INGRAM MICRO TAKES TIME, COST OUT OF SHIPPING PROCESS WITH NEW CAPABILITIES AT PC MANUFACTURERS' SITES
'Delivery Plus' to include vendor, reseller co-location.

Ingram Micro Inc. today announced that it has expanded its Delivery Plus strategy to make more efficient the delivery of PCs to its reseller customers across the United States.

The establishment of shipping capabilities at manufacturers' facilities has been termed "co-location" in the technology distribution channel, indicating that a distributor has located a live shipping center with personnel at a manufacturer's facility. Such is the case with Ingram Micro, which has placed associates at Compaq's warehouse in Houston, Texas, and IBM's warehouse in Raleigh, N.C.

In addition, Ingram Micro has introduced a reseller co-location program at its 488,000-square-foot integration center in Memphis, Tenn., encouraging resellers to participate in its PC build-to-order process.

Ingram Micro launched in August Delivery Plus, which improved transit times for single-manufacturer products. Ingram Micro contracted with shipping companies near Compaq and IBM facilities to ship products from the vendors' warehouses to resellers. Ingram Micro has increased the number of shipments from the facilities, and delivery efficiencies have been realized. Delivery Plus has evolved to include on-site co-location to support increasing demand.

Under Delivery Plus, Ingram Micro's order system will determine the most efficient source for the product within the company's distribution network. This source may be a co-location site or one of Ingram Micro's seven U.S. distribution centers.

Douglas R. Antone, executive vice president of Ingram Micro and president of Frameworks, Total Integration Services, said, "Today, our reseller customers and our vendor partners are looking for ways to further streamline the demand chain. Based on discussions with our customers and partners, we have decided now is the time to expand available options. Co-locating with our vendor partners further illustrates our commitment to do whatever it takes to add efficiency to the distribution of technology products in the channel."

Delivery Plus Vendor Co-location
Ingram Micro will immediately place associates at the Compaq and IBM facilities. These associates will fulfill and ship product orders to resellers or end users, depending on the resellers' instructions. Ingram Micro plans to offer custom configuration of PCs at these manufacturer sites soon, adding third-party components for custom solutions. This is an added benefit for resellers that require third-party products for integration into a total solution.

The co-location concept is beneficial for resellers, manufacturers and Ingram Micro because it increases delivery efficiency, lessens transit time and drives cost out of the demand chain. Co-location is especially beneficial to resellers because it shortens the time between order placement and delivery, which lessens the resellers' vulnerability to price drops at a time when some OEMs have eliminated price protection.

Said Mike Pocock, vice president of North America channel sales for Compaq: "In an effort to further provide resellers with the most efficient process, we are pleased to have Ingram Micro co-locate with Compaq in Houston. Successfully combining the knowledge and experience in the industry of both companies has granted us the ability to improve the delivery process. We are excited to partner with Ingram Micro in this endeavor."

Said David Boucher, IBM general manger of the Advanced Fulfillment Initiative: "IBM and Ingram Micro have a long history of revolutionizing the supply of IBM PCs and servers in the channel. We are pleased to team with Ingram Micro in what we believe is a great co-location strategy that allows us to provide the most efficient and cost-effective delivery process."

Delivery Plus Reseller Co-location
Also under Delivery Plus, Ingram Micro resellers that desire a higher degree of involvement in the branded or unbranded integration process can take advantage of a new offering that allows them to oversee major projects at Ingram Micro's Memphis integration center. While in Memphis, resellers interact with Frameworks technicians and have access to a private office. Daily meetings with the project manager and team members, along with daily reports, keep the reseller involved in their end user's order.

Jim Hindy, president and CEO of Atlanta-based Entri Computer and an Ingram Micro customer, said, "Any time we can enhance the delivery process in the channel, we gain advantages. And, as a reseller, I appreciate having as many options as possible. The approach Ingram Micro is taking with a mix of vendor co-location and reseller co-location is exciting. I would definitely co-locate with Ingram Micro in Memphis on a project basis. This allows me to receive daily updates on my customers' orders while Ingram Micro gains insight into the unique needs of my customers. I believe this type of collaborative effort can lead to increased productivity, efficiency and quality."

Added Antone: "Inviting our resellers to our Memphis integration facility encourages a level of customer intimacy and involvement that we believe can ensure customer satisfaction, yet provides the benefits of operational scale. We have had success in working with customer project managers during the integration process and are pleased to formalize this offering to all of our reseller customers."

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 a leading provider of assembly and integration services with sales of $20.9 billion for the past four quarters. The company and its affiliates operate in 31 countries and distribute more than 190,000 products to more than 115,000 resellers in 120 countries.

Contact:

Cindy Ragland Ingram Micro Inc. (714) 382-3364