Programmer's Paradise, Inc. Reports 2004 Second Quarter Financial Results; Net Sales Increase 56% Earnings Per Share of $.14.

SHREWSBURY, N.J. -- Programmer's Paradise(R), Inc. (NASDAQ:PROG) today reported financial results for the second quarter ended June 30, 2004. The results will be discussed in a conference call to be held on Friday, July 30, 2004 at 10:00 AM Eastern time. The dial-in telephone number is [phone] and the pass code is "PROG".

Revenue for the quarter ended June 30, 2004 was $25.1 million compared with $16.1 million for the quarter ended June 30, 2003.

Bill Willett, Chairman and Chief Executive Officer, stated, "This increase in the second quarter of 56% over the same period in 2003 is the result of improved account executive productivity driven by a favorable IT spending environment and our continued focus on excellence in customer service".

Earnings per share for the quarter were $.14 compared with earnings per share of $.05 for the same quarter of 2003.

Programmer's Paradise, Inc. is a marketer of technical software and hardware for microcomputers, servers and networks in the United States and Canada. Programmer's Paradise offers a wide variety of technical and general business application software, PC hardware and components from a broad range of publishers and manufacturers. Additional information can be found by visiting www.programmersparadise.com.

Contact Programmer's Paradise, Inc. via Bill Willett, CEO of Programmer's Paradise, Inc. at 732-389-8950 or [e-mail].

The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs.

- Tables Follow -


                    PART I - FINANCIAL INFORMATION

             PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                                                  June 30,   Dec. 31,
                                                    2004       2003
                                                ----------- ----------
                                                (Unaudited) (Audited)
                                ASSETS
Current assets
  Cash and cash equivalents                         $ 3,169   $ 5,878
  Marketable Securities                               7,508     5,033
  Accounts receivable, net                           10,379     7,783
  Inventory - finished goods                          1,507     1,119
  Prepaid expenses and other current assets             544       333
                                                ----------- ----------
Total current assets                                 23,107    20,146

Equipment and leasehold improvements, net               252       292
Other assets                                             51        51
                                                ----------- ----------
Total assets                                       $ 23,410  $ 20,489
                                                =========== ==========

                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses           $ 11,538    $ 8,919
  Dividend payable                                     421        375
                                                ----------- ----------
Total current liabilities                           11,959      9,294

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; authorized,
    10,000,000 shares; issued 5,284,500 shares          53         53
  Additional paid-in capital                        33,296     34,099
  Treasury stock, at cost, 1,453,715 shares and
   1,533,970 shares, respectively                   (4,230)    (4,490)
  Retained earnings                                (17,660)   (18,545)
  Accumulated other comprehensive income (loss)         (8)        78
                                                ----------- ----------
Total stockholders' equity                          11,451     11,195
                                                ----------- ----------
Total liabilities and stockholders' equity        $ 23,410   $ 20,489
                                                =========== ==========



             PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
                         COMPREHENSIVE INCOME
                              (Unaudited)
                 (In thousands, except per share data)

                                Six months ended   Three months ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2004      2003      2004      2003
                               --------- --------- --------- ---------

Net sales                       $45,772   $31,249   $25,093   $16,051

Cost of sales                    40,103    27,138    22,025    13,928
                               --------- --------- --------- ---------

Gross profit                      5,669     4,111     3,068     2,123

Selling, general and
 administrative expenses          4,753     3,939     2,531     1,961
                               --------- --------- --------- ---------

Income from operations              916       172       537       162

Interest income, net                 54        50        15        19

Realized foreign exchange
 gain/(loss)                        (27)       80        (6)       58
                               --------- --------- --------- ---------

Income before income tax
 provision                          943       302       546       239

Provision for income taxes           58        58        23        36
                               --------- --------- --------- ---------

Net income                       $  885    $  244    $  523    $  203
                               ========= ========= ========= =========

Net income per common share -
 Basic                           $ 0.23    $ 0.07    $ 0.14    $ 0.05
                               ========= ========= ========= =========

Net income per common share -
 Diluted                         $ 0.22    $ 0.06    $ 0.13    $ 0.05
                               ========= ========= ========= =========


Weighted average common shares
 outstanding - Basic              3,812     3,736     3,827     3,727
                               ========= ========= ========= =========
Weighted average common shares
 outstanding - Diluted            4,103     3,802     4,118     3,792
                               ========= ========= ========= =========

Reconciliation to
 comprehensive income:

Net Income                        $ 885     $ 244     $ 523     $ 203
                               --------- --------- --------- ---------
Other comprehensive
 income(loss), net of tax:
  Unrealized gain (loss) on
   marketable securities            (36)       14       (46)       19
  Foreign currency translation
   adjustments                      (50)      210       (12)       86
                               --------- --------- --------- ---------
Total comprehensive income        $ 799     $ 468     $ 465     $ 308
                               ========= ========= ========= =========