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INGRAM MICRO, SARCOM SIGN EXCLUSIVE AGREEMENT TO LAUNCH NEW BUSINESS MODELIngram Micro To Provide IT Procurement, Logistics, Systems Configuration, Assembly Services To SARCOM SANTA ANA, Calif., Sept. 7, 1999Ingram Micro Inc., the world's largest wholesale provider of technology products and services, and SARCOM Inc., a leading national technology integration company, today announced that the companies have signed a definitive agreement that will restructure and improve SARCOM's supply-chain management, reduce its operating costs and allow SARCOM to expand its nationally recognized customer service capabilities. Ingram Micro will become SARCOM's exclusive IT procurement, configuration and assembly, and logistics partner, allowing SARCOM to expand its ability to serve its growing customer base. SARCOM has grown significantly over the past few years, with annual sales in excess of $700 million. Ingram Micro, through today's agreement, has responsibility for the logistics and asset management of most of SARCOM's annual sales over the next five years. To accomplish this, Ingram Micro will assume responsibility for SARCOM's 85,000-square-foot Lewis Center, Ohio, distribution and integration center. SARCOM will continue to provide sales and project management. To integrate the operations of the two companies, Ingram Micro and SARCOM jointly will determine new management oversight procedures, process control and process-improvement measurements for the Ohio-based center. "Through this partnership, we offer SARCOM and its customers our competencies of global customer support, world-class electronic-commerce systems, and worldwide channel-assembly and configuration capabilities," said Robert D. Grambo, executive vice president and president, Ingram Micro U.S. "SARCOM now can heighten its focus on providing superior customer service and expanding its solutions capabilities by focusing on these core competencies and relying on Ingram Micro for logistics and asset management." Both companies said this agreement exemplifies the evolution of the IT industry: Resellers and vendors are entering innovative partnerships to improve service and lower costs. "Today's announcement affords us the opportunity to focus on our customers' service-level needs, while driving costs out of our product procurement and logistics processes," said Randy Wilcox, SARCOM president and the chief executive officer. "We chose Ingram Micro to help us do this because it is the recognized leader in supply-chain management, and has proven to be a valued business partner." David Raab, SARCOM executive vice president of operations, said: "We pursued this strategic alliance with Ingram Micro to improve our ability to take care of our customers. This unique partnership with Ingram Micro allows us to combine the best of both companies: SARCOM's focus on processes and methodologies that ensure high quality, and Ingram Micro's global expertise in product logistics." About Ingram Micro Inc.Ingram Micro Inc. (NYSE:IM), headquartered in Santa Ana, Calif., is the world's largest wholesale provider of technology products and services, and a leader of assembly and integration services with sales of $25.5 billion for the past four reported quarters. The company and its subsidiaries operate in 34 countries and distribute more than 225,000 products to more than 140,000 resellers in 130 countries. About SARCOM Inc.Based in Columbus, Ohio, SARCOM offers its customers a single source for technology integration solutions, with a comprehensive portfolio of products and services required to successfully design, develop, implement and manage information technology projects, primarily for Fortune 2000 companies. SARCOM national business practices include Acquisition Services, Desktop Services, Enterprise Education Services, and Network Services with a focus on Consulting Support and Project Management. SARCOM has 24 branches nationwide. The company employs approximately 2,800 people, 1,600 of whom are engineering or technical professionals. In recent years, SARCOM has experienced significant growth with annual sales in excess of $700 million. Forward-Looking Statement Certain statements in this press release may be forward-looking statements that involve risks and uncertainties. Words such as "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on current expectations and projections about the technology distribution industry and assumptions made by Ingram Micro's management and are not guarantees of future performance. Therefore, actual events and results may differ materially from those expressed or forecasted in the forward-looking statements due to factors such as those identified in Exhibit 99.01 of Ingram Micro's annual report on Form 10-K for the fiscal year ended Jan. 2, 1999. Other risks or uncertainties may be detailed from time to time in Ingram Micro's future Securities and Exchange Commission filings. Ingram Micro undertakes no obligation to update any forward-looking statements in press releases.
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