EMEA distributors report healthy sales turnover of €37.46 billion 

DUBAI / PARIS / SPAIN / MOSCOW: 22 January 2008 — DISTREE Events, the
organisers of DISTREE XXL 2008, the largest annual event for the
distribution channel in Europe, Middle East and Africa (EMEA), today
reported that 366 confirmed distributors attending DISTREE XXL 2008
completed online questionnaires detailing their sales out data,
offering a compelling insight into the health of the EMEA distribution
channel. The questionnaire revealed a massive €37.46 billion (US$54.27
billion) in collective sales in 2007 – up more than 30% from 2006.

Of the total recorded sales in 2007, 82.6% of the distributors’
turnover was generated from distribution activities, 7.7% from PC
assembly operations, 6.4% from retail activities and 3.3% from direct
sales to end-user customers.

“We are very pleased to see that the IT distribution segment is
healthy,” said Farouk Hemraj, CEO at DISTREE Events. “Feedback on these
questionnaires allows us to create productive meetings at our events
but also ensure that the workshops, debates and other special events
cater to the needs of this growing sector.”

Sales to dealers and resellers accounted for 38.6% of the combined EMEA
turnover figure. The retail channel was the destination for 21.8% of
distribution sales with assemblers accounting for 14.1% of the total
turnover. The VAR channel accounted for 10% of sales out with 8%, 2.7%
and 2.4% destined for sub-distributors, e-commerce sites and exporters
respectively. The remaining 1.8% of revenues was attributed to sales to
traders and telecom operators.

The survey results also highlighted significant differences in regional
market performance across the EMEA theatre. Distributors from Central
& Eastern Europe (CEE) led the way with combined sales climbing
61.1% year-on-year in 2007. Nordic distributors reported a 49.5% sales
increase with the Maghreb region not far behind on 43.6%.

The Baltic States also enjoyed a strong 2007 with distributors
reporting an average sales increase of 40.2% in 2007 compared to 2006.
Distributors from Southern Europe recorded a 33.3% increase and Benelux
distributors reported a 22.1% rise in revenues.

The markets of Western Europe reported the weakest growth rates with
Benelux distributors seeing sales climb 22.1%, Dach distributors
recording a 17.6% spike and UK & Ireland distributors recording a
climb of just 11.5%.

The emerging markets of EMEA all posted a solid sales increase in 2007.
Russia & CIS distributors saw sales rise 29.7%, while their Middle
East colleagues recorded a sales rise of 26.1%. African distributors
reported an average sales increase of 19.7%.

The distributor survey also highlighted some strong variation in
sell-out channels from region to region. While 19.4% of distributor
sell-out in the Nordics was sold to e-commerce websites, that figure
was just 0.2% for the combined Middle East & Africa region.

With its compelling mix of professional networking opportunities,
pre-scheduled one-on-one meetings and world class speakers, DISTREE XXL
2008 will once again unite ICT distribution executives from 80-plus
countries throughout EMEA at the Hotel Rey Juan Carlos I in Barcelona.


DISTREE XXL creates a new, unrivalled opportunity for channel leaders
across EMEA to meet and do business with their existing and prospective
vendors. DISTREE XXL will assemble leading Technology Distributors from
more than 80 countries with the leading technology vendors of the
industry — in the most unique, intimate and stimulating atmosphere
imaginable. Our DISTREE concept, successfully launched in 2003, is
based on this clear concept: we bring high-level buyers into productive
contact with vital vendors.

For more information on attending DISTREE XXL 2008, please visit www.distree.com/xxl.

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