All American Semiconductor releases third quarter results.

MIAMI--(BUSINESS WIRE)--Nov. 14, 1996--

-- Restructures for profitability; noncash and nonrecurring

charges taken --

All American Semiconductor Inc. (NASDAQ:SEMI), a leading national distributor of electronic components, Thursday announced third quarter results and an increase in sales of 22%.

Bruce M. Goldberg, president and chief operating officer of All American stated: "Over the past four years All American has been one of the fastest growing companies in our industry. Over the last few years, the company built two ISO certified distribution centers, opened a programming center and created several new divisions, including some through acquisitions. Over the past seven years, the company acquired six companies and opened 17 branches. Due to adverse market conditions and other factors beyond our control, certain of the new divisions became unprofitable. As a result, management developed and implemented a plan to eliminate those areas that are impeding our profitability. In the third quarter of 1996 the company incurred certain nonrecurring noncash charges and reduced its workforce by 15% through the elimination of over 90 positions, all of which will result in a significant reduction in overhead. With the implementation of this plan, we now look forward to being able to better concentrate on our core business and returning to profitability."

Net sales for the third quarter of 1996 were $56.5 million, a 22% increase over sales of $46.5 million for the third quarter of 1995. For the nine months ended Sept. 30, 1996, net sales were $181.2 million, representing a 39% increase over the same period of 1995.

Without giving effect to the nonrecurring expenses and noncash write-offs, the company had income from continuing operations of $2.4 million for the nine months ended Sept. 30, 1996 compared to $6.0 million in 1995. For the third quarter of 1996, without giving effect to these special charges, the company had a loss from continuing operations of $230,000, compared to income from continuing operations of $2.2 million for the third quarter of 1995.

In the third quarter of 1996, the company charged off $6.4 million on an after-tax basis, of nonrecurring expenses, non-cash write-offs and a loss from discontinued operations of the company's computer products division. After taking these items into effect, the company had a net loss of $7.4 million or $.37 per share for the third quarter of 1996 compared to net income of $841,000 or $.05 per share for the third quarter of 1995. Including $6.9 million on an after-tax basis of these special charges, the company had a net loss of $7.7 million or $.38 per share for the nine months ended Sept. 30, 1996 compared to net income of $2.2 million or $.15 per share for the same period of 1995.

Bruce M. Goldberg, further commented: "While our sales were ahead of last year, they were substantially below our expectations due to a sudden change in market conditions and continued price erosion. From an operational standpoint, we believe that the worst is over and that given our restructuring plan and cost cutting programs we could return to an operating profit by the first quarter of 1997. Excluding certain charges taken in the third quarter, our gross profit margins actually increased.

"Recently business conditions seemed to have strengthened and we are optimistic about the long-term prospects of both our company and our industry."

All American was recently ranked as the nation's 8th largest distributor of semiconductors and the 17th largest electronic components distributor overall. With the opening of our Raleigh facility, the company has offices in 31 strategic locations throughout North America, including All American's ISO certified distribution and programming center in Fremont, Calif. -0-

                      ALL AMERICAN SEMICONDUCTOR INC.
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

(Dollars in thousands
 except per share amounts)
                                 Quarters             Nine Months
Periods ended Sept. 30      1996         1995       1996         1995

Net sales                 $ 56,514    $ 46,512    $181,219    $130,287

Income (loss) from
 continuing
 operations (1)           $(6,519)    $  2,203    $(4,796)    $  5,957

Income (loss) from
 continuing operations
 before discontinued
 operations and
 extraordinary items (1)  $(5,600)    $    972    $(6,013)    $  2,322

Loss from discontinued
 operations (net of
 $1,320,000; $100,000;
 $1,325,000 and
 $103,000 income tax
 benefit)                  (1,750)       (131)     (1,757)       (135)

Gain from settlement
 of litigation (net
 of $205,000 income
 tax provision)                  -           -         272           -
Loss on early
 retirement of debt
 (net of $161,000
 income tax
 benefit)                        -           -       (214)           -

Net income (loss) (1)     $(7,350)    $    841    $(7,712)   $  2,187

Primary earnings per
 share:
 Income (loss) from
 continuing
 operations (1)           $  (.28)    $    .06    $  (.29)    $    .16
 Discontinued
 operations                  (.09)       (.01)       (.09)       (.01)
 Extraordinary
 items                           -           -           -           -
 Net income
 (loss) (1)               $  (.37)    $    .05    $  (.38)    $    .15

Average number of
 common shares
 outstanding:
 Primary                20,058,994  18,659,388  20,303,120  15,050,361
 Fully diluted          20,058,994  18,989,945  20,303,120  15,822,097

(1) Includes an impairment of goodwill charge of $2,428,000 for the
quarter and nine months ended Sept. 30, 1996 as well as restructuring
and other nonrecurring expenses of $1,092,000 and $2,022,000, on a
pretax basis, for the quarter and nine months ended Sept. 30, 1996.

CONTACT: All American Semiconductor Inc., Miami

Bruce M. Goldberg, President

or

Howard L. Flanders, CFO 

305/621-8282 ext. 1417