All American Communications Reports Record Third Quarter Revenues and Increased Earnings.

SANTA MONICA, Calif.--(BUSINESS WIRE)--November 14, 1994--All American Communications Inc. (NASDAQ:AACI) today reported record third quarter revenues and increased earnings for the third quarter ended September 30, 1994.

Revenues in the third quarter of 1994 more than doubled to $38,111,000 compared to revenues of $16,543,000 in the year-ago quarter, due to the growth of the company's television operations. The significant increase in television division revenues was due to the inclusion of two months of the results of All American Fremantle International Inc., acquired August 3, 1994, and the achievement of higher ratings as well as the delivery of a greater number of episodes of the Company's worldwide television hit, Baywatch.

For the 1994 third quarter, net income applicable to common stockholders was $1,090,000, or $0.16 per share on a primary basis, compared to a net loss in the year-ago quarter applicable to common stockholders (after preferred dividends and accretion of redeemable shares) of ($110,000), or ($0.02) per share. The weighted average number of shares outstanding in the 1994 and 1993 third quarter periods was 6,865,000 and 4,826,000, respectively. The increase in the number of shares reflects the issuance in August 1994 of 630,000 shares of common stock and 25,200 shares of Series B Convertible Preferred Stock (convertible into 2,520,000 shares of nonvoting Class B Common Stock following approval by the Company's shareholders) to The Interpublic Group of Companies (NYSE:IPG) in connection with All American's acquisition of certain assets and securities of Interpublic's Fremantle International.

Net interest expense in the third quarter increased to $1,557,000 from $235,000 in the year-ago period due to higher average borrowings related to the Company's $60 million 6 1/2% Convertible Subordinated Notes, issued in October 1993 and higher outstanding borrowings in connection with the Fremantle International acquisition.

Revenues for the first nine months of 1994 grew 42% to $65,718,000, compared to revenues of $46,157,000 in the year-ago period. The revenue improvement was primarily attributable to the Company's television operations, principally the inclusion of revenue from All American Fremantle and a higher level of deliveries and higher ratings for the Company's Baywatch television series. Recorded music division revenues increased 16% during the first nine months largely due to the success of several new artists and their initial releases.

Largely due to the increase in interest expense during the period, the net loss applicable to common stockholders was ($2,667,000), or ($0.54) per share on a primary basis, for the nine months ended September 30, 1994 compared with the net loss applicable to common stockholders (after preferred dividends and accretion of redeemable shares) of ($1,189,000), or ($0.25) per share, for the same period last year. The weighted average number of shares outstanding in the 1994 and 1993 nine months periods was 4,960,000 and 4,826,000, respectively.

Anthony J. Scotti, chairman and chief executive officer, stated, "Our strong third quarter financial results reflect the two month contribution from our All American Fremantle International television subsidiary, acquired August 3, 1994, as well as the ongoing growth of the worldwide penetration and ratings strength of our international hit, Baywatch. Our third quarter results were also enhanced by the performance of our new syndicated children's television show, Super Human Samurai Syber Squad.

"Baywatch recently completed its 100th episode of production, and we are now generating tremendous excitement in the worldwide television market with the initial launch of our newest program, Baywatch Nights, also starring David Hasselhoff, for next season. In addition, taking advantage of the worldwide popularity of Baywatch, we recently announced our plans to extend the Baywatch franchise into product licensing, creating an additional revenue source for our Company and additional exposure for the series and strip.

"Looking forward, the Company has made a significant commitment to television production and worldwide distribution operations, and based on our current portfolio of projects, 1995/96 has the potential to be our strongest-ever television line-up."

All American Communications is a diversified entertainment Company with worldwide operations in television production and distribution and recorded music production and distribution. -0-

                        All American Communications Inc.
                     Consolidated Statement of Operations
                     (In thousands, except per share data)
                                 (unaudited)

                               Three Months Ended   Nine Months Ended
                                  September 30,        September 30,
                                 1994      1993      1994       1993

Revenues                      $38,111   $16,543    $65,718   $46,157
Operating income (loss)         3,022     1,116      1,420     2,090
Other income (expense):          (271)        8       (271)       88
Interest expense, net           1,557      (235)     3,681       782
Income (loss) before
 income taxes                   1,194       889     (2,532)    1,396
Provision for (benefit from)
 income taxes                     104       246        135       377
Net income (loss)              $1,090    $  643    $(2,667)   $1,019
Accretion and dividends
 on redeemable stock               --      (753)        --    (2,208)
Net income (loss)
 applicable to common
 stockholders                  $1,090    $ (110)   $(2,667)  $(1,189)
Net Income (loss) per share    $ 0.16    $(0.02)   $ (0.54)  $ (0.25)
Weighted average number of
 common shares outstanding      6,865     4,826      4,960     4,826

CONTACT: Jaffoni & Collins Incorporated

              Joseph N. Jaffoni
              David C. Collins
              212/505-3015
              All American Communications
              Thomas Bradshaw
              Chief Financial Officer
              310/450-3193