Avnet to Sell its Allied Catalog Operation and Enter Strategic Alliance With Electrocomponents plc.

PHOENIX--(BUSINESS WIRE)--June 8, 1999--

Roy Vallee, Chairman and CEO of Avnet, Inc. (NYSE:AVT), announced today that Avnet has entered into an agreement to sell its Allied Electronics catalog business to Electrocomponents plc, a United Kingdom-based electronic component catalog distributor, for US $380 million to be paid in cash. The transaction, which is subject to the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, is expected to close on July 2, 1999 and will result in a gain to be recorded in Avnet's fourth fiscal quarter ending July 2, 1999. The impact on earnings from continuing operations is not expected to be material, while the benefits from the sale will allow Avnet to better focus on its global core businesses.

In addition, Mr. Vallee reported that Avnet and Electrocomponents have agreed to form a global strategic alliance to take advantage of the core competencies of both companies. Avnet will support Electrocomponents using the proven supply chain methods of Avnet IMS (Integrated Material Services). This will include planning, purchasing, and delivering products to Electrocomponents in such a way as to ensure maximum efficiency in the overall supply chain. Also, Avnet will receive information regarding customer product usage that will be used to grow its emerging accounts business.

Allied Electronics, headquartered in Fort Worth, Texas, is a leading broad line catalog distributor of active and passive electronic components, test equipment, and electronic equipment, which it sells in small order quantities by means of its catalog and telesales operations. Allied's principal customers are maintenance and repair organizations as well as research and development and engineering departments of original equipment manufacturers. Allied had sales of $147 million in its latest fiscal year ended June 26, 1998. Allied became part of the Avnet organization when Avnet acquired Hall-Mark Electronics in July, 1993.

Mr. Vallee said, "The disposition of Allied enhances Avnet's focus on OEM production customers through the offerings of our Avnet IMS and Avnet Design services. Catalog distributors such as Allied focus on a different customer segment than Avnet's core operations by handling low volume transactions for research and development, MRO, and light production manufacturing customers."

Mr. Vallee went on to say, "The formation of this strategic alliance enables both Avnet and Electrocomponents to do what they do best and to serve their customers and suppliers more effectively than ever before, thereby providing more value. Avnet will become the largest supplier to Electrocomponents and the information flow between our two companies will allow Avnet to capitalize on lead information related to newly developing customers." He further added, "The cash proceeds from this transaction will be used strategically to accelerate growth in Avnet's core businesses."

Electrocomponents plc, a United Kingdom-based company listed on the London Stock Exchange with a market capitalization of approximately (pound)2 billion, is the leading high service level small order distributor of electronic, electrical and mechanical products with business operations throughout Europe, Asia, and Japan.

Headquartered in Phoenix, Arizona, Avnet, Inc. is a Fortune 500 company with annual sales exceeding $5.9 billion. With sales in 59 countries, Avnet markets, inventories and adds value to the products of the most prestigious electronic components and computer equipment manufacturers for customers worldwide. For more information on Avnet, visit our website at www.avnet.com.