Nu Horizons Reports Financial and Operating Results for the Third Quarter of Fiscal Year 2006

MELVILLE, NY, January 9, 2006 --- 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, 2005.

Net sales for the quarter ended November 30, 2005 increased to $147.5 million as compared to $116.2 million for the comparable period last year. Net income for the quarter was $1.5 million or $0.09 per share on 17,198,133 average basic shares outstanding ($0.08 per share on 17,760,196 diluted shares) as compared to net income of $585,000 or $0.03 per share on 16,891,647 average basic shares outstanding ($0.03 per share on 17,506,975 diluted shares) for the third quarter of the prior year. Sequentially, net sales for the quarter ended November 30, 2005 increased $19.3 million, or 15%, from $128.2 million and net income increased from $820,000 to $1.5 million.

For the nine months ended November 30, 2005, net sales increased to $397.2 million from $353.6 million in the comparable period last year, an increase of 12.3%. Net income for the first nine months of fiscal 2006 was $2.8 million or $0.16 per share on 17,004,309 basic shares outstanding ($0.16 per share on 17,746,808 diluted shares), compared to net income of $2.9 million or $0.18 per share on 16,886,647 basic shares outstanding ($0.17 per share on 17,816,056 diluted shares) in the same period last year.

Arthur Nadata, Chairman of the Board and Chief Executive Officer stated, "The third quarter was a very exciting and busy period for us. New additions to our line card, combined with the expansion of certain partnerships, enabled our sales force to penetrate into new markets and provide enhanced system solutions for customers. More importantly, the addition of approximately one hundred new sales and engineering personnel should enable Nu Horizons to better execute our demand creation business model, with customers and suppliers as the primary beneficiaries."

Mr. Nadata concluded, "We have focused our efforts on creating opportunities to produce sustainable growth and believe these efforts will continue to show positive results. We are pleased that, notwithstanding our significant investment in personnel, our results have shown continued growth. Our goal is to further increase our revenue, stabilize our margins and increase earnings per share."

A conference call to further discuss earnings will be held today at 4:15 pm ET. The call can be accessed by dialing 1-800-946-0706, (international, dial 1-719-457-2638). 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 1531334. A webcast of the call will also be available, online (both live and after the call), at www.nuhorizons.com.

Table of Results (PDF)

About Nu Horizons Electronics Corp.
Nu Horizons Electronics Corp. is a leading global distributor of advanced technology active components and systems to a wide variety of commercial original equipment manufacturers (OEMs) and Electronic Manufacturing Services providers (EMS). With sales facilities in forty-five locations across North America 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.

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.