VARBusiness Research Finds Worldwide Business of Top 100 Distributors at $78.6; Ingram Micro Remains Number One

Reports Dramatic Changes in Nature of Business

PRNewswire
MANHASSET, N.Y.
May 19, 1999

In its second annual analysis of two-tier information-technology distribution, CMP Media's (NASDAQ: CMPX) VARBusiness magazine has found that the top 100 distributors account for worldwide wholesale revenues of $78.6 billion. The ranking again is led by Ingram Micro, Inc., Santa Ana, Calif., at $22 billion.

The Distribution 100, a special report published in this week's issue, also reports on the dramatic changes in the business. The magazine found realignments of value within the market. Increasingly, the services that distributors offer are being delivered to the end user on behalf of value-added resellers (VARs) and the distributors' brand names are becoming known among end-user businesses.

Jerre Stead, chairman and chief executive of top-ranked Ingram Micro told VARBusiness that in a year, distributors will be providing more for-fee services on behalf of original-equipment manufacturers to reduce their costs and will also be performing more backroom services on behalf of resellers. This, he said, will free resellers' assets and time so they can focus on selling and services.

The special report also analyzes integrated distribution, a significant developing trend that is making collaborative use of vendors' and distributors' skills. The concept creates a cohesive manufacturing and delivery package, placing the values and costs where they make most sense.

  The top 10 IT distributors, ranked by 1998 wholesale-only revenue, are:


  1999     1998                                        1998 Wholesale
  Rank     Rank    Name                                  Revenues

  1         1      Ingram Micro Inc.                    $22.0 billion
  2         2      Tech Data Corp.                      $11.5 billion
  3         3      CHS Electronics Inc.                 $8.5 billion
  4         5      Pinacor                              $5.0 billion
  5         4      Merisel Inc.                         $4.6 billion
  6         7      Synnex Information
                   Technologies Inc.                    $2.4 billion
  7         9      Gates/Arrow Distributing Inc.        $2.0 billion
  8       n.a.     GE Information Technology
                   Information Group                    $1.9 billion
  9         6      Inacom Corp.                         $1.7 billion
  10       10      Key-Link Systems
                  (A Pioneer-Standard Co.)              $1.3 billion

In addition to being published in the May 17 issue of VARBusiness, The Distribution 100 also is posted toi the magazine's Web site, http://www.varbusiness.com/.

VARBusiness, the channel's leading magazine, goes behind the headlines, looking at issues and trends from the VAR's point of view, focusing on "what's in it for the VAR" in every article. It provides perspective, in-depth analysis, proprietary research and tools to help resellers and solutions providers grow their business. The rich editorial content provides the crucial how-to information VARs need to manage their business, make product, technology and supplier decisions, and enhance customer relationships. The American Business Press recently honored VARBusiness with a prestigious 1999 Jesse H. Neal Editorial Achievement Award. The magazine's Web site is at http://www.varbusiness.com/.

CMP Media Inc. (NASDAQ: CMPX) is the leading high-tech media company providing essential information and marketing services to the entire technology spectrum -- the builders, sellers and users of technology worldwide. With its portfolio of newspapers, magazines, custom publishing, Internet products, research, consulting and conferences, CMP is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. Online editions of the company's print publications, along with products and services created exclusively for the Internet, can be found on CMPnet at http://www.CMPnet.com. NSTL, the company's independent testing lab and consulting organization, serves government, corporate and technology vendor clients around the world.

SOURCE: CMP Media Inc.

Contact: Barry J. Zusman, 516-562-7040, or bzusman@cmp.com, or Alexandra
Raine, 516-562-7827, or araine@cmp.com

Website: http://www.varbusiness.com/

Website: http://www.cmpnet.com/

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