INVESTOR DAY 2008 Delivering today while building for the future

Sabrina WeaverDirector,

Investor Relations

WELCOME

8:00 – 10:00 Welcome Sabrina WeaverStrategic Overview Bill MitchellArrow’s Transformation Mike LongGlobal ECS Rich SeveraSupplier Insights Sean Kerins, HPQ/NTAP/VMW

10:00 – 10:15 Coffee Break

10:15 – Noon Global Components Kurt ColehowerSupplier Insights Brian McNally, FSL/NSM Financial Review Paul ReillyFinal Q&A AllClosing Remarks Bill Mitchell

Noon Lunch

AGENDA

SESSION I

SESSION II

Some of the comments to be made during this morning’s session may include forward- looking statements, including statements addressing future financial results, that are subject to a number of risks and uncertainties that could cause actual results or facts to differ materially from such statements for a variety of reasons including, but not limited to: industry conditions, the company’s ongoing planned implementation of its new global financial system and new enterprise resource planning system, changes in product supply, pricing and customer demand, competition, other vagaries in the electronic components and computer products markets, changes in relationships with key suppliers, increased profit margin pressure, the effects of additional actions taken to become more efficient or lower costs, the company’s ability to generate additional cash flow and the other risks described from time to time in the company’s reports to the Securities and Exchange Commission (including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q). Forward-looking statements are those statements, which are not statements of historical fact. You can identify these forward-looking statements by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

SAFE HARBOR STATEMENT

STRATEGIC OVERVIEW

Bill MitchellChairman & CEO

Arrow’s Transformation – 3 Key ElementsDiversification of ECS product portfolio and geographic profile

Drive to achieve economies of scale, geographic expansion (Europe, Asia), new capabilities (software, midmarket) – CHANGE THE GAMEAll aimed at VALUE ADD portion of market

Global ComponentsThe largest components business – $11BnStrong opportunities for growth – customer (SMB), geography (Asia Pac), markets (lighting, military, industrial, medical, transportation), products (PEMCO, analog)

Global Systems ImplementationTimelineBenefits

Financial Strategy Geographic and product line mix impact on our financial targets

KEY AREAS OF FOCUS FOR TODAY

Our vision and strategy for the future

WE POWER THE SUPPLY CHAIN

OUR PRODUCTSUnmatched Line Card> 600 Suppliers

OUR REACHWorldwide Presence50 Countries & Territories

Components - $11Bn* ECS - $5Bn*50 countries and territories

across North America, Europe, and Asia-Pacific

Complex supply chain solutions, demand creation, design/engineering support,

materials mgmt, vertical market expertise, financing

Analog, Discrete, Programmables, Logic, Memory, and PEMCO

SMB focus in broad end markets via OEM’s and

CM’s: Key focus in industrial, automotive,

medical, aerospace

28** countries and territories across North America

and Europe

Complex configuration, vertical market expertise, technical augmentation, solutions labs, net new

demand creation

Mission critical solutions: Enterprise servers, storage,

software, and services

Value Added Resellers (VARs) with SMB focus

serving multiple end markets

Arrow is in the center of a $420Bn market. We touch all geographies, all technologies, and all end markets. We connect key players in unique, value enhancing and sustainable ways

OUR SERVICESArrow = Value Added Services

OUR PRODUCTSUnmatched Line CardApproximately 700

OUR CUSTOMERSDiverse Customer Base140,000 Customers

*2007 sales **Pro forma to include LOGIX

SHARED LEADERSHIP

GROW THE BUSINESS

Pursue opportunities, both

organically and through acquisition, to grow faster than

the market

FINANCIAL STRENGTH

OPERATIONAL EXCELLENCE

Increase efficiency and productivity while ensuring

flawless execution for our business

partners

Consistently generate cash, earn ROIC>WACC and, grow profits faster

than sales

Build the Arrow team to drive forward our

future goals by attracting, training, and retaining the

industry’s top talent

We have the right strategy in place to outgrow the market and achieve industry-leading profitability

ARROW STRATEGY AT A GLANCE

“May you live in interesting times”

Unverified Chinese proverb (or curse)

The current economic backdrop is uncertainCollapse of Bear Stearns; total losses of banks now exceed $300BnDollar fell below ¥100 for first time; record low against EuroSpread between “junk” bonds and American Treasuries exceeded 800 points for the first time in 5 years

The outlook - ???

In response, we continue to manage our business cautiously and prudently, yet we will seize opportunities as they arise

CURRENT ECONOMIC BACKDROP

We have built in flexibility to adjust to changing market conditions

WELL POSITIONED IN CURRENT ENVIRONMENT

We have fundamentally changed the way our company is run

Tech Bust Today

EARNINGS FLOOR

BALANCE SHEET

WORKING CAPITAL

CASH FLOW

SUPPLY CHAIN

$.15

$3Bn in net debt and 65% net debt/cap

WC/Sales of 25%

Cash generation only in down cycles

Volatile patterns

$2-2.50 in an extreme downside scenario

Strongest balance sheet in 10 yrs, net debt/cap ~20%

WC/Sales of 15%

Cash flow positive throughout the cycle

Muted cyclicality

DIVERSE REVENUE STREAM

Segment Revenue ($Bn)

Global Enterprise Computing Solutions Global Components

ECS now represents almost a third of our revenues and further offsets semi cyclicality

2004 2007*

80%

20% 30%

70%

*Includes KeyLink and related procurement agreement revenues for a full year

Our footprint is geographically diverse with a truly global presence

2007 Revenue ($Bn)

$4.1

$4.7$2.4

22%

41%37%

2004 Revenue ($Bn)

$3.4

$3.9

$1.2

14%

46%40%

Asia/PacificEMEASANorth America

Almost 50% of sales are outside of NA

Asia/Pacific components from 14% to 22%

Accretive to OI and ROIC as we reach our targeted level of profitability

US and Europe continue to be vital for design, growth & profitability

2007 Revenue ($Bn)

$5.0$8.6

$2.4

2007 Revenue ($Bn)

$0.8

$3.9

2004 Revenue ($Bn)

$2.2

2004 Revenue ($Bn)

$3.4$6.1

$1.2

82%

18%

57%32%

11%

54%

15%

31%

GLOBAL COMPONENTS

GLOBAL ECS

TOTAL ARROW

DIVERSE REVENUE STREAM

Over the last 5 years*

We grew earnings 5x faster than sales; 85% CAGR

WC/sales decreased more than 40%

Generated more than $2Bn in cash flow

ROIC increased by more than 2.5x

We are not done with our journey

Consistent go-to-market strategies worldwide to enable growth at great than market rates

Leverage global scale to achieve best in class cost structure

ERP to enable large gains in productivity

ALL OF ABOVE = PREMIUM RETURNS

*2002 through 2007

CONTINUED OPERATIONAL IMPROVEMENT

We have executed well and there is more to come

10.9%

3.4%

2002 2007

$7.3$8.5

$10.6 $11.2

$13.6

$16.0

2002 2003 2004 2005 2006 2007

Net Sales ($Bn) ROIC**

17% CAGR 26%

CAGR

Cumulative Operating Cash Flow ($MM)

$0.15

$0.74

$1.97$2.18

$2.92$3.29

2002 2003 2004 2005 2006 2007

Diluted EPS*

85% CAGR

$668$960

$1,148$1,550 $1,671

$2,521

2002 2003 2004 2005 2006 2007

CONTINUED OPERATIONAL IMPROVEMENT

*Represents GAAP measure adjusted to exclude the impact of restructuring and other items affecting comparability. Includes estimated amortization of intangible assets **ROIC = Tax effected op. inc. and equity earnings of affiliates excluding restructuring and other charges – annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM).

Pursue significant organic growth opportunities – still a growth business

Products: PEMCO, analog, storage, software, servicesVertical Markets: lighting, medical, transportation, industrial, defense & aerospaceGeographies: Asia Pacific, Europe

Customers: focus on the “M” in SMBStrategically accelerate growth through acquisitionsBuild best-in-class global capabilities and leverage efficiencies of scale worldwide – Lean Six Sigma makes a huge differenceGlobal systems implementation to enable strategic initiatives and change our value proposition

OUR PRIORITIES FOR THE FUTURE

Our path to achieving our strategic and financial goals is clear

IN SUMMARY…

The best is yet to come

We occupy a unique, value-added space in the supply chain with growth opportunities across every customer segment, end market, geography, and technology

Strategic initiatives are in place to capture profitable growth

We are leveraging global scale to drive agility, responsiveness, and efficiency

We will continue to manage the company prudently, while taking advantage of market opportunities

We occupy a unique, value-added space in the supply chain with growth opportunities across every customer segment, end market, geography, and technology

Strategic initiatives are in place to capture profitable growth

We are leveraging global scale to drive agility, responsiveness, and efficiency

We will continue to manage the company prudently, while taking advantage of market opportunities

ARROW’S TRANSFORMATION

Mike LongPresident & COO

Global ECS: Portfolio and Geographic Expansion

Global Components: Powerful Go-To-Market Strategy and Roadmap

Acquisition Strategy and Integration Case Study

Global ERP Update

ARROW’S TRANSFORMATION: OVERVIEW

Achieve category leadership with KeyLink

ARROW’S TRANSFORMATION: GLOBAL ECS

Value PlatformsVolume Storage Software Europe

Now a $5Bn Value-added Distributor With Significant Scale and Scope

Gates acquisition

Line extension into value space with IBM, HP

Sun line extension

Geographic expansion into Europe & line extension in Software with ATI

Formation of Software Group

(Billings)

1995 1998 2000 2002 2004 2006* 2007

Divestiture of Gates, line extensions in EMC & NetApp, formation of Storage Group

Scale

*Excludes Microtronica, pro forma includes full year of Alternative Technology, InTechnology, and KeyLink billings

Achieve scale in Europe with LOGIX

2008-2010

Leverage powerful software portfolio

Transform global platform with ERP

Drive midmarket initiative

KeyLink Systems Group

March 2007North America – Midrange,

Storage, & SoftwareDecember 2006UK – Storage & Security

Specialist Distribution

November 2006North America - Software

February 2006Canada - Storage

December 2005Europe - Midrange & Security

August 2007Europe - Software

June 2008Europe – Midrange, Storage, & Software

Our strategic acquisitions have strengthened our line card, expanded our geographic presence and increased opportunities in fast-growing segments

ARROW’S TRANSFORMATION: GLOBAL ECS

Large Global

$1.2 Bn*

Medium Sized$9.2 Bn*

Small/Emerging, $800 MM*

Fortune 200

*2007 Arrow sales

• Regionally manage medium-to-large regional customers• Optimize market segmentation• Invest in under-penetrated geographies, technologies and

end markets• Offer broad line card, design support, and supply chain

solutions

• Provide single point of contact at global level• Offer broad line card and supply chain solutions

• Support with global infrastructure to scale many accounts• Help small and emerging customers grow • Robust transfer system to transition high potential accounts• Offer broad line card

Global go-to-market strategy optimized by segment

ARROW’S TRANSFORMATION: GLOBAL COMPONENTS

Large Multi-National Customers – Global Alliance

Core – Medium Customer Focus

SMB/Emerging – Arrow Advantage

Value

Time

Stage 1

Stage 2

2007 2011

Stage 3Sustain One-Arrow-at-Scale through ERP systemExpand “value-added”capabilities

Complete ERP implementations Drive vertical market initiatives on a global basisScale operational performance pilots

Implement consistent go-to-market modelPursue vertical market initiatives Product and geographic growth initiativesLaunch operational performance improvement pilotsDesign ERP system requirements and begin implementations

ARROW’S TRANSFORMATION: GLOBAL COMPONENTS

Roadmap

January 2008India

October 2007Japan

June 2007Australia/NZ

December 2005Taiwan

February 2008Defense/Aerospace

2008 – Pending, Components

distribution business of Achieva Ltd.,

ASEAN and China

Regional and product specific acquisitions in components have expanded our reach in the Asia Pacific marketplace and in fast growing end markets like defense/aerospace

ARROW’S TRANSFORMATION: GLOBAL COMPONENTS

The integration model for ACI was a complete “fold-in” of the businessRetained sales and supplier marketing functionsLeveraged Arrow’s back-office infrastructure to reduce ACI SG&A by more than 50%

ARROW’S TRANSFORMATION: ACI INTEGRATION CASE STUDY

Our integration competencies have been built up over many years integrating over 70 companies around the world

Weeks of Jan 23-Feb 4

CompleteMarch 3

Complete due diligenceComplete systems conversion & W/H transition planInventory auditKey supplier consents

Deal announcedEmployee meetingsKey customer meetingsBegin systems testing

Systems trainingEmployee onboardingKey customer meetings

Final systems check

Warehouse move: 15,000 part number setupsSystems transition: 5,000 customer records transferred

Open for business with no transition issues

Week of Feb 11

Week of Feb 18

Week of Feb 25

Transition March 1/2

DISCIPLINED APPROACH TO ACQUISITIONS

We will continue to use acquisitions as a strategic accelerator

STRATEGIC Does it fit our strategy of expansion into new geographies, technologies or end markets, or bring us scale?

FINANCIAL Does it meet our financial requirements?-Accretive to earnings in the first year-Non-dilutive to ROIC (target of 12.5% by year 3)-Cash flow positive

OPERATIONAL Does it share our passion for operational excellence?

CULTURAL Is there a cultural fit?

We have ample dry powder to execute: solid balance sheet, strong cash flow, and $1.4Bn of committed liquidity facilities in place Competitive advantage

OUR DECISION FRAMEWORK

Arrow ERP is a catalyst for changeOperate locally, leverage globallyCommon optimized processes and best practices drive flexibility

Based on Oracle ERP softwareProgress update

Global Financial System implementation completed in May 2007Successful implementation of Sun business in North America on April 1st

Implementation to date on plan and on budget+ 2007: $70-80MM cash flow impact; $12MM in incr. op. expenses+ 2008: $90-100MM cash flow impact; $25MM in incr. op. expenses+ 2009: $65-75MM cash flow impact; $40-45MM in incr. op. expenses

Global ERP is a critical component of our strategy realization“Today, an average of only 22% of customer interactions, 19% of supplier interactions and 33% of employee interactions are conducted online and processed automatically.” Bob Suh, Accenture’s chief technology strategist

GLOBAL ERP: OVERVIEW

Phased deployment will minimize business disruption risk

20102009200820072006

GLOBAL FINANCE (GFS)

ECSProcess Modeling

& System Build

Implementation

COMPONENTS Process Modeling

& System Build

Implementation

Europe - Asia - North America

Successful implementation in NA Sun business on

April 1st

GLOBAL ERP: ROADMAP

North America - Europe

TodayMultiple finance, logistics, HR, purchasing teams in EuropeInconsistent nomenclature for part identificationQuoting varies by region, often with manual entryChallenges in design win through product lifecycleMultiple pools of inventory with limited visibilityMultiple customer databases with unbalanced workloadVast, untapped market information

Single European platform enabling shared service modelsStandardized parts globally – leverage purchasing volume with visibility to lowest cost globallyStreamlined process, reduced non-value added activities, increased quote win ratioEnhanced design win tracking ability

Single platform to see global inventory, efficiently manage asset base worldwideSingle database enabling productivity gains and decreased time to marketData analytics unseen in today’s marketplace

Significant impact on profitability and returns; strategy enabler

GLOBAL ERP: GAME-CHANGING BENEFITS TO BE REALIZED

*Benefits to be phased in over time, run-rate savings estimated to be achieved by 2011

With ERP

Total anticipated annual savings* = Over $75MMTotal anticipated annual cash flow benefit* = Over $100MM

Rich SeveraPresident, Arrow North

America ECS

GLOBAL ECS

2007 sales of $4.8 billion; 30% of Arrow’s total sales

Presence in 28 countries across North America and Europe*

Over 2,500 employees*

Unmatched line card with unique software capabilities

18,000+ value-added reseller partners* serving enterprise and midmarket customers – the fastest growing segment

SNAPSHOT OF ARROW ECS

F500

Small Business

Enterprise & Midmarket

$120 Billion OpportunityGlobal SMB IT spending increases will be roughly 2% higher

than overall IT spending increases on a worldwide basis**

Target Customer Segment In Enterprise & Midmarket

*Pro forma to include LOGIX **Source: IDC

Global value-added distributor with scale and scope

High Speed Fulfillment to Small, Med,

Large Customers

1-Tier

Micro-Small Customers,Fulfillment for Large

Enterprise

VARs,Direct

Marketers

ARROW2-Tier

“Value”

ARROW2-Tier

“Value”

Internet Pass

Through Companies

2-Tier Broad-line “Volume”

Direct Marketers

All ProductsMission critical

servers, storage, software, services

Commodity PCs, low end servers,

printers

Large Enterprise Customers

VENDORS

Midmarket and

Enterprise Customers

World-class technical and engineering resources

Complex solution-selling capabilities

Solutions product portfolio

Co-investment with suppliers

Access to capital

THE IT DISTRIBUTION LANDSCAPE

ECS leads with a differentiated approach to value distribution

THE OPPORTUNITY

VAR enablement and trainingMarketing and demand generationDedicated resourcesOpportunity managementTechnical consultingIntegration services

Technology LeadershipManufacturing

Market Reach

Channel Enablement

Logistical Support

Product MarketingBrand Management

Product Portfolio Management

Training & EducationEngineering Resources

Solutions InfrastructureProduct Roadmap

Quote & ConfigurationFinancing Solutions

Integration CapabilityOrder Tracking

Solutions SalesMarket penetration

Life Cycle MgmtOpportunity MgmtSu

pplie

r

ECS

Channel Joint Value Proposition

Demand Generation

We support our VAR partners’ go-to-market strategies and help them navigate increasingly complex end-user demands

VALUE CREATION: ARROW’S DIFFERENTIATED MODEL

Collaborative Selling

ARW facilitates introduction of partner to end-user through demand generation campaign in 2004Partner secures foothold for storage solution supported by ARW technical configurationsPartner expands discovery of server requirements supported by ARW

100’s of configurations and re-designs over 2 year periodPartner/ARW jointly pitch and win datacenter redesign project

Virtualization solution on HP SuperdomesARW works with supplier to accelerate procurement to 10 days

Normal lead time is 5 weeksPost implementation, end-user seeks to expand relationship

"Partnership is about understanding and listening to your customer's needs. It's about bringing true value and executing on that value. [Partner] gets it, they get us.” – End-User

Arrow and a premier North American-based solutions provider working together on a $20MM communications opportunity

Strong SMB market

GlobalizationVirtualizationCompliance/ security

Increasing supply chain complexity

IDC estimates 5%-7% SMB market growth through 2010Customers and

vendors demanding more global solutionsIDC estimates

only 5% of servers are virtualized Continued

demand for storage and security products and solutions

VARs/end users need assistance navigating complexities

MARKET DRIVERS

Favorable market dynamics for continued growth

SMB Hard Target*SMB IT spend expected to grow faster than worldwide corporate IT spending in medium termECS is focused on enterprise and midmarket components of SMBOur current geographic footprint covers high opportunity SMB geographies

GEOGRAPHIC COVERAGE

Source: IDC *SMB includes firms <1,000 employees

5%11%

14%28% 48%34%

39%13%

ECS geographic footprintSMB % Total CompaniesSMB % of IT Spend

North America

Latin America

EMEAAPAC

2%6%

Japan

Expanding into attractive markets aligned with our strategy

3737

MIDMARKET INITIATIVE

Fortune 500

Large Enterprise

Medium Business

Small Business

End-Users

Solutions

Vertical Targets

Infrastructure

Demand Generation

Enablement (Core value-add)

Marketing, Technical Support, Back-office, Financing, Education, Vendor Linkage

40 new end-to-end solutions60 net new VARs recruited YTD

50,000 companies targeted Focus driven by IT dependencies

Dedicated resourcesCRMData warehousing

Financial ServicesHealthcareManufacturing & Distribution

Accelerating success in the midmarket

Network

Desktop

Server

Storage

Impa

ct o

f Virt

ualiz

atio

n

Software Hardware

ECS Product Coverage

“… virtualization begins a process that will extend this technology phenomenon far beyond its current general role as a tool for server consolidation.” - IDC

Enables multiple “virtual”servers to run on a shared machineTypical selling opportunities are linked to centralized data center installationsVirtualization drives incremental opportunities across the ECS portfolio (software, new storage, thin client)

VIRTUALIZATION

Next chapter in server consolidation with implications for broader portfolio

2005 2006 2007

VIRTUALIZATION

Incremental Sales From Virtualization

$400MM+ Software

Security/ Network

VMware, Citrix, Datacore, Vizioncore, Platespin

Nokia, Scriptlogic, ChipPC, Thinstall, Blue Coat, Checkpoint, Riverbed

Storage Netapp, HP, IBM, EMC, Sun, Hitachi, Brocade

Servers HP, IBM, Sun

Rapid growth in VMware and Citrix

Additional “drag-along” sales in software, storage, and servers

“Drag-Along” Upsides

Opportunities across the portfolio

Servers

Services

Storage

SoftwareHigh growth product segment with combined worldwide Y/Y growth of 23% in 2007*

Solu

tions

Sta

ck

BALANCED PORTFOLIO: STORAGE

*Pro forma for Alternative Technology, InTechnology, and KeyLink (excluding the related procurement agreement sales)

Investments in storage are yielding benefits in rapid revenue growth

BALANCED PORTFOLIO: SOFTWARE AND SERVICES

Follow the wire to your solution

Authentication

Access/Infrastructure

Security

Thin Client

Virtualization

73 Pre-sales engineers

38 Consulting & technical engineers

7 Solutions Centers

Over 400 certifications

Solutions and Services 100% Dedicated To and Thru our Partners

Data CenterLAN

InfrastructureEdge

Wireless or Wired

BranchOfficeSOHO

MobileUser

DisasterRecovery

Site

WANWANInternetInternet

Technical Capabilities Solutions

Arrow’s software group is now a $1 billion business

49%

12%

26%

13%

Volume 0-$2,999

$3,000-$5,999

$6,000-$9,999

$10,000-$24,999

Mid-Range $25,000-$49,999

$50,000-$99,999

$100,000-$249,999

$250,000-$499,999

High-End $500,000-$999,999

$1.00m-$2.99m

$3.00m+

Uni

x

Win

dow

s

Linu

x

i5/O

S

z/O

S

Net

war

e

Oth

er

Category ASV

Volume

High-End Volume

Mid-Range

High-End

Percent of Server Spend**ECS target product market is Mid-Range with some presence in High-End and High-Volume

$10,000-$24,999

$25,000-$499,999 <$9,999

>$500,000

Server Price Bands*

ECS Server Focus

ECS SERVER TARGET MARKET

ECS server focus remains in mid-range servers

*Source: IDC **2007 worldwide IT server spend via indirect channel

Industry Standard Servers

Mid Range

Super Computing & Mainframe

Value channel will continue to be the best route to market for this product setVirtualization and open architecture create incremental opportunities in ECS installed base

2007 2008 2009 2010 2011 2012

Unix i5/OS Windows Linux z/OS NetWare Other High-End Volume High-End

Mid-Range Server Spend Via Indirect Channel**CAGR (5yr)

2.6%

1.7%

IT Spend (2012)

$1.6Bn

$5.2Bn

Servers continue to be a portfolio play for ECS and we expect to continue to outgrow the market

Mid Range Unix

Mid-Range Other

High Volume

High End*

2.8% $3.4Bn

-4.7% $1.0Bn$10.4Bn

$11.2Bn $11.1Bn $11.1Bn $11.1Bn $11.2Bn

ECS SERVER TARGET MARKET

*High-end servers include only products between $500,000 to $999,999 in ASV **Source: IDC

Mid-range servers and UNIX provide a solid base for our solutions

PORTFOLIO TRANSFORMATION

21%

31%

12%

33%

% of 2007 Net Sales

$1.8Bn

$5.1Bn

Proprietary Servers

Industry Standard

Storage

SoftwareEvolving to a diversified portfolioInvestments in software are key to solutionsSteady gains in storageRapid growth in industry standard servers

Product Mix Comparison (Net Sales)

*

*Includes KeyLink and related procurement agreement revenues for a full year

1.01.7

0.5

1.6

1.1

0.6

0.1

0.2

2004 2007Proprietary Servers Industry StandardServices StorageSoftw are Other

We have evolved the product portfolio to provide a total set of solutions

IN SUMMARY…

Balanced portfolio with a strategic line card – outstanding growth opportunities in a highly differentiated model

Servers are a foundational component of our model

European expansion offers new growth opportunities, especially in Eastern Europe

Storage and Software growth will accelerate

“Follow the wire” brings more value-adds in security, additional infrastructure, and virtualization

Servers are a foundational component of our model

European expansion offers new growth opportunities, especially in Eastern Europe

Storage and Software growth will accelerate

“Follow the wire” brings more value-adds in security, additional infrastructure, and virtualization

SUPPLIER INSIGHTS

ModeratorSean Kerins

VP Storage Group, ECS

Guest PanelistsHewlett Packard

Frank RauchVP, Solution Partners Organization

NetAppPaul Mayes

WW Distr. Sales Director, Channel Sales

VMwareSteve Houck

VP WW Channel Sales

COFFEE BREAK

Kurt ColehowerPresident, Arrow North American Components

GLOBAL COMPONENTS

2007 Revenue $11.2Bn

$4.1

$4.7$2.4

22%

41%37%

Presence in 50 countries and territories across North America, Europe, and Asia-Pacific

Market share leader in North America and Europe, top player in Asia

Over 120,000 customers across all end markets and geographies; no one customer > 2% of sales

Product split: 68% semi, 23% PEMCO, 9% computing/memory

60-75% of our customer base uses one or more value-added services

Ship over 36,000 line items per day and manage over 1 million part numbers

Our Global Components business provides value-added services for OEMs and EMS companies

North America

EMEASA

Asia/Pacific

ARROW GLOBAL COMPONENTS

Computing/Memory* 9%

Discrete/Logic 20%

Passives 10%

Electromechanical 5%

Microcomponents* 13%

ASIC/Application Specific/Opto 11%

Connectors 8%

Analog 24%

We have a broad technology portfolio with more than 600 suppliers

*Primarily MCU/MPU and non-DRAM memory

UNMATCHED LINE CARD TOUCHING ALL TECHNOLOGIES

$0

$50

$100

$150

$200

$250

$300

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

($ in

Bill

ions

)Growth has slowed, but is still positive

GLOBAL COMPONENTS TOTAL AVAILABLE MARKET

Source: Worldwide semiconductor sales from the Semiconductor Industry Association

Semi forecasts for 2008 vary widely from 3% to 12%

2004-07 CAGR = 7% or 2x GDP

Favorable market dynamics for continued growth

Decreasing time-to- market

Increasing electronic content

Strong small and medium market

Customers/ suppliers need help in navigating the current business environment

Customers/ suppliers need flexibility and supply chain efficiencies to meet demands for reduced time-to-market

Strong demand from increasing electronic content and conversion from mechanical to electronic

Small and medium-sized customers expected to outgrow market

Increasing supply chain complexity

MARKET DRIVERS

Product growth opportunities: Analog

GLOBAL STRATEGY

$2Bn global business with strong focus on demand creationOpportunity

Global analog market 2007-12 revenue CAGR of 6-11%*Strong, consistent demand from broad base of end marketsConversion from mechanical to electronic Increasing electronic contentPenetrate new customersAnalog products align well with vertical market initiatives

*Source: Gartner and Databeans

Product growth opportunities: Passives, electromechanical, and connector products (PEMCO)

GLOBAL STRATEGY

$2Bn global business with #1 market positionTop 2 player in every major PEMCO technology5-yr sales CAGR of 16% organically

Capacitors 16%

Resistors 6%

Frequency Control 2%

Magnetics 2%

Circuit Protection 5%

Relays 6%

Thermal Mgmt 5%

Switches 7%

Power Products 6%

Comm Connectors 34%

Mil/Ind Connectors 10%

2007 PEMCO DTAM*

Passive ConnectorElectromechanical

OpportunityMarket share less than in semisRationalizing distribution partnerships is a positivePenetrate new customers Expand franchises into AsiaLeverage under-penetrated technologies

*Source: Independent sources, public supplier and competitive data

Industrial

Defense/Aerospace

Lighting

Medical

Transportation

Vertical market opportunities

GLOBAL STRATEGY

Markets that are growing in our two largest regions: NA and EuropeUnder penetrated todayClassic low volume – high mix markets that require specializationFit well with Arrow’s capabilities

$4Bn market in North America and EMEASA*Applications: factory automation, conveyor, package machinery, food processing equipment, industrial control, etc.

Customer needs weighted towards higher margin PEMCO productsSupply chain is highly fragmented with limited offerings

*Source: Gartner

Arrow IndustrialArrow Electronics North American Components

Vertical market opportunities: Industrial

GLOBAL STRATEGY

Why is this a good opportunity for Arrow?

Arrow Industrial provides differentiated engineering support for small to mid-tier OEM’s and emerging industrial equipment manufacturers

Vertical market opportunities: Aerospace and Defense

Arrow Military/AerospaceArrow Electronics North American Components

GLOBAL STRATEGY

Why is this a good opportunity for Arrow?Continued growth in defense and aerospace marketStrong growth in homeland security programs

Satellite, communications, anti-terrorist applicationsSophisticated electronic solutions and complex designStringent quality and performance requirementsObsolescence management

Vertical market opportunities: Aerospace and Defense

Arrow is the only broadline provider of components and value-added services focused exclusively on serving the needs of the A&D customer base

GLOBAL STRATEGY

Arrow Military/Aerospace$850MM business with unique military expertise

#1 position globally

Leading market share in many technology segments including discretes

Demand creation expertise: 1,200+ design wins in 2007 and growing

ACI acquisitionRevenue CAGR of 20% in last 5 yearsBrought scale, strong supplier and customer relationships, and top talent

LED market expected to nearly triple in a six year span, from $4.2 billion in 2006 to $12.3 billion by 2012*

Fragmented global marketplace

Under-penetrated by distribution

No dominant supplier

High electronic content and design complexity

*Source: iSuppli

Vertical market opportunities: Lighting

GLOBAL STRATEGY

Why is this a good opportunity for Arrow?

Vertical market opportunities: Lighting

http://lighting.arrow.com

GLOBAL STRATEGY

Arrow Global Lighting InitiativeProvide LED alternatives to incandescent, halogen and fluorescent lightingHelp customers navigate complexities of new lighting technology with wide range of solutionsOver 1,200 customers; 50% new to distributionExpanded line card to 12 suppliers2005-07 sales CAGR >50%

Extensive line card, unsurpassed supply chain management and design services, and experienced technical team to assist customers as they evolve and expand

Vertical market opportunities: Medical

$6B Global Market in 2007 with a 12% CAGR through 2012* Strong growth in digital imaging and storageIncreasing electronic contentLocal design and manufacturing necessaryInvestment activity by venture capital driving emerging customer base

0% 5% 10% 15% 20% 25% 30% 35%

X-RayElectrocardiogram

PacemakerTransport

Cholesterol MonitorHearing Aid

Other MedicalBlood Pressure Monitor

PET ScannerMRI Scanner

Digital ThermometerGlucose Meter

CT ScannerBone Density Scanner

Lab EquipmentInfusion Pump

Ultrasound CartsOther Imaging

External DefibrillatorOther Handheld

Ultrasound PortablesTelemetry

Other Implantable DevicesUltrasound Peripheral

Worldwide Medical Electronics Revenue CAGR Through 2012 by Application

*Source: Databeans Medical 2007 **Source: Technology Forecasters

GLOBAL STRATEGY

Why is this a good opportunity for Arrow?

Vertical market opportunities: Medical

Consumer / Portable

Imaging Diagnostic & Therapy

ImplantableArrow Medical InitiativeAct as subject matter experts to aid with stringent government regulations and certificationPlay a key role at the front end of the design cycleBalance quality and regulatory compliance with time to market needsIdentified over 8,000 medical device customers in NA aloneIncreasing demand for services and support from customers in this specialized market

GLOBAL STRATEGY

$28Bn global market* Under penetrated by distribution25% of vehicle cost is from electronic content, approaching 40% by 2010**Requires engineering support and complex solutions

*Source: Gartner **Source: SAE International

Vertical market opportunities: Transportation

Occupant ComportLighting

Driver Protection

Powertrain

InfotainmentNavigation

Body Electronics

ABS Breaking

GLOBAL STRATEGY

Why is this a good opportunity for Arrow?

Arrow Transportation GroupDedicated organization focusing on the needs and requirements of the global transportation marketTechnology experts driving true demand creation Quality experts (NAFTA, PPAP)Generating 250 design wins annuallyTargeting higher margin small and medium-sized customers

Vertical market opportunities: Transportation

GLOBAL STRATEGY

Automotive Heavy Truck

Construction

Marine IndustryBus & Coach

Agriculture

GLOBAL STRATEGY

Geographic opportunities: Asia Pacific

Asia Pacific accounts for nearly 50% of total electronics spend in the world*Driven by transfer business and indigenous consumption

Domestic consumption became the biggest driver of GDP for the 1st time in 7 yrs

Demand for value-added services is growing Market still fragmented, but continues to consolidate**

Top distributors are benefitting

*Source: Technology Forecasters **Source: Independent sources, public supplier and competitive data, regional intelligence; excl CPU/DRAM

MARKET SHARE: TOP 10 DISTRIBUTORS

MARKET SHARE: TOP 3 DISTRIBUTORS2002 2007

34% 48%

20072002

18% 25%

$658$820

$1,170

$1,466

$2,382$2,449

$0

$500

$1,000

$1,500

$2,000

$2,500

2002 2003 2004 2005 2006 2007

Sales ($MM)

GLOBAL STRATEGY

Transformation in Asia PacificEntry into Japan with UEC acquisition; Hynetic (India)

and Achieva (ASEAN Region and China) in 2008

UltraSource acquisition expands presence in Taiwan

Sales grew more than 3.7x in last 5 years

Organic 5 year CAGR of 18%

Expanded footprint to 52 sales offices in 12 countries/territoriesProfitability increased almost 9x in last 5 yearsContinue to move forward with customer segmentation and profitability initiatives

OI%Target

2007

2002

Arrow Asia Pac surpasses $1Bn in annual sales

Broad, diversified customer and supplier baseStrong global footprint/information platforms for migrating supply chains

Transfer business doubled in the last yearAward winning levels of customer serviceFinancial strength

Engineering focus500 global field application engineers

Demand creation ability and design win performanceProvide flexible solutions to complex supply chain challenges

Our business partners choose Arrow for many reasons

WHY ARROW?

Market Access & Dependability

Unmatched Solutions Strength

Arrow Global Components

IN SUMMARY…

We occupy a unique, value-added space in the supply chain with capabilities across all geographies, technologies and end markets

Market share leader in North America and Europe and top player in Asia

See continued growth opportunities across product lines, end markets, and geographies in a market that grows 2-3x GDP growth

Focused in the SMB sweet spot with diversified customer and end market exposure and robust engineering capabilities

Investing in the future growth of our business while continuing to operatemore efficiently and achieve our long-term financial target

We occupy a unique, value-added space in the supply chain with capabilities across all geographies, technologies and end markets

Market share leader in North America and Europe and top player in Asia

See continued growth opportunities across product lines, end markets, and geographies in a market that grows 2-3x GDP growth

Focused in the SMB sweet spot with diversified customer and end market exposure and robust engineering capabilities

Investing in the future growth of our business while continuing to operatemore efficiently and achieve our long-term financial target

SUPPLIER INSIGHTS

ModeratorBrian McNally

President, Global Alliance and Supply Chain

Guest SpeakersFreescale Semiconductor

Henri RichardSVP, Chief Sales & Marketing Officer

National SemiconductorMike Noonen

SVP, Worldwide Marketing & Sales

Mike Noonen Senior Vice President

Worldwide Marketing & Sales National Semiconductor

Arrow Investor Day

National Helped Create The Analog Semiconductor Industry

Today National is Reinventing Analog

Optimal Performance at the Lowest

Power

PowerWise® Solutions Reduce Heat & Energy Consumption

• Power-Saver equalizers

• Synchronous switching regulators

• High-voltage PWM controllers

• High-precision temperature sensors

PowerWise® Solutions Extend Battery Life

• Adaptive Voltage Scaling technology

• Adaptive RF Power • RGB LED backlighting

• Mobile Pixel Link• Integrated Class D audio subsystems

• Analog Noise Reduction Technology

PowerWise® Solutions Increase Reliability

• High-speed A/D converters

• Operational amplifiers

• Precision Timing devices

• Synchronous switching regulators

Distribution Is Crucial To National

Distribution54%

Direct46%

Top Reasons Arrow Is A Great Partner For National

1. Worldwide Synergy and Efficiencies

2. Engagement With All Customers

3. Market Segment Expertise

4. Together We Offer Complete Solutions

Arrow Has Worldwide Synergy and Efficiencies

• Organized to be global without compromising regional influence

• Disciplined approach to inventory and asset management

• Collaborative and effective information management

• Ability to track designs worldwide from concept to production

Arrow Actively & Efficiently Engages With All Customers

Worldwide Global Customers

1000s of Mid-size Customers

10,000s of Small and Emerging

Customers

Arrow Alliance

Arrow Electronic

Components

Arrow Advantage

Arrow Has Market Segment Expertise and Resources

Arrow makes it easy for our mutual

customers to get the right solution and assistance

Arrow Offers Our Mutual Customers Complete Solutions

Thank You

TM

Freescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Freescale SemiconductorArrow Financial Analysts Meeting

5 June 2008

Henri RichardSenior Vice President, Chief Sales and Marketing Officer

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Freescale’s Unique Strengths

• 50+ years of innovation

• Leadership in growing Markets

• Broad Product & Technology Portfolio

• Deep Customer Relationships

• Flexible Manufacturing Strategy

• Significant R&D Investment

• Talented, Global Workforce

• Strong Financial Position

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

• Increasingly complex application requirements• Increasingly complex customer models• Compressed time to market requirements• Application support, not device support, is

required• More complete solutions are demanded• The competition continues to increase,

improve and disrupt• Internet both provides and limits access to

design engineers

Market Realities: The Call for Teamwork

"Individuals play the game, but teams beat the odds.”– U.S. Navy SEALs

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Teamwork and Intelligence: Arrow and Freescale

Together, we provide: • Financial strength, inventory and customer credit• Wide customer base and reach• Demand creation capabilities• AP market presence to capture and leverage

design activity• New technology solutions for target market

segments• Deep customer and market knowledge • Critical technology and technical expertise

TM

“Talent wins games, but teamwork and intelligence wins championships.”

–Michael Jordan

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

A Powerful Market Combination: Arrow and Freescale

NetworkingWirelessConsumerIndustrialAutomotive

• Safety• Environmental• Comfort/

Entertainment

• Connectivity• Medical/Health• Lighting,

Building Automation

• Low Power

• Portable devices• Health• Energy

Management• Home

entertainment• Gaming

• Cellular & Portable

• Media convergence

• Cellular evolution of broadband data

• Increase in # of Internet households

• Ubiquitous connectivity

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Together, we will:• Heighten focus on fastest growing market segments• Seek opportunities to leverage portfolio across markets • Better leverage geographic presence to meet supply and demand• Continually improve supply chain efficiency, worldwide coordination • Maintain investment in skilled, talented teams• Provide unparalleled customer support• Exceed industry growth expectations

• Freescale: 2X by 3 in key growth segments

Transforming the Market: Arrow and Freescale

TM

TMFreescale Semiconductor Confidential and Proprietary Information. Freescale™ and the Freescale logo are trademarksof Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2008.

Paul ReillySenior Vice President and

CFO

FINANCIAL REVIEW

$7.3$8.5

$10.6 $11.2

$13.6

$16.0

2002 2003 2004 2005 2006 2007

Driven by both organic growth and acquisitions

Total Sales ($Bn)

17% CAGR

STRONG REVENUE GROWTH

>12% CAGR Ex

Acqs*

*Excluding baseline KeyLink, Alternative Technology, InTechnology, DNS, Ultra Source, Disway, and Pioneer

14.9%

9.9%

2002 2007Operating Exp*/Sales ($MM)

*Represents GAAP measure adjusted to exclude items affecting comparability

In the last five years we have reduced our cost structure by over 30% while sales have grown nearly 120%

OPERATING AT GREATER LEVELS OF EFFICIENCY

24.5%

15.2%

2002 2007

WC/Sales*

9.8%

27.8%

2002 2007

ROWC**

Improved operating efficiency and focused management of working capital has driven improvements in all metrics

*Inventory + AR - AP at end of period/ sales **ROWC = operating income excluding restructuring and other charges/(Avg Inv. + Avg AR +Avg AP) ***ROIC = Tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)

IMPROVED WORKING CAPITAL PERFORMANCE

3.4%

10.9%

2002 2007

ROIC***

Arrow Today

Increased opportunities in ECS

Now 1/3 of our revenue base

More flexible cost structure

$210MM in cost savings since ’03

Increased compensation variability

Earnings floor established

Diverse geographic footprint

Broad customer base in non-traditional end markets

140,000 customers, no one customer > than 2% sales

CF positive throughout the cycle

Book value of $30 per share

Increased opportunities in ECS

Now 1/3 of our revenue base

More flexible cost structure

$210MM in cost savings since ’03

Increased compensation variability

Earnings floor established

Diverse geographic footprint

Broad customer base in non-traditional end markets

140,000 customers, no one customer > than 2% sales

CF positive throughout the cycle

Book value of $30 per share

Structural Semi Industry Changes

More disciplined approach to inventory

Inventory days at lows throughout the supply chain

More rational capital spending and utilization rates

Increased use of foundries creates greater flexibility

Semi industry growing at a more stable rate

More disciplined approach to inventory

Inventory days at lows throughout the supply chain

More rational capital spending and utilization rates

Increased use of foundries creates greater flexibility

Semi industry growing at a more stable rate

We have reduced our earnings volatility

WELL POSITIONED TO PERFORM THROUGHOUT THE CYCLE

WELL POSITIONED TO PERFORM IN THE FACE OF A WEAKENED ECONOMY

*Source: First Call estimates

In millions except per share data 2008E*Downside Scenario Assumptions

Sales $16,400 $14,760 Sales decline of 10%

Operating Expense $ $1,675 $1,610 Variable expenses at 4% of sales% 10.2% 10.9%

Operating Profit $ $660 $492% 4.0% 3.3%

Interest Expense $100 $95 Interest savings from lower WC

Net Income $390 $277

EPS, Diluted $3.12 $2.21

Shares Outstanding 125 125

Cumulative Operating Cash Flow($MM)

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000

2001 2002 2003 2004 2005 2006 2007

We have generated cash for six consecutive years totaling $4.2Bn

Capital Allocation Strategy

Invest in the business

Acquisitions to strategically accelerate growth that meet our value criteria

Evaluate options to return value to shareholders

Maintain investment grade rating over the long-term

CASH FLOW POSITIVE INDEPENDENT OF MARKET CONDITIONS

STRONGEST BALANCE SHEET IN TEN YEARS

The health of our balance sheet is a competitive advantage

Decrease in net debt & net debt to cap to lowest level in ten years

Access to $1.4Bn in committed liquidity facilities

Conservative debt maturity profile with next maturity not until 2010

ROIC* above WACC for 17 consecutive quarters

Rated BBB- with a stable outlook by all three rating agencies

*ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)

$0.10

$0.44$0.49

$0.68$0.74

$0.79

Q1-03 Q1-04 Q1-05 Q1-06 Q1-07 Q1-08

51% CAGR

*Represents GAAP measure adjusted to exclude items affecting comparability

$0.15

$0.74

$1.97$2.18

$2.92

$3.29

2002 2003 2004 2005 2006 2007

85% CAGR

(Diluted earnings per share, excl. special charges*)

RESULTING IN SIGNIFICANT EARNINGS EXPANSION

$184

$606

2002 2007

$5.7

$11.2

2002 2007

Sales increased 14% in the last five years

Taken out over $40MM in costs through targeted initiatives in the past three quarters

Operating expense/sales decreased almost 40% in the last five years

Grown earnings almost 2x faster than sales

Operating margin* near low end of target range

Return on working capital in excess of 25%

Net Sales ($Bn)

*Represents GAAP measure adjusted to exclude items affecting comparability

14% CAGR

27% CAGR

GLOBAL COMPONENTS OPERATING PERFORMANCE

We continue to execute well and produce industry-leading operating performance

Operating Income ($MM)*

$58

$202

2002 2007

$1.5

$4.8

2002 2007

We continue to outgrow the market and invest in future growth

Sales increased 25% in the last five years, or >12% organically

Operating margin* of 4.2% in 2007 at industry-leading levels

Legacy business already at targeted operating margin

Continue to invest in strategic growth initiatives including software, midmarket, and geographic expansion

Return on working capital in excess of 75%

*Represents GAAP measure adjusted to exclude items affecting comparability

25% CAGR

Operating Income ($MM)*

28% CAGR

GLOBAL ECS OPERATING PERFORMANCE

Net Sales ($Bn)

2007 ($MMs)ECS

Traditional Acquisitions Total

Sales $2,251 $2,510 $4,761

Operating Income* $112 $90 $202

Operating Margin* 5.0% 3.6% 4.2%

*Excludes special charges

THE ECS STORY

Our traditional business is performing very well and is within target rangeGP% in server lines has actually increased over the last decadeSoftware expansion has diluted OI% by 20 bps, yet returns are favorableEuropean expansion has impacted progress to achieving financial targets

Diluted 2007 OI% by 30 bps

ACQUISITION SCORECARD

Acquisitions in ECS Europe and ERP are a current drag on ROIC*

ERP implementation: 60-70 bps

European acquisitions: 30-40 bps

ROIC* excluding European acquisitions and ERP = 12.2% in 2007

*ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)

Ultra Source KeyLink Alt Tech InTech DNS

Announced Accretion NA $.15-.17 $.02-.04 $.02-.04 $.06-.09

Actual Accretion Exceeded Exceeded Met Met Below

ROIC* exceeds WACC? YES YES YES YES NO

Investor Day 2007 Targets

Investor Day 2008 Targets

Operating Income*

Global Components 5.7% - 7.0% 5.7% - 7.0%Global ECS 4.9% - 5.3% 4.6% - 5.3%

Consolidated 4.6% - 5.8% 4.5% - 5.8%

WC/Sales $ $.15 - $.17 $.14 - $.15

ROIC** 12.5% - 15.0% 12.5% - 15.0%

*Excludes special charges **ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)

FINANCIAL STRATEGY UPDATE

Global Components

*Excludes special charges

Global leverage

THE ROADMAP TO ACHIEVING OUR FINANCIAL TARGETS

2007 Operating Margin* 5.4%

TARGET 5.7-7.0%

ASIA PAC GLOBAL LEVERAGE

SMB

Increasing profitability in Asia/PacificContinued initiatives to change customer mix will drive increased margins

+ Achieving targeted profitability for the region adds 30-35bps to Global OI% and achieves low end of global target range

Leverage global scale and create best-in-class shared service functionsGlobal ERP to standardize processes and enable performance improvement

Strategic focus on small and medium-sized businessesThis customer base typically has a 300bp gross margin premium

Global ECS

*Excludes special charges

Global leverage

THE ROADMAP TO ACHIEVING OUR FINANCIAL TARGETS

2007 Operating Margin* 4.2%

TARGET4.6-5.3%EUROPE GLOBAL

LEVERAGEMIDMARKET

Getting Europe ECS to scale

LOGIX to bring needed scale & talented management

Top priority for Andy Bryant

Cost structure being evaluated

Global ERP to enable performance improvement and revenue enhancement

Leverage global scale and provide ECS with a tailored system

Provide rich data analytics unseen before in the marketplace to further enhance value-added capabilities

Midmarket initiative

Accretive to business model as we ramp up capabilities

$7.78$6.63 $6.31

$5.12$3.35

$0.03

($4.66)

$11.24

$8.44

($5.91)

ARW

*Cumulative EPS for the last five years beginning April 1, 2003; Source: company financial statements; Represents GAAP basis through 1Q08; Companies included: AVT, IM, SNX, TECD, BHE, CLS, FLEX, JBL, SANM

Earnings Per Share*

We have generated industry leading EPS in the last five years

CONSISTENT GENERATOR OF EARNINGS

We are well positioned to perform throughout the cycle

Diversified revenue stream

Opportunities for organic growth

More flexible cost structure

Strong balance sheet with significant liquidity

Consistent cash flow generator

ROIC*>WACC

We are continually looking for ways to operate our business more efficiently

We are committed to achieving our financial targets and in turn to increasing shareholder value

Our financial discipline and strategic vision will serve us well

IN SUMMARY…

*ROIC = Annualized, tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - annualized minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM)

FINAL Q&A

CLOSING REMARKS

Bill MitchellChairman & CEO

*Represents CY2007 ROIC for ARW and comparable companies (AVT, IM, SNX, TECD, BHE, CLS, FLEX, JBL, SANM); ROIC = Tax effected op. income and equity in earnings of affiliates excluding restructuring and other charges - minority interest/(Avg Debt + Avg Equity – Avg Cash over $150MM); Source: Company financial statements

We generate industry-leading ROIC

2007 Return on Invested Capital (%)*

ARROW: STRONG RETURNS

10.9

11.5

10.0

7.9 7.6 7.6 7.4 7.1

3.6 3.5

ARW

11.412.2

Ex. ERP

Ex. ERP & Acq.

*Prices as of 5/30/08; Comparable companies include AVT, IM, SNX, TECD, BHE, FLEX, JBL, SANM, CLS; 2008 EPS from First Call

11.8 11.8 11.711.0

10.59.8

9.38.9 8.8

ARWP/E Ratio*

14.2

Arrow’s valuation has significant upside

ARROW: AN ATTRACTIVE VALUATION

DIVERSIFIED BUSINESS MODEL Reduced exposure to semi cyclicality via ECS expansion

GLOBAL REACH Now operating in 50 countries and territories

GROWTH OPPORTUNITIES Across products, markets, and geographies

DISCIPLINED ACQUISITION STRATEGY Capitalized on market opportunities to strategically accelerate growth; immediately accretive to EPS

LEVERAGING GLOBAL SCALE $210MM of costs taken out over last 5 yrs; ERP potential

SEASONED MANAGEMENT Experienced team with > 25 years of industry experience

ARROW: AN IMPRESSIVE SCORECARDSTRATEGIC VISION

FINANCIAL DISCIPLINE

STRONG EARNINGS GROWTH 85% EPS CAGR in last 5 yrs; 5x faster than growth in sales

HEALTHY BALANCE SHEET Net debt at lowest level in 10 yrs

IMPRESSIVE ASSET MANAGEMENT WC/sales decreased to record low level of 15%

& CASH FLOW PERFORMANCE 5 consecutive yrs of CF generation during period of growth

ROIC > WACC For 17 consecutive quarters – unprecedented

INVESTOR DAY 2008 Delivering today while building for the future