SCANSOURCE REPORTS STRONG SECOND QUARTER RESULTS

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 second quarter ended December 31, 2007.

QE 12/31/ 07 capsule:
Net sales $553.3 million
Net income $15.5 million
Diluted EPS $0.59 per share

“Our growth was led by record results in our North American and International POS/Bar Code units,” said Mike Baur, CEO of ScanSource. “Excellent execution by our sales and support teams worldwide allowed us to gain market share and achieve our financial goals. We are also very pleased with the record quarterly sales growth of our newly formed ScanSource Communications business unit.”

For the quarter ended December 31, 2007, net sales increased 17% to $553.3 million compared to $473.7 million for the quarter ended December 31, 2006. Quarterly operating income increased 60% to $25.4 million from $15.9 million for the comparable quarter in 2006. Our effective tax rate for the quarter was 37.7% compared to 39.0% for the prior year. Net income increased 76% to $15.5 million for the quarter ended December 31, 2007 versus $8.8 million for the quarter ended December 31, 2006. Diluted earnings per share increased 74% to $0.59 per share compared to $0.34 in the prior year quarter.
The comparable quarter and year-to-date periods are impacted by the ongoing expenditures related to our Special Committee’s review of the Company’s stock option grant practices and related matters. When adjusted to exclude legal and accounting costs of third party providers relating to this review for both periods, net income was $15.7 million for the quarter ended December 31, 2007 versus $11.8 million for the quarter ended December 31, 2006, an increase of 33%. Diluted earnings, as adjusted, per share also increased 33% to $0.60 per share compared to $0.45 in the prior year quarter. Supplemental schedules have been included to show this reconciliation for the quarter and year-to-date periods ended December 31, 2007 and 2006, respectively.

Forecast for Next Quarter
The Company announced its revenue forecast for the third quarter of fiscal 2008. ScanSource expects net revenues for the March 2008 quarter could range from $550 million to $570 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 creased 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 annual report on Form 10-K for the year ended June 30, 2007 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 four sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); ScanSource Communications (video conferencing, telephone and communications products); and ScanSource Security Distribution (electronic security products).

The Company services 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.scansourceinc.com.