Today, more than half of the world's population, 3.2 billion, resides in the Asia/Pacific region. As the world's fastest growing market for consumer and industrial electronics technology, this region accounts for more than 40 percent of the world's electronic component purchases. Only a portion of the growth in demand for components is driven by the large global customers who have transferred manufacturing to this region. Emerging and distinct customer segments in local markets are fast becoming the main driver of increased demand for components and the supply chain services that Arrow is uniquely qualified to deliver.

Arrow Asia/Pacific serves customers and suppliers in 11 countries and territories with different currencies, languages, local customs, and distinct customer segments. To respond to the growing demand in each market, Arrow Asia/Pacific has developed a comprehensive customer strategy that provides tailored services to customers of all sizes and segments, from the small original equipment manufacturer in India to the mega-customer market in China. Our initiatives include creating specialized service models for unique customer groups, such as the original design manufacturing (ODM) market in Taiwan and the large chaebols in Korea, and increasing our investments in Greater China – a region with a total available market for electronic components of more than $17 billion. We have also made significant investments in logistics, systems, and inventory management processes to create a sound infrastructure that will support our future growth.

Our strategy has already resulted in significant sales momentum, as our Arrow Asia/Pacific teams delivered more than 25 percent sequential sales growth in the fourth quarter of 2003, with a more than 40 percent increase in sales in that quarter when compared to 2002 sales in the same period. We will continue to focus on the specialized demands of our customers in every market while working closely with our suppliers to extend our franchises and our technical support capabilities. Arrow Asia/Pacific speeds toward the future, powered by the talent, energy, and local expertise of our Asia teams and by the financial resources and capabilities of the world's leading electronic components distributor.