Distribution Trends 2003

Electronic News, Dec 2, 2002

1. Avnet Inc.

2211 S. 47th Street Phoenix, AZ 85034

(480) 643-2000

www.avnet.com

NYSE: AVT

Fiscal Year End June

Calendar Year 2002 Revenue Estimate

$8,900 million

FY Total Revenue/Net Income ($millions)


2002  $8,920M/$(664.9M)
2001    $12,814M/$15.4M
2000  $9,172.2M/$145.1M

Key Management

Roy Vallee, Chairman and CEO Andrew Bryant, Senior VP, President Avnet Electronics Marketing

Edward Kamins, Senior VP, President Avnet Applied Computing

Product Mix
Active components           50%
Passive components          11%
Computer products/syst.     39%

Revenue by Region
North America               58%
Europe                      32%
Asia/Pacific                10%

Number of Employees
2002                     10,900
2001                     12,000

Bottom-Line

Avnet Inc. has retained its top position--and has extended its lead over rival Arrow Electronics Inc. But the company is not without its problems. The Phoenix-based giant saw its credit rating drop to the lowest investment-grade rating from both Moody's and Standard & Poor's. Though Avnet is not likely to seek additional credit during an economic downturn, should it find itself in need of going to the capital markets, it will face higher borrowing rates.

2. Arrow Electronics Inc.

25 Hub Drive Melville, NY 11747

(516) 391-1300

www.arrow.com

NYSE: ARW

Fiscal Year End December

Calendar Year 2002 Revenue Estimate

$7,400 million

FY Total Revenue/Net Income ($millions)


2002   $7,400M(est.)/n/a
2001  $10,127.6M/$(73.8M)
2000  $12,959.3M/$357.9M

Key Management

Daniel W. Duval, Chairman, President and CEO

Jan Salsgiver, President, North American Components

Michael Long, President, North American Computer Products

Product Mix
Active components           57%
Passive components          16%
Computer products/syst.     27%

Revenue by Region
North America               58%
Europe                      33%
Asia/Pacific                 9%

Number of Employees
2002                     11,770
2001                     12,400

Bottom-Line

While Arrow is firmly ensconced in the No. 2 position, the company has seen the gap between itself and Avnet Inc. widen. Undoubtedly part of that can be attributed to the company's May sale of the Gates/Arrow commodity computer products business. Arrow experienced a bit of turmoil this year with the abrupt departure of CEO and President Francis Scricco in June. As of press time, no permanent replacement has been named.

3. Future Electronics

237 Hymus Boulevard Pointe Claire, Quebec Canada H9R 5C7

(514) 694-7710

www.futureelectronics.com

Fiscal Year End December

Calendar Year 2002 Revenue Estimate

$2,603 million

FY Total Revenue/Net Income ($millions)


2002  $2,603M (est.)/n/a

Key Management

Robert Miller, CEO

Gerry Duggan, President and COO

Robert LaPointe, CIO

Product Mix

n/a

Revenue by Region

n/a

Number of Employees
2002                 5,000
2001                 4,500

Bottom-Line

Future is among the top three distributors worldwide and has a presence in 35 countries. The company boasts it is the only electronic components distributor to offer around-the-clock product marketing and claims to be the only vertically integrated industrial distributor. The company this year has placed emphasis on its demand-creation programs and also signed several distribution agreements with top- name manufacturers, cementing its place among the leaders in this industry.

4. Bell Microproducts Inc.

1941 Ringwood Avenue San Jose, CA 95131

(408) 451-9400

www.bellmicro.com

Nasdaq: BELM

Fiscal Year End December

Calendar Year 2002 Revenue Estimate

$2,170 million

FY Total Revenue/Net Income ($millions)


2002  $2,170M(est.)/$(4M)est.
2001      $2,007.1M$/$(22.1M)
2000         $1,804.1M/$17.2M

Key Management

Don Bell, President and CEO

Jim Illson, COO

Robert Sturgeon, CIO

Product Mix
Active components          15%
Computer products/syst.    72%
Other                      13%

Revenue by Region
North America              41%
Europe                     46%
Rest of World              13%

Number of Employees
2002                     1,366
2001                     1,476

Bottom-Line

Bell Microproducts moved up in the distribution rankings, breaking into the top five at No. 4. And though it has restructured during the downturn, Bell is cautiously optimistic about the current quarter. In its last quarter, the company saw strong sales in the North American and European markets. The company was also one of the few distributors to make an acquisition this year, with its purchase of Edison, N.J.-based Total Tec Systems.

5. Pioneer-Standard Electronics Inc.

6065 Parkland Boulevard

Cleveland, OH 44124

(440) 720-8500

www.pioneerstandard.com

Nasdaq: PIOS

Fiscal Year End March

Calendar Year 2002 Revenue Estimate

$1,994.9 million

FY Total Revenue/Net Income ($millions)


2002   $2,323.6M/$(7M)
2001  $2,901.4M/$34.5M
2000  $2,550.7M/$40.1M

Key Management

James L. Bayman, Chairman Arthur Rhein, President and CEO

Robert J. Bailey, EVP, Computer Systems Division

Product Mix
Active components          30%
Passive components         15%
Computer products/syst.    55%

Revenue by Region
North America              95%
Rest of World               5%

Number of Employees
2002                     2,462
2001                     2,550