Questron Technology, Inc. Announces Agreement With Lenders to Defer Debt Payments Until February 2002.

Business Editors & High-Tech Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--Dec. 28, 2001

Questron Technology, Inc. (Nasdaq:QUST)(Nasdaq:QUSTW) announced today that it has reached agreements with its Senior Lenders and the holders of a majority of its Senior Subordinated Notes to defer certain of its payment obligations due at the end of 2001 until February 14, 2002 and waive compliance with certain financial covenants. One holder of a minority of the Senior Subordinated Notes has not agreed to this deferral and would retain the right to declare a payment default. Although there can be no assurance, the Company believes it is unlikely that the minority note holder would declare such a default at this time and any such declaration would not affect the deferral otherwise granted to the Company.

The Company noted that it continues to work with its investment banker, exploring strategic alternatives that include possible equity investments in the Company, possible restructurings of the Company's indebtedness or a possible sale of the Company or of substantially all of its assets. The Company also noted that, while it has received several indications of interest concerning possible transactions, it has not received any definitive proposals with respect to potential investments, financings or sales. There can be no assurance that the Company will receive a definitive proposal for any investment, financing or sale, enter into an agreement with respect to any such transaction or be able to complete any such transaction on a timely basis. Further, the terms of any investment, refinancing or sale may not be favorable to the Company or its stockholders and will likely materially dilute, or otherwise place a low value on, the interests of the existing stockholders.

Dominic A. Polimeni, Chairman and Chief Executive Officer of Questron, said, "The Company is pleased that it has reached agreements with these lenders and that they remain supportive during these difficult and challenging economic times." Mr. Polimeni added, "the agreements afford the Company additional time to evaluate the indications of interest that have been presented and to seek to enter into an investment, financing or sale transaction."

Questron Technology Inc. is a leading provider of supply chain management solutions and professional inventory logistics management programs for small parts commonly referred to as "C" inventory items (fasteners and related products) focused on the needs of Original Equipment Manufacturers (OEMs). Questron's securities are traded on NASDAQ under the symbols QUST (common) and QUSTW (warrants).

For more information on Questron Technology, please visit the Company's Web site at http://www.questrontechnology.com/.

Information Relating to Forward-Looking Statements 

Certain information contained in this press release includes "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. This information can be identified by the use of words like "expects," "will," "should," "believes," "intends" or "estimates" or similar expressions, and includes the statements with respect to expected 2001 financial and operating results. Such statements represent the Company's judgment and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, fluctuations in demand from the Company's customers, whether due to economic conditions, the demands of their customers or other factors, the cyclicality of the market for the Company's products and its customers' products, the concentration of a significant part of the Company's business in a limited number of customers, the ability to obtain new customers, the ability to integrate acquired businesses, changes in general economic conditions, levels of competition, the availability of capital, changes in interest rates and other factors which may adversely affect the Company's operating results, including the matters addressed in the "Risk Factors" set forth in the Company's current Annual Report on Form 10K for the year ended December 31, 2000. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.