All American Announces First Quarter Results.

Business Editors

MIAMI--(BUSINESS WIRE)--May 15, 2001

All American Semiconductor, Inc. (Nasdaq:SEMI), a leading national distributor of electronic components, today announced its results for the first quarter of 2001.

Net sales for the quarter ended March 31, 2001 were $130.0 million, an increase of over 21% from net sales of $107.3 million for the same period of 2000. Income from operations was $3.9 million for the first quarter of 2001, slightly ahead of the $3.8 million reported for the first quarter of 2000. Net income for the quarter ended March 31, 2001 was $671,000 or $.17 per share (diluted), compared to $1.2 million or $.30 per share (diluted) for the first quarter of 2000.

Bruce M. Goldberg, President and Chief Executive Officer of All American, stated, "While we were able to generate an increase in our sales and income from operations for the first quarter of 2001 compared to the same period of last year, our net income was impacted by additional interest expense. A broad-based slowdown in the technology sector, excess inventory at our customer base, and overall economic weakness are having an adverse impact on our industry which will affect our performance during 2001. While market conditions are very difficult, we are confident that our continued commitment to our core strategies will present growth opportunities in the long term."

All American is recognized as the nation's 5th largest distributor of semiconductors and the 12th largest electronic components distributor overall. The Company has offices in 36 strategic locations throughout North America.

To the extent that this press release discusses financial projections, future performance, expectations, beliefs or intentions about our bookings, sales, markets, operating results, new technologies, or otherwise makes statements about our industry's or the Company's future or the industry's growth cycles, the statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from the statements made. Factors that could adversely affect the Company's future results, performance or achievements include, without limitation, the continuance of or increase in (i) the broad-based industry slowdown resulting in the decline or increasing decline (as the case may be) in demand for electronic components and further excess customer inventory and (ii) the overall economic weakness, the effectiveness of the Company's business and marketing strategies, the Company's development of new customers, existing customer demand as well as the level of demand for products of its customers, the maintenance of existing relationships with suppliers, price erosion in and price competition for products sold by the Company, management and control of expenses, the failure to achieve the expected impact from expense reduction programs, the ability of the Company to generate revenue commensurate with the level of personnel and size of its infrastructure, an increase in the allowance for doubtful accounts receivable and in bad debts as a result of the weakening financial condition of certain of the Company's customers, price decreases on inventory that is not price protected, gross profit margins, including decreasing margins resulting from the Company being required to have aggressive pricing programs, an increasing number of low-margin, large volume transactions and increased availability of the supply for certain products, increased competition from third party logistics companies, e-brokers and other Internet providers through the use of the Internet as well as from its traditional competitors, insufficient funds from operations, from the Company's credit facility and from other sources (debt and/or equity) to support the Company's operations, the continued enhancement of telecommunication, computer and information systems, the ability of the Company to open new sales offices in a timely and cost-effective manner and to expand its product offerings and continue to enhance its service capabilities and the timing and cost thereof, continued general technology growth, the failure to achieve acceptance or grow at the expected level of some of the new technologies being supported by the Company, a change in interest rates, and the other risks and factors detailed in the Company's reports on Forms 10-K and Forms 10-Q and other press releases. These risks and uncertainties are beyond the ability of the Company to control. In many cases, the Company cannot predict the risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements.

                   ALL AMERICAN SEMICONDUCTOR, INC.
        CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands
except per share amounts)

Quarters Ended March 31              2001                       2000
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Net Sales                       $ 130,037                  $ 107,273
                                =========                  =========

Income from Operations          $   3,938                  $   3,782
                                =========                  =========

Net Income                      $     671                  $   1,210
                                =========                  =========

Earnings Per Share:
  Basic                              $.17                       $.32
                                     ====                       ====
  Diluted                            $.17                       $.30
                                     ====                       ====

Average Shares:
  Basic                         3,856,539                  3,801,969
                                =========                  =========
  Diluted                       4,051,693                  3,995,056
                                =========                  =========