Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	Jeffery A. Bryson
	VP of Investor Relations
	ScanSource, Inc.
	864 286-4305

SCANSOURCE REPORTS RECORD RESULTS

*Sales increase 8% to $390.4 million

GREENVILLE, SC—October 27, 2005—ScanSource, Inc. (Nasdaq:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced financial results for its quarter ended September 30, 2005.

QE 9/30/05 capsule:

Net sales	$	390.4 million
Net income	$	9.3 million
Non-GAAP net income	$	10.0 million
Diluted EPS	$	0.72 per share
Non-GAAP diluted EPS	$	0.77 per share

For the quarter ended September 30, 2005, net sales increased 8% to a record $390.4 million compared to $362.7 million for the quarter ended September 30, 2004.

“We were very pleased with our overall results, highlighted by exceptional performance in our Catalyst business unit,” said Mike Baur, President and CEO of ScanSource. “Our international segment also exceeded our expectations during a seasonally slower quarter.”

1

ScanSource Reports First Quarter Results

Net income, based upon Generally Accepted Accounting Principles (GAAP), increased 5% to $9.3 million for the quarter ended September 30, 2005 versus $8.9 million for the quarter ended September 30, 2004. Diluted earnings per share increased 6% to $0.72 per share, compared to $0.68 in the prior year quarter.

Beginning the September 2005 quarter, the Company was required to adopt FASB Statement 123(R), Share-Based Payments, which mandates expensing share-based compensation cost. If the Company had not adopted Statement 123(R) for the September 30, 2005 quarter, net income would have been $687,000 higher or $10.0 million compared to $8.9 million for the September 2004 quarter, an increase of 12%. Diluted earnings per share would have been $.77 compared to $.68 for the September 2004 quarter, an increase of 13%. Comparable results herein for the quarter ended September 30, 2004 do not reflect the effects of adopting Statement 123(R), which was not yet in effect. Please refer to the Company’s statements regarding non-GAAP financial information and the related reconciliation of GAAP results to non-GAAP results located in this release and also located in the Investor Relations section of the Company’s website at www.scansource.com.

Non-GAAP Financial Information

The reconciliation below shows the effects on the quarterly results if the Company had not adopted Statement 123(R). This non-GAAP data is included with the intention of providing investors a more complete understanding of our operational results and trends as compared with prior period results, but should only be used in conjunction with results reported in accordance with GAAP.

2

ScanSource Reports First Quarter Results

Reconciliation of Non-GAAP Financial Information

(In thousands, except per share data)

	Quarter ended September 30,
	2005		2004
Net income	$	9,334	$	8,914
Share-based payment expense under statement 123(R)		687		—
Non-GAAP net income	$	10,021	$	8,914
Net income per common share, assuming dilution	$	0.72	$	0.68
Non-GAAP net income per common share, assuming dilution	$	0.77	$	0.68

Forecast for Next Quarter

The Company announced its financial forecast for the second quarter of fiscal 2006. ScanSource expects net revenues for the December 2005 quarter could range from $385 million to $405 million.

Safe Harbor Statement

This news 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 results. For more information concerning factors that could cause such a difference, see the Company’s annual report on Form 10K filed with the Securities and Exchange Commission.

3

ScanSource Reports First Quarter Results

About ScanSource

ScanSource, Inc. is a leading international distributor of specialty technology products, including automatic identification and data capture (AIDC) and point-of-sale (POS) products through its ScanSource sales unit; Avaya voice, data and converged communications products through its Catalyst Telecom sales unit; communications products from Intel and NEC through its Paracon sales unit; and electronic security products through its ScanSource Security Distribution unit.

The Company serves the North America marketplace and has an international segment which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company markets products from more than 100 technology manufacturers to over 16,000 value-added technology resellers and is committed to empowering them with tools and services designed to help them grow. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansource.com.

4

ScanSource Reports First Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	September 30, 2005 (unaudited)		June 30, 2005 *
Assets
Current Assets
Cash and cash equivalents	$	16,781	$	8,609
Trade & notes receivable, net		227,439		215,190
Other receivables		6,116		5,479
Inventories		184,795		178,917
Prepaid expenses and other assets		2,762		3,546
Deferred income taxes		10,038		10,227
Total current assets		447,931		421,968
Property and equipment, net		23,099		23,299
Goodwill		13,773		12,915
Other assets, including identifiable intangible assets		3,624		8,888
Total assets	$	488,427	$	467,070
Liabilities and Shareholders’ Equity
Current Liabilities
Current portion of long-term debt	$	510	$	564
Short-term borrowings		—		4,478
Trade accounts payable		190,406		173,255
Accrued expenses and other liabilities		19,828		22,133
Total current liabilities		210,744		200,430
Deferred income taxes		1,173		1,008
Long-term debt		5,986		6,045
Borrowings under revolving credit facility		31,693		31,269
Other long-term liabilities		1,794		1,341
Total liabilities		251,390		240,093
Minority interest		744		1,092
Shareholders’ Equity
Common stock		66,654		65,381
Retained earnings		166,354		157,020
Accumulated other comprehensive income		3,285		3,484
Total shareholders’ equity		236,293		225,885
Total liabilities and shareholders’ equity	$	488,427	$	467,070

* Derived from audited financial statements at June 30, 2005.

5

ScanSource Reports First Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share data)

	Quarter ended September 30,
	2005			2004
Net sales	$	390,396		$	362,709
Cost of goods sold		350,067			325,727
Gross profit		40,329			36,982
Selling, general and administrative expenses		25,009			22,312
Operating income		15,320			14,670
Other expense (income):
Interest expense		511			413
Interest income		(149	)		(216	)
Other (income) expense		(48	)		47
Other expense (income), net		314			244
Income before income taxes and minority interest		15,006			14,426
Provision for income taxes		5,613			5,482
Income before minority interest		9,393			8,944
Minority interest in income of consolidated subsidiaries, net of income taxes		59			30
Net income	$	9,334		$	8,914
Per share data:
Net income per common share, basic	$	0.74		$	0.71
Weighted-average shares outstanding, basic		12,666			12,580
Net income per common share, assuming dilution	$	0.72		$	0.68
Weighted-average shares outstanding, assuming dilution		13,006			13,053

6

ScanSource Reports First Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION (UNAUDITED)

Quarter Ended September 30, 2005

(In thousands, except per share data)

	GAAP QE Sep 30 2005			FASB 123(R) Share-Based Payment Expense			Non -GAAP QE Sep 30 2005
Net sales	$	390,396					$	390,396
Cost of goods sold		350,067						350,067
Gross profit		40,329						40,329
Selling, general and administrative		25,009			(892	)		24,117
Operating income		15,320			892			16,212
Other expense (income):
Interest expense		511						511
Interest income		(149	)					(149	)
Other (income) expense		(48	)					(48	)
Other expense, net		314			—			314
Income before taxes & minority interest		15,006			892			15,898
Provision for income taxes		5,613			205			5,818
Income before minority interest		9,393			687			10,080
Minority interest in income of consolidated subsidiaries, net of income taxes		59			—			59
Net income	$	9,334		$	687		$	10,021
Per share data:
Net income per common share, basic	$	0.74					$	0.79
Net income per common share, assuming dilution	$	0.72					$	0.77

7