ADDvantage Technologies Group, Inc. Reports Year-End Results.

Business Editors

BROKEN ARROW, Okla.--(BUSINESS WIRE)--Dec. 30, 2002

ADDvantage Technologies Group, Inc. (OTCBB:ADDM) today announced its financial results for the fourth quarter and fiscal year ended September 30, 2002. During the quarter, the company recorded an inventory write-down of $1,443,000 which resulted in a reduction of net income for the fourth quarter and year of $918,000. The write-down was necessary due to a reduction of market prices on certain items of used and new inventory. Including the inventory write-down, ADDvantage Technologies reported a loss of ($.02) per share in the fourth quarter and net income of $.10 for the year. Due to the delays involved in determining the need for and amount of the inventory write-down, the company has obtained an extension of the time within which it is required to file its annual report on Form 10-KSB. It is expected that this report will be filed with the Securities and Exchange Commission on Wednesday, January 8, 2003.

Fourth Quarter Results

Revenues for the fourth quarter ended September 30, 2002 increased $1.4 million, or 24.1%, to $7.2 million compared with $5.8 million in the same period in 2001. This increase was a result of the company's new distributorship relationship with Scientific Atlanta, coupled with the initiative to aggressively market products and services to the larger multiple system operators (MSOs).

Because of the inventory write-down, gross margin for the fourth quarter fell to 26.4% of sales, as compared with 44.7% from the same period of the previous year.

Net loss applicable to Common Stock for the current quarter was $420,000, or ($.04) per share as compared to net income of $201,000, or $.02 per share for the same period last year.

Fiscal Year Results

Revenues for fiscal 2002 increased 11.0% to a record $25.4 million from $22.9 million for fiscal 2001. Net income applicable to Common Stock for the current year was $951,000, or $.10 per share, as compared to $1.6 million, or $.16 per share in the prior period.

"Our record revenues were achieved despite a challenging business environment in the cable television industry, with credit remaining tight for the small cable operators and several bankruptcy filings by our customers," said Ken Chymiak, President and CEO of ADDvantage Technologies Group. He added, "In this volatile environment, we continue to out-perform a majority of our peers by utilizing the synergies from recent acquisitions, expanding our product coverage, and providing diverse products and quality services to meet the demands of our customers."

Outlook

Preliminary results for fiscal 2003 are positive, as revenues for the first two months have increased approximately $1.7 million, or 40.8%, to $5.4 million compared to the same two-month period a year ago. In addition, gross profit rose by approximately $710,000, or 38.5% to $2.7 million compared to the same two-month period in fiscal 2002.

ADDVANTAGE TECHNOLOGIES GROUP, INC. and its subsidiaries, TULSAT, LEE CATV Corporation, NCS Industries, Comtech Services, TULSAT - Texas, and TULSAT-Atlanta comprise an organization involved in the re-manufacture, repair and sale of previously owned cable television ("CATV") equipment and the distribution of new and surplus equipment to CATV operators. For more information, please visit the corporate web site at www.addvantagetech.com or contact the company directly at 918/251-9121.

The information in this announcement may include forward-looking statements. All statements, other statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. These statements are subject to risks and uncertainties which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company's reports and documents filed from time to time with the Securities and Exchange Commission.

                 ADDvantage Technologies Group, Inc.
                       Statement of Operations
                             (Unaudited)

                        Year Ended             Three Months Ended
                       September 30               September 30

                    2002          2001         2002          2001
                    ----          ----         ----          ----

Revenues         $25,408,931   $22,884,566   $7,153,025    $5,762,453

Operating Income  $3,539,580    $4,855,182   ($ 239,987)     $806,874

Net Income
 Applicable to
 Common Stock       $951,234    $1,611,430   ($ 419,795)     $200,892

Net Income Per
 Share of Common
 Stock
  Basic                 $.10          $.16       ($ .04)         $.02
  Diluted               $.10          $.16       ($ .04)         $.02

Shares Used in
 Computing Net
 Income Per
 Share:
  Basic            9,991,716     9,991,716    9,991,716     9,991,716
  Diluted         11,991,716    11,991,716   11,991,716    11,991,716