Ingram Micro Initiates Search for CEO / Jerre L. Stead

to Remain Chairman of the Board / Company Announces Preliminary Estimates for Third Quarter Financial Results Santa Ana, Calif. (PROTEXT) - Ingram Micro Inc. (NYSE: IM), the world's largest wholesale provider of technology products and services, today announced that it has initiated a search for its next chief executive officer to succeed Jerre L. Stead. Stead will remain chairman of the board and CEO until his successor is in place and then will continue to serve as chairman of the board. "Ingram Micro has made great strides during the past few years, becoming the largest and only global wholesale provider of technology products and services," Stead said. "Our company has the opportunity to flourish in the future. We will leave 1999 in the midst of an industry revolution with our company moving through a major transition. As we prepare to enter a new century, we must have the best possible leadership in place. Therefore, our board has agreed to start a search for the next CEO of Ingram Micro. We look forward to selecting the right person who will bring the experience and skills needed in this dynamic time." The search for the company's next CEO will be conducted by a committee comprised of independent board members and an executive recruitment firm. Stead has served as chairman and CEO since 1996 and has presided over a period of tremendous growth, with the company's revenues increasing from $12 billion in 1996 to its current size of more than $25 billion over the past four quarters. During that time, Ingram Micro has redefined its role in the technology industry, through the addition of a range of value-added services, including industry-leading capabilities for e-commerce, vendor and customer outsourcing, and assembly and configuration. Ingram Micro today also announced that, based on previously discussed difficult market conditions primarily in the United States, it expects to report net income of $15 million to $21 million, or earnings per diluted share of $0.10 to $0.14, for the third quarter ended Oct. 2, 1999. In the third quarter last year, the company reported net income of $60 million, or $0.40 per diluted share. The company expects to announce its third quarter results on Oct. 27, 1999. Stead said that competitive pricing, coupled with increased reductions in vendor rebates and incentives, have placed additional pressure on the company's gross margins, especially in the United States. In addition, its efforts to raise prices in selected market segments prompted customers to evaluate other sources for their product purchases, negatively impacting Ingram Micro's sales. For the third quarter, net sales are expected to increase in the mid-teens on a percentage basis compared to the same period last year, with gross margins declining as much as 130 -- 150 basis points below the third quarter of 1998. "We should not let the short-term difficulties obscure the long-term potential of Ingram Micro." Stead said. "We continue to see healthy demand for the services we provide, both in our core business as well as in our emerging businesses for reseller and vendor logistics outsourcing and for Internet retail stores. Ingram Micro has been successful in securing these types of contracts in the United States and Europe with such companies as CompUSA, Unisys -- and just this week, SARCOM, Telenor IT Service & Installajon in Norway and GE Capital IT Solutions Denmark -- and we will continue to pursue new opportunities." Stead also noted that, although the company's reorganization plans initiated in March were strategically correct and have resulted in giving the company a very competitive cost structure, implementing these broad changes during a time of major industry transformation resulted in the company being less focused on its short-term execution and unable to respond quickly to important industry changes. Because the majority of the reorganizational changes were made in the United States, this was the business most negatively affected. About Ingram Micro Inc. Ingram Micro Inc. (NYSE: IM), headquartered in Santa Ana, Calif., is the world's largest wholesale provider of technology products and services, and a leader of assembly and integration services with sales of $25.5 billion for the past four reported quarters. The company and its subsidiaries operate in 34 countries and distribute more than 225,000 products to more than 140,000 resellers in 130 countries. Ingram Micro can be found at www.ingrammicro.com. Ingram Micro is a trademark used under license by Ingram Micro Inc. All other logos, brand names and product names are trademarks of their respective companies. ots Original Text Service: Ingram Micro Inc. Internet: http://www.newsaktuell.de Contact: Kim Strohm, Investor Relations, (USA) 714-382-4400; or Kathleen Janson, Media Relations, (USA) 714-382-2046, both of Ingram Micro Inc. Web site: http://www.ingrammicro.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT