SED International Holdings, Inc. announced that the Company plans to strengthen its long-term competitive position through a restructuring of its United States operations. The restructuring initiatives will improve productivity and strengthen SED's commercial operations. Key elements of the plan include: Focus the Company's line card consistent with strategic opportunities in both Commercial and Consumer businesses.

Reduce U.S. headcount and SG&A by over 25%. Consolidate SED's 5 U.S. distribution centers into 3 distribution centers. It is expected that this restructuring plan will result in gross profit dollars remaining consistent with the historical run rates while SG&A will decline by approximately 25%.

This plan will not impact the recently adopted strategic growth plan in Latin America and will not affect the profitability of the Latin American business unit.