All American Announces Record-Breaking Annual Sales; 2000 Sales Increase 58% to Over $520 Million.

Business Editors

MIAMI--(BUSINESS WIRE)--Jan. 30, 2001

All American Semiconductor, Inc. (Nasdaq:SEMI), a leading national distributor of electronic components, today announced that unaudited sales for its year ended December 31, 2000 were over $520 million, an increase of approximately 58% over sales of $330 million for 1999. Sales for the fourth quarter of 2000 were approximately $136 million, an increase of approximately 51% over sales of $90 million in the fourth quarter of 1999. The sales increases reflect increased sales in most territories and were achieved entirely through internal growth.

Bruce M. Goldberg, President and Chief Executive Officer of All American, stated, "The year 2000 was a spectacular year for our company. We accomplished another milestone in our company's history by exceeding a half-a-billion in sales and reaching record levels of profitability for the year, which was substantially higher than the earnings achieved in any year in the company's history. Due to the general industry slowdown as well as inventory corrections at the customer base, our fourth quarter earnings will be below our expectations and will be lower sequentially from our third quarter. The results will, however, be well ahead of last year's fourth quarter. We will continue to stay focused on our long-term strategies, which produced excellent results in 2000. While there may be further inventory corrections, as well as changes in the overall market and economic conditions during the first half of 2001, our long-term outlook remains very positive."

Final sales and earnings results for the 2000 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 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, 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 continued effectiveness of the Company's business and marketing strategies, the Company's development of new customers, the maintenance of existing suppliers, 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, e-brokers and other Internet providers through the use of the Internet as well as from its traditional competitors, the continued growth of the electronics industry and electronic components distribution industry, the adverse impact of further inventory corrections at the customer base and the level thereof, an industry slowdown and/or a general economic downturn, the failure to achieve acceptance or grow at the expected level of some of the new technologies being supported by the Company, insufficient funds from operations and available under our credit facility to support our operations and growth, 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.