Bell Industries Announces Second Portion of Planned Cash Distribution

3 December 1999

Bell Industries Announces Second Portion of Planned Cash Distribution

    EL SEGUNDO, Calif.--Dec. 3, 1999--Bell Industries Inc. today announced that its board of directors has declared a cash distribution of $1.30 per share, payable Dec. 17, 1999, to shareholders of record on Dec. 10, 1999.
    The payment represents the second portion of a previously announced planned distribution of the net proceeds from the sale of the company's electronics distribution unit and the disposition of related real estate properties. The first distribution of $5.70 per share was paid to shareholders on June 8, 1999.
    The company believes these distributions generally will be treated for federal income tax purposes as part of a redemption in partial liquidation of Bell's business.
    Accordingly, individual shareholders should be able to treat these distributions as an exchange giving rise to either long-term or short-term capital gain or loss, depending on the applicable holding period and the shareholder's basis in the stock.
    Corporate shareholders generally will be required to treat the distributions as a dividend. All shareholders should consult with their tax advisors on the appropriate treatment of these distributions in light of their particular circumstances.
    New York Stock Exchange rules require that Bell's stock trade ex-dividend on the day after payment, which will be Dec. 20, 1999. Shareholders who sell their shares during the period from Dec. 10, 1999 (record date), through and including Dec. 17, 1999 (payment date), will transfer the right to receive the $1.30 cash distribution to the buyers of the shares during that period. On Dec. 20, 1999 (ex-dividend date), the company's share price is expected to decrease by the amount of the distribution.
    Bell's primary business is the systems integration group, a multi-regional provider of integrated computer technology solutions for large and medium-sized organizations. Bell also distributes after-market parts and accessories to the recreational vehicle market, and manufactures specialized products for the computer and electronics industry.