Avnet Inc. Completes Acquisition of European Companies of VEBA Electronics Distribution Group.

Business Editors/High-Tech Writers

PHOENIX--(BUSINESS WIRE)--Oct. 31, 2000

Avnet Inc. (NYSE:AVT) Chairman and Chief Executive Officer, Roy Vallee, Tuesday announced the completion of the acquisition of the EBV Group and RKE Systems, which were European companies of the VEBA Electronics Distribution Group.

The companies were acquired from Germany-based E.ON AG (formerly VEBA AG) for approximately $740 million in cash, including the assumption of debt, and subject to post-closing adjustments.

The Munich, Germany-based EBV Group is comprised of EBV Elektronik and WBC, both pan-European semiconductor specialist distributors, and Munich-based Atlas Services Europe, logistics provider for the EBV Group. Nettetal, Germany-based RKE is a computer products and services distributor. The acquired companies reported 1999 sales of $1.8 billion and have approximately 1,900 employees.

"We are very excited to welcome these excellent companies to Avnet's European operations," said Vallee. "This is, in fact, the most significant acquisition in Avnet's history because it benefits all three of Avnet's operating groups, as well as our customers and suppliers.

"The addition of Europe's leading specialist semiconductor distributor -- the EBV Group -- together with our improving existing businesses, bodes well for a strong performance in the future. We anticipate that the addition of these businesses will be accretive to Avnet's earnings per share within the first year," Vallee said.

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 the leading manufacturers.

Serving customers in 62 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain management and engineering design services.