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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: Ginco who wrote (913)	1/8/1999 11:29:00 AM
From: JakeStraw	Read Replies (2) \| Respond to of 1494

CHS Electronics to Distribute Ericsson Products in Latin America MIAMI, Jan. 8 /PRNewswire/ -- CHS Electronics, Inc. (NYSE: HS - news) and Ericsson's Latin American Mobile Phones division announced today that they have signed a letter of intent for CHS Electronics to provide distribution, inventory management, and logistics for Ericsson's mobile phones and accessories in Latin America. Ericsson's partnership with CHS Electronics marks the first time that an electronics wholesaler will distribute mobile phones and accessories in Latin America and is testament to the Company's continued growth in this region. Ericsson's Mobile Phones division currently represents approximately 25% of the total market of mobile phone sales in Latin America and is expected to grow an additional 13% in 1999. ''The partnership with CHS Electronics demonstrates Ericsson's commitment to leading the way in the convergence of data technology and mobile phone telephony,'' said John Althoff, Ericsson's vice president of sales for Latin America. ''By having a strong logistics partner with an effective region-wide infrastructure and local inventories, we can optimize the service level towards our growing local customer base in a cost-efficient manner. Furthermore, Ericsson will be well positioned to reach unexplored data-product distribution channels thanks to CHS Electronics' existing customer base,'' added John Althoff. Claudio Osorio, chairman and chief executive officer of CHS Electronics, commented, ''As the leading distributor of microcomputers, peripherals, and software products in Latin America, CHS Electronics will be able to expand Ericsson's presence in the region through CHS' broad distribution network and customer base. At the same time, this agreement adds a new dimension to our strategy as we enter into the distribution of telecommunications equipment and accessories with one of the world's leading providers of telecommunications technology.'' Marcelo Claure, President and Chief Executive Officer of CHS' recently acquired BrightStar subsidiary, will be responsible for the wireless division within the CHS Latin American region. Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers network operators, service providers, enterprises and consumers -- the world over. Miami-based CHS Electronics, ranked number 320 on the latest Fortune 500 list of the largest U.S.-based industrial corporations with sales of $7.5 billion and net income of $87.9 million for the last four quarters, is a leading international distributor of microcomputers, peripherals, and software to more than 130,000 resellers in 46 countries in Europe, Latin America, Asia, the Middle East and Africa. Unlike other computer wholesalers, CHS Electronics distributes a limited product line for a limited number of leading computer manufacturers and does so only outside the United States. The company believes that its ''focused distribution'' enables it to respond more quickly to customers, provide better service, and reduce inventory and working capital requirements. CHS believes it is the largest microcomputer distributor in Latin America and Europe. Information regarding CHS Electronics can be found on the company's website at www.chse.com. Statements made by CHS Electronics as to the growth of mobile phone sales are based on current expectations and may differ materially from actual results. Among factors that could cause actual results to differ materially are changes in business conditions, growth in the telephony and personal computer industries and the general economy; competition; changes in product mix; and the risk factors listed with the Securities and Exchange Commission. SOURCE: CHS Electronics, Inc.