All-American Term Trust declares distribution.

NEW YORK--(BUSINESS WIRE)--Sept. 9, 1996--All-American Term Trust Inc. (NYSE: AAT), a closed-end management investment company with an investment objective of providing a high level of current income, consistent with the preservation of capital, today announced that the Fund's board of directors has declared a dividend from net investment income of $0.0900 per share.

The dividend is payable on Sept. 27, 1996 to shareholders of record as of Sept. 19, 1996. The ex-dividend date is Sept. 17, 1996. -0-

Portfolio Statistics (8/30/96)

Composition (as a % of net assets)      Top Five Sectors (as a %
Corporates                 63.6%         of net assets)
ARMs/Mortgages             28.0         Finance/Banking         13.1%
Cash & cash equivalents     1.7         Cable/Media             11.7
Municipals                  6.7         Diversified Industrials  9.6
                                        Energy                   6.9
                                        Municipals               6.7
Ratings (as a % of net assets)
AAA                  36.4%
A                    10.3         Weighted Average Maturity 8.6 years
BBB                  19.0         Weighted Average Duration 5.13 years
BB                    6.9
B                    23.9
Non-Rated             2.2
Below B               1.3

CONTACT: Linda Buckley, 201/902-5450