Second Quarter 1999 - Earnings Release July 20, 1999 CDW COMPUTER CENTERS, INC. REPORTS 42 PERCENT EPS GROWTH AND 46 PERCENT SALES INCREASE Second Quarter Highlights: Twenty-fourth consecutive quarter of sequential sales growth as a public company 46 percent growth in net sales EPS increases 42 percent Direct Web sales increase 169 percent to $36.2 million 2-for-1 stock split paid on May 19, 1999 Financial & Operating Data Reflects 2-for-1 stock split paid May 19, 1999 Three Months Ended 06/30/99  06/30/98 % Change Six Months Ended 06/30/99  06/30/98 % Change Net Sales (000’s) $597,554 $408,945 46% $1,136,960 $793,536 43% Income from Operations (000’s) $ 36,068 $ 24,856 45% $ 67,753 $ 48,211 41% Net Income (000’s) $ 22,301 $ 15,588 43% $ 41,999 $ 30,358 38% Basic Earnings Per Share $ 0.52 $ 0.36 44% $ 0.97 $ 0.70 39% Diluted Earnings Per Share $ 0.51 $ 0.36 42% $ 0.96 $ 0.70 37% Operating Data Number of Orders Shipped 616,603 557,410 11% 1,240,755 1,135,659 9% Average Order Size $ 969 $ 734 32% $ 916 $ 699 31% Number of Account Executives 617 520 19%       Customers Serviced - Commercial 117,000 101,000 16% 177,000 156,000 13% % of Sales to Commercial Customers 92.6% 87.2% 5% 91.5% 85.8% 6% "Our exceptional second quarter results validate the key premise of our business strategy, which is that our commercial customers want a complete solutions provider. Commercial customers, our largest segment, need knowledgeable account managers who are supported by vast technical resources and a robust Web site. Our high level of technical service and customer support is demonstrated by over 700 custom configurations per day. We provide customized service and solutions through our Web site, www.cdw.com, which was recently redesigned and is the foundation for more than 18,000 active customized extranet sites for our customers. We are committed to motivating our coworkers, increasing our resources and refining our business strategies to continue to outperform the industry and generate future profitable growth." --- Michael P. Krasny, Chairman and Chief Executive Officer Vernon Hills, Illinois, July 20, 1999 --- CDW Computer Centers, Inc. (Nasdaq: CDWC) today announced record sales and earnings for the second quarter and six months ended June 30, 1999. Net sales for the second quarter increased 46 percent to $597.5 million from $408.9 million in the same period of 1998. Net income for the quarter rose 43 percent to $22.3 million from $15.6 million in the second quarter of 1998. Diluted earnings per share increased 42 percent to $0.51 in the second quarter of 1999 from $0.36 in the same period of 1998. Net sales for the six months ended June 30, 1999 increased 43 percent to $1.137 billion from $793.5 million in the same period of 1998. Net income for the six months ended June 30, 1999 was $42.0 million, a 38 percent increase over $30.4 million reported in the first six months of 1998. Diluted earnings per share of $0.96 increased 37% from $0.70 in the first six months of 1998. 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. "Our investments over the past 18 months in our sales account managers, www.cdw.com, branding campaign and custom configuration capabilities are all contributing to our profitable growth," said Michael P. Krasny, Chairman and Chief Executive Officer. "Our capabilities match the services required from our commercial customer base, where demand remained strong throughout the second quarter, clearly enabling us to gain market share."            Add-on boards/memory, notebooks, networking and communication and software were the fastest-growing product categories, all with sales growth rates exceeding 40 percent. Notebook computers, which remained the largest product category at 20 percent of net sales, increased 48 percent in net sales dollars compared to the second quarter of 1998. Desktop computers, which include servers, increased over 36 percent. "Average unit selling prices increased 5.5 percent for desktop computers and decreased 2.4 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 maturation of our sales force, combined with an intense focus on our commercial account base, resulted in increased productivity from our sales force and a 33 percent increase in sales per active commercial account. We continue to aggressively hire and train new account managers, with 144 people in various phases of training as of June 30, 1999." In the second quarter, direct Web sales grew 169 percent over the second quarter of 1998 and 28 percent over the first quarter of 1999. "We are aggressively implementing CDW@work™, our customized Web sites for commercial customers, with more than 18,000 active sites. 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," said Zeman. Gross profit margin was 12.5 percent of net sales in the second quarter of 1999, versus 12.6 percent in the second 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, decreased to 6.5 percent in the second quarter of 1999 from 6.6 percent in the same period of 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 24 in the second quarter of 1998. Working capital as of June 30, 1999 was $274.6 million, including approximately $77.7 million in cash, cash equivalents and marketable securities. 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 1,700 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 60,000 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 48,000 computer products - with detailed specifications for more than 20,000 - are available to search and order online, making the Company's Web site an integral component of its business. For more information about CDW: Visit CDW on the Internet at http://www.cdw.com Contact CDW Investor Relations via the Internet at shserv@cdw.com Or by telephone at 847-419-8234. CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)   June 30, 1999 December 31, 1998 ASSETS Current assets:     Cash, cash equivalents and marketable securities $77,703 $70,688 Accounts receivable, net of allowance for doubtful accounts of $4,000 and $3,185, respectively 213,328 152,308 Miscellaneous receivables 8,031 5,896 Merchandise inventory 81,064 64,392 Prepaid expenses and other current assets 1,015 1,423 Deferred income taxes 5,081 5,081 Total current assets 386,222 299,788 Property and equipment, net 38,719 37,056 Deferred income taxes and other assets 5,575 4,977 Total assets $430,516 $341,821   LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities     Accounts payable $78,440 $41,358 Accrued expenses and other current liabilities 30,664 26,985 Accrued exit costs 2,547 2,715 Total current liabilities 111,651 71,058 Shareholder's equity 318,865 270,763 Total liabilities and shareholder's equity $430,516 $341,821 CDW COMPUTER CENTERS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)   Three Months Ended June 30, Six Months Ended June30,   1999 1998 1999 1998 Net Sales (000’s) $597,554 $408,945 $1,136,960 $793,536 Cost of Sales 522,807 357,238 994,307 692,682 Gross profit (000’s) 74,747 51,707 142,653 100,854 Selling and administrative expenses 38,679 26,851 74,900 52,643 Income from operations 36,068 24,856 67,753 48,211 Interest income 961 1,042 2,003 2,211 Other expense (108) (91) (221) (162) Income before income taxes 36,921 25,807 69,535 50,260 Income tax provision 14,620 10,219 27,536 19,902 Net income $ 22,301 $ 15,588 $ 41,999 $ 30,358 Earnings per share Basic $0.52 $0.36 $0.97 $0.70 Diluted $0.51 $0.36 $0.96 $0.70 Weighted average number of common shares outstanding (000’s) Basic 43,118 43,092 43,094 43,092 Diluted 43,925 43,364 43,904 43,436 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