Tech Data Corporation, Clearwater

Jeffery P. Howells, 727-538-7825

jeff.howells@techdata.com

or

Kristin Wiemer Bohnsack, 727-532-8866

kristin.wiemer@techdata.com

Logo: www.techdata.com

Tech Data Corporation (NASDAQ:TECD), a leading distributor of IT products, today announced results for its fiscal 2009 fourth quarter and fiscal year ended January 31, 2009.

Net sales for the fourth quarter ended January 31, 2009 were $5.7 billion, a decrease of 11.9 percent from $6.5 billion in the prior year. The strengthening of the U.S. dollar against certain foreign currencies negatively impacted the year-over-year fourth-quarter net sales comparison by approximately seven percentage points. Operating income for the fourth quarter totaled $98.5 million, or 1.73 percent of net sales. This compared to operating income of $72.4 million, or 1.12 percent of net sales in the fourth quarter of fiscal 2008, based upon Generally Accepted Accounting Principles ("GAAP"). Results for the fourth quarter of fiscal 2008 included a $1.4 million non-cash charge, or .02 percent of net sales, for the loss on disposal of subsidiaries related to the exit of the company's operations in the United Arab Emirates (UAE). The charge primarily related to foreign currency translation losses recorded during fiscal 2008.

Fourth-quarter net income totaled $58.6 million, or $1.17 per diluted share compared to net income of $50.2 million, or $.92 per diluted share for the prior-year period, based upon GAAP. Excluding the loss on disposal of subsidiaries ($.03 per share after-tax) in the fourth quarter of fiscal 2008 and taking into consideration a $0.01 per share tax benefit related to an adjustment for the application of different annual effective tax rates on a GAAP and non-GAAP basis for the year, non-GAAP net income for the fourth quarter of fiscal 2008 totaled $52.2 million, or $.96 per diluted share.

"We remain focused on differentiating and strengthening Tech Data through outstanding sales execution, customer service and vendor support amid the continued decline in global economic conditions and IT spending. We took prudent cost reduction actions throughout the year and continue to improve our inventory, pricing and freight management disciplines," stated Robert M. Dutkowsky, Tech Data's chief executive officer. "The results of our actions are validated by our fourth quarter performance. Despite the overall net sales decline, we gained share in selected markets and we improved our gross margin and operating income performance both in the Americas and Europe. Fourth quarter results also included the benefit of a significant recovery of foreign currency exchange losses through gross profit. Fiscal 2010 will have its challenges as market conditions likely worsen and affect year-over-year comparisons, but we continue to believe our strong customer and vendor relationships, our solid balance sheet and our veteran leadership team will serve us well during these uncertain times."

As previously disclosed, extreme foreign currency volatility, particularly in the month of October, created a challenging environment, and the company recorded a $23.5 million foreign currency exchange loss during the third quarter of fiscal 2009. During the fourth quarter of fiscal 2009, the company continued to experience foreign currency volatility and recorded a $5.5 million foreign currency exchange loss. For both the third and fourth quarters, the primary factor contributing to the foreign currency exchange loss was the use of certain portions of the company's inventory as a hedge against foreign currency exposures in accounts payable. In addition, the foreign currency exchange loss includes the cost of forward contracts utilized to hedge the balance of the company's foreign currency exposures. Through disciplined pricing and inventory management practices, a significant portion of the foreign currency exchange loss incurred due to the use of inventory as a hedge was recovered through gross profit in both the third and fourth quarters as the related inventory was sold. To the extent foreign currencies remain volatile, and market conditions competitive, there can be no assurance as to the amount of foreign currency exchange loss that can be realized through gross profit in the future.

Fourth-Quarter Financial Summary

-- Net sales in the Americas (including North America and Latin America) were $2.3 billion, or 41 percent of worldwide net sales, representing a decrease of 14.1 percent compared to the fourth quarter of fiscal 2008. Net sales in Europe totaled $3.4 billion, or 59 percent of worldwide net sales, representing a decrease of 10.3 percent (0.2 percent decrease on a euro basis) over the fourth quarter of fiscal 2008.

-- Gross margin for the fourth quarter of fiscal 2009 was 5.62 percent compared to 4.95 percent in the prior-year fourth quarter. Solid execution on the company's inventory, pricing and freight management practices as well as the recovery of foreign currency exchange losses were contributing factors in the gross margin performance. The results were partially offset by competitive market conditions, particularly in the Americas region.

-- Selling, general and administrative expenses (SG&A) were $222.7 million, or 3.89 percent of net sales compared to $247.3 million, or 3.81 percent of net sales in the fourth quarter of fiscal 2008. The decrease in SG&A expenses, on a dollar basis, was attributable to prudent cost management actions including adjustments to headcount and reductions in payroll related expenses, as well as the decline in the value of certain foreign currencies year-over-year and the associated translation impact. As a percent of net sales, the increase in SG&A expenses was primarily due to the lower level of net sales year-over-year.

-- Operating income in the Americas was $38.1 million, or 1.63 percent of net sales compared to $42.7 million, or 1.56 percent of net sales in the fourth quarter of fiscal 2008. In Europe, the company generated operating income of $63.6 million, or 1.89 percent of net sales compared to operating income of $32.3 million, or .86 percent of net sales in the fourth quarter of fiscal 2008. Both regions executed well in recovering a significant portion of foreign currency exchange losses through gross profit. Stock-based compensation expense is not included in the regional segment reporting results. The expense is presented as a separate reconciling item in the company's segment reporting (see "Supplementary Information" table attached).

-- Cash provided by operations in the fourth quarter of fiscal 2009 totaled $177.0 million. The company continues to enjoy excellent liquidity and financial flexibility with a net cash position of $108.3 million at January 31, 2009.

-- The company recorded $.5 million of minority interest during the fourth quarter of fiscal 2009, representing the company's Brightstar Europe joint venture partner's share of income generated during the quarter.

Fiscal-Year Results

Net sales for the fiscal year ended January 31, 2009 were $24.1 billion, an increase of 2.8 percent from $23.4 billion in the fiscal year ended January 31, 2008. On a regional basis, net sales in the Americas represented 44 percent of net sales and decreased 3.6 percent to $10.6 billion from $11.0 billion in the prior-year.