Ingram Micro Expands AIDC/POS Presence by Acquiring the Distribution Business of China's Cantechs Group

Small yet strategic acquisition will provide platform for further Asian expansion in growing category

SANTA ANA, Calif., June 3 /PRNewswire/ -- Ingram Micro Inc. (NYSE: IM), the world's largest technology distributor, has gained a greater presence in the Asian enterprise mobility market by acquiring the distribution business and certain assets of the Cantechs Group, one of China's largest providers of auto-identification and data capture/point of sale (AIDC/POS) products and services. The purchase price and other terms of the cash transaction, which closed late last week, were not disclosed.

The Cantechs Group, established in 1988, is one of the top three AIDC/POS distributors in China. It provides bar-code scanners, radio-frequency identification devices, printers and other products produced by leading manufacturers in the data capture and point-of-sale segments, such as IBM, Metrologic, Symbol and Zebra. Headquartered in Beijing, the company has sales and service operations in 20 Chinese cities, serving customers in a variety of industries, including retail, logistics and manufacturing.

"This is a small, yet strategic acquisition that provides an excellent platform to expand AIDC/POS through China and other parts of Asia," said Shailendra Gupta, president, Ingram Micro Asia-Pacific. "AIDC/POS is a segment with great opportunities in Asia, generating better margins than more common information technology products. By acquiring the Cantechs distribution unit, Ingram Micro is gaining a solid presence in this category within the large, growing Chinese market. The Cantechs distribution business is profitable and growing, with a talented management team and valuable relationships with key vendors and customers. We look forward to working with this team and its partners to further our collective growth and success."

Andrew Tay, vice president and general manager of Asia Pacific, Zebra, said that he looks forward to a solid relationship with Ingram Micro.

"Ingram Micro is the only broad-based technology distributor with proven expertise in AIDC/POS," he said. "Zebra and Ingram Micro have established a successful partnership in North America, Europe and India, and we're looking forward to expanding this relationship into China. We're confident that, through this acquisition, Ingram Micro will help us build a robust market for Zebra's products and services throughout Hong Kong and China."

Gupta added that the Cantechs business will integrate into the China operations of Ingram Micro Asia-Pacific as a stand-alone unit responsible for AIDC/POS sales, marketing and vendor and category management. The unit will be able to leverage the existing distribution infrastructure and larger customer base of Ingram Micro China.

"We're pleased to forge this partnership with Ingram Micro," said Maggie Wei, general manager of the Cantechs distribution business. "Ingram Micro understands our business and the unique needs of our employees, vendors and customers. We're confident that we will maintain excellent customer and vendor service through this transition. We look forward to gaining access to Ingram Micro's breadth of expertise and financial strength."

Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995

The matters in this press release that are forward-looking statements, including but not limited to statements about future revenues, sales levels, operating income, margins, stock-based compensation expense, integration costs, cost synergies, operating efficiencies, profitability, market share and rates of return, are based on current management expectations that involve certain risks which, if realized, in whole or in part, could cause such expectations to fail to be achieved and have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: (1) intense competition, regionally and internationally, including competition from alternative business models, such as manufacturer-to-end-user selling, which may lead to reduced prices, lower sales or reduced sales growth, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) integration of our acquired businesses and similar transactions involve various risks and difficulties -- our operations may be adversely impacted by an acquisition that (i) is not suited for us, (ii) is improperly executed, or (iii) substantially increases our debt; (3) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions, political or economic instability, or disruption of a foreign market, and other related risks of our international operations may adversely impact our operations in that country or globally; (4) we may not achieve the objectives of our process improvement efforts or be able to adequately adjust our cost structure in a timely fashion to remain competitive, which may cause our profitability to suffer; (5) our failure to attract new sources of profitable business from expansion of products or services or risks associated with entry into new markets, including geographies, products and services, could negatively impact our future operating results; (6) an interruption or failure of or disruptions due to changes to our information systems or subversion of access or other system controls may result in a significant loss of business, assets, or competitive information and may adversely impact our results of operations; (7) if there is a downturn in economic conditions for an extended period of time, it will likely have an adverse impact on our business; (8) significant changes in supplier terms, such as higher thresholds on sales volume before distributors may qualify for discounts and/or rebates, the overall reduction in the amount of incentives available, reduction or termination of price protection, return levels, or other inventory management programs, or reductions in payment terms, may adversely impact our results of operations or financial condition; (9) termination of a supply or services agreement with a major supplier or product supply shortages may adversely impact our results of operations; (10) changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates or we may be required to pay additional tax assessments; (11) we cannot predict with certainty, the outcome of the SEC and U.S. Attorney's inquiries or assessments by Brazilian taxing authorities; (12) we may experience loss of business from one or more significant customers, and an increased risk of credit loss as a result of reseller customers' businesses being negatively impacted by dramatic changes in the information technology products and services industry as well as intense competition among resellers -- increased losses, if any, may not be covered by credit insurance or we may not be able to obtain credit insurance at reasonable rates or at all; (13) rapid product improvement and technological change resulting in inventory obsolescence or changes in demand may result in a decline in value of a portion of our inventory; (14) future terrorist or military actions could result in disruption to our operations or loss of assets, in certain markets or globally; (15) the loss of a key executive officer or other key employees, or changes affecting the work force such as government regulations, collective bargaining agreements or the limited availability of qualified personnel, could disrupt operations or increase our cost structure; (16) changes in our credit rating or other market factors may increase our interest expense or other costs of capital, or capital may not be available to us on acceptable terms to fund our working capital needs; (17) our failure to adequately adapt to industry changes and to manage potential growth and/or contractions could negatively impact our future operating results; (18) future periodic assessments required by current or new accounting standards such as those relating to long-lived assets, goodwill and other intangible assets and expensing of stock options may result in additional non-cash charges; (19) seasonal variations in the demand for products and services, as well as the introduction of new products, may cause variations in our quarterly results; and (20) the failure of certain shipping companies to deliver product to us, or from us to our customers, may adversely impact our results of operations.

Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Item 1A Risk Factors of Ingram Micro's Annual Report on Form 10-K for the year ended December 29, 2007; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings. Ingram Micro disclaims any duty to update any forward-looking statements.

About the Ingram Micro Data Capture/POS Division

The Ingram Micro Data Capture/POS Division is a leading value-added distributor of auto ID/data capture (AIDC), point-of-sale (POS), radio frequency identification (RFID) and wireless solution products and services. In addition to these technologies, the division also offers partners access to the complete suite of Ingram Micro products and services. With offices and distribution centers across North America, Latin America, Europe and Asia, the Ingram Micro Data Capture/POS division delivers a comprehensive portfolio of products and services to technology integrators around the world. For more information, visit http://www.ingrammicro-dcpos.com.

About Ingram Micro Inc.

As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services, and product aggregation and distribution. The company serves more than 150 countries and is the only global broad-based IT distributor with operations in Asia. Visit http://www.ingrammicro.com.

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SOURCE Ingram Micro Inc.

Released June 3, 2008