First Quarter 1998 Earnings Release April 20, 1998 CDW COMPUTER CENTERS, INC. REPORTS RECORD RESULTS First Quarter Highlights: Nineteenth consecutive quarter of sequential sales growth as a public company 29% growth in net sales Operating income increases 30% Increased number of CDW Account Managers to 476 Number of customers serviced advances 14% Achieved first time recognition as a Fortune 1000 Company Financial & Operating Data* Quarter Ended 03/31/98 03/31/97 % Change Net Sales (000's) $384,591 $297,777 29% Income from Operations (000's) $ 23,355 $ 17,916 30% Net Income (000's) $ 14,770 $ 11,359 30% Basic Earnings Per Share 0.69 0.53 30% Diluted Earnings per Share 0.68 0.52 31% Operating Data Number of Orders Shipped 578,249 445,181 30% Average Order Size $ 665 $ 669 (.6)% # account managers, end of period 476 329 45% Customers Serviced (000's) 229 200 14% Customers Serviced - TTM 594 499 19% "We are extremely proud of our record first quarter results. Our ability to increase market share and grow profitably despite industry changes and declining average selling prices is testament to the soundness of our strategies. CDW is aggressively increasing the number of account managers and refining our marketing activities to enable continued growth. We are confident that our strategy of providing name-brand products with outstanding service to business customers will prevail. Our growing base of co-workers continues to display a passion for outstanding customer service and a true belief that "At CDW, Success Means Never Being Satisfied." --- Michael P. Krasny, Chairman and Chief Executive Officer Vernon Hills, Illinois, April 20, 1998 --- CDW Computer Centers, Inc. (Nasdaq: CDWC) today announced record sales and earnings for the first quarter ended March 31, 1998. Net sales for the first quarter increased 29% to $384.6 million from $297.8 million in the same period of 1997. Net income for the quarter rose 30% to $14.8 million from $11.4 million in the first quarter of 1997. Diluted earnings per share increased 31% to $0.68 in the first quarter of 1998 from $0.52 in the same period of 1997. "The diversity of our product lines contributed to our strong first quarter sales growth," said Michael P. Krasny, chairman and chief executive officer. "Our investments in people, particularly new CDW account managers, enabled us to better serve our customers as sales per active account grew 13% over the prior year. Increases in the number of customers serviced and number of orders shipped more than offset the impact of declining prices," said Krasny.        Desktop computers, printers, data storage devices, video and multi-media products were the fastest growing product categories, based on the percentage increase in dollar sales over the first quarter of 1997. Desktop computers were the fastest growing product category with net sales dollars increasing over 52%. Notebook computers, the largest product category at 20% of net sales, grew at a rate of 3%. Unit volumes of notebook and desktop computers were strong, with growth rates of 17% and 88%, respectively, over the first quarter of 1997. "Our notebook and desktop computer sales are driven by name-brand products from top tier computer manufacturers such as Compaq, Hewlett-Packard, IBM and Toshiba. Availability of high-performance desktop computers at price points of less than $1,500 and $1,000 has increased the universe of customers who are upgrading their existing systems and expanding their Internet and network systems capabilities. Softness in sales of notebook computers was due to limited product innovations at prices under $2,500," said Gregory C. Zeman, CDW's president. Gross profit margin was 12.8 % of net sales in the first quarter of 1998. The decline in gross margin from the levels achieved in recent periods is primarily due to lower levels of rebates from vendors and an increase in shipping costs. On a forward looking basis, the Company believes that its gross margin is likely to remain under 13% and may decline slightly from the level achieved in the first quarter of 1998. The Company's gross profit as a percentage of net sales may vary on a quarterly basis based upon vendor support programs, 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 expense as a percentage of net sales decreased to 6.7% of net sales in the first quarter of 1998 versus 7.4% in the same quarter of 1997. The primary reasons for the decline were decreases in the executive incentive bonus pool and net advertising expense, which were partially offset by increases in payroll and occupancy costs. The executive bonus pool is based upon a percentage of the year over year increase in income from operations. Annualized inventory turnover was approximately 20 times for the quarter. Working capital as of March 31, 1998 was $178.3 million, including approximately $ 68.0 million in cash, cash equivalents and marketable securities. "Our growth has necessitated the need for further expansion of our Vernon Hills facility. We are breaking ground for a 100,000 square foot addition to our warehouse facility. This expansion will allow us to even better serve our growing customer base on a cost effective basis," said Krasny. The statements in this release concerning the Company's gross margin percentage, the expected results of the warehouse expansion and other statements of a non-historical basis (including statements regarding implementing strategies for future growth) 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. CDW Computer Centers, Inc. (Nasdaq: CDWC) is a leading direct marketer of brand name microcomputer products, primarily to business, government, educational, institutional and home office users in the United States. CDW sells a broad range of brand name microcomputer products, including hardware and peripherals, software, networking products and accessories through knowledgeable telemarketing account managers. Sales of products that utilize, or are compatible with, the Microsoft Windows 95/Windows/Windows NT/MS-DOS operating platforms account for substantially all of the Company's net sales. Customers can place orders and obtain product information by calling a CDW account manager at 1-800-800-4CDW, or by visiting CDW on the Internet at http://www.cdw.com. 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, 1998 December 31, 1997 Cash, cash equivalents and marketable securities $67,956 $79,425 Accounts receivable, net of allowance for doubtful accounts of $2,175 and $1,950, respectively 98,225 87,524 Miscellaneous receivables 5,432 3,960 Merchandise inventory 70,162 61,941 Prepaid expenses and other current assets 941 759 Deferred income taxes 3,587 3,587 Total current assets 246,303 237,196 Property and equipment, net 31,606 26,704 Deferred income taxes and other assets 5,745 5,741 Total assets $283,654 $269,641 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Accounts payable $39,559 44,451 Accrued expenses and other current liabilities 25,271 21,933 Accrued exit costs 3,213 3,391 Total current liabilities 68,043 69,775 Shareholder's equity 215,611 199,866 Total liabilities and shareholder's equity $283,654 $269,641 CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) Three Months Ended March 31 1998 1997 Net Sales $384,591 $297,777 Cost of Sales 335,444 257,834 Gross profit 49,147 39,943 Selling and administrative expenses 25,792 22,027 Income from operations 23,355 17,916 Interest income 1,169 957 Other expense (71) (51) Income before income taxes 24,453 18,822 Income tax provision 9,683 7.463 Net income $14,770 $11,359 Earnings per share Basic $0.69 $0.53 Diluted $0.68 $0.52 Weighted average number of common shares outstanding Basic 21,546 21,525 Diluted 21,753 21,682 Traded: Nasdaq: CDWC CDW Computer Centers, Inc. Fleishman-Hillard (Chicago) Harry J. Harczak, Jr. Sharon J. Erikson Chief Financial Officer General Inquiries (847) 419-6226 (312) 751-8878