Arrow Electronics Launches Strategic Initiative Into Federal Government Sector.

ENGLEWOOD, Colo. -- Arrow OEM Computing Solutions, the division of Arrow Electronics, Inc. (NYSE: ARW) that provides manufacturing, system integration, and supply chain management services to industrial OEMs and intellectual property-based companies, today announced the formation of a new vertical market organization that will lead the charge to provide manufacturing and value-added services to prime and sub-prime contractors to the Federal government, primarily in the defense and aerospace sectors.

The new Federal business unit is a key piece in Arrow's plan to establish strongholds in emerging and high-growth markets. This announcement follows a launch in 2004 of vertical units focused on meeting the manufacturing needs of healthcare and communications companies.

"Arrow already has the expertise, talent, know-how, and experience to positively impact companies within the Federal space," said Chuck Kostalnick, vice president of sales, Arrow OEM Computing Solutions. "In addition to supporting legacy VME based systems for Federally-focused customers, Arrow has been performing integration and manufacturing for over 20 years, and a majority of our expertise is perfectly aligned with the activities that Federal contractors are looking to outsource. Our customers can continue to be experts in their technology and allow us to perform as experts in the integration and supply chain area."

Of particular interest to target customers of the new Federal vertical organization is Arrow's strategic ability to supply both commercial off-the shelf (COTS) as well as ruggedized systems through its relationships with the world's top technology suppliers and the capabilities of its logistics and value-added manufacturing facility in Phoenix. The facility offers an impressive array of product integration and support services including:

--Class 1000 Clean Room for LCD Flat Panel Integration

--ISO 9001:2000 and TL 9000 certified

--Engineering Design Services

--Assembly and Testing

--Lean Manufacturing Environment

--Equipment Warranty, Repair and Refurbishment

--Logistics and Export Management

--Program and Project Management

--Software Load and Configuration Services

Arrow's expertise in the telecommunications sector will also prove vital to defense and aerospace contractors involved with the Advanced Telecom Computing Architecture (Advanced TCA or PICMG 3.X). This new specification provides the industry with an open, standards-based hardware platform that enables more rapid development of new generations of applications and services.

About the North American Computer Products group of Arrow Electronics

The North American Computer Products group of Arrow Electronics, Inc. (NYSE: ARW) is a leading distributor of enterprise and embedded computing systems to resellers and OEM customers in North America. Based in Englewood, Colo., the group is comprised of four divisions that make up Enterprise Computing Solutions (Support Net, SBM, MOCA, Enterprise Storage Solutions) and OEM Computing Solutions, which serves complex and industrial OEM customers. Visit us at www.arrownacp.com.

Arrow Electronics is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry.