INGRAM MICRO TO PROVIDE LOGISTICS, SERVICES AND ASSEMBLY FOR COMPAQ PARTNERDIRECT PROGRAM

SANTA ANA, Calif., March 29, 1999

Ingram Micro Inc., the world's largest wholesale distributor of technology products and services, today announced it has agreed to provide backroom support for Compaq Computer Corp.'s PartnerDirect program. PartnerDirect leverages the logistical and assembly efficiencies of the distribution channel as well as the invaluable relationships provided by value-added resellers (VARs).

Compaq's Prosignia family of desktops, portables and servers are designed specifically to meet the needs of small-to-midsize businesses. Today marks the first day resellers can purchase custom-built Prosignia products from Compaq for sale to end users, with logistics, services and assembly capabilities provided by Ingram Micro.

Compaq has focused on collaborative relationships with its two largest global distributors to better support resellers and expand the availability of Compaq Prosignia products in the channel. Under Compaq PartnerDirect, Compaq has created a highly efficient distribution model that re-engineers the traditional build-to-order product distribution model.

"Ingram Micro is proud to team with Compaq to bring the Prosignia family of products to the channel. This is great news for value-added resellers (VARs) that service the small-to-midsize business market because they now can sell a custom-built product. The relationships VARs provide are invaluable to small-to-midsize businesses -- which count on them for service, solutions and support," said Douglas R. Antone, executive vice president, Ingram Micro and president, Frameworks, Total Integration Services.

Antone continued, "We believe this type of outsourcing agreement is an example of changes we will see in the distribution industry as more manufacturers outsource capabilities to us."

Ingram Micro is Compaq's largest distribution partner worldwide and assembles and configures more Compaq products than any other distributor. Ingram Micro provides contract manufacturing for Compaq's government, education and medical (GEM) business at its Memphis, Tenn.-based Frameworks integration center, an ISO-9002 certified facility. In addition, Ingram Micro was the first distributor to receive certification for the Compaq Channel Configuration Program (CCP) for the assembly of Compaq commercial products.

"We are outsourcing the backroom logistics of PartnerDirect to Ingram Micro because of its commitment to providing world-class integration and fulfillment services. Ingram Micro has an exemplary track record for assembling Compaq products with accuracy and efficiency as evidenced by their performance in the GEM and CCP programs," said Bob Fernander, vice president of Compaq's commercial business unit for North America. "By outsourcing the business processes, integration and shipping to Ingram Micro, we are able to decrease the amount of time it takes to deliver custom configured Prosignia products to resellers, and ultimately to their customers as well. Together, we have had and will continue to have great success."

Benefits for Resellers

Compaq PartnerDirect offers resellers the ability to purchase configure-to-order Prosignia products directly from Compaq through a collaborative relationship with Ingram Micro. The program enables resellers to buy, receive and sell Prosignia products without providing end user information. Resellers can complete the sale with their preferred financing options. Orders are shipped to the reseller or end user, depending on the reseller's specifications.

How it Works

PartnerDirect helps Ingram Micro to respond quickly to orders for custom solutions, reduce delivery time, and improve quality and customer satisfaction. Compaq has established a toll-free number for PartnerDirect. Ingram Micro will provide call center support, accept orders and extend credit to the reseller on Compaq's behalf. Resellers call and order custom-built Prosignia products through a dedicated telesales center at Ingram Micro. Once the order is placed, the product is configured and packaged with other third-party products for shipment to the reseller or end user on Compaq's behalf.

Reseller Choice

In addition to purchasing Prosignia products from Compaq through PartnerDirect, resellers have several options for buying Compaq products from Ingram Micro.

• Full line of Compaq products. Ingram Micro offers Compaq's full line of desktops, notebooks and servers, including Prosignia products, which can be reconfigured if needed.
  
  
• Compaq channel assembly. Ingram Micro is a certified CCP provider and assembles custom desktops and servers at its Memphis integration facility.
  
  
• Ingram Micro/Compaq co-location. Ingram Micro is co-locating with Compaq's Houston manufacturing facilities to increase efficiency and decrease product delivery time for resellers.
  
  
• Ingram Micro's small-to-midsize business offering. Ingram Micro's VentureTech Network has teamed with Compaq to provide training, discounts and incentives to Compaq-authorized VARs that service the SMB market.

About Ingram Micro Inc.

Ingram Micro Inc. (NYSE:IM), headquartered in Santa Ana, Calif., is the world's largest wholesale distributor of technology products and services, and is a leading provider of assembly and integration services with 1998 sales of $22.0 billion. The company and its subsidiaries operate in 31 countries and distribute more than 200,000 products to more than 130,000 resellers in 130 countries.

Contact

Cara Stewart
Ingram Micro Inc.
(714) 382-1404