Arrow Electronics Redefines Distribution With the Launch of Arrow Digital Solutions.

Business & Technology Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--May 9, 2001

Arrow Electronics (NYSE:ARW) today announced its latest innovation with the launch of Arrow Digital Solutions, a suite of real-time, subscription based, interactive tools that offers Arrow's unique knowledge to customers, enabling them to manage their entire supply chain more effectively, from concept through to production.

The first three services that are part of the Arrow Digital Solutions suite are Arrow Risk Manager, Arrow Alert, and Arrow Collaborator. Arrow Risk Manager and Arrow Alert are available for purchase today.

Arrow Risk Manager arms customers with Arrow's proprietary knowledge regarding the procurability of electronic components. Risk Manager offers design engineers critical component information that will prevent them from designing in parts that could result in reengineering costs, the shutting down of a production line, or missing the time-to-market window. Offering complimentary guidance to purchasing professionals regarding part availability offered online, Arrow Risk Manager is based on a structured pricing model.

Arrow Alert provides customers with real time notification of product changes. This service enables engineering and purchasing professionals to customize their alerts, allowing them to pinpoint part information important to their organization. Arrow Alert was designed for customers to avoid costly component changes by identifying component changes or obsolescence early on. An online service, Arrow Alert is offered daily, weekly or monthly.

Arrow Collaborator, which will launch July 1st, discovers potential problems in a customer's supply chain by identifying trends and offering real-time exception management reports. Arrow Collaborator will be formally introduced within the next 60 days.

"Arrow Digital Solutions provides customers with access to Arrow's worldwide knowledge of the entire supply chain; we refer to this as knowledge sharing," said Francis M. Scricco, President and Chief Executive Officer of Arrow. "We can communicate a wealth of information to our customers instantaneously and interactively; information about which components are real, which can be procured in quantity today, which components have changed status, and what are the exceptions that customers need to worry about in their latest MRP."

Other information services provide theoretical information about the existence or the availability of parts, drawing on information from data books, spec sheets, and catalogues. Arrow's 10 million daily transactions create a proprietary database that provides real time information, identifying which specific parts are actually being manufactured and purchased today.

"It may be nice to have access to a list of 13 million potential part numbers. However, engineers really need to know which 1 million of those parts are actually in production and available today, from whom, in what quantities, in what time frame, and for how long," said Fran Scricco. "Arrow is uniquely positioned to provide this knowledge sharing through Arrow Digital Solutions."

In today's highly competitive market, electronics OEMs must deal with wild swings in supply and demand. They are faced with new components and technologies that are introduced and obsoleted rapidly. These OEMs can incur extraordinarily high costs if they are late to market with a new product. Arrow Digital Solutions enables these customers to effectively monitor and manage their materials requirements from start to finish. Arrow created these solutions to empower design engineers, component engineers and purchasing professionals with choice and control over the vast amount of information they require in making informed design and purchasing decisions. With close to 10 million transactions per day globally, Arrow is able to offer the most accurate information for our customers' specific situations in real time.

"We're very excited about this new service offering," said Jan Salsgiver, President of Arrow's North American Components Group. "Arrow Digital Solutions offers tremendous value by helping our customers make more informed business decisions right on the spot."

To find out more information, visit http://www.arrow.com/arrowdigitalsolutions

About Arrow Electronics

Arrow Electronics is the world's largest distributor of electronic components and computer products, with 2000 sales of $13 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 200,000 original equipment manufacturers, contract manufacturers and commercial customers through more than 225 sales facilities and 23 distribution centers in 39 countries.