Avnet Applied Computing Gains Raab Karcher Electronic Systems -- RKE Systems -- in VEBA Electronics Distribution Group Acquisition.

Business Editors/High-Tech Writers

PHOENIX--(BUSINESS WIRE)--Nov. 2, 2000

Avnet Applied Computing (AAC), an operating group of Avnet Inc. (NYSE:AVT), will integrate Raab Karcher Electronic Systems (RKE Systems), one of Europe's leading value-added distributors of computer systems and subsystems, as part of Avnet's acquisition of the VEBA Electronics Distribution Group.

"The billion dollar RKE business is complementary to Avnet Applied Computing's European business strategies and brings critical mass to strengthen and grow our disk drive and other computer peripheral products businesses," said Ed Kamins, president of Avnet Applied Computing.

"AAC fully intends to continue growing the RKE business and to invest in its sales, technical and inventory resources, which will further our position as a leading distributor in the global marketplace. We are very excited about the existing supplier relationships that will now be a part of Avnet Applied Computing."

The RKE Systems branded businesses will be combined to become a European business unit of Avnet Applied Computing and will be renamed Applied Computing Enabling Technologies (ACET), effective immediately.

The RKE businesses include:

-- Raab Karcher Elektronik GmbH (Germany)

-- Hayward Computer-Peripherie (Austria)

-- Alltron AG (Switzerland)

-- REIN Elektronik B.V. (Netherlands)

-- REIN Elektronik S.A. (Belgium)

-- Midwich Ltd. (UK)

-- Professional Display Systems Ltd. (UK)

-- RK Distribution Ltd. (UK)

"We are very pleased to join forces with Avnet Applied Computing," said Jurgen Peter, formerly chief executive officer of RKE Systems. "This partnership will ensure that we are able to service our customers not only for today's requirements on a local level, but to meet their needs in a global marketplace."

On Aug. 7, 2000, Avnet, as part of a consortium of buyers, announced its agreement with E.ON AG to purchase the EBV Group, Atlas Services Europe and RKE Systems, which were European companies of the VEBA Electronics Distribution Group. The transaction was completed on Oct. 31, 2000.

About Avnet Applied Computing

Launched in October 1999, Avnet Applied Computing (AAC) is Avnet's newest and fastest growing operating group with operations in North America, Europe and Asia. AAC has structured itself to serve original equipment manufacturers that use computing technologies such as CPUs, mass storage, displays, embedded computing boards, commercial motherboards, networking and software products.

AAC, with an annualized run rate in excess of $2 billion, is comprised of three business units: Avnet Applied Computing Components (ACC), Avnet Applied Computing Solutions (ACS) and Avnet Applied Computing Enabling Technologies (ACET).

About RKE Systems

Serving 11 European countries, RKE Systems was a value-added distributor of computer systems and subsystems, offering a broad line of computer component products. Sales for its last fiscal year were $1 billion.

About Avnet Inc.

Phoenix-based Avnet Inc., a Fortune 500 company with annual sales exceeding $10 billion, is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical components and computer products from leading manufacturers.

Serving customers in 62 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.