Nu Horizons Reports Financial And Operating Results For The First Quarter Of Fiscal Year 2006

MELVILLE, NY, July 6, 2005 --- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components today reported financial and operating results for the first quarter of fiscal 2006, reflecting the period ended May 31, 2005.

Net sales for the quarter ended May 31, 2005 increased to $121.4 million as compared to $118.2 million for the prior year's fiscal period. Net income for the quarter was $475,000 or $0.03 per share on 16,907,397 average basic shares outstanding ($0.03 per share on 17,449,570 diluted shares) as compared to a net income of $1,186,000 or $0.07 per share on 16,884,147 average basic shares outstanding ($0.07 per share on 18, 045,308 diluted shares) for the first quarter of the prior year. Sequentially, net sales for the quarter ended May 31, 2005 increased $7.2 million from $114.2 million or 6.3% and net income increased from $117,000 to $475,000.

Arthur Nadata, Chairman of the Board and Chief Executive Officer states, "I am encouraged by the progress we have made and continue to explore opportunities to apply more resources to our more promising areas and to further strengthen our financial position. We are considering numerous business initiatives in the U.S. and Asian marketplaces. We believe we have in place the platform to continue to strengthen and grow our business across our business units. In particular, we are actively working to expand the line card in Asia and to increase the demand creation business."

Mr. Nadata concluded, "Our first quarter accomplishment of modest growth in revenue is a sign that our strategy to grow faster than the industry and gain market share is working. Unfortunately, we had lower earnings per share due to increased expenses and continuing lower margins. Nevertheless, I believe the diversified market segments we serve will allow us to improve operating results and minimize the impact of a negative business environment."

A conference call to further discuss earnings will be held today at 4:15 pm ET. The call can be accessed by dialing 1-800-500-0177, (international, dial 1-719-457-2679). A rebroadcast of the call will be available beginning at 7:00 pm ET at (888)-203-1112 (international, dial 1- 719-457-0820) Please refer to confirmation code 7904036. 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 is a leading distributor of high technology active components, including analog, communications, discretes, optical, logic & peripherals, memory, microcontrollers, system on chip (SOC), board level and computer system products to a wide variety of commercial original equipment manufacturers (OEMs). With sales facilities in thirty-three locations across North America and Asia, and logistics centers in centralized locations throughout the globe, Nu Horizons partners with a limited number of best-in-class suppliers to provide in-depth product and solutions expertise to its customers. Information on Nu Horizons and its services is available at www.nuhorizons.com. The Company does not undertake any obligation to update its 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 and the financial strength of the Company's customers and suppliers. 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.

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