ALL AMERICAN SEMICONDUCTOR RECEIVES NEW $100 MILLION CREDIT FACILITY; New Credit Facility More Than Doubles Existing Senior Loan Facility.

MIAMI, Fla.--(BUSINESS WIRE)--May 7, 1996--All American Semiconductor, Inc. (The Nasdaq Stock Market: SEMI), a leading national distributor of electronic components, today announced that it has entered into a $100 million, 5-year secured revolving credit facility with a syndicate of banks led by American National Bank & Trust Company of Chicago, a subsidiary of First Chicago NBD Corp., and Harris Trust & Savings Bank, a subsidiary of the Bank of Montreal. The new facility replaces both the Company's existing $45 million senior loan facility and its $15 million subordinated bank debt.

Howard L. Flanders, Chief Financial Officer of All American, commented, "We believe our ability to obtain a credit facility of this size reflects the banking community's confidence in our growth strategies. The major international institutions participating in this new credit facility provide a greater source of potential future capital as the Company continues to expand. Importantly, All American has substantially increased its capital resources without diluting its shareholders."

Bruce M. Goldberg, All American's President and Chief Operating Officer, added, "The availability of this significant additional capital provides the Company with the necessary flexibility to continue our aggressive expansion through new branch openings, strategic acquisitions and further development of our customer services and distribution technologies."

All American was recently ranked as the nation's 17th largest distributor of electronic components and the 8th largest distributor of semiconductors in the United States and has offices in 30 strategic locations throughout North America.

CONTACT: ALL AMERICAN

Bruce M. Goldberg, President

Howard L. Flanders, CFO 

[phone] ext. 1417

or

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Tamara Ehlin [phone]

Robert D. Goldstein [phone]