Arrow Chosen by Hewlett-Packard -R- As Fulfillment Partner for HP9000.

MELVILLE, N.Y.--(BUSINESS WIRE)--Sept. 1, 1999--

Arrow Electronics, Inc. (NYSE: ARW) announced today that SBM, a subsidiary of Arrow North American Computer Products, has been selected as one of two Product Fulfillment Utility partners for the HP9000 midrange computer business. SBM is currently one of four distributors servicing the 9000 series of products.

Commenting on the win, Mike Long, President of Arrow North American Computer Products noted, "This selection is the result of an in-depth analysis by HP of its partners and is a tribute to the SBM team that has grown to be the biggest and best distributor of HP9000 products." He added, "HP's decision to include SBM as a Product Fulfillment Utility partner reaffirms our belief in midrange systems strategies and proves that a midrange focus is a viable approach in the channel."

Hewlett-Packard began an in-depth review of its channel strategy and supply chain in 1998, and in early 1999 instituted a program -- Channel 2000 -- which began a rigorous set of analysis of the four partners to determine the optimum structure and set of parameters to service the HP9000 business.

Eric Thornton, President of SBM observed, "It is gratifying that the efforts of our Channel 2000 team, the performance of the SBM organization, and Arrow's vendor-focused acquisition strategy have been recognized by HP in our selection."

SBM was formed in May of 1998 by the acquisition of SBM and integration with the HP9000 unit of Gates/Arrow. This combination of two distributors who ranked highly in customer satisfaction ratings formed the largest distributor of 9000 products.

About SBM

Headquartered in Atlanta, Georgia, SBM assembles, supports, and distributes enterprise solutions to a network of value-added resellers, system integrators and independent software vendors. SBM, a subsidiary of the Arrow North American Computer Products group, a division of Arrow Electronics, Inc. (NYSE: ARW), is one of the premier distributors of Hewlett-Packard UNIX and NT products in the United States offering world-class distribution services to HP resellers. More information on SBM, its products, and programs can be found at www.sbm.com.

About Arrow Electronics, Inc.

Arrow Electronics is the world's largest distributor of electronic components and computer products, with 1998 sales of $8.3 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 175,000 original equipment manufacturers and commercial customers through more than 200 sales facilities and 26 distribution centers in 35 countries. Detailed information about Arrow's operations can be found at www.arrow.com.