European Micro Holdings, Inc. Makes Announcement

Business Wire, August 21, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--Aug. 21, 2001

European Micro Holdings, Inc. (OTCBB:EMCC), an independent, focused distributor of microcomputer products, made the following announcements today:

- On August 17, 2001, European Micro Plc's primary lender in Europe, Natwest,
temporarily froze all the operating accounts for European Micro Plc. therefore
effectively calling its loans to European Micro. In order to avoid this
outcome, Mr. Harry Shields, European Micro Holdings, Inc.'s Co-President and
Co-Chairman, advanced $630,000 to European Micro Plc to payoff Natwest's loans.
Additionally, Mr. Shields has advanced another $625,000 to European Micro Plc
to satisfy a loan it has with European Micro Holdings and another $618,000 to
European Micro Plc to purchase inventory. European Micro Holdings intends to
use the proceeds received from European Micro Plc to repay a loan to SouthTrust
Bank. European Micro Plc intends to proceed to an orderly liquidation of its
business in order to repay Mr. Shields and other creditors. The liquidation of
European Micro Plc would leave European Micro Holdings, Inc. with one operating
business, American Micro Computer Center, Inc.

- As previously reported, European Micro Holdings, Inc. will be unable to meet
certain obligations to the former shareholders of American Micro Computer
Center, Inc., including obligations owed to Mr. John B. Gallagher, Co-President
and Co-Chairman of European Micro Holdings, Inc. Unless circumstances change,
which is not anticipated, these former shareholders will be entitled to a
return of their shares of capital stock in American Micro Computer Center, Inc.
Such a result would leave European Micro Holdings, Inc. without an operating
business.

Statements contained in this news release regarding its plans to proceed to an orderly liquidation of its business in Europe are forward-looking statements, subject to uncertainties and risks, many of which are summarized under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 30, 2000 as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.