,269,806	$	1,263,806		$	1,278,309		$	1,289,005
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	768,160	$	803,301		$	822,915		$	842,528
12.	NET PROPERTY, PLANT & EQUIPMENT	$	501,646	$	460,505		$	455,394		$	446,477
13.	DUE FROM INSIDERS
14.	OTHER ASSETS—NET OF AMORTIZATION (ATTACH LIST)
	Goodwill	$	11,716,275	$	11,716,275		$	11,716,275		$	11,716,275
15.	OTHER (ATTACH LIST)
16.	TOTAL ASSETS	$	36,030,543	$	36,643,938		$	35,052,162		$	34,632,146
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	(1,508,957	)	$	(2,442,194	)	$	(3,510,720	)
18.	TAXES PAYABLE			$	334,089		$	321,038		$	347,280
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
	Accrued expenses			$	(61,806	)	$	3,116,396		$	2,248,634
	Other accounts payable
23.	TOTAL POSTPETITION LIABILITIES			$	(1,236,674	)	$	995,240		$	(914,806	)
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT	$	137,031
26.	UNSECURED DEBT	$	7,194,185	$	6,744,082		$	6,124,370		$	6,125,426
27.	OTHER (ATTACH LIST)
	Other accounts payable	$	1,363,321	$	1,686,365
	Accrued expenses	$	884,000	$	884,000		$	884,000		$	884,000
	Intercompany payables	$	13,170,427	$	14,643,258		$	13,023,620		$	14,220,249
	TOTAL OTHER	$	15,417,748	$	17,213,623		$	13,907,620		$	15,104,249
28.	TOTAL PREPETITION LIABILITIES	$	22,748,964	$	23,957,705		$	20,031,990		$	21,229,675
29.	TOTAL LIABILITIES	$	22,748,964	$	22,721,031		$	21,027,231		$	20,314,869
EQUITY
30.	PREPETITION OWNERS’ EQUITY	$	13,281,579	$	13,281,579		$	13,281,579		$	13,281,579
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	641,328		$	743,352		$	1,035,698
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)
33.	TOTAL EQUITY	$	13,281,579	$	13,922,907		$	14,024,931		$	14,317,277
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	36,030,543	$	36,643,938		$	35,052,162		$	34,632,146

		Monthly Operating Report	Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-2	ACCRUAL BASIS-2
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 5/7/03-5/31/03		MONTH June 30, 2003		MONTH 31-Jul-03		MONTH 31-Aug-03
REVENUES
1.	GROSS REVENUES	$	4,933,609	$	6,155,312	$	6,654,181	$	6,315,665
2.	LESS: RETURNS & DISCOUNTS	$	146,955
3.	NET REVENUE	$	4,786,654	$	6,155,312	$	6,654,181	$	6,315,665
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	4,031,195	$	4,848,594	$	5,817,797	$	5,258,353
8.	GROSS PROFIT	$	755,459	$	1,306,718	$	836,384	$	1,057,312
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING	$	48,667	$	77,723	$	48,139	$	77,373
11.	GENERAL & ADMINISTRATIVE	$	353,043	$	391,999	$	476,673	$	448,464
12.	RENT & LEASE	$	47,973	$	77,474	$	83,377	$	57,234
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	449,683	$	547,196	$	608,189	$	583,071
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	305,776	$	759,522	$	228,195	$	474,241
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
17.	NON-OPERATING EXPENSE (ATT. LIST) BANK FEES AND OTHER			$	11,702	$	12,477	$	17,282
18.	INTEREST EXPENSE
19.	DEPRECIATION / DEPLETION	$	15,515	$	19,614	$	19,613	$	19,613
20.	AMORTIZATION
21.	OTHER (ATTACH LIST)
22.	NET OTHER INCOME & EXPENSES	$	15,515	$	31,316	$	32,090	$	36,895
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES
24.	U.S. TRUSTEE FEES					$	20,000	$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	0	$	0	$	20,000	$	0
27.	INCOME TAX	$	132,000	$	245,139	$	74,081	$	145,000
28.	NET PROFIT (LOSS)	$	158,261	$	483,067	$	102,024	$	292,346

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-3
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 5/7/03-5/31/03			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	19,633		$	111,524		$	1,287,416		$	0
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	6,369,399		$	8,113,763		$	5,732,097		$	5,994,229
5.	TOTAL OPERATING RECEIPTS	$	6,369,399		$	8,113,763		$	5,732,097		$	5,994,229
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
7.	SALE OF ASSETS	$	0
8.	OTHER (ATTACH LIST)
	Cash receipts transfers to Daisytek Inc.	$	(6,369,399	)	$	(6,588,823	)	$	(5,785,078	)	$	(218,243	)
	Payroll funding transfer from Daisytek Inc.	$	305,564		$	294,974		$	291,480
	Other cash transfers from Daisytek Inc.	$	5,220,609		$	7,553,396		$	4,275,975
	TOTAL OTHER	$	(843,226	)	$	1,259,547		$	(1,217,622	)	$	(218,243	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(843,226	)	$	1,259,547		$	(1,217,622	)	$	(218,243	)
10.	TOTAL RECEIPTS	$	5,526,173		$	9,373,310		$	4,514,474		$	5,775,986
11.	TOTAL CASH AVAILABLE	$	5,545,806		$	9,484,834		$	5,801,891		$	5,775,986
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	242,756		$	230,387		$	222,742		$	226,106
13.	PAYROLL TAXES PAID	$	62,808		$	64,587		$	68,738		$	70,490
14.	SALES, USE & OTHER TAXES PAID	$	0		$	48,263					$	0
15.	SECURED / RENTAL / LEASES	$	53,688		$	53,688		$	55,606
16.	UTILITIES	$	7,699		$	25,268		$	31,576		$	37,954
17.	INSURANCE
18.	INVENTORY PURCHASES	$	4,592,675		$	7,463,144		$	4,007,237		$	5,320,113
19.	VEHICLE EXPENSES
20.	TRAVEL	$	6,742
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES
24.	ADVERTISING							$	19,643		$	0
25.	OTHER (ATTACH LIST)
	Bank Fees	$	215					$	1,668		$	25
	Other operating	$	467,699		$	312,079		$	1,394,682		$	121,298
	TOTAL OTHER	$	467,914		$	312,079		$	1,396,349		$	121,323
26.	TOTAL OPERATING DISBURSEMENTS	$	5,434,282		$	8,197,417		$	5,801,891		$	5,775,986
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES
28.	U.S. TRUSTEE FEES
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0		$	0
31.	TOTAL DISBURSEMENTS	$	5,434,282		$	8,197,417		$	5,801,891		$	5,775,986
32.	NET CASH FLOW	$	91,891		$	1,175,892		$	(1,287,416	)	$	0
33.	CASH—END OF MONTH	$	111,524		$	1,287,416		$	0		$	0

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-4
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		SCHEDULE AMOUNT		MONTH June 30, 2003		MONTH 31-Jul-03		MONTH Aujgust 31, 2003
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	10,776,600	$	6,751,212	$	5,354,644	$	5,499,142
2.	31-60	$	353,862	$	67,541	$	2,272,138	$	2,437,546
3.	61-90	$	57,502	$	546,662	$	374,256	$	838,504
4.	91+	$	429,674	$	882,641	$	1,136,681	$	932,301
5.	TOTAL ACCOUNTS RECEIVABLE	$	11,617,637	$	8,248,056	$	9,137,719	$	9,707,493
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	447,261	$	462,308	$	497,665	$	507,463
7.	ACCOUNTS RECEIVABLE (NET)	$	11,170,376	$	7,785,748	$	8,640,054	$	9,200,030

AGING OF POSTPETITION TAXES AND PAYABLES									MONTH:		August 31, 2003
		0-30 DAYS			31-60 DAYS			61-90 DAYS			91+ DAYS			TOTAL
TAXES PAYABLE
1.	FEDERAL	$	338,108		$	0		$	0		$	0		$	338,108
2.	STATE	$	9,172		$	0		$	0		$	0		$	9,172
3.	LOCAL	$	0		$	0		$	0		$	0		$	0
4.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0		$	0
5.	TOTAL TAXES PAYABLE	$	347,280		$	0		$	0		$	0		$	347,280
6.	ACCOUNTS PAYABLE	$	(1,859,502	)	$	(468,058	)	$	(1,167,965	)	$	(15,196	)	$	(3,510,720	)

STATUS OF POSTPETITION TAXES					MONTH:	August 31, 2003
		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	1,118	$	38,779	$	29,370	$	10,526
2.	FICA-EMPLOYEE**	$	693	$	22,224	$	16,215	$	6,702
3.	FICA-EMPLOYER**	$	693	$	22,224	$	16,215	$	6,702
4.	UNEMPLOYMENT	$	5	$	119	$	84	$	40
5.	INCOME	$	314,139	$	0	$	0	$	314,139
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	316,648	$	83,346	$	61,885	$	338,109
STATE AND LOCAL
8.	WITHHOLDING	$	311	$	10,826	$	7,942	$	3,195
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	29	$	910	$	663	$	276
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	4,050	$	1,650	$	0	$	5,700
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	4,390	$	13,386	$	8,605	$	9,171
16.	TOTAL TAXES	$	321,038	$	96,732	$	70,490	$	347,280

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-5
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

			MONTH:		August 31, 2003
BANK RECONCILIATIONS
		Account #1			Account #2			Account #3		TOTAL
A.	BANK:		Bank One			Suntrust
B.	ACCOUNT NUMBER:		629609132			0008800770268
C.	PURPOSE (TYPE):		Commercial Checking			Petty Cash
1.	BALANCE PER BANK STATEMENT	$	50,697		$	9,379				$	60,076
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0							$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	(619,429	)	$	(9,379	)			$	(628,808	)
4.	OTHER RECONCILING ITEMS	$	568,732		$	0				$	568,732
5.	MONTH END BALANCE PER BOOKS	$	0		$	(0	)			$	(0	)
6.	NUMBER OF LAST CHECK WRITTEN		62916
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE			TYPE OF INSTRUMENT			PURCHASE PRICE		CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS							$	0	$	0
CASH
12.	CURRENCY ON HAND
	Petty Cash for IL $     and CA $
13.	TOTAL CASH—END OF MONTH									$	(0	)

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-6
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH:	August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE	AMOUNTS PAID DURING MONTH	TOTAL UNPAID POSTPETITION
	0.00	0.00	0.00
	0.00	0.00	0.00
	0.00	0.00	0.00
	0.00	0.00	0.00
	0.00	0.00	0.00
	0.00	0.00	0.00

		Monthly Operating Report
CASE NAME:	Arlington Industries, Inc.	ACCRUAL BASIS-7
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

See attached schedule for Question 4 and 11 detail.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Daisytek, Incorporated

EX-99.5

Exhibit 99.5

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

6 DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:

/s/ Eric T. Logan ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	Interim Chief Financial Officer TITLE
Eric T. Logan PRINTED NAME OF RESPONSIBLE PARTY	September 19, 2003 DATE
PREPARER:
/s/ Mark Corjay ORIGINAL SIGNATURE OF PREPARER	Vice President, Controller TITLE
Mark Corjay PRINTED NAME OF PREPARER	September 19, 2003 DATE

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-1
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT			MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
ASSETS
1.	UNRESTRICTED CASH	$	0		$	66,812		$	100		$	0
2.	RESTRICTED CASH	$	0
3.	TOTAL CASH	$	0		$	66,812		$	100		$	0
4.	ACCOUNTS RECEIVABLE (NET)	$	292,251		$	179,457		$	104,151		$	104,151
5.	INVENTORY	$	235,593		$	0
6.	NOTES RECEIVABLE				$	0
7.	PREPAID EXPENSES	$	12,922		$	12,922		$	12,922		$	12,922
8.	OTHER (ATTACH LIST)				$	0
	Credit card and other receivables	$	60,924		$	(119,923	)	$	(2,376	)	$	(1,859	)
	Taxes receivable	$	815,554		$	831,072		$	807,387		$	807,387
	TOTAL OTHER	$	876,478		$	711,149		$	805,011		$	805,527
9.	TOTAL CURRENT ASSETS	$	1,417,244		$	970,340		$	922,183		$	922,600
10.	PROPERTY, PLANT & EQUIPMENT	$	0
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	0
12.	NET PROPERTY, PLANT & EQUIPMENT	$	0		$	0		$	0		$	0
13.	DUE FROM INSIDERS	$	0
14.	OTHER ASSETS—NET OF AMORTIZATION (ATTACH LIST)	$	0		$	0
15.	OTHER (ATTACH LIST)	$	0		$	0
16.	TOTAL ASSETS	$	1,417,244		$	970,340		$	922,183		$	922,600
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE
18.	TAXES PAYABLE				$	7,350		$	0		$	0
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
23.	TOTAL POSTPETITION LIABILITIES				$	7,350		$	0		$	0
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT	$	48,977
26.	UNSECURED DEBT	$	2,831,984		$	2,898,198		$	2,875,105		$	2,875,105
27.	OTHER (ATTACH LIST)
	Other accounts payable and vendor receivables	$	226,845		$	13,451		$	70,117		$	70,634
	Bank account overdraft	$	21,370		$	0
	Accrued expenses	$	(4,069	)	$	130,254		$	89,758		$	89,758
	Intercompany payables	$	(728,102	)	$	(1,032,091	)	$	(1,006,971	)	$	(1,004,370	)
	TOTAL OTHER	$	(483,956	)	$	(888,386	)	$	(847,096	)	$	(843,977	)
28.	TOTAL PREPETITION LIABILITIES	$	2,397,005		$	2,009,812		$	2,028,009		$	2,031,128
29.	TOTAL LIABILITIES	$	2,397,005		$	2,017,162		$	2,028,009		$	2,031,128
EQUITY
30.	PREPETITION OWNERS’ EQUITY	$	(979,761	)	$	(979,761	)	$	(979,761	)	$	(979,761	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)				$	(67,061	)	$	(126,065	)	$	(128,767	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)
33.	TOTAL EQUITY	$	(979,761	)	$	(1,046,822	)	$	(1,105,826	)	$	(1,108,528	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	1,417,244		$	970,340		$	922,183		$	922,600

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-2
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
REVENUES
1.	GROSS REVENUES	$	238,087		$	0		$	0
2.	LESS: RETURNS & DISCOUNTS	$	0
3.	NET REVENUE	$	238,087		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL	$	0
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	232,589		$	0		$	1,028
8.	GROSS PROFIT	$	5,498		$	0		$	(1,028	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING
11.	GENERAL & ADMINISTRATIVE	$	12,756		$	26,193		$	1,674
12.	RENT & LEASE	$	28,489		$	0		$	0
13.	OTHER (ATTACH LIST)
	Accrual for Doubtful Accounts				$	32,003		$	0
14.	TOTAL OPERATING EXPENSES	$	41,245		$	58,196		$	1,674
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(35,747	)	$	(58,196	)	$	(2,702	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
17.	NON-OPERATING EXPENSE (ATT. LIST)
	Bank Fees	$	810		$	808		$	0
18.	INTEREST EXPENSE
19.	DEPRECIATION / DEPLETION
20.	AMORTIZATION
21.	OTHER (ATTACH LIST)
22.	NET OTHER INCOME & EXPENSES	$	810		$	808		$	0
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES
24.	U.S. TRUSTEE FEES
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0
27.	INCOME TAX	$	(12,795	)	$	0		$	0
28.	NET PROFIT (LOSS)	$	(23,762	)	$	(59,004	)	$	(2,702	)

		Monthly Operating Report	Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-3
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 6/1/03-6/30/03			MONTH 7/31/2003			MONTH 8/31/2003
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	113,189		$	66,812		$	100
RECEIPTS FROM OPERATIONS
2.	CASH SALES
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	23,648		$	36,699		$	0
5.	TOTAL OPERATING RECEIPTS	$	23,648		$	36,699		$	0
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
7.	SALE OF ASSETS
8.	OTHER (ATTACH LIST)
	Cash receipts transfer to Daisytek Inc	$	(23,648	)	$	(36,699	)	$	(100	)
	Other cash transfers from Daisytek Inc
	TOTAL OTHER	$	(23,648	)	$	(36,699	)	$	(100	)
9.	TOTAL NON-OPERATING RECEIPTS	$	(23,648	)	$	(36,699	)	$	(100	)
10.	TOTAL RECEIPTS	$	0		$	0		$	(100	)
11.	TOTAL CASH AVAILABLE	$	113,189		$	66,812		$	(0	)
OPERATING DISBURSEMENTS
12.	NET PAYROLL
13.	PAYROLL TAXES PAID	$	1,937		$	12,251		$	0
14.	SALES, USE & OTHER TAXES PAID	$	2,451
15.	SECURED / RENTAL / LEASES
16.	UTILITIES
17.	INSURANCE
18.	INVENTORY PURCHASES
19.	VEHICLE EXPENSES
20.	TRAVEL
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES
24.	ADVERTISING
	OTHER OPERATING EXPENSES
	BANK RECONCILIATION ITEMS	$	41,989		$	54,461		$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL OPERATING DISBURSEMENTS	$	46,377		$	66,712		$	0
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES
28.	U.S. TRUSTEE FEES
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0
31.	TOTAL DISBURSEMENTS	$	46,377		$	66,712		$	0
32.	NET CASH FLOW	$	(46,377	)	$	(66,712	)	$	(100	)
33.	CASH—END OF MONTH	$	66,812		$	100		$	(0	)

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-4
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		SCHEDULE AMOUNT			MONTH 6/30/2003			MONTH 7/31/2003			MONTH 8/31/2003
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	(21,086	)	$	(1,750	)	$	(5,735	)	$	(5,735	)
2.	31-60	$	232,866		$	26,487		$	(502	)	$	(502	)
3.	61-90	$	74,886		$	40,118		$	21,825		$	21,825
4.	91+	$	1,630,679		$	1,739,625		$	1,744,586		$	1,744,586
5.	TOTAL ACCOUNTS RECEIVABLE	$	1,917,345		$	1,804,480		$	1,760,174		$	1,760,174
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	1,625,094		$	1,625,023		$	1,656,023		$	1,656,023
7.	ACCOUNTS RECEIVABLE (NET)	$	292,251		$	179,457		$	104,151		$	104,151

AGING OF POSTPETITION TAXES AND PAYABLES

						August 31, 2003
		0-30 DAYS		31-60 DAYS		91+ DAYS		TOTAL		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	0	$	0	$	0	$	0	$	0
2.	STATE	$	0	$	0	$	0	$	0	$	0
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0
6.	ACCOUNTS PAYABLE	$	0	$	0			$	0	$	0

STATUS OF POSTPETITION TAXES

				August 31, 2003
		BEGINNING TAX LIABILITY*		AMOUNT PAID		ENDING TAX LIABILITY		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	0	$	0	$	0
2.	FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3.	FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-5
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

			MONTH:		August 31, 2003
BANK RECONCILIATIONS
		Account #1			Account #2		Account #3		TOTAL
A.	BANK:		Bank One			Chase		Bank of America
B.	ACCOUNT NUMBER:		63681002			885175302		3752175811
C.	PURPOSE (TYPE):		Disbursement			Depository		Depository
1.	BALANCE PER BANK STATEMENT	$	101		$	0	$	0	$	101
2.	ADD: TOTAL DEPOSITS NOT CREDITED								$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	2,546		$	0	$	0	$	2,546
4.	OTHER RECONCILING ITEMS	$	2,445		$	0	$	0	$	2,445
5.	MONTH END BALANCE PER BOOKS	$	(0	)	$	0	$	0	$	(0	)
6.	NUMBER OF LAST CHECK WRITTEN		7341			n/a		n/a
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE			TYPE OF INSTRUMENT		PURCHASE PRICE		CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS						$	0	$	0
CASH
12.	CURRENCY ON HAND								$	0
13.	TOTAL CASH—END OF MONTH								$	(0	)

		Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.	ACCRUAL BASIS-6
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	See Daisytek, Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

NAME OF CREDITOR		SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
1.
2.
3.
4.
5.
6.	TOTAL	$	0	$	0	$	0

			Monthly Operating Report
CASE NAME:	Daisytek Latin America, Inc.		ACCRUAL BASIS-7
CASE NUMBER:	03-34762-HDH-11		02/13/95, RWD, 2/96
		MONTH:	August 31, 2003

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Daisytek, Incorporated

EX-99.6

Exhibit 99.6

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF TEXAS

6 DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:
/s/ Eric T. Logan ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	Interim Chief Financial Officer TITLE
Eric T. Logan PRINTED NAME OF RESPONSIBLE PARTY	September 19, 2003 DATE
PREPARER:
/s/ Mark Corjay ORIGINAL SIGNATURE OF PREPARER	Vice President, Controller TITLE
Mark Corjay PRINTED NAME OF PREPARER	September 19, 2003 DATE

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-1
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT			MONTH May 31, 2003			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
ASSETS
1.	UNRESTRICTED CASH	$	55,397		$	57,795		$	69,729		$	27,190		$	27,190
2.	RESTRICTED CASH
3.	TOTAL CASH	$	55,397		$	57,795		$	69,729		$	27,190		$	27,190
4.	ACCOUNTS RECEIVABLE (NET)	$	10,782,858		$	8,108,247		$	0		$	0		$	0
5.	INVENTORY	$	4,861,681		$	3,982,973		$	0		$	0		$	0
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES	$	242,013		$	663,143		$	0		$	0		$	0
8.	OTHER (ATTACH LIST)
9.	TOTAL CURRENT ASSETS	$	15,941,949		$	12,812,158		$	69,729		$	27,190		$	27,190
10.	PROPERTY, PLANT & EQUIPMENT	$	796,720		$	796,720		$	0		$	0		$	0
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	384,914		$	399,990		$	0		$	0		$	0
12.	NET PROPERTY, PLANT & EQUIPMENT	$	411,806		$	396,730		$	0		$	0		$	0
13.	DUE FROM INSIDERS	$	0
14.	OTHER ASSETS—NET OF AMORTIZATION (ATTACH LIST)	$	0
15.	OTHER (ATTACH LIST)
16.	TOTAL ASSETS	$	16,353,755		$	13,208,888		$	69,729		$	27,190		$	27,190
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE				$	148,217		$	61,377		$	61,377		$	0
18.	TAXES PAYABLE							$	0
19.	Intercompany payable/trustee fees/Daisytek payments										$	11,750		$	73,127
20.	PROFESSIONAL FEES
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)				$	(2,181,733	)	$	0
23.	TOTAL POSTPETITION LIABILITIES				$	(2,033,516	)	$	61,377		$	73,127		$	73,127
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT
26.	UNSECURED DEBT	$	18,888,034		$	18,225,235		$	17,313,559		$	17,277,237		$	17,277,237
27.	OTHER (ATTACH LIST)	$	(1,052,170	)	$	(1,412,836	)	$	(1,345,802	)	$	(1,345,802	)	$	(1,345,802	)
28.	TOTAL PREPETITION LIABILITIES	$	17,835,864		$	16,812,399		$	15,967,757		$	15,931,435		$	15,931,435
29.	TOTAL LIABILITIES	$	17,835,864		$	14,778,883		$	16,029,134		$	16,004,562		$	16,004,562
EQUITY
30.	PREPETITION OWNERS’ EQUITY		(1,482,109	)	$	(1,482,109	)	$	(1,482,109	)	$	(1,482,109	)	$	(1,482,109	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)				$	(87,886	)	$	(14,477,296	)	$	(14,495,263	)	$	(14,495,263	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)
33.	TOTAL EQUITY	$	(1,482,109	)	$	(1,569,995	)	$	(15,959,405	)	$	(15,977,372	)	$	(15,977,372	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	16,353,755		$	13,208,888		$	69,729		$	27,190		$	27,190

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-2
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 5/7/03-5/31/03			MONTH 6/1/03-6/25/03			MONTH 6/26/03-7/31/03			MONTH 8/1/03-8/31/03
REVENUES
1.	GROSS REVENUES	$	4,192,612		$	2,579,106		$	0		$	0
2.	LESS: RETURNS & DISCOUNTS
3.	NET REVENUE	$	4,192,612		$	2,579,106		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	3,620,038		$	2,166,700		$	0		$	0
8.	GROSS PROFIT	$	572,574		$	412,406		$	0		$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING
11.	GENERAL & ADMINISTRATIVE	$	578,663		$	(244,567	)
12.	RENT & LEASE	$	20,673		$	27,328
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	599,336		$	(217,239	)	$	0		$	0
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(26,762	)	$	629,645		$	0		$	0
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)				$	(29,084	)
17.	NON-OPERATING EXPENSE (ATT. LIST)	$	89,710
18.	INTEREST EXPENSE/(Income)	$	11,355		$	(74,570	)	$	(40	)	$	0
19.	DEPRECIATION / DEPLETION	$	15,077		$	15,077
20.	AMORTIZATION
21	Gain/Loss on sale of DSI US				$	20,040,268		$	6,257		$	0
21.	OTHER (ATTACH LIST)				$	7,770
22.	NET OTHER INCOME & EXPENSES	$	116,142		$	19,959,461		$	6,217		$	0
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES
24.	U.S. TRUSTEE FEES							$	11,750		$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	11,750		$	0
27.	INCOME TAX	$	(55,018	)	$	(4,940,406	)
28.	NET PROFIT (LOSS)	$	(87,886	)	$	(14,389,410	)	$	(17,967	)	$	0

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-3
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 5/7/03-5/31/03			MONTH 6/1/03 - 6/30/03			MONTH 7/1/03 -7/31/03			MONTH 8/1/03 -8/31/03
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	55,397		$	57,795		$	69,729		$	27,190
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	41								$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	7,231,585		$	2,471,655		$	0		$	0
5.	TOTAL OPERATING RECEIPTS	$	7,231,626		$	2,471,655		$	0		$	0
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
7.	SALE OF ASSETS				$	7,512,602					$	0
8.	OTHER (ATTACH LIST)										$	0
	Cash receipts transfers to Daisytek Inc.	$	(7,523,550	)	$	(9,984,257	)				$	0
	Payroll funding transfer from Daisytek Inc.	$	511,504		$	245,630		$	56,972		$	0
	Other cash transfers from Daisytek Inc.	$	3,727,144		$	294,664					$	0
	TOTAL OTHER	$	(3,284,902	)	$	(9,443,963	)	$	56,972		$	0
9.	TOTAL NON-OPERATING RECEIPTS	$	(3,284,902	)	$	(1,931,361	)	$	56,972		$	0
10.	TOTAL RECEIPTS	$	3,946,724		$	540,294		$	56,972		$	0
11.	TOTAL CASH AVAILABLE	$	4,002,121		$	598,089		$	126,701		$	27,190
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	403,114		$	183,563		$	56,972		$	0
13.	PAYROLL TAXES PAID	$	145,355		$	62,067		$	0		$	0
14.	SALES, USE & OTHER TAXES PAID	$	0		$	8,501		$	0		$	0
15.	SECURED / RENTAL / LEASES	$	20,673								$	0
16.	UTILITIES	$	24,589		$	18,055					$	0
17.	INSURANCE	$	7,884		$	30,000		$	36,325		$	0
18.	INVENTORY PURCHASES	$	3,611,016								$	0
19.	VEHICLE EXPENSES										$	0
20.	TRAVEL										$	0
21.	ENTERTAINMENT										$	0
22.	REPAIRS & MAINTENANCE										$	0
23.	SUPPLIES										$	0
24.	ADVERTISING										$	0
25.	OTHER (ATTACH LIST)										$	0
	Other reconciling items	$	(268,305	)	$	226,173		$	6,214		$	0
26.	TOTAL OPERATING DISBURSEMENTS	$	3,944,326		$	528,360		$	99,511		$	0
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES
28.	U.S. TRUSTEE FEES
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	0		$	0		$	0
31.	TOTAL DISBURSEMENTS	$	3,944,326		$	528,360		$	99,511		$	0
32.	NET CASH FLOW	$	2,398		$	11,934		$	(42,539	)	$	0
33.	CASH—END OF MONTH	$	57,795		$	69,729		$	27,190		$	27,190

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-4
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		SCHEDULE AMOUNT		MONTH May 2003		MONTH June 2003		MONTH July 2003		MONTH August 2003
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	10,248,831	$	7,691,432	$	0	$	0	$	0
2.	31-60	$	439,667	$	358,715	$	0	$	0	$	0
3.	61-90	$	190,533	$	335,035	$	0	$	0	$	0
4.	91+	$	287,502	$	148,065	$	0	$	0	$	0
5.	TOTAL ACCOUNTS RECEIVABLE	$	11,166,533	$	8,533,247	$	0	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	383,675	$	425,000	$	0	$	0	$	0
7.	ACCOUNTS RECEIVABLE (NET)	$	10,782,858	$	8,108,247	$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: August 31, 2003

		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	0
2.	STATE	$	0
3.	LOCAL	$	0
4.	OTHER (ATTACH LIST)	$	0
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0
6.	ACCOUNTS PAYABLE	$	0	$	0					$	0

STATUS OF POSTPETITION TAXES MONTH: August 31, 2003

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	0	$	0	$	0	$	0
2.	FICA-EMPLOYEE**	$	0	$	0	$	0	$	0
3.	FICA-EMPLOYER**	$	0	$	0	$	0	$	0
4.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	0	$	0	$	0	$	0
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	0	$	0	$	0	$	0
14.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-5
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

MONTH: August 31, 2003

BANK RECONCILIATIONS

		Account #1		Account #2		Account #3		TOTAL
A.	BANK:		Bank One	Bank One
B.	ACCOUNT NUMBER:		615843919		5106947684
C.	PURPOSE (TYPE):		Operating	Central Benefits Insurance
1.	BALANCE PER BANK STATEMENT	$	0	$	27,190			$	27,190
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0	$	0			$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	0					$	0
4.	OTHER RECONCILING ITEMS	$	0	$	0			$	0
5.	MONTH END BALANCE PER BOOKS	$	0	$	27,190	$	0	$	27,190
6.	NUMBER OF LAST CHECK WRITTEN		N/A		N/A
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE		TYPE OF INSTRUMENT		PURCHASE PRICE		CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS					$	0	$	0
CASH
12.	CURRENCY ON HAND							$	0
13.	TOTAL CASH—END OF MONTH							$	27,190

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-6
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Daisytek Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	See Daisytek Incorporated
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO PROFESSIONALS		$	0	$	0	$	0	$	0

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR		SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
						$	0
2.
3.
4.
5.
6.	TOTAL	$	0	$	0	$	0

		Monthly Operating Report
CASE NAME:	Digital Storage, Inc.	ACCRUAL BASIS-7
CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		x
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		x
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		x
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		x
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		x
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		x
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		x
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		x
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		x
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		x
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		x
12.	ARE ANY WAGE PAYMENTS PAST DUE?		x

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	x
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	x
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
See Daisytek Incorporated

Digital Storage, Inc

Case # 03-34762-HDH-11

Other Liabilities—April 5-6-03	Prepetition
Intercompany—DSI Canada	1,768,073
Intercompany—DZTK	14,719,603
Intercompany—DZTK Line of Credit	(17,380,633	)
Accounts Receivable Vendors	(1,345,801	)
Unrealized Co-op and Mkt profits	1,186,588
	(1,052,170	)

Other Liabilities—May 5-31-03	Prepetition		Postpetition
Intercompany—DSI Canada	1,768,073		64,028
Intercompany—DZTK	14,719,603		147,560
Intercompany—DZTK Line of Credit	(17,380,633	)	(2,393,321	)
Accounts Receivable Vendors	(1,345,801	)	—
Unrealized Co-op and Mkt profits	825,922
	(1,412,836	)	(2,181,733	)

Other Liabilities—June 6-25-03&July 31, 2003	Prepetition		Postpetition
Accounts Receivable Vendors	(1,345,802	)	—
Unrealized Co-op and Mkt profits	—		—
	(1,345,802	)	—	—

	May-03		Jun-03
Unrealized Currency Losses	(89,710	)	29,084
	(89,710	)	29,084

Other Income Expense	May-03	Jun-03
Bank and credit card fees	—	7,770
	—	7,770

Question 1 Schedule 7
	June 30, 2003
Accounts receivable sold	5,871,023
Other A/R sold	168,359
Allowance for bad debts	(464,847	)
Inventory sold	5,604,301
Reserve for obsolete inventory	(2,750,000	)
PP&E sold, net	381,654
Intercompany receivable from Daisytek Inc.	6,015,408
Income tax receivable transferred to Daisytek Inc.	5,214,370
Total DSI loss	20,040,268		This is offset by a corresponding gain in Daisytek Inc. of $18.7 million.