Arrow Electronics and Eicon Technology Unveil Innovative Inventory Management Solution.

Business Editors

MONTREAL, Quebec--(BUSINESS WIRE)--Oct. 30, 2000

In an effort to find an innovative approach to improve its materials management, Eicon Technology Corporation (TSE:EIC) announced today that it has teamed up with Arrow Electronics, Inc. (NYSE:ARW) to open a new Raw Material Center, in Montreal, Quebec. In this unique center, Arrow will provide a comprehensive range of inventory management services to ensure uninterrupted supply of electronic components to Eicon's contract manufacturing partners. Eicon is a worldwide provider of internet access and unified messaging products.

"With Eicon's growth in the worldwide internet access and unified messaging markets, it became clear that traditional materials and vendor management approaches would no longer satisfy the company's needs. It was time for new solutions," said William Nash, Vice President of Manufacturing for Eicon Technology. "This new way of doing business will provide Eicon with the elements needed to reduce manufacturing cycle time, improve time to market and allow faster responses to customer demands. We are very pleased with the solution that the Arrow Electronics team provided during the development of the Raw Material Center," said Nash.

"We are always looking for ways to help our customers improve their time to market and reduce costs," said Jan Salsgiver, President of Arrow's North American Components Group (NAC). "This new materials management solution shows how flexible Arrow can be when it comes to solving our customers problems."

Since 1985, Arrow has seen Eicon's material requirements grow from a relatively limited number of electronic components engagements from bonded inventories to a consignment arrangement that provided Eicon with an extensive on-hand stock. This new materials management approach, which evolved from Arrow's well-known in-plant store supply chain management solution, is expected to significantly improve operating efficiencies for both companies.

About Eicon Technology Corporation

Eicon Technology Corporation is a worldwide provider of Internet access products. The Company develops, markets and supports hardware and software products for connecting PCs and network servers to the Internet and corporate networks and supplies media gateways for voice over IP and unified messaging. Eicon's products are sold in more than 80 countries through a network of channel partners, telecommunications companies and Original Equipment Manufacturers. Eicon shares are traded on the Toronto Stock Exchange under the symbol "EIC." Information about Eicon and its products is available at http://www.eicon.com.

About Arrow Electronics

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, contract manufacturers, and commercial customers through more than 225 sales facilities and 19 distribution centers in 38 countries. Detailed information on Arrow's operations can be found at www.arrow.com.