Avnet's Eurotronics Acquisition Completed.

Business Editors

PHOENIX--(BUSINESS WIRE)--Jan. 5, 2000

Roy Vallee, chairman and chief executive officer of Avnet Inc. (NYSE:AVT), Wednesday announced the completion of Avnet's share-exchange merger transaction with Sonepar, which transferred to Avnet its 84 percent ownership of European electronic components distribution company, Eurotronics B.V. (doing business as SEI).

Avnet previously acquired a 16 percent interest in Eurotronics (SEI) in connection with its acquisition of Marshall Industries on Oct. 20, 1999. Vallee announced the signing of a share exchange agreement with Sonepar on Aug. 26, 1999, for the remaining interest.

"We are very pleased to be gaining the considerable resources of SEI," said Vallee. "This organization brings with it a strong commitment to add value for its customers and suppliers, just as Avnet does. SEI will enhance the Avnet team's effectiveness in Europe, and we welcome its innovative and talented people.

"With this acquisition, Avnet's sales of electronic components and computer products and services are expected to exceed $2.2 billion in Europe for the first time."

Eurotronics (SEI), an industry leading distributor with annual sales in Europe of approximately $550 million, is now part of Avnet's electronic components distribution business, Avnet Electronics Marketing EMEA (Europe, Middle East and Africa). The Eurotronics (SEI) acquisition boosts Avnet's presence in Europe.

The acquisition will assure Avnet a near-total coverage of the European DTAM (Distributor Total Available Market).

"With the acquisition, annual sales for Avnet Electronics Marketing EMEA are expected to be $1.9 billion, propelling the company to a strong number two position in Europe," said George Smith, president of Avnet Electronics Marketing EMEA. "We are very excited about integrating the companies and the process will begin immediately."

Smith remains as president of the now combined Avnet EMEA operations, reporting to Brian Hilton, co-president of Avnet Electronics Marketing. Jean Fribourg, former president and CEO of SEI has been appointed chairman of the

newly formed Avnet European management board and member of the Avnet Inc. management board.

Both boards are non-operational advisory boards on strategy and investment opportunities. The Avnet EMEA management board is comprised of six Avnet EMEA executives and three external members. Fribourg's primary responsibilities will be to ensure the successful integration of these two strong companies. He reports to Hilton.

"Customers and suppliers will benefit from the expanded technical sales team and line card, and increased inventory which SEI brings to the merger," said Hilton.

While Avnet and SEI share a number of semiconductor, interconnect and passive suppliers, SEI adds new lines in Europe such as Hitachi, Cypress Semiconductor, Sharp Electronics, Panasonic, EPCOS (formerly Seimens Matsushita), and TDK.

Phoenix-based Avnet Inc., a Fortune 300 company with annual sales exceeding $6.4 billion, ($9.0 billion proforma, including recent acquisitions) is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical components and computer products from the industry's leading manufacturers.

Serving customers in 64 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain integration, engineering design and technical services. The company's Web site is located at www.avnet.com