Insight Enterprises, Inc. Reports Preliminary First Quarter 2008 Results

TEMPE, Ariz.--(Business Wire)--
Insight Enterprises, Inc. (Nasdaq: NSIT) (the "Company") today
reported that net sales for the quarter ended March 31, 2008 are
expected to be approximately $1.11 billion representing a decrease of
approximately 1% from the first quarter 2007. Diluted earnings per
share, before severance and restructuring expenses, are expected to be
between $0.22 and $0.24 per share, well below management's
expectations and current analyst estimates.

The results for the quarter are expected to include $1.9 million,
$1.1 million after tax, or approximately $0.02 per diluted share, of
severance and restructuring expenses related to on-going restructuring
efforts within the Company, which are expected to result in $3.5 to
$4.5 million of annualized cost savings.

The first quarter 2008 financial results reflect the following
performance by each of our operating segments.

North America

Net sales in North America are expected to decrease 1% to
approximately $766 million primarily due to a softer U.S. IT market
and a double digit decrease year over year in net sales to SMB
clients, as the Company continued to address issues with the MYSAP
platform migration that commenced in the second half of 2007. Gross
margin in North America is expected to decrease by about 80 basis
points from the first quarter of 2007 primarily due to lower net sales
to SMB clients, which are generally conducted at higher gross margins,
and decreases in product margins, including vendor funding, primarily
driven by market pricing pressures. Earnings from operations in North
America are expected to be approximately $5 million lower than the
first quarter of 2007. These 2008 results include $1 million in
severance and restructuring expenses, while the first quarter 2007
results include approximately $5 million in fees and expenses
associated with the Company's stock option review.

EMEA

Net sales in EMEA are expected to decrease 3% to $318 million
reflecting a decline in hardware sales in the United Kingdom partially
offset by the foreign currency benefit of the weak U.S. dollar
compared to the Euro. Within the UK, while the market conditions are
challenging and show signs of continued weakness going into the second
quarter, the Company believes that the majority of the net sales
decline in the first quarter was related to internal sales execution
issues early in the quarter. These issues were immediately addressed
and as a result, the Company saw a stronger result in March compared
to the first two months of the quarter. Additionally, there were two
less shipping days in the quarter compared to the first quarter of
last year. Gross margin in EMEA is expected to increase to over 14%
from 11.8% reported in the first quarter of last year resulting from
strong software category performance and a continued migration to fee
based software programs. Earnings from operations in the EMEA segment
are expected to increase 8% compared to the first quarter of 2007 to
$7.0 million reflecting higher gross profit partially offset by
increases in selling and administrative expenses from increased
headcount and severance expenses of approximately $900,000.

APAC

Net sales in APAC are expected to increase 19% to $23 million with
gross margin on these sales of approximately 16%. Reported losses from
operations in this segment are expected to be approximately $440,000
reflecting the typical seasonality of this business and an investment
in incremental experienced sales resources during the quarter.

Rich Fennessy, President and CEO, commented, "We are very
disappointed with our financial results for the first quarter,
specifically the results in our North America operating segment. We
continue to be pleased with our EMEA and APAC operating segments as
they each generated double digit growth in gross profit during the
quarter. As we look to the remainder of 2008, the focus will be on
continuing the momentum internationally, while taking the necessary
steps within North America to improve our short-term operational and
financial performance."

FORWARD LOOKING STATEMENTS

Given the challenges that the Company faced during the first
quarter and the uncertain macro-economic outlook for 2008, the Company
now expects full-year diluted earnings per share to be between $1.50
and $1.60, excluding any severance and restructuring expenses, and
with approximately 50% coming in the first half of the year. This
reflects management's expectations for the balance of 2008, but the
factors that could affect performance, as noted below, are numerous,
and short-term results in this difficult economy could be more
volatile and unpredictable than usual.

ANALYST DAY

In order to focus on driving operational and financial
improvements in its business, the Company has postponed its Analyst
Day originally scheduled for May 13, 2008. In lieu of the Analyst Day,
the Company will expand its regularly scheduled quarterly earnings
conference call on May 8, 2008 to include an in depth discussion of
its North America business performance during the first quarter and
the Company's operational priorities for 2008. Rich Fennessy,
President and CEO, Glynis Bryan, Chief Financial Officer, and Mark
McGrath, President, North America/Asia Pacific, will participate in
the call.

CONFERENCE CALL

The Company will release its first quarter financial results after
market close on May 8, 2008. A conference call and webcast will be
held at 5:00pm ET that same day. A live Web cast of the conference
call (in listen-only mode) will be available on our corporate Web site
at www.insight.com and a replay of the Web cast will be available on
our corporate Web site for a limited time. To listen to the live Web
cast by telephone, call 1-866-270-6057 and enter the access code
62449561.

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call
and Web cast are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently subject to risks and uncertainties, some of
which cannot be predicted or quantified. Future events and actual
results could differ materially from those set forth in, contemplated
by, or underlying the forward-looking statement. Some of the important
factors that could cause our actual results to differ materially from
those projected in any forward-looking statements, include, but are
not limited to, the following, which are discussed in "Risk Factors"
in Part I, Item 1A of our Annual Report on Form 10-K for the year
ended December 31, 2007:

-- changes in the information technology industry and/or the
economic environment;

-- our reliance on partners for product availability, marketing
funds, purchasing incentives and competitive products to sell;

-- disruptions in our information technology systems and voice
and data networks, including the upgrade to mySAP and the
migration of acquired businesses to our information technology
systems and voice and data networks;

-- the integration and operation of acquired businesses,
including our ability to achieve expected benefits of the
acquisitions;

-- actions of our competitors, including manufacturers and
publishers of products we sell;

-- the informal inquiry from the Securities and Exchange
Commission ("SEC") and stockholder litigation related to our
historical stock option granting practices and the related
restatement of our consolidated financial statements;

-- the risks associated with international operations;

-- seasonal changes in demand for sales of software licenses;

-- increased debt and interest expense and lower availability on
our financing facilities and changes in the overall capital
markets that could increase our borrowing costs or reduce
future availability of financing;

-- exposure to currency exchange risks and volatility in the U.S.
dollar exchange rate;

-- our dependence on key personnel;

-- risk that purchased goodwill or amortizable intangible assets
become impaired;

-- failure to comply with the terms and conditions of our public
sector contracts;

-- rapid changes in product standards; and

-- intellectual property infringement claims and challenges to
our registered trademarks and trade names.

Additionally, there may be other risks that are otherwise
described from time to time in the reports that we file with the SEC.
Any forward-looking statements in this release should be considered in
light of various important factors, including the risks and
uncertainties listed above, as well as others. We assume no obligation
to update, and do not intend to update, any forward-looking
statements. We do not endorse any projections regarding future
performance that may be made by third parties.

Insight Enterprises, Inc., Tempe
Glynis Bryan, 480-333-3390
glynis.bryan@insight.com
Helen Johnson, 480-333-3234
helen.johnson@insight.com

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