Ameriquest Announces Third Quarter Financial Results.

WILLOW GROVE, Pa.--(BUSINESS WIRE)--August 6, 1999--

AmeriQuest Technologies, Inc. (OTC BB:AMQT) today reported that revenues for the third quarter increased 25% to $15,761,000 compared to $12,560,000 in the previous quarter ended March 31, 1999.

The net loss for the third quarter was $98,000 compared to a net loss of $678,000 in the preceding second quarter.

The fiscal 1999 third quarter loss was substantially reduced by two one time benefits, which were a $236,000 recovery of bad debt and a reduction in inventory reserves of $398,000 . Without these items, the net loss for the third quarter of fiscal 1999 would have been $732,000 or $0.01 per share.

Revenues for the third quarter of $15,761,000 declined by 14% from $18,260,000 for the same quarter last year and the net loss for the third quarter of $98,000 compares to a net profit of $62,000 in the same quarter of last year. However, net sales of the prior year quarter included approximately $6,017,000 of revenue related to the liquidation of excess inventory.

Accordingly, the Company's recurring revenue for the quarter ended June 30, 1999, increased by 29% over the quarter ended June 30, 1998. The revenue increase occurred across most vendor lines and resulted from an increase in sales staffing levels and the efforts of the Company's recently restructured sales force towards "solution" selling with a focus on client server, networking, and storage products and services revenues.

Gross profit performance for the current quarter improved to 10% compared to 6.8% in the previous quarter ended March 31, 1999 due to a more favorable product mix. The desired transition resulting from expansion and restructuring of the Company's sales force towards "solution" and services selling with its concomitant higher margins, and away from low margin commodity type sales, while beginning to show improvement, is not yet complete.

The Company's balance sheet was re-capitalized on July 20, 1998 as part of the transactions between Computer 2000 and Listen Group Partners, LLC. Highlights of the unaudited June 30, 1999 and audited September 30, 1998 Balance Sheet are attached.

The Company notes that it was not profitable in the quarter and has not been profitable in prior quarterly periods without the benefit of reversal of reserves, and management estimates that a significant increase in revenue and/or gross profit margin will be required in order for the Company to achieve operating profitability on a consistent basis at its current cost structure and product mix.

The Company's objective is to achieve improvement in margin and product mix through its new "solution" selling method and to increase higher margin revenues generated by its "Silent Partner"TM services, but no assurance can be given that such a revenue or gross profit increase will occur or that operating profitability will be maintained on a consistent basis.

The press release contains forward-looking statements that involve a number of risks and uncertainties.

Among other factors that could cause actual operating results to differ materially are general economic and business conditions, the rate of growth in the computer industry, competitive factors and pricing pressures, changes in product mix, inventory risks due to shifts in market demand, and changes in agreements with manufacturers and master distributors regarding the terms of product sales to the Company.

AmeriQuest is a technical distributor of computer technology solutions and "Silent Partner" to "value-added" resellers and systems integrators. -0-

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             Selected Statement of Operations - Unaudited
             (Dollars in Thousands, except per share data)

                        Three Months Ended      Nine Months Ended
                               June 30,             June 30,

                         1999         1998       1999         1998
                         ----         ----       ----         ----

Net Sales              $15,761     $18,260     $40,125     $47,371



Net Income (Loss)         ($98)        $62     ($1,318)       $246

Profit (Diluted Loss)
 Per Common Share       ($0.00)     ($0.01)(1)  ($0.02)     ($0.02)(1)



Diluted Common
 Shares             66,881,906  66,881,906  66,881,906  66,881,906

(1) Dividends on preferred stock of $1,575 ($525 per quarter) were
accrued but not paid for the nine months ended June 30, 1998 and were
a reduction of income available to Common Shareholders.

                  ----------------------------------
                 Selected Unaudited Balance Sheet Data
                        (Dollars in Thousands)

                               June 30, 1999    September 30, 1998
                               -------------    ------------------
Total Assets                      $12,721            $12,955
                                  -------            -------

Line of Credit                      1,914                  0
Current Liabilities                 3,107              3,937
Stockholder's Equity                7,700              9,018
                                  -------            -------
Total Liabilities and Equity      $12,721            $12,955
                                  -------            -------