Arrow Electronics to Acquire Leading Distributor in Brazil.

MELVILLE, N.Y.--(BUSINESS WIRE)--May 20, 1999--

Arrow Electronics, Inc. (NYSE:ARW) announced that it has agreed to acquire a two-thirds interest in Panamericana Comercial Importadora, S.A., the largest distributor of electronic components in Brazil. Dalton de T. Carrijo, chief executive officer of Panamericana, will hold the balance of the outstanding shares and will continue in the position of CEO. Upon completion of the acquisition, the company will be known as Panamericana/Arrow.

Based in Sao Paulo, Panamericana is the acknowledged leader in the Brazilian electronic component distribution market. Formed 28 years ago, the company employs over 75 people and generated sales of approximately $18 million in 1998. Panamericana's line card includes, among other semiconductor manufacturers, Philips, Motorola, National, Harris, and International Rectifier. The company's principal passive, electromechanical, and connector (PEMCO) lines include AVX and Philips.

"Our acquisition of Panamericana constitutes our initial entry into the emerging markets of Latin America," said Stephen P. Kaufman, Chairman and Chief Executive Officer of Arrow. "We are delighted to welcome into the Arrow family the leading distributor in Brazil," he added, "and are pleased that Dalton de T. Carrijo and the rest of his experienced and successful team will be joining Arrow."

"We are proud to be affiliating ourselves with the world's preeminent distributor," said Mr. de T. Carrijo, "and to participate in Arrow's global strategic direction." "Arrow's broad array of products and wide range of value added services will enable us to better serve our traditional customers, as well as the large multinational companies that are investing in Brazil," he added.

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 34 countries. Detailed information about Arrow's operations can be found at www.arrow.com.