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Digi-Key Corporation is Now a Billion-Dollar Company

The electronic components distributor, recognized for having the industry's broadest selection of electronic components available for immediate shipment, today announced it surpassed $1 billion in worldwide sales in 2010. While the company anticipated reaching this milestone in 2010, the achievement came ahead of schedule.

"Reaching and surpassing $1 billion in annual worldwide sales is a major accomplishment for Digi-Key and one for which we have diligently worked," said Mark Larson, Digi-Key's president and COO. "Digi-Key has grown by an average of 15% each year since 1987. This is real, organic growth - not the result of acquisition, but growth based on Digi-Key's expanded reach to customers around the globe."

The privately held electronic component distributor was on track to reach $1 billion in sales in 2008 before the global economic recession caused sales to decrease in the last half of the year. Despite the economic downturn and a decrease in sales of nearly 6% for 2009, Digi-Key gained market share in the down market. Some of Digi-Key's publicly held competitors experienced far greater sales decreases, making it more difficult for them to 'bounce back' when the economy began to revive.

"Digi-Key gained market share in the down market of 2009 because our decrease in sales was about half that of the electronic distribution industry. Digi-Key is gaining share in the up market of 2010 as our sales increase at a rate almost twice that of the industry. We are really outdistancing the pack when it comes to gaining market share in this industry," Larson said.

As of today, Digi-Key's worldwide sales have increased by more than 75% year over year. The company is projected to reach nearly $1.5 billion in worldwide sales for 2010.

"Much of our sales growth can be attributed to Digi-Key's expanding presence online," said Tony Harris, Digi-Key's chief marketing officer (CMO). "We are targeting several initiatives to give our customers a myriad of resources for product information, education, application, and selection on our website, www.digikey.com, with more to come in the future."

Digi-Key's growth is partially attributed to increased sales in Brazil, China, Europe, India, Japan, Mexico, Russia, and other regions around the world.

Below is a list of several countries in which Digi-Key experienced increased sales year over year for January through June 2010:

• Brazil - increase of 68.4%
• China - increase of 342.76%
• Estonia - increase of 99.22%
• Germany - increase of 163.22%
• Hungary - increase of 216.25%
• India - increase of 61.88%
• Japan - increase of 139.92%
• Lithuania - increase of 190.02%
• Mexico - increase of 109.89%
• Romania - increase of 256.34%
• Russia - increase of 119.75%
• Slovakia - increase of 224.97%
• Spain - increase of 137.03%
• Switzerland - increase of 198.91%
• Ukraine - increase of 80.74%
• United Kingdom - increase of 113.71%

Results from the May 2010 EE|Times Distributor Customer Evaluation Study show Digi-Key outranks its competitors in North America as the Most Preferred Distributor for 2010. Study results also rank Digi-Key #1 for Largest Breadth of Product Line, Excellent Website, Ease of Doing Business, Competitive Pricing, Availability of Product, and On-Time Delivery.

"Digi-Key is recognized for having the industry's broadest range of electronic components available for off-the-shelf delivery. Digi-Key's ranking as the Most Preferred Distributor verifies this company as an advancing competitor in the electronic component distribution industry," Larson said. "Digi-Key is now ranked #4 on the list of the Top 15 Distributors for North American Sales based on the April 2010 EDN study. Ten years ago, Digi-Key was ranked #14 on that list. Digi-Key is ranked #8 on the list of the Top 10 Global Franchised Distributors for Worldwide Revenue based on the May 2010 EE|Times study, climbing from #11 four years ago. If that doesn't prove Digi-Key is a contender in this business, I don't know what does."

Digi-Key Corporation focuses on providing customers with superior service, which includes product selection and availability, on-time delivery, and responsiveness. Using leading-edge processes and state-of-the-art technologies, Digi-Key serves a global customer base from its 600,000 square foot facility in Thief River Falls, Minnesota, USA.

About Digi-Key Corporation

As one of the world's fastest growing distributors of electronic components, Digi-Key Corporation has earned its reputation as an industry leader through its total commitment to service and performance. As a full-service provider of both prototype/design and production quantities of electronic components, Digi-Key has been ranked #1 for Overall Performance for 18 consecutive years from among North America's more than 200 distributors (EE|Times Distribution Study/August 2009). Offering more than 1.7 million products from more than 440 quality name-brand manufacturers, Digi-Key's commitment to inventory is unparalleled. Access to the company's broad product offering is available 24/7 at Digi-Key's top-rated website, www.digikey.com.

Editorial Contact for Digi-Key Corporation
Erica Hanson, 218-681-8000, Ext 2247
Manager, Corporate Communications & Media Relations
erica.hanson@digikey.com