First Quarter 2000 - Earnings Release April 24, 2000 CDW COMPUTER CENTERS, INC. REPORTS 60 PERCENT GROWTH IN SALES, 76 PERCENT GROWTH IN EPS AND EXPANSION OF EXECUTIVE MANAGEMENT TEAM First Quarter Highlights: Twenty-seventh consecutive quarter of sequential sales growth as a public company 60 percent growth in net sales Direct Web sales increase 155 percent to $72 million Commercial sales grow 67 percent to $817 million Net income increases 79 percent EPS increases 76 percent Sales account managers grow 30 percent to 820 No. 560 in the Fortune 1000 ranking Financial & Operating Data Quarter Ended 03/31/00 03/31/99 % Change Net Sales (000's) $863,988 $539,406 60% Income from Operations (000's) $ 56,848 $ 31,685 79% Net Income (000's) $ 35,291 $ 19,698 79% Basic Earnings Per Share 0.82 0.46 78% Diluted Earnings per Share 0.79 0.45 76% Operating Data Number of Invoices Processed 920,082 677,653 36% Average Invoice Size $ 987 $ 840 18% Number of Account Executives 820 630 30% Commercial Customers Serviced 140,869 116,884 21% Commercial Customers Serviced - Trailing 12 Months 294,861 269,449 9% % of Sales to Commercial Customers 95% 91% 4% "Our first quarter results prove that our accelerated growth strategies are working and our profitable business model continues to improve. Our "clicks and people" strategy is successfully expanding customer relationships and driving growth. Strategic initiatives in the coming months include plans to expand our sales force, broaden our product line, increase our e-Business activities and enhance our marketing programs. Consistent with our core philosophy that 'Success Means Never Being Satisfied,' we intend to hire a new Chief Executive Officer to expand our management team and position CDW for long term growth. Our systems, infrastructure and management team are better positioned for growth than at any time in our history, which makes this an opportune time to select a new CEO with the experience, leadership and motivation necessary to lead our next growth phase. I look forward to continuing my responsibilities as CEO until the transition is complete. At that time, as Chairman, I will focus my energy on future vision and maintaining the CDW culture and core philosophies of success." --- Michael P. Krasny, Chairman and Chief Executive Officer Vernon Hills, Illinois, April 24, 2000 --- CDW Computer Centers, Inc. (Nasdaq: CDWC) today announced record sales and earnings for the first quarter ended March 31, 2000. Additionally, the Company announced that it has commenced a search for a new Chief Executive Officer to expand its management team and position the Company for long term growth. Net sales for the first quarter increased 60 percent to $864.0 million from $539.4 million in the same period of 1999. Net income for the quarter rose 79 percent to $35.3 million from $19.7 million in the first quarter of 1999. Diluted earnings per share increased 76 percent to $0.79 in the first quarter of 2000 from $0.45 in the same period of 1999. All earnings per share amounts reflect the 2-for-1 stock split effected in the form of a stock dividend, which was paid on May 19, 1999. "Demand was exceptional throughout the quarter, with no post Y2K slowdown," said Michael P. Krasny, Chairman and Chief Executive Officer. "Our growth and consistent demand is evidence of the fact that our commercial customers buy mission critical computing solutions from CDW. Commercial customer sales now comprise 95% of total sales. The build out of the infrastructure to support the Internet economy positively impacts our business as customers source server, network, communication, workstation and other products from CDW. We believe that our "clicks and people" strategy, combined with an extraordinary e-commerce platform, drives our strong customer relationships."            Add-on boards/memory, notebooks, data storage devices, video, networking and communication products were the fastest-growing product categories, all with sales growth rates exceeding 64 percent. Notebook computers, which remained the largest product category at 22 percent of net sales, increased 93 percent in net sales dollars compared to the first quarter of 1999. Desktop computers, which include servers, increased over 52 percent. "Sales of mid-range to high end notebooks were particularly strong," said Gregory Zeman, CDW's president. Zeman added, "Our account managers are expanding relationships with their customers and gaining productivity. We are on target to increase our sales force to approximately 1,100 account managers at the end of the year. We opened our new downtown Chicago sales office on April 1st and are pleased with the initial results." "Our e-commerce strategy and initiatives are an integral part of our business model and an extension of our account managers' relationships with customers. In the first quarter, direct Web sales of $72.4 million grew 155 percent over the first quarter of 1999 and 35 percent over the fourth quarter of 1999. "We implemented aggressive marketing activities to drive customers to CDW@work™, our customized customer Web site program," said Zeman. Gross profit margin of 12.6 percent of net sales in the first quarter of 2000, was consistent with the prior year quarter. The Company's gross profit as a percentage of net sales may vary on a quarterly basis based upon vendor support programs, including inventory price protection policies, product mix, pricing strategies, market conditions and other factors. As a result, there is no certainty that the Company will be able to sustain the gross profit margin levels achieved in recent quarters. Selling and administrative expenses, as a percentage of net sales, decreased to 6.1 percent in the first quarter of 2000 from 6.7 percent in the same period of 1999. The primary reasons for the decrease were a reduction of net advertising expense, as we gain productivity from our marketing efforts, and reduced payroll and other costs, as we leverage our cost base with accelerated sales growth. On a forward-looking basis, selling and administrative costs may increase as a percentage of net sales due to investments in new sales account managers, marketing initiatives and new facilities. Annualized inventory turnover decreased to approximately 23 times for the quarter, versus 26 in the first quarter of 1999. Working capital as of March 31, 2000 was $416.8 million, including approximately $84.6 million in cash, cash equivalents and marketable securities. The Company also today announced that Krasny and Zeman decided, with the full support of the Board of Directors, to expand the depth of the Company's management team and have commenced a search to hire a new Chief Executive Officer. Upon hiring and after transitioning the new CEO, Michael P. Krasny will retain his role as Chairman of the Board and concentrate his activities on future vision and corporate culture. Gregory Zeman, President and Director, will become Vice Chairman after the transition and focus on managing strategic vendor relationships. CDW has retained the Chicago office of Russell Reynolds Associates to conduct the search. "Greg and I are very proud of what we've accomplished over the past sixteen years and excited about the Company's dynamic future," said Krasny. "We have grown a home-based business into a multi-billion dollar organization that is rapidly approaching Fortune 500 status. We have successfully and profitably integrated e-commerce into our core business. We continue to set new records in growth and profitability. More importantly, we have created a winning culture for our dedicated people, achieving recognition for two consecutive years by Fortune Magazine on their list of 'The 100 Best Companies to Work for In America.' Our management team is stronger than ever. We want to strengthen and complement it with a new leader, with a proven track record, who can enhance our long term strategy and contribute to CDW's continued growth, profitability and success far into the millennium." "Given the current strength of our business, this is an opportune time to search for someone to take the Company to the next level," said Zeman. "Because of our high regard for our co-workers and our significant personal investments in the Company, Michael and I are committed to helping the Board find the right person for the job, effecting a seamless transition, and contributing in our new roles." The statements in this release concerning the Company's gross margin percentage and selling and administrative costs and other statements of a non-historical basis (including statements regarding implementing strategies for future growth, the ability of the Company to sustain its model of profitable growth and the expected benefits of the Company's e-Business strategy) are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, continuation of key vendor relationships and support programs and the ability of the Company to hire and retain qualified account managers. About CDW Computer Centers, Inc. CDW® (Nasdaq: CDWC), a FORTUNE 1000 company, is a leading direct solutions provider, offering complete, customized computing solutions for businesses and consumers nationwide. With competitive prices on a selection of thousands of brand name computer products, CDW is the No. 1 authorized direct source of Compaq, Computer Associates, IBM, Microsoft, Toshiba and other top name brands. Founded in 1984 as a home-based business, CDW today employs more than 2,000 coworkers. CDW's pioneering direct model offers personalized expertise through one-on-one relationships with highly-trained, knowledgeable account managers; telephone and online purchasing; custom configured solutions; next day shipping; and lifetime phone and online technical support, with more than 70 factory-trained and A+ certified technicians on staff. About cdw.com With more than 97,000 unique visitors each day on its award-winning Web site -- www.cdw.com --CDW brings online commerce to new heights with real-time pricing and availability, sophisticated search capabilities, Company Solutions, detailed order status, innovative promotions and weekly e-mail newsletters. More than 51,000 computer products -- with detailed specifications for more than 35,000 -- are available to search and order online, making the Company's Web site an integral component of its business. For more information about CDW: Via fax dial 1- 800-PRO-INFO and enter the ticker symbol -- CDWC. Visit CDW on the Internet at http://www.cdw.com Contact CDW Investor Relations via the Internet at shserv@admin.cdw.com Or by telephone at 847 419-8234. CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) ASSETS March 31, 2000 December 31, 1999 Cash, cash equivalents and marketable securities $84,572 $82,975 Accounts receivable, net of allowance for doubtful accounts of $4,450 and $4,300, respectively 284,818 230,190 Merchandise inventory 133,932 126,217 Prepaid income taxes 23,712 - Miscellaneous receivables 9,684 7,589 Deferred income taxes 6,702 6,702 Prepaid expenses 1,690 1,375 Total current assets 545,110 455,048   Property and equipment, net 42,931 39,429 Investment in and advances to subsidiary 9,244 6,499 Deferred income taxes and other assets 4,011 4,939 Total assets $601,296 $505,915 LIABILITIES AND SHAREHOLDER'S EQUITY     Current liabilities     Accounts payable $100,607 $65,657 Accrued expenses and other current liabilities 25,477 47,055 Accrued exit costs 2,274 2,219 Total current liabilities 128,358 114,931 Shareholder's equity 472,938 390,984 Total liabilities and shareholder's equity $601,296 $505,915 CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)   Three Months Ended March 31   2000 1999 Net Sales $863,988 $539,406 Cost of Sales 754,775 471,500 Gross profit 109,213 67,906 Selling and administrative expenses 52,365 36,221 Income from operations 56,848 31,685 Interest income 1,755 1,042 Other expense (175) (113) Income before income taxes 58,428 32,614 Income tax provision 23,137 12,916 Net income $35,291 $19,698 Earnings per share Basic $0.82 $0.46 Diluted $0.79 $0.45 Weighted average number of common shares outstanding Basic 43,287 43,069 Diluted 44,726 43,882 CDW Computer Centers, Inc. CDW Computer Centers, Inc. Investor Inquiries Harry J. Harczak, Jr. Chief Financial Officer Media Inquiries Melissa Sullivan Corporate Communications Manager (847) 419-6226 (847) 371-5067 Traded: Nasdaq: CDWC