Arrow Electronics' Advantage Telesales Unit Participates in Four-way Merger.

Business Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 11, 2000

Arrow Electronics, Inc. (NYSE:ARW) has agreed to participate in an unprecedented four-way merger by contributing its Advantage business unit to the newly-formed eChips Inc., an independent sales and marketing channel serving the global electronics engineering and purchasing communities.

Joining Arrow's Advantage unit is Avnet, Inc.'s Production Supplies and Test Equipment (PSAT) unit, and two online companies, QuestLink Technology, Inc., and ChipCenter, LLC. John "Sean" Powers III will be Chairman and CEO of eChips, bringing with him over 20 years experience in the electronics industry, including six years as President of Anthem Electronics, Inc.

"The eChips' `one-stop-shop' will provide global engineering and procurement professionals with both convenience and choice," said Stephen P. Kaufman, Chairman of Arrow Electronics. "We believe the broad offering will be the largest eCatalog of franchised products in the world, and will be supported by the most trusted delivery resources in the industry," he added.

"This new channel is a hybrid model with integrated service options, and is scalable for profitable growth," said Powers. "We believe this represents a market potential of more than $25 billion," he added.

The transaction is subject to the successful completion of the merger between QuestLink and ChipCenter, which is subject to government review. It is expected that the transaction will be completed before the end of the year.

Arrow Electronics is the world's largest distributor of electronic components and computer products, with 1999 sales of $9.3 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 225 sales facilities and 19 distribution centers in 38 countries. Detailed information about Arrow's operations can be found at www.arrow.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release contains forward-looking statements that are subject to certain risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but are not limited to: industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers and the other risks described from time to time in the company's reports to the Securities and Exchange Commission (including the company's Annual Report on Form 10-K). Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements.