Black Box Corporation Reports First Quarter Fiscal 2003 Results; GAAP Profit and Cash Flow Remain Strong, Sequential Revenue Stabilizing.

Business Editors

Black Box Corporation (Nasdaq:BBOX) today announced for the first quarter ended June 30, 2002, reported earnings per share of 70 cents compared to 73 cents last year and 62 cents in 4Q02. Corresponding reported net income for the quarter was $14.7 million or 9.5% of revenues, compared to $15.1 million or 7.3% of revenues last year and $12.9 million or 8.1% of revenues in 4Q02.

First quarter free cash flow was $23.7 million, the second highest in the Company's history, compared to $8.1 million last year and $22.3 million in 4Q02. Free cash flow is calculated as cash provided by operating activities less capital expenditures, plus proceeds from option exercises, plus or minus foreign currency translation adjustments.

The first quarter's free cash flow was used towards: reducing total debt by $15 million to $64 million from $79 million; Black Box stock repurchases of $4 million; M&A activity of $3 million; and increasing cash and cash equivalents by $2 million to $15 million from $13 million.

Total operating margin for the first quarter was 15.7%, compared to 15.1% last year and 15.6% in 4Q02. Operating margin for On-Site Services was 13.2% compared to last year's 12.3% and 11.5% in 4Q02. Operating margin for Phone Services was 19.8% compared to last year's 19.8% and 21.7% in 4Q02.

Total revenues for the quarter were $154 million, down 25% from $207 million last year. Total revenues were down 4% sequentially from 4Q02's $160 million. Total revenues on a same-office basis were down 27% compared to last year. Same-office revenues were down 4% sequentially. On-Site Service revenues were $90 million in the quarter, up $0.3 million sequentially from 4Q02, with Worldwide Client revenue up $2.4 million and new office expansions adding $0.2 million, offset by a $2.3 million decline in existing non-Worldwide Client revenue. Phone Service revenues were $64 million, down sequentially from 4Q02's $70 million. This sequential decline was primarily in international markets. Total order backlog was $54 million, up 10% from 4Q02's $49 million.

Commenting on the first quarter Fiscal 2003 results, Fred C. Young, Chief Executive Officer, said, "Our goal entering this quarter was to reduce / eliminate the significant sequential decline in our top-line. While $154 million is not $160 million, it does represents the smallest sequential percentage and dollar revenue decline for our last five quarters. We see this as step one in the process of returning to growth. If we can continue to see this level of stabilization in our existing client base, we believe our growth prospects become more attainable."

Mr. Young went on to say, "Our focus going in and coming out of this past quarter has not changed. This focus is centered around four key objectives:

-- Preserve our large worldwide client base by continuing to provide the highest quality technical services for data, voice and video infrastructure systems;

-- Increase market share through our Worldwide Client Program;

-- Further increase market share through our Worldwide Geographic Expansion Program; and,

-- Remain a well-balanced operator relative to achieving short-term profitability and free cash flow while funding strategic growth initiatives.

The attainment of these objectives have been and will continue to be the cornerstones of our success. Despite the current business climate, we will look to stay in control and take advantage of the opportunities that surround us every day."

The Company will conduct a conference call beginning at 10:45 a.m. Eastern Time today, July 16, 2002. Fred Young, Chief Executive Officer, will host the call. To participate in the call, please dial [phone] approximately 15 minutes prior to the starting time and ask to be connected to the Black Box Earnings Call. A replay of the conference call will be available for one week after the teleconference by dialing [phone] and using access code 644266.

This release contains forward-looking statements, which are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. The statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this press release.

Black Box is the world's largest technical services company dedicated to designing, building and maintaining today's complicated network infrastructure systems. Black Box services clients in 132 countries throughout the world.

                         BLACK BOX CORPORATION
                   CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)

                                                 (Unaudited)
                                                Quarter Ended
                                                   June 30
                                        ------------------------------
                                            2003             2002
                                        -------------    -------------

Revenues                                  $ 154,412        $ 207,116
  Cost of sales                              92,520          128,172
                                        -------------    -------------
Gross profit                                 61,892           78,944

  Selling, general and
   administrative expenses                   37,704           52,654
                                        -------------    -------------
Operating income before amortization         24,188           26,290

  Intangibles amortization                      101                -
                                        -------------    -------------
Operating income                             24,087           26,290

  Interest expense, net                         772            2,109
  Other (income)/expenses, net                   37           248
                                        -------------    -------------
Income before income taxes                   23,278           23,933

  Provision for income taxes                  8,613            8,850
                                        -------------    -------------
Net income                                 $ 14,665         $ 15,083
                                        =============    =============


Basic earnings per common share              $ 0.72           $ 0.77
                                        =============    =============

Diluted earnings per common share            $ 0.70           $ 0.73
                                        =============    =============

Weighted average common shares               20,266           19,495
                                        =============    =============

Weighted average common and common
    equivalent shares outstanding            21,023           20,616
                                        =============    =============


                         BLACK BOX CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)

                                                 (Unaudited)
                                          June 30,         March 31,
ASSETS                                      2003             2002
                                        ------------------------------
Current assets:
  Cash and cash equivalents                $ 15,440          $ 13,423
  Trade accounts receivable, net            111,164           115,969
  Inventories, net                           45,982            46,081
  Costs and estimated earnings in excess
   of billings on uncompleted contracts      23,359           24,015
  Other current assets                       21,252            19,959
                                        ------------------------------
    Total current assets                    217,197          219,447

Property, plant and equipment, net           40,251            41,063
Intangibles, net                            389,218           387,286
Other assets                                  3,379             2,991
                                        ------------------------------
    Total assets                          $ 650,045         $ 650,787
                                        ==============================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current debt                              $ 1,160           $ 3,189
  Accounts payable                           31,462            34,279
  Billings in excess of costs and estimated
    earnings on uncompleted contracts         3,654             4,235
  Accrued expenses                           29,847            31,125
  Accrued taxes                               6,434             3,155
                                        ------------------------------
    Total current liabilities                72,557            75,983
                                        ------------------------------


Long-term debt                               62,333            75,497
Other liabilities                             9,074             9,209

Stockholders' equity:
  Common stock                                   22                22
  Additional paid-in capital                289,150           287,714
  Retained earnings                         326,953           312,288
  Treasury stock, at cost                  (104,049)         (100,355)
  Accumulated other comprehensive loss       (5,995)           (9,571)
                                        ------------------------------
    Total stockholders' equity              506,081           490,098
                                        ------------------------------
    Total liabilities and stockholders'
     equity                               $ 650,045        $ 650,787
                                        ==============================