Avnet Substantially Strengthens Its Position in Europe Through Merger With SEI.

PHOENIX--(BUSINESS WIRE)--Aug. 26, 1999--

Roy Vallee, chairman and chief executive officer of Avnet Inc. (NYSE:AVT), Thursday announced that Avnet has signed a share exchange agreement by which Sonepar, a world leader in electrical distribution, will merge its European electronic components distribution company, Eurotronics B.V., doing business as SEI, with Avnet.

Eurotronics (SEI) is a Netherlands-based distribution network with sales throughout Europe of approximately $550 million.

Upon completion of the transaction, Sonepar's 84 percent ownership in Eurotronics (SEI) will be merged with Avnet's electronic components distribution group -- Avnet Electronics Marketing EMEA (Europe, Middle East and Africa).

This follows Avnet's announcement on June 28, 1999 that it had agreed to acquire U.S.-based Marshall Industries, with sales of $1.72 billion, which owns 16 percent of Eurotronics. Post-acquisition sales for Avnet Electronics Marketing EMEA are expected to be over $1.7 billion, propelling Avnet into a strong number two position in Europe.

"I am very excited to have reached agreement with Sonepar," said Vallee. "One of Avnet's most important global strategies is to pursue successful, highly respected companies that exhibit a culture compatible with Avnet's and maintain strong relationships with customers and suppliers. SEI exceeds this criteria, and will significantly enhance and expand Avnet's efforts in Europe.

"The resources of this company, specifically the management and talented employees, combined with Avnet's, will enable us to provide the highest value relationships to customers and suppliers.

"Our strengths in global supply chain management and design services, and in leveraging our investments in information technology -- including e-commerce capabilities, will significantly improve the pan-European coverage that Eurotronics provides."

"I am especially pleased to be joining forces with Jean Fribourg, president and chief executive officer of SEI," said Brian Hilton, co-president of Avnet Electronics Marketing Global. "He is an experienced, talented leader who has built a solid organization." Fribourg, who will report to Hilton, will be appointed chairman of the newly formed Avnet European Management Board.

"The acquisition will assure Avnet an increased presence in Europe and near-total coverage of the European DTAM (Distributor Total Available Market)," said George Smith, president of Avnet EMEA.

"This merger will provide us entry to new markets, such as Belgium, the Netherlands, Portugal and Spain and boost our presence in Austria and Switzerland -- countries in which Avnet has been seeking to expand," said Smith. "It will also complement Avnet's existing human resources and sales network in France and Germany."

SEI and Avnet share a number of semiconductor suppliers in Europe, including Analog Devices, Hewlett-Packard, Intel, Motorola, Phillips Semiconductors and Texas Instruments.

The companies also share a number of interconnect and passive suppliers such as AMP, Bourns and Molex; however, SEI adds to this significant line card synergy, bringing customers of Avnet EM new lines in Europe, including Cypress, Hitachi, FCI/Berg, Panasonic, Sharp Electronics, Siemens and TDK.

"The benefits of this transaction are far reaching," Hilton said. "In addition to a broader line card, expanded customer base and increased inventory, the merger will provide Avnet, its customers and suppliers with a larger technical sales and service team. Moreover, as European customers and suppliers expand globally, Avnet will be there to help, fortified by the resources of SEI."

About Eurotronics (SEI)

Established in 1976, Eurotronics (SEI), based in the Netherlands, is a leading European distributor of semiconductors, interconnect and passive components, having captured significant market share across the continent. It currently employs 830 people at 29 sales locations in 10 European countries.

Additionally, the company maintains a consolidated warehouse operation in Limburg, Germany and five national warehouses. More information about Eurotronics (SEI) can be found at http://www.sei-europe.com

About Avnet Inc.

Phoenix-based Avnet Inc., a Fortune 500 company with annual sales exceeding $6.35 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 59 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