SYNNEX Corporation to Sell Majority Ownership Position in Its Japan Su

    Business Editors/High-Tech Editors

    FREMONT, Calif.--(BUSINESS WIRE)--March 28, 2005--SYNNEX Corporation (NYSE:SNX), a global IT supply chain services company, announced today it has signed a definitive agreement to sell its Japan distribution division, SYNNEX K.K., to MCJ Company, Ltd., or MCJ (TOKYO:6670). Under the terms of the agreement, SYNNEX will receive 8,603 shares of MCJ stock for approximately 93% of SYNNEX' approximate 86% ownership in SYNNEX K.K. As part of the sale agreement, SYNNEX will be restricted from selling the MCJ shares for one year from the date of closing of the transaction.
    The sale of majority ownership in SYNNEX K.K. is part of SYNNEX' overall strategy for continued growth in its North American distribution operations where its core business is located.
    The transaction is expected to close before the end of April 2005. Concurrent with the sale, SYNNEX President and CEO, Robert Huang, will become MCJ's Chairman of the Board, a non-executive, part-time position, while maintaining his primary duties at SYNNEX. Mr. Huang will not receive compensation from MCJ in his capacity as MCJ's Chairman or otherwise in connection with the transaction.
    "We believe this transaction is a positive move for both SYNNEX and MCJ," stated Robert Huang, President and CEO of SYNNEX Corporation. "Selling SYNNEX K.K. to MCJ will allow us to apply even greater focused efforts and additional resources in the North American region, where we are predominantly located, providing us with greater opportunities for continued expansion in this market. In turn, with the breadth of product offerings carried by SYNNEX K.K. and its distribution network and reputation for service, MCJ should be able to expand its unique and profitable operating model with this transaction. I look forward to overseeing a smooth transition to the combined MCJ."
    Based on the current market price of MCJ, the value of MCJ stock received by SYNNEX for its 80% stake in SYNNEX K.K. is approximately $20 million. Based on this valuation, the Company will record an after tax gain of approximately $12 million from this transaction in the second quarter of 2005. This gain is subject to change based on final accounting of the transaction, the stock price of MCJ upon closing of the transaction and the ultimate proceeds received upon any liquidation of the MCJ ownership. Once the Company has recorded the investment in MCJ, subsequent changes in MCJ's market value or results of operations could result in non-operating gains or losses in future periods.
    Founded in 1998, MCJ Co. Ltd. is a leading PC build-to-order manufacturer headquartered in Tokyo, Japan. MCJ's branded system, called Mouse, is sold in retail outlets throughout Japan as well as online at www.mouse-jp.co.jp. MCJ became a public company in June of 2004 and its shares are traded on Tokyo Stock Exchange Mother's section. Upon completion of the transaction, SYNNEX K.K. will become a subsidiary of MCJ and continue to operate under the SYNNEX K.K. company name.
    SYNNEX K.K. was established in 1995. The company is headquartered in Tokyo, Japan and is led by Akio Sekido, President. Revenues for fiscal year ended November 30, 2004 and 2003 were approximately $164 million and $181 million, respectively. Net income approximated $479,000 and $288,000, respectively. Mr. Sekido will continue to lead SYNNEX K.K. in his existing role after the transaction is closed. SYNNEX K.K. distributes technology products by world-leading manufacturers such as Intel, Microsoft, Seagate and many others.

    About SYNNEX

    Founded in 1980, SYNNEX Corporation is a global IT supply chain services company offering a comprehensive range of services to original equipment manufacturers, software publishers and reseller customers worldwide. SYNNEX offers product distribution, related logistics services, demand generation marketing and contract assembly and works with the leading industry suppliers of IT systems, peripherals, system components, software and networking equipment. Additional information about SYNNEX may be found online at www.synnex.com.

    Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the anticipated benefits of the sale of SYNNEX K.K. to MCJ, the impact of the sale on SYNNEX' ability to focus greater efforts and resources and SYNNEX' opportunities for expansion in the North American region, the expected financial impact to SYNNEX and accounting of the transaction, and the anticipated closing timeframe. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the ability of SYNNEX to fully realize the anticipated benefits of the sale, competition, economic and other risks associated with the IT industry, satisfaction of closing conditions and other risks detailed in SYNNEX' Form 10-K for the fiscal year ended November 30, 2004 as filed with the SEC and from time to time in SYNNEX' other SEC filings. These forward-looking statements speak only as of the date hereof. SYNNEX disclaims any obligation to update these forward-looking statements.

    SYNNEX and the SYNNEX logo are trademarks of SYNNEX Corporation or its subsidiaries and should be treated as such. All rights reserved. All other company names mentioned herein are trademarks of their respective owners.

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CONTACT: SYNNEX Corporation Sandra M. Salah, 510-668-3715 sandras@synnex.com

KEYWORD: CALIFORNIA JAPAN INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: SOFTWARE INTERNET E-COMMERCE MERGERS/ACQ SOURCE: SYNNEX Corporation

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