Nu Horizons Reports Third Quarter Fiscal Year 2008 Results

MELVILLE, NY, January 8, 2008 --- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components today reported financial and operating results for the third quarter and nine months ended November 30, 2007.

Net sales for the quarter ended November 30, 2007 increased 13.3% to $210,824,000 as compared to $186,080,000 for the comparable period last year.  Net income (loss) for the quarter was ($373,000) or $(.02) loss per diluted share, as compared to net income of $1,933,000 or $.10 per diluted share for the third quarter of the prior year.  Sales increased from the immediately preceding quarter by 3.6% or $7,248,000.

For the nine months ended November 30, 2007, net sales increased to $606,727,000 from $567,361,000 in the comparable period last year, an increase of 6.9%.  Net income for the first nine months of fiscal 2007 was $2,098,000 or $.11 per diluted share, compared to net income of $7,191,000 or $.39 per diluted share in the same period last year.

A comparison of sales by geographic area and type is included as Exhibit A.

On a proforma basis, excluding unusual items such as professional fees related to our financial statement restatement and the ongoing SEC investigation of Vitesse Semiconductor Corp., as well as Germany start-up costs (see Exhibit B), diluted earnings per share would have been $.10 and $.31 for the three and nine months ended November 30, 2007, respectively, compared to $.10 and $.39 per diluted share in the comparable periods in the prior fiscal year.

Arthur Nadata, Chairman of the Board and Chief Executive Officer stated, "Earnings for the quarter were adversely affected by certain unusual items that were announced in our second quarter, such as expected incremental operating expenses for professional fees related to our financial statement restatement and the ongoing SEC inquiry of Vitesse, as well as start-up costs in Germany and severance related to our reduction in workforce.  We expect $3,000,000 in annual cost savings from the reduction in our workforce to begin in the fourth quarter and a portion of these savings may be reinvested in the business.  We are committed to increasing operating income through a variety of additional cost control strategies while growing our revenues and we are also encouraged by current booking and sales trends, as well as our continued growth in the Asian and European markets."

Table of Results, Exhibit A and B (PDF)

A conference call to further discuss earnings will be held today at 4:15 pm Eastern time.  The call can be accessed by dialing 1-877-874-1563, (international, dial 1-719-325-4792).  A rebroadcast of the call will be available beginning at 7:15 pm Eastern time at 1-888-203-1112 (international, dial 1-719-457-0820) Please refer to confirmation code 9138904.  A webcast of the call will also be available, online (both live and after the call), at www.nuhorizons.com. 

About Nu Horizons Electronics Corp.
Nu Horizons Electronics Corp. is a leading global distributor of advanced technology semiconductor, display, illumination, power and system solutions to a wide variety of commercial original equipment manufacturers (OEMs) and Electronic Manufacturing Services providers (EMS). With sales facilities in 51 locations across North America, Europe and Asia and regional logistics centers throughout the globe, Nu Horizons partners with a limited number of best-in-class suppliers to provide in-depth product development, custom logistics and life-cycle support to its customers. Information on Nu Horizons and its services is available at http://www.nuhorizons.com

Cautionary Statement Regarding Forward-Looking Statements
Except for historical information contained herein, the matters set forth in this news release are forward looking statements.  When used in this press release, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to Nu Horizons or its management, identify forward-looking statements.  Such forward-looking statements are based on the current beliefs of Nu Horizons’ management, as well as assumptions made by and information currently available to its management.  Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as the level of business and consumer spending for electronic products, the amount of sales of the Company’s products, the competitive environment within the electronics industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company’s expansion efforts, the financial strength of the Company’s customers and suppliers and risks related to the pending Vitesse-related SEC investigation and class action litigation.  Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.  Such statements reflect our current view with respect to the future and are subject to these and other risks, uncertainties and assumptions relating to Nu Horizons’ financial condition, results of operations, growth strategy and liquidity.  The Company does not undertake any obligation to update its forward-looking statements.