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Greenville, SC - October 25, 2007 -

ScanSource, Inc. (Nasdaq:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its first quarter ended September 30, 2007.

QE 9/30/07 capsule:

Net sales

$553.7 million

Net income

$ 14.7 million

Diluted EPS

$ 0.56 per share

“The first quarter record sales results reflect excellent execution, year over year, in all AIDC/POS, Security and Communications business units,” said Mike Baur, CEO of ScanSource.

“Key highlights for the quarter include the continued growth from our International POS and barcoding team during a seasonally slow quarter and better than expected results from our Catalyst communications team.”

For the quarter ended September 30, 2007, net sales increased 12% to $553.7 million compared to $496.2 million for the quarter ended September 30, 2006. Quarterly operating income increased 18% to $25.4 million from $21.5 million for the comparable quarter in September 2006. Our effective tax rate for the quarter was 38.0% compared to 38.4% for the prior year. Net income increased 18% to $14.7 million for the quarter ended September 30, 2007 versus $12.5 million for the quarter ended September 30, 2006. Diluted earnings per share increased 17% to $0.56 per share compared to $0.48 in the prior year quarter. When adjusted to exclude legal and accounting costs of third party providers relating to our Special Committee’s review of the Company’s stock option grant practices, net income for the September 2007 quarter increased 21% versus the prior year quarter.

Forecast for Next Quarter

The Company announced its revenue forecast for the second quarter of fiscal 2008. ScanSource expects net revenues for the December 2007 quarter could range from $550 million to $570 million.

Safe Harbor Statement

This news 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 results. 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, 2007 filed with the Securities and Exchange Commission.

About ScanSource, Inc.

ScanSource, Inc. is a leading international distributor of specialty technology products. The Company markets specialty technologies through five sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); Paracon (communications products); T2 Supply (video conferencing and telephone products); and ScanSource Security Distribution (electronic security products).

The Company serves the North America marketplace and has an international segment, which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company ranks #956 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit