SCANSOURCE REPORTS RECORD SALES FOR FIRST QUARTER 2012

GREENVILLE, SC - October 27, 2011 - ScanSource, Inc. (NASDAQ: SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and physical security products for the reseller market, today announced complete financial results for its first quarter ended September 30, 2011.

Quarter ended September 30, 2011:

Net sales $770.3 million
Net income $18.4 million
Diluted EPS $0.67 per share

“We delivered another quarter of record sales, driven by our North American communications and security sales units,” said Mike Baur, CEO, ScanSource, Inc. “Our strong operating performance in North America overshadowed the weakness we are seeing in our European businesses. Excluding our acquisition of CDC Brasil, our international growth rate slowed to 9% over the prior year.”

For the quarter ended September 30, 2011, net sales increased 21.4% to $770.3 million compared to $634.5 million for the quarter ended September 30, 2010. Operating income increased by 27.3% to $31.6 million from $24.8 million in the comparable prior year quarter. Other expense included a $2.5 million non-recurring loss on foreign exchange contracts. Net income increased 17.0% to $18.4 million for the quarter ended September 30, 2011 versus $15.7 million for the quarter ended September 30, 2010. The effective tax rate for the quarter decreased to 34.5% in the current quarter from 35.6% in the prior year quarter. Diluted earnings per share increased 15.5% to $0.67 in the current quarter compared to $0.58 in the prior year quarter.

Outlook for Next Quarter
The Company announced its current expectations for the second quarter of fiscal 2012. ScanSource expects that net revenues for the quarter ending December 31, 2011 could range from $755 million to $775 million, and diluted earnings per share could be in the range of $0.64 to $0.67 per share.

Webcast Details
ScanSource will present additional information about its financial results and outlook on a conference call today at 5:00 p.m. (ET). A webcast of the call will be available for all interested parties and can be accessed at www.scansourceinc.com (Investor Relations section). The webcast will be available for replay for 30 days.

Safe Harbor Statement
This press 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 or forecasted results, including, but not limited to, factors affecting our expanded operations in emerging markets, such as Brazil, that expose us to greater political and economic volatility than our operations in established markets, the results of purchase accounting, macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and an economic downturn. 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, 2011 filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information
In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses return on invested capital (“ROIC”), a non-GAAP measure. Management uses ROIC as a performance measurement because it believes that this metric best balances the Company’s operating results with its asset and liability management. It excludes the results of capitalization decisions, is easily computed and understood, and drives changes in shareholder value. In addition, the Company’s Board of Directors uses this non-GAAP measure in evaluating management performance and setting management compensation. Analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with GAAP. A reconciliation of the Company’s non-GAAP financial information to GAAP is set forth in the following table.

About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is the leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #839 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.