Copenhagen, 5 August 2003 MICROTRONICA'S NORDIC BUSINESS ACQUIRED BY SMG Arrow Electronics Inc. and Santech Micro Group AS  ("SMG") have announced that they have agreed on terms for the acquisition of Arrow's "Microtronica" business operating in the Nordic Region (Norway, Sweden, Denmark and Finland).  Microtronica supplies product to the system builder/system assembler market, including processors, hard drives, graphic cards, motherboards and related devices.  Total sales of Microtronica in the Nordics are in excess of $30 million per quarter. As part of the agreement, SMG has agreed to take on all of Microtronica's sales and marketing staff while utilising the existing SMG logistics and administration operations.  SMG and Arrow expect to close the sale by the end of August.  The terms of the transaction were not disclosed.  Arrow will continue to operate its other business divisions within the Nordic Region and Microtronica will continue to operate its businesses in other major European markets. According to Brian McNally, Managing Director of Arrow Northern Europe: "The acquisition by SMG provides a good solution for our employees, customers and vendors.  SMG is a well-regarded distribution business that has the ability to provide a high level of service to our customers." Mark Keough, Chairman of SMG commented: "We are very pleased to have the opportunity to take over this business. Microtronica is known as a first-class operation in the Nordics and this acquisition will certainly strengthen our presence in the system builder market, especially with Intel, with whom we are entering into a new relationship." Santech Micro Group is the largest privately held distributor of IT products in the Nordic Region, with sales of over €500 million.  The company is 100% owned by its management team and has recently won 'Distributor of the Year' honours in Norway, Sweden and Denmark. Arrow Electronics is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and over 150,000 original equipment manufacturers, contract manufacturers, and commercial customers through more than 190 sales facilities and 21 distribution centers in 40 countries. Detailed information about Arrow's operations can be found at www.arrow.com. < Back