Brightpoint Announces Fourth Quarter Update.

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 6, 1999-- -0-

--   Previously-announced charge related to Trading Division to fall
     within expected range

--   Additional charge taken due to development of in-country
     presences and shift to services focus

--   Fourth Quarter Sales expected to range from $495 million to
     $515 million

--   Fourth Quarter Net Income Per Share excluding charges expected to
     range from $0.22 to $0.24

Brightpoint, Inc. (Nasdaq:CELL) announced today information related to charges to be taken in the fourth quarter of 1998 and anticipated fourth quarter results of operations.

On October 2, 1998 the Company announced that it would discontinue its trading division, its lowest margin division, which bought products from sources other than the manufacturers and sold the products to customers other than network operators or their representatives. The discontinuation has proceeded according to plan, and feedback received from manufacturers of wireless equipment and network operators has been very favorable. The non-recurring charge related to the trading division to be recorded in the fourth quarter of 1998 is expected to be approximately $17.6 million ($0.24 per share after giving effect to applicable taxes) which is consistent with the previously-announced estimate.

Also during the fourth quarter, the Company will record a charge related to its shift from the use of other distributors to the development of direct relationships with network operators and their representatives. Historically, the Company used other distributors to reach markets in which the Company had no in-country presence. As the Company has built its infrastructure and increased its in-country presence in various markets around the world, it has, as planned, increased its provision of outsourced distribution and logistics services to network operators and their representatives in such markets, thereby decreasing its dependence on other distributors (announced on July 14, 1997 for the Company's North and Latin America divisions and on July 21, 1998 for the Company's Europe, Middle East and Africa and Asia-Pacific divisions). In connection with this strategic shift in business focus, which was substantially completed by the Company in the fourth quarter of 1998, the Company has determined that the value of certain assets related to its business activities with other distributors, including accounts receivable generated by the sale of products to such distributors and supplier credits related to the Company's purchase of products for these channels, has been impaired as a result of the Company's termination of the related business relationships. Accordingly, the values for both classes of assets will be written down in the fourth quarter to their estimated fair value, resulting in a non-recurring charge of approximately $8 million ($0.12 per share after giving effect to the applicable taxes).

Demand remained strong for the Company's products and services in the fourth quarter and the Company expects net sales for the quarter to be between $495 million and $515 million. The Company also expects net income per share for the fourth quarter of 1998, on a diluted basis and excluding the charges discussed above, to be in the range of $0.22 to $0.24 per share. The Company has experienced some downward pressure on operating margins due to weakness in demand for its integrated services in Brazil, but believes that this weakness is due primarily to the timing of the selection of outsourced logistics vendors by both A-band and B-band network operators in Brazil. The Company expects to report fourth quarter results of operations on January 28, 1999.

The Company currently is also comfortable with analysts' 1999 consensus earnings per share estimates.

Brightpoint, Inc. is a leading provider of innovative services to network operators and equipment manufacturers in the global wireless telecommunications industry. Brightpoint strives to enhance the success of its customers through the specialized and focused provision of efficient and effective solutions for their mission critical business requirements. The Company's innovative services include inventory management, prepaid solutions, custom packaging and other outsourced services. Additional information about the Company can be found on its website at www.brightpoint.com or by calling its toll-free Investor Relations Information line at 877-IIR-CELL (877-447-2355).

"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. A variety of factors could cause the Company's actual results to differ from the reported results expressed in such forward-looking statements. Investors are referred to the Company's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-Q), which statements are incorporated into this news release by reference.