Bell Industries Announces New Services Contracts
El Segundo, California - July 7, 2006 - Bell Industries, Inc. (AMEX:BI) today announced that its Technology Solutions division has received a number of new services contracts that are anticipated to provide approximately $30 million in incremental revenues during 2007 and add approximately 500 new jobs within the next six months.
In July, Bell will begin providing large scale integrated CRM (customer relationship management) solutions for a leading broadband phone organization. In addition, the company has entered into new services relationships with a leading computer manufacturer and a major consumer products manufacturer.
John A. Fellows, chief executive officer of Bell Industries, said, "Our recent efforts to secure leading operational and business development talent are beginning to pay off. While we anticipate start-up costs associated with these new engagements, we expect them to be fully operational by the end of 2006, significantly contributing to our financial results for 2007.
"Going forward, we will continue to concentrate on enhancing service levels for our existing clients, while pursuing new engagements in the technology services sector," Fellows said. "We are confident that Bell's Technology Solutions business is properly positioned to emerge as a leading technology, product and services provider in the years ahead."
CRM services to be provided include systems development, customer support, sales and technical support programs. Bell plans to perform the majority of these services through a new facility located in Springfield, Missouri. Fellows added that the other new services relationships are expected to lead to increased revenues for both the depot repair and wireless device management operations. In addition, he said Bell has added a new client to its advanced exchange depot and repair operations and will also soon be providing depot repair services for a major U.S. retailer.
Michael Barker, senior vice president of operations for Bell's Technology Solutions unit, said, "We remain focused on improving and expanding our CRM, depot repair, reverse logistics, wireless device management and product sourcing offerings. Following the recent expansion of the product sourcing group's business development organization and a heightened operational focus, I am confident that with our new resources, we can begin to capture relevant market share."
About Bell Industries, Inc.
Bell Industries is comprised of two diversified business units, Bell's Technology Solutions business and Recreational Products Group. Bell's Technology Solutions business offers a comprehensive portfolio of technology products and managed lifecycle services, including planning, product sourcing, deployment and disposal, and support services. Bell's Recreational Products Group distributes after-market parts and accessories primarily to the recreational vehicle and boating markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to the new engagements adding approximately $30 million in incremental revenues during 2007 and adding 500 new jobs in the next six months, are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including uncertainties as to the nature of our industry, including changing customer demand, the impact of competitive products and pricing, dependence on existing management and general economic conditions. Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
CONTACT:
Bell Industries, Inc.
John A. Fellows/Mitchell I. Rosen
310-563-2355
PondelWilkinson Inc.
Roger S. Pondel/Angie H. Yang
310-279-5980
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