All American Semiconductor Announces Record Quarterly Revenues; Over $70 Million in Sales; An 11% Increase Over Last Year.

MIAMI--(BUSINESS WIRE)--April 7, 1999--All American Semiconductor, Inc. (Nasdaq:SEMI), a leading national distributor of electronic components, today announced that unaudited sales for the first quarter of 1999 reached a new record at over $70 million, up over 11% from the first quarter of 1998 when sales were approximately $63 million.

Commenting on the sales figures, Bruce M. Goldberg, President and Chief Executive Officer of All American, stated that, "We are pleased with the way our organization has responded in refocusing our efforts on internal growth. In addition to reaching new heights in sales, we did achieve strong bookings in excess of our shipments for the quarter. While we are excited to have set a new quarterly sales record, we also experienced downward pressures on our gross profit margins. Thus, while we expect to show a profit for the first quarter, our profitability was impacted by a decline in our margins as well as an increase in our selling, general and administrative expenses associated with our increased infrastructure relating to our efforts to once again drive expansion and internal growth after the negative impact from the failed merger in 1998. Even though we are seeing positive signs in the marketplace, we remain cautiously optimistic about the balance of the year."

Sales information remains subject to adjustments in connection to the preparation of the Company's Form 10-Q for the first quarter of 1999.

All American is recognized as the nation's 7th largest distributor of semiconductors and the 14th largest electronic components distributor overall. The Company has offices in 32 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 amount and timing of shipments of previously booked customer orders, the effectiveness of the Company's business and marketing strategies, timing of delivery of products from suppliers, price increases from suppliers that cannot be passed on to the Company's customers at the same rate, the product mix sold by the Company, the Company's development of new customers, existing customer demand as well as the level of demand for products of its customers, utilization by the Company of excess capacity, availability of products from and the establishment and maintenance of relationships with suppliers, price erosion in and price competition for products sold by the Company, management of growth and expenses, the Company's ability to collect accounts receivable, price decreases on inventory that is not price protected, 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, availability and terms of financing to fund capital needs, the continued enhancement of telecommunication, computer and information systems, the achievement by the Company and its vendors and customers and other third parties with which the Company has a business relationship of Year 2000 compliance in a timely and cost efficient manner, the continued and anticipated growth of the electronics industry and electronic components distribution industry, the impact on certain of the Company's suppliers and customers of economic or financial turbulence in off-shore economies and/or financial markets, change in government tariffs or duties, currency fluctuations, a change in interest rates, the state of the general economy, the success of the Company in avoiding the delisting of its common stock from The Nasdaq Stock Market, and the other risks and factors detailed in the Company's reports on Forms 10-K and Forms 10-Q. 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.