Creative Computers, Inc. to Acquire the Assets of Elek-Tek, Inc.; Acquisition Will Mark Further Expansion Into PC/Wintel Market.

TORRANCE, Calif.--(BUSINESS WIRE)--Sept. 17, 1997--Creative Computers, Inc. ("Creative") (NASDAQ:MALL) Wednesday announced that it has signed a definitive agreement to acquire all of the assets of Skokie, Illinois-based Elek-Tek, Inc. (NASDAQ:ELEK).

This agreement was signed in connection with the filing today by Elek-Tek for protection under Chapter 11 of the U.S. Bankruptcy Code.

Under the terms of the agreement, Creative will pay $43 million in cash for Elek-Tek's assets, subject to certain adjustments including the valuation of liquid assets ($45.3 million, after reserves, as of August 31, 1997). If this acquisition is completed, Creative will not assume any of Elek-Tek's liabilities or leases. The closing of the transaction is subject contingencies, including bankruptcy court approval. There can be no assurance that the transaction will be consummated as anticipated, or at all.

Elek-Tek is a full line marketer of major brand PC/Wintel microcomputer products and value-added services. Its sales groups are comprised of a direct sales division servicing corporate, educational and government customers, a catalog sales operation and eight retail stores. For the six months ended June 30, 1997, Elek-Tek reported revenues of $133 million and a net loss of $3.6 million. Creative will evaluate which of Elek-Tek's retail stores to continue in operation, and expects to give up certain of Elek-Tek's revenues as it concentrates on profitable sales. Creative's goal is to focus primarily on the corporate, educational, government, outbound and catalog sides of the business, which is in line with Creative's overall business strategy.

"The acquisition of Elek-Tek's assets, including its customer list and the associated going business concern, marks a significant milestone in our growth strategy to increase Creative's PC/Wintel market share," stated Frank Khulusi, Creative's Chairman and Chief Executive Officer. "Elek-Tek, which has been in business for 20 years, has considerable name recognition, particularly in the Midwest where its corporate headquarters, main sales force and main retail stores are located. We are very excited about Elek-Tek's established direct and catalog sales force, which has a strong customer base. We believe that combining this sales force and customer base with Creative's direct mail expertise will lead to substantial growth opportunities.

"There are considerable synergies and benefits to combining our two companies," added Mr. Khulusi. "For example, if this transaction is completed, we plan to achieve certain economies of scale by merging administration, operations and other functions which we believe will lead to significant cost reductions for Elek-Tek's business. In addition, we expect very substantial reductions in Elek-Tek's lease overhead."

Creative Computers, Inc. is a leading direct marketer for users of personal computers. The Company offers over 45,000 products to its customers. The Company creates demand for its products through its distinctive, full-color MacMall, PC Mall and DataCom Mall catalogs, outbound telemarketing, Internet marketing and its website, four retail showrooms and other promotional materials. The Company's staff of over 300 knowledgeable telemarketing, customer service and technical support personnel work together to provide high-level customer service and gain customer loyalty.

Customers may call PC Mall sales at 800/555-MALL, DataCom Mall sales at 800/898-DATA, and MacMall sales at 800/222-2808, or shop Creative on the Internet at http://www.pcmall.com, http://www.datacommall.com, or http://www.macmall.com . -0-

Note to Editors: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements. The realization of any or all of these expectations is subject to a number of risks and uncertainties, and it is possible that the assumptions made by management may not materialize. There can be no assurance that the Company will be able to complete the Elek-Tek transaction, and, if completed, that the Company will receive the expected benefits from the acquisition or that the Company will not experience difficulties integrating the two companies. In addition to the factors set forth above, other important factors that could cause actual results to differ materially from our expectations include competition from other catalog and retail store resellers and price pressures related thereto; our reliance on Apple Computer, IBM, Hewlett Packard, Compaq and other vendors; and risks due to shifts in market demand and/or price erosion of owned inventory. This list of risk factors is not intended to be exhaustive. Reference should also be made to the risk factors set forth from time to time in the Company's SEC reports, including but not limited to those set forth in the section entitled "Certain Factors Affecting Future Results" in its Annual Report on Form 10-K for 1996.

CONTACT: Creative Computers, Inc.

Frank Khulusi, 310/787-4500

Richard M. Finkbeiner, 310/787-4500

or

Seiler Martin Ekman, LLC 

Tom J. Ekman/Jody Martin/Steven Seiler, 310/312-7880