Nu Horizons Reports Second Quarter Fiscal Year 2007 Results
Net Sales for the Quarter Up 50% Over Prior Year
Net Income and EPS for the Quarter Up 337% and 280% Over Prior Year

MELVILLE, NY, October 5, 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 second quarter and six months ended August 31, 2006.

Net sales for the quarter ended August 31, 2006 increased to $193.5 million as compared to $128.3 million for the comparable period last year, an increase of 50%.  Net income for the quarter was $3.5 million or $0.19 per diluted share, as compared to a net income of $.8 million or $0.05 per diluted share for the second quarter of the prior year.

For the six months ended August 31, 2006, net sales increased to $381.3 million from $249.7 million in the comparable period last year, an increase of 52%. Net income for the first half of fiscal 2006 was $6.7 million or $0.36 per diluted share, compared to net income of $1.3 million or $0.07 per diluted share in the same period last year.

Arthur Nadata, Chairman of the Board and Chief Executive Officer stated, "We are pleased to have twelve consecutive quarters of sales growth when compared to the same quarter in the prior year.  For the quarter, our continued increase in sales, coupled with a reduction in operating expenses as a percentage of sales to 11.8% from 14.6% in the prior year resulted in another quarter of improved operating results.”

"This quarter's performance continues to validate our strategy of positioning the Company to benefit from the ongoing consolidation of the industry.  We have opportunistically invested in our sales personnel while at the same time continued to focus our long-term sales efforts on demand creation.  The growth of our fulfillment business has played a key role in maintaining top-line growth while our investments in demand creation were given time to take effect.  Those investments are just now beginning to show results and we expect to see the financial contribution from those efforts continue in future quarters.

Finally, we recognized the importance of the global markets going forward and have opened sales offices throughout the Asia Pacific region to be in a position to benefit from that trend.  Our recent acquisition of DT Electronics in the UK will further our commitment to global expansion and adding shareholder value."

A conference call to further discuss earnings will be held today at 4:15 pm ET.  The call can be accessed by dialing 1-800-946-0783, (international, dial 1-719-457-2658).  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 1504694.  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 semiconductor, display and system solutions to a wide variety of commercial original equipment manufacturers (OEMs) and Electronic Manufacturing Services providers (EMS). With sales facilities in 49 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.  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.