Arrow Establishes Internet Business Group.

MELVILLE, NY--(BUSINESS WIRE)--July 15, 1999--

Arrow Electronics, Inc. (NYSE:ARW) today announced the establishment of a dedicated Internet Business Group to provide internet-based commerce and services for customers worldwide and described the Group's current services and future plans.

Stephen P. Kaufman, Chairman and Chief Executive Officer of Arrow, said, "Unlike most companies active on the internet, we chose to develop our services before we talked about them. More than a year ago, we developed a secure, password-protected extranet for our North American customers. Today, more than 2,000 North American customers check our entire inventory online, get their contract pricing online, place orders online, and monitor their order processing online -- all the way to shipping and package tracking. We extended this extranet to Europe last November, and today we have more than 1,000 European customers using these online services."

David G. Westmoreland, Arrow's Vice President and Chief Information Officer, described the back-office integration of Arrow's online tools. "With Arrow's extranet, customers can choose which activities they want to perform online and which activities they want to do with their dedicated Arrow sales team," he said. "Everything is instantly visible to the customer online, because the online tools are fully integrated with Arrow's host systems on a real-time basis using IBM's MQ series interface. We don't know of any other distributor that offers this level of seamless integration to customers."

According to Thomas F. Hallam, President of Arrow's Internet Business Group, "Arrow's next step is to offer the full power of Arrow, all 1.4 million part numbers and our ISO 9002 distribution channel, online on the internet to every purchaser of electronic components, all ready to launch next month. We have the only complete suite of online supply chain management tools, called arrow.com PROseries, ready for release. Adding to today's supply chain features, this new release gives customers the ability to get real-time quotes for multi-line orders, make real-time changes to the delivery date and quantities of scheduled orders, and change shipping methods up to the time of shipment."

"Our Internet Business Group represents the strongest commitment to e-commerce of any distributor in the world," said Francis M. Scricco, President and Chief Operating Officer of Arrow. "Supported by all of Arrow's global resources, we are taking the collective power of Arrow to the internet in a single, coordinated activity, using the Arrow brand and providing the greatest value, richest resources, and the easiest interface for every customer, everywhere. Arrow's Internet Business Group represents another milestone in Arrow's history of innovation and customer focus. For all of us, and for customers worldwide, the excitement and rewards of the internet age are just beginning!"

For more information about Arrow's internet services, visit www.arrow.com, email [e-mail], or contact your local Arrow sales team.

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.