All American Announces Fourth Consecutive Quarterly Sales Record and Record-Breaking Year in Sales.

Business Editors

MIAMI--(BUSINESS WIRE)--Jan. 7, 2000

-- 1999 Sales Up 32% to Approximately $330 Million;

Fourth Quarter Sales Exceed $90 Million --

All American Semiconductor, Inc. (Nasdaq:SEMI), a leading national distributor of electronic components, today announced that unaudited sales for its fourth quarter ended December 31, 1999 were approximately $91 million, an increase of approximately 41% over sales of $65 million in the same period of 1998. Sales for the year were approximately $330 million in 1999, an increase of approximately 32% over sales of $250 million in 1998. The sales increases were internally driven and reflect increased sales in most territories.

Bruce M. Goldberg, President and Chief Executive Officer of All American, stated, "We are very pleased to have reached a new annual sales record and our fourth consecutive quarterly sales record. The bookings activity and backlog growth remained strong through the end of the year. This, combined with most industry analysts' projections, causes us to have expectations for continued growth in future periods."

Mr. Goldberg continued, "While still subject to our year-end audit, we expect our fourth quarter earnings to show growth over the previous three quarters of 1999."

Final sales and earnings results for the 1999 periods are subject to adjustment in connection with the completion of the Company's year-end audit.

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 34 strategic locations throughout North America.

To the extent that this press release discusses financial projections, future performance, expectations, beliefs or intentions about our bookings, markets, operating results, or otherwise makes statements about our industry's or the Company's future, 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 effectiveness of the Company's business and marketing strategies, the Company's development of new customers, price erosion in and price competition for products sold by the Company, management of growth and expenses, the ability of the Company to generate the expected return from its addition of people and the increase of its infrastructure, gross profit margins, including decreasing margins relating to the Company being required to have aggressive pricing programs, increased competition from third party logistics companies and e-brokers through the use of the Internet as well as from its traditional competitors, the continued and anticipated growth of the electronics industry and electronic components distribution industry, 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.