Financial: PC Connection, Inc. Reports 43.5% Increase in Second Quarter Sales

Edge: Work-Group Computing Report, July 13, 1998

PC Connection, Inc. (NASDAQ:PCCC), a leading direct marketer of computers and related accessories, Tuesday announced that net sales increased by 43.5% for the second quarter of 1998 compared to the year ago quarter. Net sales for the second quarter ended June 30, 1998 were $174.3 million, compared to net sales of $121.5 million for the corresponding prior year period. The growth in net sales was attributable to the following:

* Expansion and increased productivity of the outbound telemarketing sales group;

* Growth in internet sales through the PC Online SuperStore (www.pcconnection.com);

* An 18.6% increase in the average order size to $600;

* An increase in the number of PC Connection and MacConnection catalog mailings. Patricia Gallup, Chairman and Chief Executive Officer, stated, "This was another great period for PC Connection. As in the past, we successfully tailored our product mix and pricing to meet the growing demands of our core target market of small- and medium-sized business customers. This strategy led to solid increases in unit sales of notebook computers, desktop computers and servers, which more than offset industry-wide declining average selling prices."

The company is scheduled to release its full second quarter results the week of July 27th.

PC Connection, Inc. is a leading direct marketer of over 20,000 brand-name personal computer products. Distribution channels include its catalogs, PC Connection and MacConnection (800/800-6941), its Online Superstore at www.pcconnection.com and www.macconnection.com, and its outbound telemarketing division. In recognition of its role as a critical link between manufacturers of computer products and the users of these products, PC Connection received the highest ranking of any direct marketer on the most recent list of the "100 Most Influential Companies in the Computer Industry," published in PC Magazine. The Company was founded in 1982 and has facilities in Milford, Keene, and Hudson, New Hampshire. PC Connection's full-service distribution and custom configuration center is located in Wilmington, Ohio, providing customers with fully-configured computers for overnight delivery.