Avnet Completes Acquisition of Bell Microproducts

Phoenix, AZ; July 2010. Avnet, a leading distributor of electronic components, computer products, and embedded technology, has announced that it has completed its acquisition of Bell Microproducts in an all-cash merger for $7.00 per share, which equates to an equity value of approximately $252 million and a transaction value of approximately $631 million assuming a net debt position for Bell Micro of $379 million at face value as of March 31, 2010.

Roy Vallee, Avnet's chairman and chief executive officer, commented, "The acquisition of Bell Micro marks an inflection point in Avnet's history as the clear leader in value-added technology distribution. Bell Micro is the largest acquisition in Avnet's history on a revenue basis and substantially improves our global scale and scope competitiveness. It strengthens our position in the Americas and Europe and expands our presence in the fast growing Latin America market. We welcome the Bell Micro customers and suppliers as well as the talented employees at Bell who support them. Our value based management culture and discipline should allow us to achieve our stated return-on-capital goal of at least 12.5% on this transaction following the completion of the integration which we expect to occur by the end of our fiscal year 12 months from now."

A leading value-added distributor of storage and computing technology, Bell Micro had sales of approximately $3.0 billion in calendar year 2009. With more than 1,900 employees, the company offers a broad suite of integration and support services to OEMs, VARs, system builders, and end users through 55 offices in the United States, Canada, Europe, and Latin America. The company, which operates both a distribution and single-tier reseller business, offers a portfolio of storage, computing, software and networking products from industry-leading suppliers. In calendar year 2009, revenues from North America, EMEA and Latin America were 42%, 41% and 17% respectively.

Bell Micro's Latin America and EMEA businesses as well as its North American data center business will be integrated into Avnet Technology Solutions. Bell Micro's North American embedded business, including embedded components like hard disk drives, will be integrated into Avnet Electronics Marketing. Avnet also intends to explore strategic alternatives for the single-tier reseller business, which had sales of approximately $450 million in calendar year 2009. Bell Micro's Latin America and EMEA businesses as well as its North American data center business will be integrated into Avnet Technology Solutions. Bell Micro's North American embedded business, including embedded components like hard disk drives, will be integrated into Avnet Electronics Marketing. Avnet also intends to explore strategic alternatives for the single-tier reseller business, which had sales of approximately $450 million in calendar year 2009.