SED International Holdings Begins Fiscal 2010 with Profitable First Quarter Performance

SED International Holdings Begins Fiscal 2010 with Profitable First Quarter
Performance
Net Sales Rise 6% to $128 Million, Aided by 95% Increase in Consumer
Electronics Sales

TUCKER, Ga., Nov. 12 /PRNewswire-FirstCall/ -- SED International Holdings,
Inc. (OTC Bulletin Board: SECX), a multinational supply chain management
provider and distributor of leading computer technology, wireless
communications, consumer electronics and small appliances, today announced its
fiscal 2010 first quarter results for the three months ended September 30,
2009.

Financial Highlights for the First Quarter of Fiscal 2010 Compared to the
First Quarter of Fiscal 2009:

-- Net sales rose 6% to $127.9 Million, up from $120.7 million.
-- Sales of consumer electronics products nearly doubled, increasing
95% to $17.4 million from $8.9 million.
-- Micro-computing product sales remained relatively flat at $109
million.
-- Domestic sales climbed 22% to $78.4 million from $64.3 million.
-- Export revenues, net of eliminations, decreased 19% to $22.9
million
from $28.3 million.
-- After translation into U.S. dollars, Latin American sales
decreased
5% to $26.6 million from $28.1 million. However, when measured in
local currencies, Latin American sales increased 4%.
-- Operating income materially improved, rising to $1.1 million, compared
to an operating loss of $185,000.

-- Net income totaled $452,000, or $0.11 earnings per basic share and
$0.10
earnings per diluted share, rising sharply from a net loss of
$326,000,
or $0.08 loss per diluted share.

As of September 30, 2009, the Company had cash and cash equivalents of $5.8
million, net trade receivables of $49.3 million, net inventories of $41.9
million, and working capital of $19.4 million. Total shareholder's equity at
the end of the reporting period was $20.1 million. In addition, SED has
remained in compliance with all covenants relating to its revolving credit
facility with Wells Fargo (formerly Wachovia Bank). Available borrowings
under the facility were $13 million after deducting $1.8 million in reserves
for outstanding letters of credit, and $2.5 million under a line of credit
with Banco de Credito. Average borrowings under the revolving credit facility
for the first three months of fiscal 2010 were $22.4 million.

Jeanie Diamond, Chairman and Chief Executive Officer of SED, stated, "This
marks two consecutive profitable quarters for our Company and helps to
validate our confidence that fiscal 2010 may indeed prove to be a strong,
turnaround year for SED. Our consumer electronics business has continued to
perform extraordinarily well and quarterly sales of computer/IT products are
showing signs of stabilization, thanks in large measure to the strengthening
of the economy. Further, with the holiday season approaching, we are hopeful
that our new small appliance/ kitchen electrics offerings will start to gain
meaningful sales traction and begin contributing to our future revenue and
earnings growth. As we progress through fiscal 2010, we fully intend to
perpetuate our first quarter success and strengthen our top and bottom line
performance in the quarters ahead."

SED will host a teleconference and webcast this afternoon, beginning at 4:15
PM Eastern Time, and invites all interested parties to join management in a
discussion regarding the Company's financial results, corporate progression
and other meaningful developments. The conference call can be accessed via
telephone by dialing toll free 1-877-941-1428 or via the Internet at
www.SEDonline.com. For those unable to participate at that time, a replay of
the webcast will be available for 90 days on www.SEDonline.com.

For more detailed information on the fiscal 2010 first quarter results, please
refer to the related Form 10-Q filed this morning with the U.S. Securities &
Exchange Commission, which can be accessed online at www.sec.gov or
www.SEDonline.com.

SED International Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)

September 30, 2009 June 30, 2009
------------------ -------------

(Unaudited) (Audited)

ASSETS
Current assets:
Cash and cash equivalents $5,758 $3,570
Trade receivables, net 49,342 50,128
Inventories, net 41,919 38,532
Deferred income taxes, net 320 286
Other current assets 5,481 5,653
----- -----
Total current assets 102,820 98,169
Property and equipment, net 723 720
--- ---
Total assets $103,543 $98,889
======== =======

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $48,383 $47,417
Accrued and other current liabilities 7,733 7,670
Revolving credit facility 27,323 25,093
------ ------
Total liabilities 83,439 80,180
------ ------

Commitments and contingencies

Shareholders' equity:
Preferred stock, $1.00 par value;
authorized: 129,500 shares, none issued - -
Common stock, $.01 par value; 100,000,000
shares authorized; 6,761,302 shares issued
and 5,066,811 shares outstanding at
September 30, 2009 and 6,781,302 shares
issued and 5,086,811 shares outstanding
at June 30, 2009 68 68
Additional paid-in capital 69,660 69,525
Accumulated deficit (33,079) (33,531)
Accumulated other comprehensive loss (3,458) (4,266)
Treasury stock, 1,694,491 shares, at cost (13,087) (13,087)
------- -------
Total shareholders' equity 20,104 18,709
------ ------
Total liabilities and
shareholders' equity $103,543 $98,889
======== =======

SED International Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
(Unaudited)

Three Months Ended
September 30,
-------------
2009 2008
---- ----

Net sales $127,938 $120,718
Cost of sales 121,202 114,168
------- -------
Gross profit 6,736 6,550
Operating expenses:
Selling, general and administrative expense 6,046 5,734
Depreciation and amortization expense 105 119
Foreign currency transaction (gain) loss (525) 882
---- ---
Total operating expenses 5,626 6,735
----- -----
Operating income (loss) 1,110 (185)
Interest (income) expense:
Interest (income) (18) -
Interest expense 442 304
--- ---
Interest, net 424 304
--- ---
Income (loss) before income taxes 686 (489)
Income tax expense (benefit) 234 (163)
--- ----
Net income (loss) $452 $(326)
==== =====

Basic and diluted income (loss) per common share:
Basic $.11 $(.08)
==== =====
Diluted $.10 $(.08)
==== =====

Weighted average number of common shares
outstanding:
Basic 4,281,000 4,004,000
Diluted 4,578,000 4,004,000

ABOUT SED INTERNATIONAL HOLDINGS, INC.
Founded in 1980, SED International Holdings, Inc. is a multinational,
preferred distributor of leading computer technology, wireless communications,
consumer electronics and small appliances. The Company also offers
custom-tailored supply chain management services ideally suited to meet the
priorities and distribution requirements of the e-commerce,
Business-to-Business and Business-to-Consumer markets. Headquartered near
Atlanta, Georgia with business operations in California; Florida; Georgia;
Texas; Bogota, Colombia and Buenos Aires, Argentina, SED serves a customer
base of over 10,000 channel partners and retailers in the U.S. and Latin
America. To learn more, please visit www.SEDonline.com; or follow us on
Twitter @SEDIntl.

Statements made in this Press Release that are not historical or current facts
are "forward-looking statements." These statements often can be identified by
the use of terms such as "may," "will," "expect," "believes," "anticipate,"
"estimate," "approximate" or "continue," or the negative thereof. The Company
wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. Any
forward-looking statements represent management's best judgment as to what may
occur in the future. However, forward-looking statements are subject to
risks, uncertainties and important factors beyond the control of the Company
that could cause actual results and events to differ materially from
historical results of operations and events and those presently anticipated or
projected. These factors include adverse economic conditions, entry of new
and stronger competitors, inadequate capital, unexpected costs, failure to
gain product approval in foreign countries and failure to capitalize upon
access to new markets. The Company disclaims any obligation to revise any
forward-looking statements to reflect events or circumstances after the date
of such statement or to reflect the occurrence of anticipated or unanticipated
events. These factors and others are discussed in the "Management's Discussion
and Analysis" section of the Company's Report on Form 10-K for the fiscal year
ended June 30, 2009 and Form 10-Q for the quarterly reporting period ended
September 30, 2009.

CONTACT
Elite Financial Communications Group, LLC
Dodi Handy, President and CEO (Twitter: dodihandy)
Kathy Addison, Director of Elite Media Group (Twiiter: kathyaddison)
407-585-1080 or via email at SECX@efcg.net

SOURCE SED International Holdings, Inc.

Elite Financial Communications Group, LLC: Dodi Handy, President and CEO
(Twitter: dodihandy), or Kathy Addison, Director of Elite Media Group
(Twiiter: kathyaddison), +1-407-585-1080, SECX@efcg.net