First Quarter 1999 - Earnings Release April 21, 1999 CDW COMPUTER CENTERS, INC. REPORTS 32 PERCENT EPS GROWTH AND DECLARES 2-FOR-1 STOCK SPLIT First Quarter Highlights: Twenty-third consecutive quarter of sequential sales growth as a public company 40 percent growth in net sales EPS increases 32 percent Direct Web sales increase 181 percent to $28.4 million Announced Joint SMB Marketing Program with H-P 2-for-1 stock split payable on May 19, 1999 to shareholders of record on May 5, 1999 Financial & Operating Data Quarter Ended 03/31/99 03/31/98 % Change Net Sales (000's) $539,406 $384,591 40% Income from Operations (000's) $ 31,685 $ 23,355 36% Net Income (000's) $ 19,698 $ 14,770 33% Basic Earnings Per Share 0.91 0.69 32% Diluted Earnings per Share 0.90 0.68 32% Operating Data Number of Orders Shipped 624,152 578,249 8% Average Order Size $ 864 $ 665 30% Number of Account Executives 630 476 32% Customers Serviced - Commercial 116,884 99,667 17% Customers Serviced - Consumer 106,631 129,168 (17)% "CDW's business model continues to evolve and excel despite industry concerns over new forms of competition, pricing and customer demand. Our focus on superior customer service and co-worker recognition programs, along with our aggressive initiatives in marketing, sales and e-commerce, enabled us to grow at more than three times the industry growth rate. Marketing initiatives that leverage our strong vendor relations - such as our recently announced joint program with Hewlett-Packard targeting small- and medium-sized businesses - provide value-added service and demonstrate vendors' commitment to our channel. We are confident that we have the resources, infrastructure and strategy to sustain our model of profitable growth." --- Michael P. Krasny, Chairman and Chief Executive Officer Vernon Hills, Illinois, April 21, 1999 --- CDW Computer Centers, Inc. (Nasdaq: CDWC) today announced record sales and earnings for the first quarter ended March 31, 1999 and declared a 2-for-1 stock split. Net sales for the first quarter increased 40 percent to $539.4 million from $384.6 million in the same period of 1998. Net income for the quarter rose 33 percent to $19.7 million from $14.8 million in the first quarter of 1998. Diluted earnings per share increased 32 percent to $0.90 in the first quarter of 1999 from $0.68 in the same period of 1998. "Our continued, strong growth in the first quarter reflects the evolution of our business model to provide a complete solutions approach for our commercial customers," said Michael P. Krasny, chairman and chief executive officer. "Our primary customers -- business, government and educational organizations -- want value-added services and not just the lowest price. CDW's full service offering, including dedicated account managers, custom configuration, technical support and same day shipping, coupled with our robust e-commerce site, is the reason we are able to expand our customer relationships and gain market share."            Networking and communication products, add-on boards/memory products, software and desktop computers were the fastest growing product categories, all with sales growth rates in excess of 40 percent. Desktop computer unit sales, which include servers, increased approximately 30 percent. Notebook computers, which remained the largest product category at 19 percent of net sales, increased 32 percent in net sales dollars compared to the first quarter of 1998. "Average unit selling prices increased 10 percent for desktop computers and decreased 5 percent for notebooks, as we have seen some price stabilization and a higher mix of server sales," said Gregory Zeman, CDW's president. Zeman added, "The expansion and development of our sales force and the continued strength of our commercial account base have resulted in a 30 percent increase in average order size and a 31 percent increase in sales per active commercial account. An increasingly important business growth driver is our Web site, www.cdw.com. In the first quarter, direct Web sales grew 181 percent over the first quarter of 1998 and 38 percent over the fourth quarter of 1998. A key part of our electronic commerce strategy is the rollout of CDW@work™, our customized Web-sites for commercial customers. Both www.cdw.com and CDW@work serve as information and productivity tools for our customers, enabling our account managers to secure longstanding relationships and generate incremental sales." Gross profit margin was 12.6 percent of net sales in the first quarter of 1999, versus 12.8 percent 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, 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, were consistent at 6.7 percent in the first quarters of 1999 and 1998. 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 and new marketing initiatives. Annualized inventory turnover increased to approximately 26 times for the quarter, versus 20 in the first quarter of 1998. This increase is primarily the result of CDW's participation in the build-to-order strategies of the major manufacturers that seek to reduce inventory levels in the channel. Working capital as of March 31, 1999 was $251.9 million, including approximately $68.0 million in cash, cash equivalents and marketable securities. Declares 2-for-1 Stock Split The board of directors of CDW declared a 2-for-1 stock split of its common stock, to be effected in the form of a common stock dividend payable on May 19, 1999 to shareholders of record at the close of business on May 5, 1999. The stock split will increase the shares outstanding from approximately 21,541,000 shares at March 31, 1999 to approximately 43,082,000 shares, and it will increase CDW's public float from approximately 9,800,000 shares to approximately 19,600,000 shares. "Our objective in splitting the stock is to enhance trading liquidity, which may allow more investors to participate in the investment opportunities at CDW," said Michael Krasny, chairman and chief executive officer. 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 electronic commerce 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 one-man, home-based business, CDW today employs more than 1,500 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 60 factory-trained and A+ certified technicians on staff. About cdw.com With more than 66,000 unique visitors each day on its award-winning Web site-www.cdw.com -CDW brings online commerce to new heights with automated pricing and availability alerts, online shopping lists, sophisticated search capabilities, and innovative promotions and product giveaways. Nearly 46,000 computer products - with detailed specifications for over 12,000 - 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, 1999 December 31, 1998 Cash, cash equivalents and marketable securities $67,990 $70,688 Accounts receivable, net of allowance for doubtful accounts of $3,485 and $3,185, respectively 187,468 152,308 Miscellaneous receivables 6,401 5,896 Merchandise inventory 80,463 64,392 Prepaid expenses and other current assets 1,357 1,423 Deferred income taxes 5,081 5,081 Total current assets 348,760 299,788 Property and equipment, net 38,203 37,056 Deferred income taxes and other assets 4,869 4,977 Total assets $391,832 $341,821 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Accounts payable $63,669 $41,358 Accrued expenses and other current liabilities 30,599 26,985 Accrued exit costs 2,600 2,715 Total current liabilities 96,868 71,058 Shareholder's equity 294,964 270,763 Total liabilities and shareholder's equity $391,832 $341,821 CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)   Three Months Ended March 31   1999 1998 Net Sales $539,406 $384,591 Cost of Sales 471,500 335,444 Gross profit 67,906 49,147 Selling and administrative expenses 36,221 25,792 Income from operations 31,685 23,355 Interest income 1,042 1,169 Other expense (113) (71) Income before income taxes 32,614 24,453 Income tax provision 12,916 9,683 Net income $19,698 $14,770 Earnings per share Basic $0.91 $0.69 Diluted $0.90 $0.68 Weighted average number of common shares outstanding Basic 21,535 21,546 Diluted 21,941 21,753 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