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GREENVILLE, SC - October 23, 2008 - ScanSource, Inc. (NASDAQ:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its first quarter ended September 30, 2008.

QE 9/30/08 capsule:
Net sales $539.8 million
Net income $12.4 million
Diluted EPS $0.47 per share

“As expected, our first quarter results were negatively impacted by specific vendor issues in our Catalyst Telecom business unit,” said Mike Baur, CEO, ScanSource, Inc. “In addition, we experienced overall slower revenue growth in most of our business units. While this is disappointing, ScanSource continues to deliver strong profits and cash flow in this challenging economic environment. Our proven business model and strong balance sheet will allow us to continue investing in specific growth areas.”

For the quarter ended September 30, 2008, net sales decreased 3% to $539.8 million compared to $553.7 million for the quarter ended September 30, 2007. Quarterly operating income decreased 19% to $20.6 million from $25.4 million for the comparable prior year quarter. Our effective tax rate for the quarter was 38.2% compared to 38.0% for the prior year quarter. Net income decreased 15% to $12.4 million for the quarter ended September 30, 2008 versus $14.7 million for the quarter ended September 30, 2007. Diluted earnings per share decreased 16% to $0.47 per share compared to $0.56 per share in the prior year quarter.

Forecast for Next Quarter
The Company announced its revenue forecast for the second quarter of fiscal 2009. ScanSource expects net revenues for the December 2008 quarter could range from $515 million to $535 million.

Safe Harbor Statement
This news release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2008 filed with the Securities and Exchange Commission.

About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers electronic security solutions. Founded in 1992, the company ranks #901 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit