Jaco Electronics Adds Important Suppliers with Completion of Reptron Distribution Acquisition.

Business Editors

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 13, 2003

Jaco Electronics, Inc. (Nasdaq: JACO), a distributor of electronic components to original equipment manufacturers, announced today the completion of its previously announced acquisition of certain assets of the electronics distribution operations of Reptron Distribution, formerly a division of Reptron Electronics, Inc. (Nasdaq: REPT). The total purchase price is approximately $9.2 million of which approximately $5.6 million is cash with the remaining consideration resulting from Jaco's assumption of certain liabilities. The initial purchase price of $10.4 million was adjusted downward to reflect a reduction in the amount of the assets acquired.

As a result of the acquisition, Jaco has secured the assignment of distribution agreements from industry leaders in power supplies, flat panel TFT displays and semiconductors, including Astec, Lambda, Hitachi Display, Sharp, Emerging Display Technologies, Alliance Semiconductor, CEL, M-Systems, Oki Semiconductor and SSI Seiko Instruments, among others.

Joel Girsky, Jaco's Chairman and Chief Executive Officer, commented, "We are excited about completing this transaction and look forward to bringing new product offerings from industry leaders to our customers, while continuing to serve Reptron Distribution's nearly 2,000 customers.

"With approximately 30 lines of semiconductor, flat panel displays, passive products and electromechanical components as well as a variety of custom logistics and supply chain management services, Reptron Distribution is an excellent strategic fit with Jaco's operations. This acquisition enables us to deliver a deeper line card than ever before backed with the strong service that has made Jaco successful for over 40 years. Furthermore, our customer base will benefit from our enhanced sales staff as well as the addition of a highly sophisticated field application engineer (FAE) program. We look forward to realizing the synergies of this acquisition and believe that it will support our long-term goal of enhancing shareholder value."

Jaco is a leading distributor of electronic components to industrial OEMs and contract manufacturers throughout North America and provides contract manufacturing services to its industrial OEM customers. Jaco distributes products such as semiconductors, capacitors, resistors, electromechanical devices, flat panel displays and monitors and power supplies, which are used in the manufacture and assembly of electronic products, including: telecommunications equipment, computers and office equipment, medical devices and instrumentation, industrial equipment and controls, military/aerospace systems and automotive and consumer electronics.

With the completion of the transaction, Jaco now has two distribution centers and 17 strategically located sales offices throughout the United States. Jaco provides a variety of value-added services including automated inventory management services, assembling stock items for customers into pre-packaged kits, integrating and assembling various custom components with flat panel displays to customer specifications and providing contract manufacturing services. The Company's core customer base consists primarily of small and medium-sized manufacturers that produce electronic equipment used in a wide variety of industries.

Except for the historical information, this press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, general industry and economic conditions, the impact of competitive products, product demand and market acceptance risks, fluctuations in operating results, delays in development of highly-complex products, the ability of the Company to maintain or expand its operations, the level of costs incurred in connection with the Company's ability to maintain or expand its operation and the financial strength of the Company's customers and suppliers and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. Actual results may differ materially from such information set forth herein.