Firoz Lalji

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WELCOME
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Firoz Lalji

• CEOChairman of the Board

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Safe Harbor

• Any statements made by management in this
  presentation which are forward-looking (that is,
  not historical in nature) are made pursuant to
  the safe harbor provisions of the Private
  Securities Litigation Reform Act of 1995.
• Such forward-looking statements involve risks and
  uncertainties and are based on the Companys
  current expectations actual results may differ
  materially from expectations.
• Such risks and uncertainties include, but are not
  limited to, the following
• future growth
• pressure on margin due to vendor programs,
  product and customer mix and pricing strategies
• the ability to hire and retain account
  executives
• the ability to maintain or increase the
  productivity of the sales force
• reliance on vendor relationships
• increased competition and pricing pressures
• state tax uncertainties
• rapid technological change and inventory
  obsolescence
• dependence on personnel
• potential disruption of business from information
  systems failure
• reliance on commercial delivery services and,
• changes in economic conditions.
• Risks, uncertainties and other factors affecting
  the Companys business are contained in its
  filings with the Securities and Exchange
  Commission.
• The Company assumes no obligation to update any
  of the information set forth herein, whether as a
  result of new information, future events or
  otherwise.

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Zones Overview
Zones is a national rapid-response reseller of
name brand technology products to businesses

• Direct-selling model
• Recurring-revenue from strong customer base
• Over 650 employees with national reach
• One of the top IT resellers
• Best-of-breed hardware and software from top
  manufacturers
• Low-cost operational model utilizing automated
  systems and process-driven fulfillment solutions

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Zones Five Year Performance
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Customer Value Proposition

• Zones lowers the cost of IT procurement for its
  customers.
• Dedicated Account Executive
• Teamed with product specialists
• Understands customers needs
• PAIFS
• Single Source
• Over 150,000 products from over 2,000 vendors
• Integration centers in Chicago, IL and Seattle,
  WA
• 50 drop ship from distribution
• Automated procurement through ZonesConnect
• Five Star Service
• Cultural DNA
• Mandatory training

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Total Cost of Ownership
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Large US Market Opportunity
2007 Total ITProducts Market Billions1
2007 2010ECAGR
Systems 81 2.6
Software 126 7.9
Networking 28 4.4
Storage 12 0.4
Peripherals 23 3.4
Total Hardware Software 269 5.3
Services 198 4.9
Total IT 467 5.1

Zones Estimated Addressable Market 2002
Zones Share Based on 2006 Revenue 0.29

• 1 Source IDC November 2006
• 2 Excludes customer applications, telcom and
  proprietary/vertical solutions

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Zones Fulfillment Model
and more
Manufacturer

• Solution Sales
• Process Order
• Source Product

Customer
Customer Relationship
Enterprise Large Medium Small Very Small (lt50)

• Value-Adds
• Configuration
• Integration
• Imaging
• Ship same day

SMB
Distribution
Dropship
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Zones Sales Support

• Leverage common support infrastructure for all
  sales divisions

Enterprise Fortune 1000
Public Sector
Large Mid-Market Segment
SMB Small Medium Business

• Small 50 100
• Medium 100 - 500
• More transactional
• Outbound reps supported by strong marketing
• Fewer contacts
• Easier to acquire

• Large 500 1000
• Mid-Market 1000-2500
• Relationship-based
• Outbound reps with some field presence
• More complex buying process

• Education K-12 and Higher Ed
• State and local government
• Contracts and RFPs
• Outbound sales and bid team

• Enterprise gt2500
• Fortune 1000
• Field sales supported by inside reps
• Contracts and RFPs

Zones Infrastructure ? Finance ? Merchandising
? Purchasing ? Marketing ? ? Information
Technology ? Logistics ? Human Resources ?
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Tier 1 Vendor Partnerships

• Cisco
• Premier Business Partnerwith Wireless LAN
  Specialization
• Symantec
• Enterprise Partner
• Adobe
• ALC Corporate Partner
• ALC Academic Partner
• McAfee
• Premier Partner
• CA
• Premier LAR Partner

• IBM
• Premier Business Partner
• IBM Software Advanced Certified Partner
• Microsoft
• Operational Excellence Award
• Microsoft LAR
• Lenovo
• Premier Business Partner
• HP
• Platinum Business Partner

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Zones Product Mix
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Key Zones Differentiators

• Seasoned and stable Executive Team and Board
  Members
• Loyal customer base with recurring revenue
• Scale of large company with flexibility of a
  small company
• Low-cost operational model leveraging automated
  systems
• ZonesConnect customer extranet
• Strong vendor partnerships

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Ronald McFadden

• Chief Financial Officer

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Zones Growth Strategy

• Continued focus on organic SMB growth
• Recruit, hire and retain account executives
• Development and maturation of account executives
• Customer management increase share of wallet
• Precise targeting for customer acquisition,
  retention and development
• Launch of Field Sales Organization
• Contribution in 2008
• Select acquisitions

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Zones Outbound Focus
23.7
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Operating Trends
Operating Profits on the Rise
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EBITDA
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Earnings per Share
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Return on Equity
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Financial Metrics YTD 2007
Sales growth 21.9 Gross profit 11.9 Operating
profit 3.3 Share repurchase 552K Program to
date 7.7M Long-term debt
0 DSO 45 Turns 24 ROE (ttm) 23.3
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Supplemental Data
Average AE Tenure 29 months
Expected AE Productivity Benchmarks
2008 BDM Revenue Target 5.0M
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Why Invest in Zones?
NASDAQ ZONS - One of the fastest growing IT
resellers

• Consistent growth
• Net sales of 638M (ttm)
• EPS of 0.80 (ttm)
• 10 consecutive quarters of year over year EPS
  gains
• High return
• 23.3 ROE (ttm)
• Gaining share
• 2007 sales for first half of 2007 grew 21.9 to
  340M
• First half of 2007 EPS grew 43.8 to 0.46
• Robust segment
• Core sales to SMB customers grew 34.9 for first
  half of 2007 driven primarily by repeat
  customers
• Great opportunity
• Low valuation
• Market cap of 132M

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QA