Amplicon Third Quarter EPS Up 15%.

Business Editors and High-Tech Writers

SANTA ANA, Calif.--(BUSINESS WIRE)--April 27, 2000

Amplicon Inc. (Nasdaq:AMPI) Thursday reported that total revenues for the third quarter ended March 31, 2000 increased 18% to $19.9 million, compared with $16.9 million for the third quarter a year ago.

Net earnings for the third quarter increased 12% to $5.3 million, compared with $4.8 million for the third quarter of fiscal 1999. Diluted earnings per share increased 15% to $0.45 compared with $0.39, benefiting from a lower number of common shares outstanding.

Revenues for the first nine months of fiscal 2000 increased 6% to $54.7 million from $51.6 million for the comparable prior year period. Net earnings for the same period rose 2% to $14.9 million, compared with $14.6 million for the first nine months of the prior fiscal year.

Diluted earnings per share for the first nine months of fiscal 2000 were $1.25, up 5% from $1.19 reported for the first nine months of the prior year, also reflecting a lower number of common shares outstanding.

"Amplicon's third quarter results reflect strong revenues and earnings from the sale or re-lease of leased property. However, these results were offset by lower lease revenue from direct financing leases, reflecting the impact of a smaller lease portfolio and a lower volume of new lease originations," said Patrick E. Paddon, chairman, president and chief executive officer.

He continued: "New lease transactions booked during the third quarter were down from the prior year, and the second quarter of fiscal 2000, although the volume of lease transactions in process was up from the level at Dec. 31, 1999. Management is focused on efforts to improve the level of new lease originations.

"For the third quarter of fiscal 2000, gross profit increased 7% to $12.8 million, compared with $11.9 million for the prior year quarter. The improved gross profit is due to increased income recognized from leased property sales and lease extensions, and higher interest income from cash investments, while interest income from direct financing leases was down.

"Net earnings during the third quarter and first nine months of fiscal 2000 benefited from lower selling, general and administrative ('S,G&A') expenses. During the quarter ended March 31, 2000, S,G&A was down by 3% from the prior year third quarter. This improvement is the result of lower legal and general expenses. For the nine months, S,G&A expenses were down by $503,000, a 4% decrease."

Paddon went on to state: "As previously advised, Amplicon filed an application to obtain permission to organize a national bank, with Amplicon as the sponsor. Preliminary conditional approval has been received, which approval is subject to certain regulatory requirements and conditions.

"Amplicon, in conjunction with a group of bank professionals and organizers, can now begin taking steps necessary for obtaining final approval, but may not begin the business of banking until final approval has been granted. Assuming that all regulatory conditions are timely satisfied, it is anticipated that the final approval will be obtained within 90 to 120 days."

Based in Orange County, Calif., Amplicon leases high technology capital assets nationwide utilizing an innovative sales management organization that delivers cost effective leasing alternatives to meet customer needs.

This news release contains forward-looking statements, which involve management assumptions, risks and uncertainties. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, the company's actual results could differ materially from the results forecast in the forward-looking statements. For further discussion regarding management assumptions, risks and uncertainties, readers should refer to the company's securities and exchange commission filings.

                             AMPLICON INC.
             Condensed Consolidated Statements of Earnings
                     (000's except per share data)

                       Three Months Ended         Nine Months Ended
                            March 31,                 March 31,
                       2000          1999         2000          1999

Leasing revenues    $ 11,540      $ 12,293     $ 35,735      $ 35,729
Sales of leased
 property              7,129         4,015       15,786        14,571
Interest and other
 income                1,189           560        3,134         1,311
 Total Revenues     $ 19,858      $ 16,868     $ 54,655      $ 51,611

Gross profit          12,759        11,927       36,862        36,842

Earnings before
 income taxes          8,679         7,728       24,293        23,770

Net earnings        $  5,337      $  4,752     $ 14,940      $ 14,618

Basic earnings per
 share              $   0.46      $   0.40     $   1.28      $   1.23
Diluted earnings
 per share          $   0.45      $   0.39     $   1.25      $   1.19

Weighted average
 number of common
 shares outstanding   11,557        11,866       11,663        11,850
Diluted number of
 common shares
 outstanding          11,898        12,303       11,988        12,316


                             AMPLICON INC.
                 Condensed Consolidated Balance Sheets
                                (000's)

ASSETS                              March 31, 2000       June 30,1999
                                     (Unaudited)           (Audited)

Cash and short term investments      $  72,981             $  59,337
Net receivables                         15,116                22,785
Property acquired for transactions
 in process                             37,766                35,398
Net investment in capital leases        81,060                84,617
Other assets                             1,987                 1,170
Discounted lease rentals assigned
 to lenders                            211,752               263,462
                                     $ 420,662             $ 466,769

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                     $   1,657             $   7,159
Income taxes payable, including
 deferred taxes                         30,000                29,405
Other liabilities                       13,586                13,168
Nonrecourse debt                       211,752               263,462
 Total liabilities                     256,995               313,194
Stockholders' Equity                   163,667               153,575
                                     $ 420,662             $ 466,769