All American Semiconductor Announces a 23% Revenue Increase Resulting in Record Sales for Third Quarter and Expected Record Net Income.

MIAMI--(BUSINESS WIRE)--Oct. 1, 1997--All American Semiconductor, Inc. (The Nasdaq Stock Market:SEMI), a leading national distributor of electronic components, today announced that unaudited sales for the third quarter of 1997 approximated $70 million, a 23% increase from the third quarter of 1996 when sales were approximately $57 million excluding $835,000 of sales from discontinued operations. This establishes a new quarterly sales record for the Company. For the nine-month period ended September 30, 1997, sales exceeded $200 million, compared to $181 million for the same period in 1996 excluding $6 million of sales from discontinued operations.

Commenting on the sales figures, Bruce M. Goldberg, President and Chief Executive Officer of All American, stated that: "Despite industry concerns over a summer slowdown, our sales for the third quarter of 1997 were ahead of the second quarter of 1997, marking the third consecutive quarterly increase in sales when compared to the immediately preceding quarter. We are very excited to have achieved such substantial growth over our 1996 third quarter, as this represents the largest sales and gross profit dollar quarter in the Company's history.

"While it will be a few weeks before we tabulate the numbers, we expect the third quarter of 1997 to also set a record for quarterly net income."

Sales, gross profit and net income information remains subject to adjustments in connection with the preparation of the Company's Form 10-Q for the third quarter of 1997.

To the extent that this press release discusses financial projections, future performance, expectations, beliefs, estimates or intentions about our products, markets or 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 the timing of delivery of products from suppliers, the product mix sold by the Company, customer demand, availability of products from and relationships with suppliers, price competition for products sold by the Company, interest rates, 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, availability of financing, growth of the electronics industry and/or electronics distribution, the impact of government regulations, tariffs or duties and the other risks and factors detailed in the Company's reports on Forms 10-K and Forms 10-Q.

All American is ranked as the nation's 8th largest distributor of semiconductors and the 15th largest electronic components distributor overall. The Company now has offices in 30 strategic locations throughout North America, including All Americans ISO certified distribution and programming center in Fremont, California.

CONTACT: All American Semiconductor, Miami

Bruce M. Goldberg, CEO

Howard L. Flanders, CFO

305/621-8282, x1417