SCANSOURCE REPORTS RECORD FOURTH QUARTER AND YEAR END SALES RESULTS

Greenville, SC - August 23, 2007 - GREENVILLE, SC — August 23, 2007--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 fourth quarter and fiscal year ended June 30, 2007.

QE 6/30/07 capsule:
Net sales	$524.3 million
Net income	$11.3 million
Diluted EPS	$0.43 per share

“The fourth quarter record sales results were led by our AIDC/point of sale units in North America, Europe and Latin America,” said Mike Baur, CEO of ScanSource. “In addition, the ScanSource Security sales unit had excellent growth as the investments in training, education, and marketing are beginning to result in market share gains. Our T2 Supply sales unit finished its first year under ScanSource ownership and delivered another quarter of excellent results. ”

For the quarter ended June 30, 2007, net sales increased 14% to $524.3 million compared to $461.1 million for the quarter ended June 30, 2006. Quarterly operating income increased 9% to $20.7 million from $18.9 million for the comparable quarter in 2006. Our effective tax rate for the fourth quarter of fiscal 2007 was 39% compared to 29% for the prior year. The fourth quarter fiscal 2006 tax rate was favorably impacted by foreign tax net operating loss benefits. Net income decreased 12% to $11.3 million for the quarter ended June 30, 2007 versus $12.9 million for the quarter ended June 30, 2006. Diluted earnings per share decreased 12% to $0.43 per share compared to $0.49 in the prior year quarter. When adjusted to exclude legal and accounting costs of third party providers relating to our Special Committee’s review of the Company’s stock option grant practices, net income for the June 2007 quarter decreased 2% versus the prior year quarter.

For the year ended June 30, 2007, net sales increased 19% to $1.99 billion compared to $1.67 billion for the prior year. Fiscal year operating income increased 19% to $75.3 million from $63.3 million for the prior year ended June 30, 2006. The effective tax rate for the year was 37.8% compared to 35.0% for the prior year. The tax rate for the fiscal 2006 year was favorably impacted by the fourth quarter recognition of foreign tax operating loss benefits. Net income increased 7% to $42.6 million compared to $39.8 million the prior year. Diluted earnings per share increased 7% to $1.63 compared to $1.53 in the prior year. When adjusted to exclude legal and accounting costs of third party providers relating to our Special Committee’s review of the Company’s stock option grant practices, net income for the year increased 22%.

Forecast for Next Quarter
The Company announced its revenue forecast for the first quarter of fiscal 2008. ScanSource expects net revenues for the September 2007 quarter could range from $525 million to $545 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 amended annual report on Form 10K/A for the year ended June 30, 2006 filed with, and the Company’s annual report on Form 10K for the year ended June 30, 2007 to be filed with, the Securities and Exchange Commission.

About ScanSource, Inc.
ScanSource, Inc. is a leading international distributor of specialty technology products. The Company markets specialty technologies through five sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); Paracon (communications products); T2 Supply (video conferencing and telephone products); and ScanSource Security Distribution (electronic security products).

The Company serves the North America marketplace and has an international segment, which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company ranks #956 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansource.com.