European Micro Holdings Makes Announcement

Business Wire, Oct 1, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--Oct. 1, 2001

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

-- As previously announced, European Micro Holdings, Inc. has been experiencing
extreme cash shortages. The Company is in the process of liquidating the assets
of its sole remaining operating subsidiary, European Micro Plc, to repay
creditors. These creditors include Harry Shields, Co-Chairman and Co-President
of the Company, who advanced to the Company and its subsidiary approximately
$1.9 million over the last two months.

-- Due to continuing cash shortages, the Company is unable to complete the
audit of its financial statements for the year ended June 30, 2001.
Accordingly, the Company does not expect to file with the Securities and
Exchange Commission its Annual Report on Form 10-K for such period. The Form
10-K was due to be filed with the Securities and Exchange Commission on
September 28, 2001.

Statements contained in this news release may be 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.