Microsoft Renews Logistics Agreement With Ingram Micro's IM-Logistics Division

Ingram Micro's full-service business-to-business solution scores supply chain efficiencies for Microsoft's retail direct program

SANTA ANA, Calif., Jan. 16, 2001

Ingram Micro Inc. (NYSE: IM), the largest global wholesale provider of technology products and services, today announced its U.S. IM-Logistics division has reached agreement with Microsoft Corp. on a two-year extension of its logistics services contract for Microsoft's retail direct program.

Under the agreement, Ingram Micro will continue to provide full-service logistics support for Microsoft's packaged software and hardware products to retail direct channel customers located at more than 7,500 retail outlets throughout the United States and Canada. IM-Logistics services include warehousing; pick, pack and shipment of products; customer service; order management; returns/reverse logistics; accounts receivable; merchandising; and IT services.

"Since outsourcing its retail logistics operations to IM-Logistics, Microsoft has seen continuous improvement in its supply chain efficiencies," said Michael Terrell, senior vice president and general manager, IM-Logistics, Ingram Micro U.S. "Working with Microsoft, we have reduced fulfillment turnaround time and achieved world-class accuracy rates. Microsoft's example is indicative of the supply chain efficiencies that IM-Logistics can offer other manufacturers."

Throughout the fulfillment process, IM-Logistics' services remain transparent to Microsoft's retail customers. Retailers are seamlessly linked to Ingram Micro's order management system via electronic data interchange, allowing large volumes of orders to be processed quickly. IM-Logistics also provides a variety of specialized services for Microsoft, such as management of constrained products or products not readily available at the time of order and customized shipments tailored to the needs of Microsoft's retail customers.

"IM-Logistics has consistently exceeded its service-level agreements with Microsoft," said Gene Purschwitz, senior logistics manager, Logistics Management for the Americas at Microsoft. "IM-Logistics' proven fulfillment and inventory accuracy give us real confidence in its ability to provide our retail customers the highest levels of service."

About IM-Logistics
Established in June 2000 as a division of Ingram Micro U.S., IM-Logistics provides end-to-end order fulfillment, logistics and supply chain solutions to manufacturers, retailers and e-tailers of technology and consumer electronics products. IM-Logistics leverages Ingram Micro's 20-year track record in order management and fulfillment to drive efficiency in the supply chain and ensure companies can meet customer demand effectively. As the logistics engine behind Ingram Micro, the division delivers more than 14 million orders a year in the United States with better than 99 percent accuracy. IM-Logistics U.S. services also leverage Ingram Micro's more than 4.1 million square feet of U.S. warehouse space for its industry-leading distribution and reverse logistics network, which offers one- or two-day ground coverage to more than 99 percent of the United States.

About Ingram Micro Inc.
Ingram Micro Inc. is the largest global wholesale provider of technology solutions, products and services. The company operates in 34 countries with sales exceeding $30 billion for the past four reported quarters. Ingram Micro's global regions offer e-commerce solutions, logistics services, and technology product distribution and marketing to more than 175,000 technology solution providers and manufacturers. The company is focused on maximizing shareowner value and achieving customer satisfaction by continuously innovating the IT supply chain.

For more information, contact:

Ingram Micro Inc.:
Jennifer Marchetta
Media Information
(714) 382-2692

Benjamin Group/BSMG Worldwide:
Alan Buis or Stefanie Lopez
(949) 260-1300, ext. 230 or 232