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                         News from PC Connection, Inc.
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 730 Milford Road, Merrimack, NH 03054 * 603-423-2000 * www.pcconnection.com


For more       Tracey Turner
Information    VP, Corporate Communications      For Immediate Release
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contact:       (603) 423-2163
               tturner@pcconnection.com
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                 PC Connection Forms Holding Company Structure

               New Corporate Structure Will Support Growth Plans



Merrimack, NH--January 3, 2000 ---- PC Connection, Inc. (NASDAQ: PCCC), a
leading direct marketer of business computing solutions (www.pcconnection.com),
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today announced a new holding company structure to support PC Connection's
future growth and plans to expand its current business lines through internal
growth and potential acquisitions.

Under this structure a new holding company, named PC Connection, Inc., will own
three subsidiaries: PC Connection Sales Corp., Merrimack Services Corp., and
ComTeq Federal, Inc. PC Connection Sales Corp. consists of the predecessor
company's direct marketing and product procurement functions, which operate
under the PC Connection(R) and MacConnection(R) brands. Merrimack Services Corp.
functions as an outsource services organization providing technical, finance,
customer service, human resources and other service functions to the holding
company and its subsidiaries. ComTeq Federal will continue to focus on providing
high-end networking and computer products and support services to Federal
Government agencies.

Outstanding shares of common stock representing interests in PC Connection prior
to the holding company formation will be converted into shares of the new
holding company, on a one for one basis through a non-taxable transaction.
Common stock shares of the new holding company will be listed on the Nasdaq
National Market under the symbol "PCCC", the same exchange and symbol used by
the predecessor company. The new shares will hold the same voting power that
shares of the predecessor company held. No additional capital stock was issued
as part of the transaction. The directors and officers of the predecessor
company will serve as the directors and officers of the new holding company.

Patricia Gallup, Chairman and Chief Executive Officer of PC Connection, Inc.,
said, "PC Connection became an industry leader by successfully executing our
plan for rapid internal growth over the past 18 years. The new structure is
designed to give our company a greater flexibility for future growth."

                                   -more-
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PC Connection, Inc.                                                      Page 2



PC Connection, Inc. is a leading direct marketer of business computing
solutions. The company offers over 50,000 brand-name products through its staff
of technically trained corporate account managers and catalog telesales
representatives, its comprehensive web sites at www.pcconnection.com and
www.macconnection.com, and its catalogs PC Connection (1-800-800-5555) and
MacConnection (1-800-800-2222). Through its full-service Distribution and
Custom-Configuration Center, the company can deliver custom-configured computer
systems overnight. In recognition of its role as a critical link between
manufacturers of computer products and end users of these products, PC
Connection was the only computer reseller on the 1999 list of the "Top 100
Technology Companies that are Changing the World" which appeared in PC Magazine.
In addition, PC Connection has won PC World magazine's prestigious "World Class
Award" eight times over the past ten years, including 1999.

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This press release contains forward-looking statements that involve a number of
risks and uncertainties. For this purpose, any statements contained herein that
are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words, "believes",
"anticipates", "plans", "expects", "intends", and similar expressions are
intended to identify forward-looking statements. Important factors that could
cause actual results to differ materially from the expectations described in
these forward-looking statements are set forth under the caption "Factors That
May Affect Future Results and Financial Condition" in the Company's 1998 Annual
Report Quarterly Report on Form 10-Q which is on file with the Securities and
Exchange Commission and incorporated herein by reference. These important
factors include risks as to PC Connection's ability to grow in the future,
exposure to inventory obsolescence and reliance on third-party vendors.
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News from PC Connection, Inc.
730 Milford Road, Merrimack, NH 03054 * 603-423-2000 * www.pcconnection.com
