American Custom Components Releases Interim Six Month Financials.

SANTA ANA, Calif.--(BUSINESS WIRE)--Nov. 4, 1998--American Custom Components (OTC/BB: ACCM) Wednesday released earnings for the six months ended September 1998. The company made considerable improvement in gross margin and a significant improvement in the net loss as a percentage of sales.

Sales for the six months ending September were $832,011. Gross profit was $410,614 or 49.35%, up from the last fiscal year ending gross profit ratio by 8.3%. The net loss was ($57,794) or (6.9%) compared with the last fiscal year end net loss of (26.05%), an improvement to the bottom line of 19%.

Sales declined during the last quarter of the fiscal year, which ended March 1998. The downward sales trend continued well into the summer months. According to John Fritch, chairman of the board and chief financial officer: "Efficiency in our operations and the cost structure in our St. Lucia factory allowed us to improve the gross margin as a percentage of sales during this period. The net loss was a direct result of the slow down in the market. The decrease in sales volume occurred faster than we could adjust the SG&A costs. However, overhead expenses were reduced as a percentage of sales and we expect to see further improvement in the current quarter."

Total assets increased from $1,486,046 to $1,712,961. This was done while inventory was reduced from $227,465 to $161,643. The balance sheet reflects an improvement in the current ratio from .52 to .77 for the period. Owner's equity increased from $366,440 to $616,146.

John Groom, president and chief executive officer stated: "Today we see an increase in customer accounts, increase in backlog and a diversification of customers and markets. Our backlog includes orders for connectors in the computer peripherals, medical devices, industrial, military and telecommunications markets. Our tooling operation has an increased backlog for tooling orders outside ACCM's connector needs. This backlog is at an all time high. We are increasing manufacturing capacity to accommodate new orders in the sub-contract manufacturing and services market. Efforts to develop new markets, new customers and diversify our product base are starting to pay off. We look forward to further improvements in the coming months."

The accompanying financial reports compare the results of the audited periods -- fiscal year end March 1997, fiscal year end March 1998 -- and the current unaudited results of the six months ended September 1998.

Founded in 1994, American Custom Components designs and manufactures components for computer, military, telecommunications, industrial and medical segments of the worldwide electronic connector industry. American Custom Components also provides engineering, tooling and injected plastic manufacturing services, and, competitive contract manufacturing services at its St. Lucia facility in the Caribbean. Visit American's Web site at www.acc-intl.com.

Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.

                   American Custom Components Inc.

                            Balance Sheets
    Six Months Ended September 30, 1998 and FY ended March 31, 1998
                               Unaudited


               Assets               March 31, 1998      Sept. 30, 1998
Current Assets
  Cash in bank                         $131,118             $ 98,000
  Accounts receivable                    80,174              378,379
  Inventories                           227,465              161,643

  Total Current Assets                  438,757              661,505

Property and Equipment, Net             750,371              700,000

Other Assets                            296,918              351,456

Long Term Asset                       1,047,289            1,051,456

Total Assets                         $1,486,046           $1,712,961


Liabilities and Stockholders' Equity   March 31, 1998   Sept. 30, 1998

Current Liabilities
   Accounts Payable                       456,977           454,381
   Bank overdraft                               0                 0
   Line of Credit                          40,179            38,000
   Notes payable, current                 346,575           363,570
   Income Taxes payable                     2,400                 0

   Total Current Liabilities              846,131           855,951

Notes Payable, net of current portion     273,475           240,864

Other Long Term -- non current
 liabilities                              273,475           240,864

Total Liabilities                      $1,119,606        $1,096,815

Stockholders Equity
   Common Stock (25 million authorized)$    9,731        $    9,731
   Paid in Capital                      1,297,623         1,605,123
   Accumulated Retained Earnings         (940,914)         (998,708)
   Net Owners Equity                      366,440           616,146

Total Liabilities/Stockholders Equity  $1,486,046        $1,712,961



                   American Custom Components Inc.

                        Statement of Operations
    FY Ended March 31, 1998 and Six Months Ended September 30, 1998
                               Unaudited


                                 March 31, 1998        Sept. 30, 1997

Net Sales                          $2,583,094           $   832,011

Cost of Sales                       1,523,695               421,397
   Gross profit                     1,059,399               410,614

Operating Costs and Expenses
   Wages and salaries                 349,632               144,443
   Options Expense                     36,740                     0
   Insurance                           70,787                62,771
   Selling and promotion              372,247                27,385
   Professional fees                  165,959               101,285
   Depreciation and amortization      120,890                50,000
   Research & Development             189,162                     0
   Other operating expenses           426,980                 7,099

   Total Operating Expenses         1,732,397               468,408
   Operating Income                  (672,998)              (57,794)

Interest Expense, Net                  97,865                     0
   Income before provision for taxes (770,863)              (57,794)

Provision for Taxes                     2,400                     0

Net Income                          $(773,263)             $(57,794)