Avnet to Build Facilities in Belgium.

PHOENIX--(BUSINESS WIRE)--Sept. 23, 1998--Global electronics distributor Avnet, Inc. has announced plans to build two new facilities in Belgium to centralize some of its core operations and create a distribution center to serve pan-European customers. While Avnet has operations in eight European countries, this will be its first in Belgium. Final approval of the plan is expected by Avnet's Board of Directors in its upcoming meeting scheduled for 25 September 1998.

Avnet Electronics Marketing (EM) has chosen Tongeren (Limburg) as the site for its pan-European distribution and administrative center, to be completed around July 1, 1999. The company plans to invest 1 billion BEF to build a facility of approximately 14,000 square meters on land approximately 41,000 square meters to accommodate future growth. The facility will house one hundred employees initially and over 200 within five years.

Avnet Computer Marketing Group (CMG) plans to temporarily centralize its core European warehouse and integration operations in Wauthier-Braine. Within two years, in La Louviere, a permanent warehouse of approximately 10,000 square meters and an integration center and offices of approximately 2,000 square meters will be built. The office will contain such functions as warehousing logistics management, systems integration, purchasing, accounting, and information technology. CMG is expected to employ 35 employees in the first year and within three years to employ approximately 200. Startup in Wauthier-Braine has been targeted for November 1, 1998. After ten years in business in the USA, Avnet CMG started up in Europe last year and realized a turnover of 3.7 billion BEF. Its operations in the USA last year achieved a turnover of approximately 40 billion BEF.

"Belgium was chosen because of its logistics and the availability of a skilled, flexible and productive labor force as well as the business friendly policies of the federal and regional governments. The favorable tax environment and subsidies granted by the respective governments are indications of their efforts to partner with major businesses to ensure their success," said Brian Hilton, President of Avnet EMEA (Europe, Middle East and Asia).

Ministers of both Flanders and Wallonia noted that this investment by Avnet proves that Belgium is an attractive site for a logistics center because of its location and the quality of its work force.

Avnet's agreement to set up operations in Belgium was negotiated by OFI (Office of Foreign Investors), FFIO, Gom Limburg, the former ambassador to the USA, the Honorable A. Blinken, President of the Parliament, Mr. Langandries, Minister-President of the Wallonian Region, Mr. Collignon, the federal government and the town officials of Tongeren and Wauthier-Braine. Just as other Ministers, Flemish Minister-President Luc Van den Brande and Flemish Minister of Economy, Media, SMA and Agriculture, E. Van Rompuy, who were in full support of the project.

Avnet, Inc. is a global company headquartered in Phoenix, Arizona, USA, employing approximately 8,700 people worldwide including approximately 1,500 in Europe. The company's turnover for fiscal 1998 was $218.3 billion BEF. Avnet is the world's second largest electronics distributor of semiconductors, electronic components, computers and accessories. Avnet markets, inventories and adds value to the products of the world's most prestigious electronic components and computer equipment manufacturers for industrial and military equipment customers throughout the globe. Avnet maintains a presence in North America, Europe, as well as in Mexico, Taiwain, Australia, New Zealand, Hong Kong, People's Republic of China, Singapore and South Africa.