Premier Farnell plc Results for the Financial Year Ended January 30, 2000

Business Wire, March 16, 2000

Business Editors

LONDON--(BUSINESS WIRE)--March 16, 2000

Premier Farnell, the leading global business-to-business distributor of electronic and industrial components, today announced its results for the financial year ended January 30, 2000.

-- Group on track after first year of three-year investment for growth program

-- Sales up 11% in fourth Quarter and 5% for year at(pound)752 million ($1,211 million) (1999:(pound)705 million) with all operations growing

-- Groupwide business by e-commerce quadrupled to(pound)26 million ($42 million) - first implementation of new Group platform live this month in USA

-- Profit before tax of(pound)92 million ($148 million) (1999:(pound)100 million) after additional revenue investment of (pound)13 million

-- Strong operating cash flow of (pound)102 million ($165 million) (1999: (pound)138 million) at 99% of operating profit

-- Net debt stable at (pound)161 million after capital investment of (pound)22 million, with interest cover 9 times

-- Final dividend of 5.0p (1999: 5.0p) making a total for the year 9.0p (1999: 9.0p)

The Chairman of Premier Farnell, Sir Malcolm Bates, said today: "The first year of our three-year program to return the Group's performance to profitable growth has been successfully completed. While there still remains a great deal of work to do, we now have the strategic vision, the strength of senior management and the benefit of improved trading conditions to accelerate our investment plans. Premier Farnell intends to fulfil its potential as a powerful global player in business-to-business distribution."

For further information:

John Hirst Premier Farnell plc} Andrew Fisher Premier Farnell plc} on 16 March 44 (0) 171 379 5151

Victoria Scarth Premier Farnell plc} thereafter 44 (0) 207 851 4100

Richard Holloway The Maitland Consultancy 44 (0) 171 379 5151 Laura Frost The Maitland Consultancy 44 (0) 171 379 5151

Brian Rafferty Taylor Rafferty Associates 1 (212) 889 4350

The Group's announcements are published on the Internet at premierfarnell.com together with business information and links to all other Group websites. A full copy of the presentation being made today to investors is available on the Group's web site from 9.30am (GMT) on www.premierfarnell.com

Results for the first Quarter of the current year will be announced in late May 2000.

Cautionary Statement for Purposes of the "Safe Harbor" Provision of the United States Private Securities Litigation Reform Act of 1995. The U.S. Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release contains certain forward-looking statements relating to the business of the Group and certain of its plans and objectives, including, but not limited to, future capital expenditures, future ordinary expenditures and future actions to be taken by the Group in connection with such capital and ordinary expenditures. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Actual expenditures made and actions taken may differ materially from the Group's expectations contained in the forward-looking statements as a result of various factors, many of which are beyond the control of the Group. These factors include, but are not limited to, changes in demand for electronic, electrical, electromagnetic and industrial products, product availability, the impact of competitive pricing, fluctuations in foreign currencies, changes in interest rates and the impact of changes in worldwide and national economics.

CHAIRMAN'S STATEMENT ON THE PRELIMINARY RESULTS

FOR THE FINANCIAL YEAR ENDED JANUARY 30, 2000

Group sales for the year were (pound)752 million ($1,211 million) (1999: (pound)705 million). At constant exchange rates, this was 5% higher than the previous year, on an improving trend which saw sales in the fourth Quarter growing at 11%, year on year. These figures reflect both improving conditions during the latter six months in the principal US and UK markets of the Catalogue Distribution Division and stronger performance fuelled by higher levels of sales, marketing and e-commerce expenditure, in line with the Group's published strategy to regenerate growth. This additional revenue investment totaled (pound)13 million and resulted in an operating profit of (pound)104 million ($167 million) (1999: (pound)112 million), with an operating margin of 14%.

The interest charge of(pound)12 million (1999:(pound)12 million) was covered 9 times. Profit before tax was(pound)92 million (1999: (pound)100 million), including a(pound)2 million benefit from movements in exchange rates.

The Group's year-end net debt of (pound)161 million was stable (1999: (pound)160 million). Operating cash flow at (pound)102 million remained strong at 99% of operating profit, despite an (pound)8 million increase in working capital due to higher sales levels