SED International Holdings, Inc. appointed Rhea Moore as the company's Vice President of Sales, effective January 8, 2014, and William Orlowski as the company's Vice President of Product Purchasing, effective January 13, 2014. Messrs. Moore and Orlowski will work primarily out of the Company's new office in San Jose, California. Mr. Moore has been employed in the technology industry for the past 18 years, during which time he has held executive positions in both sales and marketing with Bell Microproducts, ASI Corporation and Microland Electronics. Mr. Orlowski has held marketing positions in the IT distribution industry for the past 30 years, including positions with Bell Microproducts, ASI Corporation, Computech International and Kierulff Electronics. Effective as of January 14, 2014, the company promoted Mr. Ronell Rivera, the company's current Senior Vice President-Latin America, to interim Chief Operating Officer, and Mr. Frank Gonzalez, the company's current Controller, to interim Chief Accounting Officer and Vice President of Finance.

Between January 9 and 15, 2014, the Company has undertaken an additional reduction in force in its U.S. distribution business, as a result of which the U.S. business now employs a total of 49 employees, including 24 employees at its Miami export business, 20 employees at its Lawrenceville, Georgia facility, and five employees at its California locations. The company and its subsidiaries employ an additional 185 employees as part of its Latin America distribution business. The company has significantly reduced the size of its U.S. operations and sales in an effort to restore the U.S. business to break-even profitability. The company currently hopes to stabilize the U.S. business and grow its sales on the basis of higher margin product sales. The Company also currently plans to maintain the size of the Miami export business and Latin American distribution business, with the goal of improving the profitability of each of these businesses.