In Europe, Arrow Electronics continued to invest in local markets and to expand its presence in the region, with 76 locations serving 23 countries. Improved economic conditions in Europe resulted in strong demand for our products and services and an increase in sales of more than 45 percent. Our local presence and investments in each market, coupled with our unsurpassed line card and service offering, created opportunities for Arrow Electronics Europe to capitalize on an expanding economy and positive industry conditions.

The pace of the reinvigorated European economy facilitated the launch of several initiatives. To support increased customer demand, we opened our first Pan-European automated distribution facility in Venlo, the Netherlands. Expanding our global e-commerce capabilities, we began the roll-out of arrow.com PRO-Series to our customers in Central and Southern Europe. This resource has been favorably received, and we expect usage to accelerate rapidly.

Providing local sales and marketing support remains our strategy and our strength. Each day our more than 3,800 employees work to deliver products and services in accordance with local customs and practices. As a result, we have continued to build sales and share in the small- to mid-sized customer base. Our growth has also been fueled by the increased presence and expansion of large original equipment and contract manufacturers in Europe. While we had achieved significant share with these customers in each region, they increasingly demanded services and access to inventory across multiple geographies. In response, we launched the Arrow Europe Alliance Group to provide Pan-European logistics, materials management, and supply chain services to this customer segment.

In 2000, our acquisitions extended our reach and increased our presence in critical markets. We began the year by acquiring a majority interest in Israel-based Rapac Electronics, a leading distributor in this thriving market. Tekelec, one of France’s leading distributors of high-tech components and systems, joined the Arrow family in the spring. Our acquisition at the end of the second quarter of Norway’s Jakob Hatteland Electronics, a leader in demand creation and design services, dramatically increased the scope and scale of our business in the rapidly growing Nordic region.

In January of 2000, we established a Pan-European organization to initiate and to coordinate strategies and activities across the region. As we respond to the increasing need for products and services across multiple locations in Europe, we will continue to build on the local strengths that have made us the first-choice distributor for European electronics manufacturers.