European Micro Holdings, Inc. Makes Announcement

Business Wire, July 13, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--July 13, 2001

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

-- As previously reported, EMCC and its wholly owned subsidiary, American Micro
(collectively, "the borrowers"), remain out of compliance with certain
financial covenants contained in their loans to SouthTrust Bank. Due to these
violations, SouthTrust has advised the borrowers that all loans must be repaid
in full by August 15, 2001. EMCC does not currently have the cash-on-hand to
repay these loans. As a result, EMCC has been attempting to obtain financing
from another lender. To date, EMCC's efforts have been unsuccessful, although
discussions with potential financing sources are continuing. If EMCC is unable
to repay these loans by August 15, 2001, then SouthTrust may, among other
things, take legal action to foreclose on its collateral, which consists of all
of EMCC's and its U.S. subsidiaries assets and the shares of common stock of
EMCC pledged by Messrs. Gallagher and Shields, EMCC's Co-Chairmen and
Co-Presidents. Any foreclosure on the shares of common stock may result in a
change of control because Messrs. Gallagher and Shields own approximately 71%
of EMCC's outstanding common stock.

-- EMCC has continued to experience poor business conditions in Europe and
Asia. As a result, EMCC does not expect its operating results to improve for
the foreseeable future, if at all. EMCC expects to report lower revenues for
its fiscal year ended June 30, 2001 compared to last year, as well as an
increased net loss from fiscal 2000. EMCC will announce such results when they
become available. Due to these poor market conditions, EMCC has been attempting
to reduce costs through layoffs, office closures and other methods. In
addition, EMCC has decided to shutdown operations in Asia that are conducted
through Colchester Enterprise Pte. Ltd., an indirect, wholly owned subsidiary
of EMCC. EMCC anticipates that additional cost-cutting measures will need to be
taken in the near term.

-- Separately, Laurence Gilbert and Kyle Saxon have resigned from their
positions as members of EMCC's board of directors to pursue other business
interests. With their departure, EMCC's Board stands at two. Mr. Gilbert also
resigned from his position as an officer of European Micro Plc, a wholly owned
subsidiary of EMCC.

European Micro Holdings, Inc. is an independent, focused distributor of microcomputer products. The Company monitors and capitalizes on worldwide market-price disparities to purchase a select group of in-demand products from other distributors in 28 countries in 13 currencies. Utilizing its multi-lingual sales staff, European Micro then quickly and efficiently sources these products to its customer base, which includes value-added resellers, corporate resellers, retailers, direct marketers and distributors throughout the world. The vast majority of the products sold by European Micro are manufactured by well-recognized companies such as IBM, Compaq, Hewlett-Packard and 3Com.

Statements contained in this news release regarding its market conditions, operating results and the status of the loans to SouthTrust Bank 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.