All American Communications reports second quarter results.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug. 5, 1996--All American Communications, Inc. (NASDAQ: AACI/AACIB) today reported improved operating results for the second quarter and six months ended June 30, 1996.

Revenues in the second quarter of 1996 were $39,345,000, compared to $38,065,000 in the year-ago quarter. The revenue gains were due to higher revenues from increased sales of recorded music product. Second quarter television revenues declined slightly from the comparable period in the prior year when the Company recognized revenues from initial two year cash licenses of approximately $7,000,000 related to the Baywatch strip syndication. Excluding these cash license revenues from the Baywatch strip, television revenues increased over the prior year due to increases in foreign and domestic game show production by the Company's subsidiaries, All American Fremantle International and Mark Goodson Productions.

Operating income rose approximately 155% to $2,933,000 compared to $1,151,000 in the year ago second quarter. The increase in operating income is attributable to higher recorded music sales while television operating income remained level with the prior year period due to higher profit margins on the current period's programming. Amortization of goodwill doubled to $1,101,000 in the second quarter of 1996 as a result of the Mark Goodson Productions acquisition, and net interest expense increased to $2,667,000 from $2,384,000 in second quarter of 1995, due to higher average borrowings related to the Mark Goodson Productions acquisition.

For the second quarter of 1996, the Company reported net income of $152,000, or $0.01 per share, compared to a net loss of ($676,000), or ($0.08) per share, in the prior year's second quarter. The weighted average number of common and common equivalent shares outstanding in the 1996 and 1995 second quarter periods was 12,110,000 and 7,976,000, respectively. The increase in shares outstanding primarily reflects the December 1995 offering of 3,200,000 shares of Class B Common Stock.

Revenues in the first six months of 1996 increased to $87,488,000, a record level, compared to $75,027,000 in the first six months of 1995. Television revenue increases for the 1996 six-month period were related to expanded worldwide programming while record and merchandising revenues more than doubled due to increased record sales. Operating income rose approximately 375% to $8,993,000 versus $1,892,000 a year ago, reflecting improvements in both the Company's television and recorded music operations. Amortization of goodwill was $2,186,000 in the first six months of 1996, compared to $1,070,000 in 1995, as a result of the Mark Goodson Productions acquisition. Net interest expense in the first six months of 1996 increased to $5,134,000 from $4,728,000 in the year-ago period due to higher average borrowings in connection with the Mark Goodson Productions acquisition.

For the first six months of 1996, the Company reported net income of $2,223,000, or $0.19 per share, compared to a net loss of ($1,571,000), or ($0.20) per share, in 1995. The weighted average number of common and common equivalent shares outstanding in the 1996 and 1995 periods was 11,941,000 and 7,976,000, respectively.

Anthony J. Scotti, Chairman and Chief Executive Officer, stated, "While the second quarter and first half is seasonally among the slowest periods in our core television business, our ability to increase revenues and report profits for the first six months of the year reflects the significant building and diversification which has taken place over the past two years, including the acquisitions of Mark Goodson Productions and Fremantle International."

All American Communications, Inc. is a diversified worldwide entertainment company with operations in television and recorded music production and distribution. All American produces and/or distributes more than 100 shows in 29 countries. Its domestic programming includes The Price is Right for CBS and the Baywatch franchise. Internationally, the Company produces and distributes local game shows including The Price is Right, Family Feud and To Tell The Truth. -0-

                ALL AMERICAN COMMUNICATIONS, INC.
              Consolidated Statements of Operations
              (In thousands, except per share data)
                           (Unaudited)

                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                                 1996      1995      1996      1995
Revenues:
  Television                   $30,316   $33,875   $71,673   $67,819
  Recorded music and
   merchandising                 9,029     4,190    15,815     7,208
                                39,345    38,065    87,488    75,027

Expenses:
  Television                    22,107    26,259    51,465    54,308
  Recorded music and
   merchandising                 6,573     3,799    11,551     5,663
  Selling, general and
   administrative                6,631     6,326    13,293    12,094
  Goodwill amortization          1,101       530     2,186     1,070
                                36,412    36,914    78,495    73,135

Operating income                 2,933     1,151     8,993     1,892

Other income (expense)
 Interest income                   368        23       799        44
 Interest expense, net of
  amounts capitalized           (3,035)   (2,407)   (5,933)   (4,772)
 Other                              (4)       67       (26)      127
                                (2,671)   (2,317)   (5,160)   (4,601)

Income (loss) before provision
 (benefit) for income taxes        262    (1,166)    3,833    (2,709)

Provision (benefit) for
 income taxes                      110      (490)    1,610    (1,138)

Net income (loss)              $   152   $  (676)  $ 2,223  $ (1,571)

Net income (loss) per share    $  0.01   $ (0.08)  $  0.19  $  (0.20)

Weighted average number of
 common shares and common
 share equivalents
 outstanding                12,110,000 7,976,000 11,941,000 7,976,000

CONTACT: All American Communications Inc., Santa Monica

Thomas Bradshaw, CFO, 310/656-1100

or

Jaffoni & Collins Inc., New York

Joseph N. Jaffoni, David C. Collins, 212/505-3015

[e-mail]