Business Services Industry

Avnet Logistics Streamlines Supply Chain Management for the Electronics Industry; Avnet Division Brings Electronics Vertical Specialization and Global Capabilities to Logistics Market

Business Wire, March 7, 2006

PHOENIX -- Avnet Logistics, a specialized logistics provider and division of global technology distributor Avnet Inc. (NYSE: AVT), today announced continued growth and new supply chain implementations in the electronics industry. Avnet Logistics streamlines the supply chains of its customers by providing supply chain information services, technical product modification solutions and specialized electronics warehouse logistics support for leading electronics companies such as SMSC and Xilinx.

"Avnet Logistics fills a gap in the logistics services industry," said Andy Bryant, president of Avnet Logistics. "With our deep experience in the electronics industry and comprehensive supply chain visibility, Avnet Logistics combines the best of being a vertical market provider with the operational excellence and supply chain efficiencies inherent to a $13 billion Fortune 200 company."

Bob Parker, vice president of Research at IDC Manufacturing Insights, wrote in a recent research perspective document, "Avnet Logistics' expertise in the electronics supply chain provides the electronic supplier a unique opportunity to address the complexity of an elongated electronics supply chain and the increasing demands for higher levels of service demanded by their customers. By using vertically specialized logistics providers like Avnet, electronics suppliers are able to make vital forecast decisions faster, simplify their supply chain management, and leverage services that are strategically and geographically aligned with their markets."

Formed in 2004, Avnet Logistics meets the needs of electronics manufacturers that are looking to increase supply chain efficiencies, decrease costs and optimize outsourced manufacturing relationships. Service offerings are focused in three main areas:

Supply chain

--Direct order management and customer service

--VMI and consignment management programs

--Global distribution center management

--Logistics Network Design

Product services

--Programming -- Flash, PLD and microcontroller

--Laser marking

--Tape and reel services

--Special packaging

Warehousing

--Regional distribution centers

--Customer proximity warehousing

--On-site customer VMI programs

Leveraging more than 80 years of Avnet's experience with the electronic components industry and supply chain, Avnet Logistics helps electronics manufacturers drive inventory velocity, customer satisfaction and total cost reduction.

"Working with Avnet is an integral part of our supply chain management strategy," said Chris Henry, senior director of sales operations, Xilinx. "Avnet has helped us improve our levels of supply assurance and achieve a more tightly integrated supply chain for the Xilinx Customer Demand Pull Program."

"Avnet Logistics enables a direct channel to the Asia market for SMSC that provides us with flexibility and improves our customer service model while maintaining a high level of quality," said Bill Wagner, senior director of supply chain, SMSC.

About Avnet

Avnet enables success from the center of the technology industry, providing cost-effective services and solutions vital to a broad base of more than 100,000 customers and 300 suppliers. The company markets, distributes and adds value to a wide variety of electronic components, enterprise computer products and embedded subsystems. Through its premier market position, Avnet brings a breadth and depth of capabilities that help its trading partners accelerate growth and realize cost efficiencies. For fiscal year ended July 2, 2005, Avnet and the recently acquired Memec (closed July 5, 2005) generated combined revenue in excess of $13 billion in the past year through sales in approximately 70 countries. Visit www.avnet.com/.>