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GREENVILLE, SC - January 27, 2011 - ScanSource, Inc. (NASDAQ:SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and physical security products for the reseller market, today announced complete financial results for its second quarter ended December 31, 2010.

Quarter ended December 31, 2010:

Net sales $684 million
Net income $21.6 million
Diluted EPS $0.80 per share

“Our record results were primarily led by strong sales growth in our communications businesses worldwide and our International Bar Code and POS business,” said Mike Baur, CEO, ScanSource, Inc. “The surprising growth in these areas was driven by improving end market demand and market share gains.”

For the quarter ended December 31, 2010, net sales increased 25% to $684 million compared to $548 million for the quarter ended December 31, 2009. Operating income increased by 85% to $33.5 million from $18.1 million in the comparable prior year quarter. Net income increased 83% to $21.6 million for the quarter ended December 31, 2010 versus $11.8 million for the quarter ended December 31, 2009. The effective tax rate for the quarter held constant with the prior year quarter at 35.7%. Diluted earnings per share increased 82% to $0.80 in the current quarter compared to $0.44 in the prior year quarter.
In the quarter, the Company received proceeds from a legal settlement against a former service provider representing reimbursement of expenses incurred in prior periods of $3.1 million ($2.0 million after tax or $0.07 per diluted share). The amount was reflected as a reduction of selling, general and administrative expenses.

Forecast for Next Quarter
The Company announced its revenue forecast for the third quarter of fiscal 2011. ScanSource expects net revenues for the March 2011 quarter could range from $630 million to $650 million.

Safe Harbor Statement
This press 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, including, but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. 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, 2010 filed with the Securities and Exchange Commission.

About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is the leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #881 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit