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Insight Public Sector Completes a Release and Settlement Agreement with the U.S. Department of Justice.


TEMPE, Ariz. -- Insight Enterprises Inc. (Nasdaq: NSIT NSIT Networking Services and Information Technologies (University of Chicago)
NSIT Nova Scotia Institute of Technology
NSIT Not Safe In Taxis
NSIT Netaji Subash Institute of Technology
NSIT Network Systems and Information Technology
) (the "company") today announced that its subsidiary, Insight Public Sector, has reached a release and settlement agreement with the U.S. Department of Justice (the "DOJ (Department Of Justice) The legal arm of the U.S. government that represents the public interest of the United States. It is headed by the Attorney General. ") regarding an investigation of the size representation made by Comark Government & Education Services Inc. ("CGES CGES Centre for Global Energy Studies ") in March 1996. The company acquired CGES as part of its April 2002 acquisition of Comark Inc.

In response to a 1995 solicitation issued by the General Services Administration The General Services Administration (GSA) was established by section 101 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.A. § 751). The GSA sets policy for and manages government property and records.  ("GSA (1) (Global mobile Suppliers Association, Sawbridgeworth, U.K., www.gsacom.com) A membership organization of suppliers of GSM products and services. Its goal is to promote GSM as the worldwide mobile communications standard. See GSM Association and GSM. ") to participate in the GSA's Multiple Award Schedule ("MAS"), CGES represented, in March 1996, that it was a small business. GSA awarded an MAS contract to CGES, and that contract remains in place, although Insight Public Sector (as CGES is now known) stopped representing itself as small under the GSA MAS contract in May 2004. The DOJ, in conjunction with the U.S. Small Business Administration ("SBA SBA
abbr.
Small Business Administration

Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government
") and the GSA, contended, following an SBA investigation, that CGES was not small as represented in March 1996 and, accordingly, that it had obtained a preference in the award of some purchase orders under the MAS as a result of its small size representation. Insight Public Sector disputed the government's claims but has agreed to settle the matter. The release and settlement includes no admission of wrongdoing wrong·do·er  
n.
One who does wrong, especially morally or ethically.



wrongdo
 or fault by Insight Public Sector and is not expected to materially affect the on-going operations of Insight Public Sector.

As part of the release and settlement, Insight Public Sector will pay the United States $1 million to resolve DOJ, GSA and SBA claims related to the small size representation of CGES. Although the settlement relates to periods prior to the acquisition of Comark in April 2002, the $1 million settlement will be recorded as an expense in Q1 2006 as, in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records.

Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting
 ("GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
"), too much time has passed since the acquisition to adjust goodwill. The company will exclude this amount when disclosing its non-GAAP financial measures in its earnings release.

"Although we remain convinced that the company did not have a liability to the federal government as a result of the small size representation of CGES in March 1996, we agreed to settle the matter to avoid the risk, expense and internal diversion of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
," said Richard Fennessy, president and chief executive officer. "We have worked cooperatively with the DOJ, GSA and SBA on this matter, and the company is pleased to have resolved this matter."

Forward-Looking Information

The statement in this release regarding the effect of this settlement on the on-going operations of Insight Public Sector is a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, specifically any failure to comply with the terms and conditions of our public sector contracts, could differ materially from those set forth in, contemplated by, or underlying the forward-looking statement.

We assume no obligation to update, and do not intend to update, any forward-looking statements.

About Insight

Insight Enterprises Inc. is a leading provider of information technology ("IT") products and services to businesses in the United States, Canada and the United Kingdom. The company's offerings include brand name computing products, advanced IT services and outsourcing of business processes. Major brands recognized by clients are "Insight" and related Insight-branded subsidiaries, and "Direct Alliance Corp." The company has approximately 4,000 teammates worldwide and generated sales of $3.3 billion for its most recent fiscal year, which ended Dec. 31, 2005. Insight Enterprises Inc. is ranked No. 552 on Fortune Magazine's 2005 "Fortune 1000" list. For more information about Insight Enterprises Inc., call 480-902-1001 in the United States, or visit www.insight.com.
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Publication:Business Wire
Geographic Code:1USA
Date:Mar 27, 2006
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