Meeting Customer Priorities Through Digital Supply Chain Solutions SM

1. Meeting Customer Priorities Through Digital Supply Chain SolutionsSM Paul B. Katz Vice President Value Added Programs Arrow Electronics, Inc. Abstract Companies in virtually all industries are recognizing the integral role of supply chain management in achieving profitable growth and, in turn, growth in shareholder value. In the high-tech industry value chain – a highly complex, but potentially rewarding, environment – the stakes for supply chain excellence are particularly high. Customer priorities in the high-tech industry require supply chain designs that not only integrate and synchronize data exchange across the supply chain but also provide deep functionality to leverage the information. Arrow Electronics, recently named number 11 On Inter@ctive Week's "Internet 500" for online revenues, will describe its approach to Digital Supply Chain SolutionsSM that address high-tech customer priorities. The presentation will cover Arrow’s perspective on key concepts for electronic commerce in supply chain design, Arrow’s current suite of e-commerce initiatives and capabilities, vision for the future, and migration issues and realities.

2. Presentation Outline Arrow’s presentation will cover the following areas • Introduction to the industry supply chain and Arrow • High-stakes supply chains in the high-tech industry • Needs and solutions landscape • Arrow’s approach today • Vision for the future • Migration path for dealing with realities • Leading the way The following pages provide background on Arrow

3. About ArrowWorldwide Statistics • Founded: 1935 • Publicly traded: New York Stock Exchange • 1999 Sales: $9.3 billion • Employees: 11,200 • Inventory: $1.4 billion 300,000 part numbers • Locations: 200 sales facilities in 37 countries 4 primary U.S. distribution centers Headquartered in Melville, New York • Suppliers: Over 600 • Customers: 175,000

4. About ArrowSupply Chain Management Role Value Added Services: • Arrow has been an industry leader in providing value added services (such as JIT programs, in-plant stores, forecast management, assembly operations, component programming, technical design assistance and e-commerce tools) to its customers • Today, such services are associated with almost 70% of Arrow revenue Integrated Solutions: • Arrow is providing integrated supply chain solutions in a significant and growing number of engagements • Such solutions draw on Arrow’s broad array of design support, materials management, physical value added, and e-commerce capabilities and are tailored to meet unique customer requirements Electronic Commerce: • Arrow emphasizes Digital Supply Chain SolutionsSMto improve time-to-market, flexibility, asset productivity, and total cost performance for our customers • Our e-commerce capabilities range from EDI to web-based tools and services and Arrow is playing a leading role in the RosettaNet initiative for electronic components • PRO-Series, an arrow.com suite of Professional Resources Online for buyers and engineers, recently passed the 30,000 registered users milestone

5. About Arrow Arrow.com public recognition • #1 in Electronic Buyers News 1999 annual survey • Business 2.0 top 100, June 1999 • #11 in Interactive Week @ 500(conducted by MIT and Ernst & Young)