AMPI announces 29% second quarter sales increase.

SANTA ANA, Calif.--(BUSINESS WIRE)--Jan. 22, 1996-- Amplicon Inc. (NASDAQ:AMPI) Monday announced that revenues of $65,634,000 for the second quarter ended Dec. 31, 1995 were up 27% compared to total revenues of $51,637,000 during the year earlier period.

Net earnings for the second quarter increased 6% to $3,191,000 compared to $3,001,000 for the second quarter of last year, while earnings per share increased to $0.55 per share compared to $0.51 per share for the second quarter of fiscal 1995.

Revenues for the first six months of fiscal 1996 were also up 27% to $122,051,000 compared to $96,361,000 for the comparable period of the prior year. Net earnings for the first six months of fiscal 1996 increased 6% to $5,845,000 compared to $5,512,000 for the first half of fiscal 1995. Earnings per share for the six months ended Dec. 31, 1995 increased 6% to $1.00 per share compared to $.94 per share for the comparable period of the prior year.

Patrick E. Paddon, president and chief executive officer, indicated that "Amplicon's second quarter results reflected a very strong new business effort. Sales of equipment related to new lease transactions were up 34% compared to the volume of new lease transactions during the second quarter of fiscal 1995, and were 20% greater than the record level of the first quarter of fiscal 1996.

"Total sales of equipment for the second quarter ended Dec. 31, 1995 were up 29% to $58,123,000, compared to $44,896,000 for the second quarter of fiscal 1995.

"Gross profit for the second quarter increased 16% due to an increase in profits realized on new lease transactions along with higher profits from Amplicon's residual investments. Amplicon's net interest income of $3,165,000 for the second quarter ended Dec. 31, 1995 was up slightly from $3,095,000 for the comparable quarter of fiscal 1995, but was lower than the $3,688,000 reported for the first quarter of fiscal 1996.

"For the first six months of fiscal 1996, Amplicon's gross profit increased 15% to $17,934,000 compared to $15,546,000 for the first six months of the prior year. The increase in gross profit for the six months reflected higher profits realized on new lease transactions and higher net interest income, offset by lower profits from lease extensions and sales of lease property.

"Significant increases in S,G&A expenses during the first six months of fiscal 1996 have had a negative impact on net income. For the second quarter of fiscal 1996, S,G&A expenses increased 33% compared to the prior year, while for the six month period ended Dec. 31, 1995, S,G&A expenses were up 30%.

"The higher S,G&A expenses when compared to fiscal 1995 reflect greater costs related to an increase in the number of sales professionals, higher general expenses related to the expansion and higher lease related expenses. As a percent of revenue, S,G&A was relatively flat at 6.7% for the first six months, compared to 6.6% in the prior year."

Amplicon Inc. is a lessor of high technology capital assets with headquarters in Orange County, Calif. Amplicon utilizes an innovative telemarketing organization of over 135 sales executives and managers to deliver cost effective leasing alternatives to meet the acquisition needs of customers nationwide.

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

                        Three Months Ended        Six Months Ended
                                  Dec. 31,                Dec. 31,
                          1995        1994         1995       1994
                                         (unaudited)
Revenues               $65,634     $51,637     $122,051    $96,361
Gross Profit             9,322       8,068       17,934     15,546
Earnings before
  income taxes           5,201       4,960        9,661      9,111
Net earnings            $3,191      $3,001       $5,845     $5,512
Net earnings per share   $0.55       $0.51        $1.00      $0.94
Weighted average number
  of shares outstanding  5,848       5,857        5,859      5,857

                           Amplicon Inc.
              Condensed Consolidated Balance Sheets
                             (000's)
Assets
                                  Dec. 31, 1995      June 30, 1995
                                   (unaudited)         (audited)
Cash and short term
  investments                           $21,060            $15,556
Net receivables                          53,999             55,994
Net investment in capital leases         62,971             59,068
Discounted lease rentals
  assigned to lenders                   299,858            266,816
Other assets                              6,940              7,082

                                       $444,828           $404,516

Liabilities and Stockholders' Equity

Notes payable                              --                 --
Accounts payable                        $12,507            $13,392
Nonrecourse debt                        268,199            238,614
Income taxes payable, including
  deferred taxes                         21,040             20,370
Net deferrals (1)                        34,590             30,115
Other liabilities                        12,390             10,661
  Total liabilities                    $348,726           $313,152
Stockholders' Equity                     96,102             91,364

                                       $444,828           $404,516

(1)  Includes deferred interest income of $31,659 and $28,202 at Dec.
31, 1995 and June 30, 1995, respectively, which is offset by
deferred interest expense related to the company's net investment
capital leases and discounted lease rentals assigned to lenders.

CONTACT: Amplicon Inc.

S. Leslie Jewett, 714/751-7551