SCANSOURCE ACHIEVES RECORD ANNUAL REVENUES AND EARNINGS

GREENVILLE, SC - August 18, 2011 - ScanSource, Inc. (NASDAQ:SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and physical security products for the reseller market, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2011.

Quarter ended June 30, 2011	Fiscal Year ended June 30, 2011
Net sales $735 million	Net sales $2,667 million
Net income $19.7 million	Net income $73.5 million
Diluted EPS $0.71 per share	Diluted EPS $2.70 per share

“ScanSource delivered record results in a tough economy by focusing on our core competencies and taking market share,” said Mike Baur, CEO, ScanSource, Inc. “All of our business units performed exceptionally well, with the strongest year-over-year growth in our International segment.”

For the quarter ended June 30, 2011, net sales increased 26.2% to $734.9 million compared to $582.3 million for the quarter ended June 30, 2010. Operating income increased by 39.4% to $29.2 million from $21.0 million in the comparable prior year quarter. Net income increased 39.9% to $19.7 million for the quarter ended June 30, 2011 versus $14.0 million for the quarter ended June 30, 2010. The effective tax rate for the quarter decreased to 31.7% in the current quarter from 33.1% in the prior year quarter. Diluted earnings per share increased 36.5% to $0.71 in the current quarter compared to $0.52 in the prior year quarter.

For the year ended June 30, 2011, net sales increased $552 million or 26.1% to $2.7 billion, from the prior year ended June 30, 2010. Fiscal year operating income also increased 49.3% to $113.1 million from $75.8 million from the prior year. Net income increased 50.6% to $73.5 million compared to $48.8 million from the prior fiscal year. The effective tax rate for the year was 34.3% compared to 35.6% for the prior fiscal year. Diluted earnings per share increased 48.4% to $2.70 compared to $1.82 in the prior fiscal year.

Forecast for Next Quarter
The Company announced its revenue forecast for the first quarter of fiscal 2012. ScanSource expects that net revenues for the quarter ending September 30, 2011 could range from $730 million to $750 million.

Safe Harbor Statement
This press release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, factors affecting our expanded operations in emerging markets, such as Brazil, that expose us to greater political and economic volatility than our operations in established markets, the results of purchase accounting, macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a continued economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2010 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2011 to be filed with, the Securities and Exchange Commission.

About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is the leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe. ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #839 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.