Avnet to Sell its Allied Catalog Operation and Enter

Strategic Alliance with Electrocomponents plc PHOENIX (PROTEXT) - Roy Vallee, Chairman and CEO of Avnet,Inc. (NYSE: AVT), announced today that Avnet has entered into anagreement to sell its Allied Electronics catalog business toElectrocomponents plc, a United Kingdom-based electroniccomponent catalog distributor, for US $380 million to be paid incash. The transaction, which is subject to the waiting periodunder the Hart-Scott-Rodino Antitrust Improvements Act of 1976,is expected to close on July 2, 1999 and will result in a gain tobe recorded in Avnet's fourth fiscal quarter ending July 2, 1999.The impact on earnings from continuing operations is not expectedto be material, while the benefits from the sale will allow Avnetto better focus on its global core businesses. In addition, Mr. Vallee reported that Avnet andElectrocomponents have agreed to form a global strategic allianceto take advantage of the core competencies of both companies.Avnet will support Electrocomponents using the proven supplychain methods of Avnet IMS (Integrated Material Services). Thiswill include planning, purchasing, and delivering products toElectrocomponents in such a way as to ensure maximum efficiencyin the overall supply chain. Also, Avnet will receive informationregarding customer product usage that will be used to grow itsemerging accounts business. Allied Electronics, headquartered in Fort Worth, Texas, is aleading broad line catalog distributor of active and passiveelectronic components, test equipment, and electronic equipment,which it sells in small order quantities by means of its catalogand telesales operations. Allied's principal customers aremaintenance and repair organizations as well as research anddevelopment and engineering departments of original equipmentmanufacturers. Allied had sales of $147 million in its latestfiscal year ended June 26, 1998. Allied became part of the Avnetorganization when Avnet acquired Hall- Mark Electronics in July,1993. Mr. Vallee said, "The disposition of Allied enhances Avnet'sfocus on OEM production customers through the offerings of ourAvnet IMS and Avnet Design services. Catalog distributors such asAllied focus on a different customer segment than Avnet's coreoperations by handling low volume transactions for research anddevelopment, MRO, and light production manufacturing customers." Mr. Vallee went on to say, "The formation of this strategicalliance enables both Avnet and Electrocomponents to do what theydo best and to serve their customers and suppliers moreeffectively than ever before, thereby providing more value. Avnetwill become the largest supplier to Electrocomponents and theinformation flow between our two companies will allow Avnet tocapitalize on lead information related to newly developingcustomers." He further added, "The cash proceeds from thistransaction will be used strategically to accelerate growth inAvnet's core businesses." Electrocomponents plc, a United Kingdom-based company listedon the London Stock Exchange with a market capitalization ofapproximately 2 billion pounds sterling, is the leading highservice level small order distributor of electronic, electricaland mechanical products with business operations throughoutEurope, Asia, and Japan. Headquartered in Phoenix, Arizona, Avnet, Inc. is a Fortune500 company with annual sales exceeding $5.9 billion. With salesin 59 countries, Avnet markets, inventories and adds value to theproducts of the most prestigious electronic components andcomputer equipment manufacturers for customers worldwide. Formore information on Avnet, visit our website at www.avnet.com.ots Original Text Service: Avnet, Inc. Internet:http://www.newsaktuell.de Contact: John Cole, Controller,john.cole@avnet.com, or Raymond Sadowski, SVP & CFO, both ofAvnet, Inc., 602-643-7291, fax: 602-643-7363 Web site:http://www.avnet.com

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