All American Semiconductor announces record 1995 results; 1995 Net Income Reaches All Time High Despite Nonrecurring Acquisition Expenses.

MIAMI--(BUSINESS WIRE)--April 1, 1996--All American Semiconductor, Inc. (The Nasdaq Stock Market:SEMI), a leading national distributor of electronic components, today announced results for the year ended December 31, 1995.

Net sales for 1995 rose 79% to $180.8 million, up from $101.1 million in 1994. Operating income increased 132% in 1995, reaching a new record at $6 million as compared to $2.6 million in 1994. Net income was also a record at $1.9 million, a more than five-fold increase over net income of $352,000 reported in the prior year. These record levels of operating income and net income were achieved notwithstanding a $1.1 million nonrecurring expense relating to the acquisitions of the Added Value Companies which closed December 29, 1995. Earnings per share were $.12 in 1995 up from $.03 from 1994 notwithstanding a 22% increase in the average number of shares outstanding. Excluding the charge relating to the acquisitions, 1995 net income would have been $2.5 million or $.16 per share.

While operating income and net income were impacted by the $1.1 million nonrecurring charge, the Company noted that 1995 results did not include any of the sales or earnings of the Added Value Companies. Net sales for the Added Value Companies were approximately $40 million in 1995.

Bruce M. Goldberg, President and Chief Operating Officer of All American, stated, "We are very excited to have achieved such dramatic growth in 1995. We believe that our 79% internal growth rate made All American the fastest growing of the Top 25 electronics distributors in the country; and this growth was accomplished without including any sales from the Added Value Companies.

"We are especially pleased to have achieved record net income for 1995 even though we incurred a $1.1 million one-time charge in connection with the December 29th acquisitions as well as other significant expenses related to our continued investment in the development of further service capabilities and expansion of product offerings. The Company's improved results reflect operating efficiencies and economies of scale which should yield further improvements as the Company continues to grow. SG&A as a percentage of sales improved to 18.1% in 1995, down from 23.1% in 1994.

"While our entire industry achieved significant growth in 1995, All American grew substantially faster than our competitors as we succeeded in gaining market share in almost every territory. In order to drive our growth in the future and to enhance our service to our customers, in 1995 All American continued to expand its service capabilities and entered into new but related businesses including the opening of a programming center, a new cable assembly and electromechanical value added division, as well as a computer products business group. Of note, we added key vendors such as Siliconix, Telefunken, Winbond, Panasonic and NexGen, and expanded our distribution rights with other key vendors, including Atmel and Chips & Technologies. We also opened several new offices including our first sales office outside of the U.S., in Toronto, Canada, which was opened in January 1996.

"Looking ahead, we are extremely optimistic about our ability to continue to produce strong sales and accelerated earnings growth in light of both the Added Value acquisitions and our on- going internal development. The integration of the Added Value Companies with All American has moved forward with all necessary office consolidations completed and our information systems successfully merged. Already this year, we have received national distribution rights from certain of Added Value's vendors at All American offices across the country, including Mosel Vitelic as well as an exclusive distribution agreement with Dense-Pac Microsystems. We are also further developing the value added and customer service capabilities we acquired, including kitting and turnkey capabilities. In order to drive these services on a national basis, we have created a separate division known as Apex Solutions in which we have begun to increase the staffing and capabilities. Additionally, we have started a separate company, Aved Industries, to further pursue the design, development, manufacture and sales and marketing on a global basis of proprietary products and to provide technical support for the rapidly growing flat panel display industry. Aved Industries also has a memory group that will focus on the design, manufacture and sales and marketing of memory module products."

Mr. Goldberg concluded, "Although the semiconductor industry book-to-bill was recently reported below parity, All American's book-to-bill ratio in each of January, February and March 1996 exceeded 1.1 to 1. Furthermore, All American has carefully positioned itself to have very little exposure to DRAM pricing volatility. Backlog was approximately $74 million at year-end, an increase of 139% from approximately $31 million at December 31, 1994."

Without including revenues from the Added Value acquisitions, All American was ranked as the nation's 18th largest distributor of electronic components and the 9th largest distributor of semiconductors in the United States. All American has offices in 30 strategic locations throughout North America. -0-

                  ALL AMERICAN SEMICONDUCTOR, INC.
           CONSOLIDATED CONDENSED STATEMENTS OF INCOME
       (In thousands of dollars, except per share amounts)

                        Years Ended
                        December 31,
                        1995     1994
Net Sales (1)        $180,794   $101,085
Income from
 Operations (2)      $  5,962   $  2,570
Income Before Income
 Taxes (2)           $  3,223   $    759
Provision for Income
 Taxes                 (1,337)      (407)
Net Income           $  1,886   $    352
Earnings Per Share   $    .12   $    .03
Average Number of Common
 Shares Outstanding  15,945,696 13,029,714

    (1) Does not include sales from the Added Value Companies
acquired on December 29, 1995.
    (2) Excludes earnings from the Added Value Companies but includes
nonrecurring expenses of $1,098,000 in 1995 relating to the Added
Value acquisitions, and $548,000 of nonrecurring expenses for 1994.

CONTACT: Bruce M. Goldberg, President

Howard L. Flanders, CFO

[phone] ext. 1417

or

The Equity Group Inc.

Tamara Ehlin [phone]

Robert D. Goldstein [phone]