European Micro Holdings, Inc. Make Announcements

Business Wire, August 3, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--Aug. 3, 2001

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

- Recently, EMCC learned that its principle lender in Europe,

Natwest, intends to restructure its loan with EMCC by lowering its

borrowing base. Previously, EMCC could borrow 100% of the cost of

inventory. Under the restructured loan, EMCC expects to only be

able to borrow up to 25% of the cost of inventory. This

restructuring will materially impair EMCC's ability to finance its

operations and to purchase inventory. EMCC's business, in

significant part, depends upon its ability to purchase inventory

in large lots. The restructuring of the Natwest loan will, among

other things, materially impair EMCC's ability to make such

purchases. Further, this restructuring is likely to result in EMCC

not being able to meet certain financial obligations, including

its obligations to the former shareholders of American Micro

Computer Center. These obligations relate to the purchase of

American Micro Computer Center by EMCC. The former shareholders

include John B. Gallagher, Co-President and Co-Chairman of EMCC.

If EMCC defaults on these obligations, the former shareholders of

American Micro Computer Center would be entitled to take back

their shares of stock in American Micro Computer Center under the

terms of a pledge agreement.

Statements contained in this news release regarding its financing arrangement and ability to meet certain financial obligations 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.