February.17.09

TUCKER, GA - (PR NEWSWIRE) - February 17, 2009 - SED International Holdings, Inc. (Pink Sheets: SECX), a multinational supply chain management provider and distributor of leading computer technology, wireless communications and consumer electronics, today announced its financial results for the three and six months ended December 31, 2008.

Financial Highlights for the Three Months Ended December 31, 2008 Compared to the Three Months Ended December 31, 2007:

• Domestic revenues rose 5.2% to $68.8 million from $65.4 million.
  
• Export and Latin American revenues were collectively $40.3 million, representing a 14.3% decrease from $47.0 million.
  
• Consumer electronics sales climbed 21.6% to $9.4 million from $7.7 million.
  
• Sales of micro-computing products totaled $98.1 million, decreasing 4.6% from $102.8 million.

- Gross profit margins improved to 6.0%, up from 5.3%.

- Operating loss totaled $108,000 compared to operating income of $274,000. The decrease was primarily the result of non-recurring professional service and legal costs of $370,000 related to certain lawsuits and settlements for the three months ended December 31, 2008, as well as a foreign currency transaction loss of $390,000 caused by the devaluation of Latin American currencies versus the U.S. Dollar compared to a foreign currency transaction gain of $13,000.

- Net loss was $696,000, or $0.18 per basic and diluted share, compared to a net loss of $114,000, or $0.03 per basic and diluted share.

Financial Highlights for the Six Months Ended December 31, 2008 Compared to the Six Months Ended December 31, 2007:

• Domestic revenues totaled $133.2 million, an 8.8% decline from $146.1 million.
• Combined Export and Latin American revenues rose 3.9% to $96.6 million from $93.0 million.
• Sales of Consumer Electronics increased 36.6% to $18.3 million from $13.4 million.
• Micro-computing product sales were $207.2 million, down 6.5% from $221.5 million.

- Gross profit margins increased to 5.7% from 5.4%.

- Operating loss was $293,000 compared to operating income of $1.3 million. The decline was primarily the result of non-recurring professional service and legal costs of $460,000 related to certain lawsuits and settlements for the six months ended December 31, 2008, and the devaluation of Latin American currencies versus the U.S. Dollar, which resulted in a $1.3 million foreign currency transaction loss compared to a foreign currency transaction loss of $168,000.

- Net loss totaled $1.0 million, or $0.26 per basic and diluted share, compared to net income of $246,000, or $0.06 per basic and diluted share.

Jean Diamond, Chairman and CEO of SED, stated, "Despite a challenging holiday season for retailers and ongoing economic volatility worldwide, SED has managed to withstand these difficulties by remaining focused on serving the evolving distribution needs of our customers and vendors. In the second quarter, we were pleased to see continued growth in our Consumer Electronics division, which was fueled by strong sales to independent dealers and through our major ecommerce channel partners. Overall, we believe we are well positioned in the marketplace today and remain enthusiastic about planned sales initiatives and strategic expansion opportunities we are pursuing."

As of December 31, 2008, the Company had cash and cash equivalents of $5.9 million, net trade receivables of $38.0 million, net inventories of $36.8 million, and working capital of $17.0 million. Net cash provided by SED's operating activities for the first fiscal six months was $4.0 million. Total shareholder's equity at the end of the reporting period was $17.9 million. In addition, SED has remained in compliance with all covenants relating to its revolving credit facility with Wells Fargo (formerly Wachovia Bank). Net borrowings under the facility decreased 9.0% to $17.1 million at December 31, 2008, down from $18.8 million at June 30, 2008. Available borrowings under the revolving credit facility were $15.8 million as of December 31, 2008.

SED will also host a teleconference today beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-2134 or via webcast accessible www.SEDonline.com. For those unable to participate at that time, a replay of the webcast will be available for 90 days on www.SEDonline.com.

If you would like to learn more about the Company or would like to interview management, please contact John Morrison or Tiffany Korkis, Directors, Elite Media Group, at 407-585-1080 or via email at SECX@efcg.net.

About SED International, Inc.
Founded in 1980, SED International Holdings, Inc. is a multinational, preferred distributor of leading computer technology, wireless communications and consumer electronics products. The Company also offers custom-tailored supply chain management services ideally suited to meet the priorities and distribution requirements of the e-commerce, Business-to-Business and Business-to-Consumer markets. Headquartered near Atlanta, Georgia with business operations in California; Florida; Georgia; Texas; Bogota, Colombia and Buenos Aires, Argentina, SED serves a customer base of over 10,000 channel partners and retailers in the U.S. and Latin America. To learn more, please visit www.SEDonline.com.