Trading Statement

Electrocomponents PLC 20 September 2005 Embargoed until 7.00am 20 September 2005 Electrocomponents plc - Trading Update Electrocomponents plc, the major international high-service distributor of electronic, electrical and industrial supplies, is today giving a trading update ahead of its results for the 6 months ended 30 September 2005. The Board expects that Group profit before tax, and one-off costs for the 6 months ending 30 September 2005 will be around 30% below last year. Up to the end of August, Group sales (adjusted for exchange rates and trading days) followed the previously announced pattern with sales growth of around 3%. However, in the first two weeks of September, UK sales have declined from -3% in the period to the end of August, to -6% in September. There has been continued strong growth in North America, Asia and the smaller European markets. Sales in France, Germany and Italy continue to show some recovery. Year-on-year gross margins have declined by around 1.5% points as a result of realigning selling prices, targeted customer discounts and product mix. This decline has occurred throughout most of the Group but the biggest impact remains in the UK. In the UK, one-off costs of around £1.5m have been incurred in this half-year, which will have an annualised benefit of around £2m. UK EBS system testing is progressing well and we are increasingly confident of a successful implementation in the last quarter of this financial year. To achieve this we have increased the level of internal and external support, which has resulted in the forecast revenue costs increasing from £18m to £25m in this financial year. The Board's view of the medium term prospects for the Group has not changed which supports the maintained level of dividend for the next three years. The full results for the six months will be announced on 8 November 2005. International Financial Reporting Standards will be used in reporting these results. There will be a telephone conference call today at 09.00am for analysts and investors. Dial-in instructions are set out below. Enquiries: Ian Mason Group Chief Executive 01865 204000 Simon Boddie Group Finance Director 01865 204000 Diana Soltmann Flagship Consulting 020 7886 8440 Details of telephone dial in instructions: Date: 20 September 2005 UK Time: 08:50am for 09:00 am UK Local Call Dial-In: 0845 140 0165 UK Free Call Dial In: 0800 953 0936 Europe & International Dial-In: +44 (0) 1452 568 061 Canada Toll Free Dial In: 18665 137 175 USA Toll Free Dial-In: 1866 224 2972 Quote Reference Number: 9739195 Chairman: Ian Mason Electrocomponents plc Safe Harbour Statement: This announcement contains certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Electrocomponents plc and its subsidiaries is not warranted or guaranteed. These statements typically contain words such as 'intends', 'expects', 'anticipates', 'estimates' and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although Electrocomponents plc believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, many of which are beyond the control of the Electrocomponents plc, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange

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