AMPI Reports Second Quarter 2000 EPS Up 2% To $0.44.

Business Editors and High-Tech Writers

SANTA ANA, Calif.--(BUSINESS WIRE)--Jan. 24, 2000

Amplicon Inc. (NASDAQ:AMPI) Monday announced net earnings of $5.3 million for the second quarter ended Dec. 31, 1999, unchanged from net earnings of $5.3 million for the second quarter of fiscal 1999.

Earnings per share for the second quarter increased 2% to $0.44 per share, compared with $0.43 per share for the second quarter of the prior year, benefiting from a lower number of common shares outstanding. For the six months ended Dec. 31, 1999, net earnings decreased 3% to $9.6 million, compared with $9.9 million for the first six months of fiscal 1999. Earnings per share were $.80 for both the first six months of fiscal 2000 and fiscal 1999. All earnings per share amounts represent diluted earnings per share as defined by Statement of Financial Accounting Standards No. 128.

As previously reported, Amplicon elected to change its revenue presentation related to certain capital leases. The change has no impact on the company's recognition of profit on its lease transactions, but the new presentation will result in lower revenues than Amplicon historically reported. The second quarter and six month 2000 and 1999 results are presented in accordance with this approach.

For the second quarter ended Dec. 31, 1999, total revenues increased 3% to $20.3 million, compared with $19.8 million for the second quarter of fiscal 1999. The increased revenues reflect an 18% increase in leasing revenue and higher interest income from cash investments, offset by decreased revenues from sales of leased property. The increase in leasing revenue included a 15% decrease in revenues from direct financing leases, offset up a 55% increase in revenues from sales type leases. Gross profit for the second quarter of fiscal 2000 increased 3% to $13.2 million, compared with $12.7 million for the second quarter of the prior year. The higher gross profit reflected a lower provision for credit losses and higher interest income from cash investments, offset by lower interest income earned from direct financing leases and lower profits realized from the sale of leased property.

For the six months ending Dec. 31, 1999, total revenues were up slightly to $34.8 million, compared with $34.7 million for the six months ended Dec. 31, 1998. The change in revenues reflects a 3% increase in leasing revenue and higher interest income from cash investments, offset by decreased revenues from sales of leased property. The increase in leasing revenue for the six months included an 18% decrease in revenues from direct financing leases, offset up a 27% increase in revenues from sales type leases. Gross profit for the six months ended Dec. 31, 1999 decreased 3% to $24.1 million, compared with $24.9 million for the six months ending Dec. 31, 1998. The lower gross profit was due to lower interest income earned from direct financing leases offset by higher interest income from cash investments and a smaller provision for credit losses.

During the second quarter ended Dec. 31, 1999, selling, general and administrative (&uot;S,G&&uot;) expenses increased 11% to $4.6 million, compared with $4.1 million during the second quarter of fiscal 1999. The increase in S,G& expenses reflected higher legal and general expenses. For the six months, S,G& expenses decreased by 4%, or $384,000, from the prior year, primarily as a result of lower salary and benefit expenses, offset by some increase in legal and general expenses.

Commenting on the results, Patrick E. Paddon, president and chief executive officer, indicated that &uot;During the second quarter, the volume of new lease transactions closed was the highest level in over five quarters. The lower interest income from our lease portfolio reflects the continued impact of lower levels of new lease originations during fiscal 1999. We are continuing to focus our efforts on initiatives to generate additional lease business. Amplicon continues to maintain a strong and liquid financial position. At December 31, 1999, cash and short-term investments stood at $69 million and shareholders' equity is $159 million. During the first six months of fiscal 2000, the company repurchased 269,000 shares pursuant to the stock repurchase plan.&uot;

Founded in 1977, Amplicon Inc. is based in Orange County, Calif. The company leases high technology capital assets nationwide utilizing an innovative sales management organization that delivers cost effective leasing alternatives to meet customer needs.

This news release contains forward-looking statements, which involve management assumptions, risks and uncertainties. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, the company's actual results could differ materially from the results forecast in the forward-looking statements. For further discussion regarding management assumptions, risks and uncertainties, readers should refer to the company's 1999 Annual Report on Form 10K and the 2000 quarterly reports on Form 10Q.

                            Amplicon Inc.
                   Condensed Statements of Earnings
                     (000's except per share data)

                          Three Months Ended       Six Months Ended
                               Dec. 31,                Dec. 31,
                          1999         1998        1999       1998
                      ----------------------------------------------

                      ----------------------------------------------

Leasing revenues         $13,316     $11,269     $24,195     $23,435
Sales of leased
 property                  5,981       8,011       8,657      10,557
Interest and other
 income                    1,043         495       1,945         751
--------------------     -------     -------     -------     -------
 Total Revenues          $20,340     $19,775     $34,797     $34,743
Gross Profit              13,169      12,743      24,103      24,914

Earnings before
 income taxes              8,593       8,604      15,614      16,042

Net earnings             $ 5,285     $ 5,291     $ 9,603     $ 9,866

Basic earnings
 per share               $  0.46     $  0.45     $  0.82     $  0.83
Diluted earnings
 per share               $  0.44        0.43     $  0.80     $  0.80

Weighted average
 number of common
 shares outstanding       11,608      11,832      11,716      11,832

Diluted number of
 common shares
 outstanding              11,910      12,334      12,034      12,317

                             Amplicon Inc.
                       Condensed Balance Sheets
                               (000's )



ASSETS                       Dec. 31, 1999           June 30, 1999
                             -------------         -----------------

Cash and short term
 investments                  $ 69,460                 $ 59,337

Net receivables                 23,514                   22,785

Property acquired for
 transactions in process        27,125                   35,398

Net investment in
 capital leases                 82,737                   84,617

Other assets                     1,841                    1,170

Discounted lease rentals
 assigned to lenders           239,269                  263,462
                              ========                 ========
                              $443,946                 $466,769


LIABILITIES AND STOCKHOLDERS'
 EQUITY

Accounts payable            $    2,582                $   7,159

Income taxes payable,
 including deferred taxes       29,873                   29,405

Other liabilities               13,176                   13,168

Nonrecourse debt               239,269                  263,462
                              ---------                 -------

 Total liabilities             284,900                  313,194

Stockholders' Equity           159,046                  153,575
                               --------                 -------

                               $443,946                 $466,769
                               ========                 ========