Bell Microproducts Announces Record First Quarter Revenue in a Range of $990 Million to $1.01 Billion



    
    Continued Strong Performance in Europe and North American Industrial Sales

    NASDAQ Council Grants Stay of Delisting Decision - Extends Time for Filing
    Additional Information
    

    SAN JOSE, Calif., April 19 /CNW/ -- Bell Microproducts Inc. (Nasdaq:  
BELM) announced preliminary Q1 2007 revenue in a range of $990 million to
$1.01 billion, an increase of 14% to 16% from Q1 2006 revenue of $867 million.
    The Company's European operations posted solid revenue growth of
approximately 13% and represented roughly 44% of the Company's total first
quarter revenue.  In Latin America, revenues increased approximately 14% and
represented 14% of total revenue in the quarter.  North American revenue
increased more than 20% and generated approximately 42% of the quarter's
revenue.
    The Solutions category of product and services sales grew 27% to 53% of
total sales in the first quarter, as compared to 48% in Q1 2006, driven
primarily by strong computer platform and storage systems sales and the
acquisition of ProSys.  The Components and Peripherals category grew
approximately 6% and represented 47% of sales in the first quarter, as
compared to 52% in Q1 2006.  Disk drive revenue increased approximately 20%
year over year, increased slightly from Q4 2006 levels, and represented
approximately 30% of total revenue.
    Commenting on the preliminary Q1 results, W. Donald Bell, President and
Chief Executive Officer of Bell Microproducts, said, "We are pleased with our
strong revenue growth again this quarter.  Our international businesses in
Europe and Latin America performed well in the first quarter and both
generated double digit revenue growth.  In our North American operations, we
experienced substantial revenue growth in our higher margin Industrial and
Enterprise sales channels. This was partially offset by revenue decreases in
our US commercial sales channel as we continue to focus on more profitable
products and customers.  In its second quarter of results as part of Bell
Microproducts, ProSys Information Systems generated revenue in line with our
expectations.   Our solid start to the new year gives us confidence that we
are well positioned for continued growth for the balance of 2007 and beyond."
    Bell Microproducts has also received a written notification from the
Nasdaq Listing and Hearing Review Council (the "Listing Council") that the
Listing Council has stayed the previously disclosed February 21, 2007
delisting decision of the Nasdaq Listing Qualifications Panel (the
"Qualifications Panel"), which gave the Company until May 22, 2007 to become
current in its SEC periodic reports and file any required restatements.  The
Listing Council has taken review of the Qualification Panel's prior decision
and has given the Company until June 29, 2007 to submit additional information
for the Listing Council to consider in its review.
    The Company is unable at this time to provide additional quantitative
information regarding its quarterly results or any further comparison of such
results to Q1 2006 until the previously announced restatement of its financial
statements for certain prior periods, the review of its historical stock
option grants, and the impact on the 2006 audit has been completed. A special
committee of the board of directors has been appointed to conduct an
evaluation of the Company's stock option practices with the assistance of
independent counsel and independent accounting consultants. The accounting
adjustments expected as a result of the review cannot be quantified until
completion of the independent review.

    
    About Bell Microproducts
    
    Bell Microproducts is an international, value-added distributor of a wide
range of high-tech products, solutions and services, including storage
systems, servers, software, computer components and peripherals, as well as
maintenance and professional services.  An industry-recognized specialist in
storage products, this Fortune 1000 company is one of the world's largest
storage-centric value-added distributors.
    Bell Microproducts is uniquely qualified with deep technical and
application expertise to service a broad range of information technology
needs.  From design to deployment, its products are available at any level of
integration, from components to subsystem assemblies and fully-integrated,
tested and certified system solutions.  More information can be found in the
Company's SEC filings, or by visiting the Bell Microproducts Web site at
www.bellmicro.com.

    
    Safe Harbor Statement
    
    This release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, which include management's expectations regarding the Company's
first quarter operating results and continued growth in 2007 and the results
of the review of the Company's historical stock option grants involve certain
known and unknown risks and uncertainties which could cause actual results or
facts to differ materially from such statements for a variety of reasons
including, but not limited the ultimate outcome and timing of our financial
statement restatement process, including the stock option review, potential
adverse effects to our financial condition, results of operations or prospects
as a result of any required adjustments to prior period financial statements,
and the incurrence of costs related to the restatement, as well as the risks
described from time to time in the Company's reports to the Securities and
Exchange Commission (including the Company's Annual Report on Form 10-K).
Investors should take such risks into account when making investment
decisions. Shareholders and other readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
on which they are made. The Company undertakes no obligation to update
publicly or revise any forward-looking statements.





For further information:

For further information: Rob Damron, Investor Relations Representative
of  Bell Microproducts Inc., +1-414-224-1668, ir@bellmicro.com Web Site:
http://www.bellmicro.com/

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BELL MICROPRODUCTS INC.

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