Avnet Company Confidential Lean Product Fulfillment (LPF) Proposal Overview September 25, 2007

Avnet Company Confidential Meeting Agenda Review the Key Objectives of the LFM Model High level review of the material flow Open Discussion on the Model –Initial Thoughts…. –Challenges to over come Implementation Elements Next Steps

Avnet Company Confidential LPF Program Objectives Enhance our current In-Plant store program to: –Provide more inventory available to support manufacturing –Reduce Micron Inventory Ownership for WIP –Reduce the number of System transactions –Enable flexibility for growth as more production comes to Micron-Puerto Rico –Enable more focus by on-site resources to manage material issues –Utilize an e-commerce solution to enhance Quality and efficiency

Avnet Company Confidential High Level Solution Summary Line Side Consignment Kan bans owned and managed by Avnet. –(2 Bins – 1 Week worth of inventory Each) Bins scanned and replenished by Avnet POURS.COM manages all transactions Billing of Bin when fully empty Material replenished within 24 hours Avnet Personnel managing process and transactions

Avnet Company Confidential Lean Product Fulfillment Process Flow

Avnet Company Confidential LPF Process Flow 1wk Bin 1 Bin 2 Avnet owned Kan Bans Kan Ban Material is staged Line side And owned by Avnet. 2 (1 Week) kan bans per part Material is consumed by the manufacturing line Operators from Kan Ban 1

Avnet Company Confidential LPF Process Flow 1wk Bin 1 Bin 2 Avnet owned Kan Bans Kan Ban Material is staged Line side And owned by Avnet. 2 (1 Week) kan bans per part Material is consumed by the manufacturing line Operators from Kan Ban 1 Avnet IPS Mgr routinely goes to Floor Stocking Locations to observe and signal Kan Ban Replenishment for consumed Items. IPS Mgr. Scans Pours Bin Boxes with Bar Code scanner Returns to Avnet IPS and transfers Scan Information into POURS.COM

Avnet Company Confidential LPF Process Flow IPS Inventory EDI Replenishment Signal IPS Operator Processes POURS Release Trigger POURS Packing Slip Prints Next Day Delivery To POU Line side Kan Ban Location Components Delivered to the POU Export of Inventory Replenishment To Micron SAP System Invoicing against existing Blanket PO Parts are Pulled By Warehouse Operator Serialization Barcode Labels applied

Avnet Company Confidential Solution Benefits This model removes the high transaction activity involved in the kitting process…by 2/3 rds –More productivity from Existing Resources…Avnet and Micron Moves Avnet Buffer inventory from our IPS to the Point of Use….. –More flexibility for Manufacturing to keep building E-Commerce Solution utilizing POURS to manage all transactions via EDI –More Quality in Data / Faster processing / Higher Efficiency Micron Inventory Reduction for WIP and residual inventory… –Reduction in 4-6 Days of Inventory (RM/WIP) $110+K Inventory Reduction based on Avnet Business Level ($8 Mil/ $22k/Day) Reduce and eliminate Material shortages and allow for more up-stream pipeline focus by on-site resources Minimal Process Change for Micron

Avnet Company Confidential Model Discussions What are your initial thoughts? What changes would you make to the model? Are there any issues/challenges to over come? (Yellow Lights…we need to slow down and discuss that you think might inhibit this model? –Labeling requirements –Space requirements –System Transactions / Inventory Information –Other issues we might have note have considered What metrics shall we be tracking to insure success?

Avnet Company Confidential Finalize Model…Next Steps Review Solution proposal with key players in Manufacturing / IT / Purchasing / Materials Discuss the value proposition and determine quantified savings jointly with the program Obtain Green Light to move forward… Establish Implementation Team Begin Safe Passage Model Implementation Pilot….Refine Process….Expand program

Avnet Company Confidential POURS.COM Appendix About POURS.COM

Avnet Company Confidential POURS.com Point of Use Replenishment System

Avnet Company Confidential Point Of Use Replenishment System Web Based - Secure access from any Internet connected PC No custom software to install or support Simple, Intuitive User Interface Automate Replenishment Signal to Any Supplier Scan to trigger electronic orders Reduce Administration Reduce Inventory / Increase Turns Manage Multiple Supply Chain Models Kanban – Scan to “Pull” replenishment inventory Min-Max – Manage QOH within specified parameters Consignment/VMI – Automate communications to suppliers

Avnet Company Confidential POURS Features (1) Web Based  Secure access from any Internet based PC  Share data across multiple facilities, departments or partners in the supply chain Ease of Use  Simple, online, intuitive user interface  Minimizes training and support Configurability  Configurable to meet the specific needs of your supply chain model  Kanban, VMI or Min/Max models Security  Your data remains secure and confidential in an enterprise-class data center Multi-Supplier  Create consistent processes across all material – regardless of supplier  Manage replenishment or consignments from any supplier EDI  Industry standard EDI transactions  Automate transactions to & from any EDI capable trading partner  No additional software required

Avnet Company Confidential POURS Features (2) Data  Extensive list of reports and label formats  Data exportable to Excel or other applications  Integration with MRP/ERP systems Exception Based Processing  Exceptions identified in heads-up area of each screen  Can be configured to send alerts proactively notifying the appropriate user(s) of exceptions External Data  Linked to Avnet’s database of nearly 3 million part numbers  Automatically look-up Avnet’s Inventory, hazmat details, package quantities, etc. Advance Ship Notices  Integrated ASNs provide online access to tracking information  Direct links to FedEx, UPS & DHL

Avnet Company Confidential Benefits of POURS.COM  Reduce the cost of procurement by eliminating non-value-add activities.  Increased inventory turns.  Reduction in inventory frees working capital for re-deployment.  Increased manufacturing flexibility due to part availability.  Replenishment triggered by line-side personnel.  Improved quality through bar code driven processes.  Increased material balance control and visibility.  Quick implementation.  Reduced burden on your IT resources.  Single point of purchasing in multi site engagements.