ComputerLand announces its new business model to address a changing market.

PLEASANTON, Calif.--(BUSINESS WIRE)--June 20, 1995--"ComputerLand announced today a new Franchise Business Model designed to make ComputerLand the most dynamic and competitive products and services provider in the industry," according to ComputerLand President Verilyn Smith. Calling the new model "A New Beginning," Smith indicated that it is a giant step towards growing the franchise network. "This model is the result of the feedback from our ComputerLand Franchisees and is constructed to increase their profitability and to expand the ComputerLand network," according to Smith.

Smith commented, "We are lowing the overall cost structure for our Franchisees and changing their Franchise Agreements to give them the edge in the market. This new model makes changes to meet market realities such as increased competition, margin erosion, and the need for greater depth in product availability." It focuses on three main areas of change: -0-

1) Redesign of the Franchise Agreement terms and conditions to promote Franchisee satisfaction and competitiveness with a lower cost structure and better pricing;

2) Addition of enhanced distribution services and a new fulfillment option, and a more targeted matrix of reseller programs designed to promote Franchisees case-of-doing business; and,

3) Increased investment in electronic systems that provide Franchisees with ability to reduce their costs and increase their responsiveness to customers through ComputerLand Headquarters enhanced on-line services.

-0-

New Franchise Agreements

ComputerLand's new Franchise Agreement reduces the overall cost of doing business for its Franchised resellers. It provides flexible financing options and streamlined fees for services. The term of the Franchise Agreement has been reduced to one-year for new franchisees. Franchise royalty rates are lowered as much as 60% and the mark-up charged on the cost of products to the Franchises is reduced by as much as 50% to an all time low.

"The ComputerLand network of Franchisees is a team committed to serving customers by attaining the highest level of customer satisfaction and operational excellence. This new model provides Franchisees greater flexibility to operate their business and promotes growth," stated Verilyn Smith.

Enhanced Distribution Services

ComputerLand now provides its Franchisees with the choice of nearly 25,000 computer hardware and software products form over 850 manufactures and distributors out of nine warehouses. The new model is focused on providing enhanced on-line distribution services concentrating on such areas as: configuration, direct ship, ship complete, and staging of product. ComputerLand Franchisees have dedicated Customer Service Representatives as a direct link with the ComputerLand Headquarters.

"We are committed to having the right product how, when and where the Franshisee needs it for their customers. We have access to the best distribution mechanisms in the industry," noted Smith.

Targeted Reseller Programs

"Over the past seven months we have developed and implemented a unique portfolio of reseller programs for ComputerLand Franchisees designed to enhance their business offering," according to Sandra Goldberg, Vice President of Franchise Operations. They are: 1) ComputerLand National/Major Accounts Program; 2) The ComputerLand Outsourcing Executive Briefing and Training Center; 3) ComputerLand/IBM National Service & Help Desk Program; 4) National Educational/Training services; 5) The ComputerLand National Technology Group; 6) Customized financial programs; 7) ComputerLand Leasing Program; and, 8) A comprehensive array of marketing and promotional programs.

Redesigned Systems and Operational Ease of Doing Business

The new ComputerLand Business Model focuses on providing accurate and timely information on product availability and price as well as vital product, industry and promotional information. "Direct and reliable communication with our Franchisees nationwide is key to our model," noted Verilyn Smith. She noted further, "Providing and maintaining the best and most effective electronic systems in the industry is one of our highest priorities. We are investing extensively in systems."

A New Beginning

"We will leverage the strong brand name recognition of ComputerLand to become synonymous with excellence in product fulfillment and end-user services. We will actively grow in geographic locations throughout the United states to position ComputerLand as a viable partner for resellers seeking to leverage the strengths of a national organization providing value added services," concluded Smith.

ComputerLand is headquartered in Pleasanton, California. It is the $1.1 billion franchise and aggregation subsidiary of Merisel, Inc. of El Segundo, CA, and was founded in 1977. The ComputerLand network is a national chain comprised of more than 200 independently owned and operated franchise locations specializing in providing business-to-business technology products and services. ComputerLand is known for its consistent product delivery and diverse service offerings. ComputerLand Headquarters is one of the largest nationwide customers of IBM, Hewlett-Packard, Compaq and Apple.

CONTACT: ComputerLand Headquarters

Richard Bernhardt, 510/734-4667