SED International Holdings Acquires Certain Assets of ArchBrook Laguna Holdings LLC

TUCKER, Ga.--(EON: Enhanced Online News)--SED International Holdings, Inc. (Amex: SED) today announced that in conjunction with Gordon Brothers Group, LLC, a global advisory, restructuring and investment firm, the two have acquired substantially all of the assets of ArchBrook Laguna LLC, a private Carlstadt, New Jersey distributor of consumer electronics, computers and appliances to retailers. Assets purchased by SED include those of ArchBrook Laguna subsidiary, Lehrhoff & Co., Inc., a distributor of small appliances, housewares, personal care products, and consumer electronics, enhancing the business lines already distributed by SED.

“The acquisition of the ArchBrook Laguna assets is very much aligned with our three-year strategic growth plan to broaden our product offering, diversify our geographic footprint and enhance margins”

The assets of the ArchBrook Laguna that SED has acquired include: a portion of the company’s finished inventory (including goods-in-transit.) Additional assets acquired by SED include customer and supplier lists, as well as certain of ArchBrook Laguna’s intellectual property; SED plans to offer employment to many of the Lehrhoff and ArchBrook Laguna employees. As part of this transaction, SED will establish a location in the Northeast.

“The acquisition of the ArchBrook Laguna assets is very much aligned with our three-year strategic growth plan to broaden our product offering, diversify our geographic footprint and enhance margins,” said Jonathan Elster, President and Chief Executive Officer of SED. “This transaction is a significant milestone toward our vision of becoming a leader in the distribution of technology products and services. SED’s financial position is strong, with a $60 million credit facility with Wells Fargo that has the ability to expand to $75 million. Additionally, we have a track record of growth and have posted eight consecutive quarters of profitability. We are excited at the prospect of integrating the ArchBrook Laguna and Lehrhoff teams into the SED organization.”

ABOUT SED INTERNATIONAL HOLDINGS, INC.

Founded in 1980, SED International Holdings, Inc. is a multinational, preferred distributor of leading computer technology, consumer electronics, small appliances and cellular 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 US and Latin America. To learn more, please visit www.SEDonline.com; or follow us on Twitter @SEDIntl.

About Gordon Brothers Group, LLC

Founded in 1903, Gordon Brothers Group (www.gordonbrothers.com) is a global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, appraising assets, providing debt and equity financing, and operating businesses for extended periods. Gordon Brothers Group conducts over $50 billion worth of transactions and appraisals annually.

About ArchBrook Laguna LLC

ArchBrook Laguna LLC was a distributor of consumer electronics, computers and appliances to retailers. The Company was formerly known as Bdi-Laguna, Inc. and changed its name to ArchBrook Laguna, LLC in 2008. ArchBrook Laguna, LLC was founded in 1980 and was based in Carlstadt, New Jersey. On July 8, 2011, ArchBrook Laguna, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York (Manhattan). It is in joint administration with ArchBrook Laguna Holdings, LLC.

About Lehrhoff & Co., Inc.

Founded in 1918, Lehrhoff & Co., Inc. distributes small appliances, housewares, personal care products, shavers, clocks, watches, seasonal products, floor care, and electronics in the United States. The company also offers cameras, crystal and giftware, cutlery, exercise equipment, luggage and leather, furniture, sporting goods, telephone products, toys and games, food products, and tools and outdoor equipment. It also provides programs and consumer promotions for companies. Lehrhoff offers its products in its stores as well as online. The company is based in Edison, New Jersey.

Statements made in this Press Release that are not historical or current facts are "forward-looking statements.” These statements often can be identified by the use of terms such as "may," "will," "expect," "believes," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond the control of the Company that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, failure to gain product approval in foreign countries and failure to capitalize upon access to new markets. The Company disclaims any obligation to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. These factors and others are discussed in the “Management's Discussion and Analysis" section of the Company's Reports on Forms 10-K and 10-Q available at www.sec.gov.