Andean Development Corp. Declares Special Dividend to Stockholders of Record Oct. 31, 1998.

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 1, 1997--Andean Development Corp. (NASDAQ:ADCC) based in Boca Raton, announced Wednesday that it has declared a special dividend to stockholders of record Oct. 31, 1997.

The dividend of 20 cents per share will be payable in two tranches, Dec. 31, 1997 and March 31, 1998. Pedro Errazuriz, chairman and CEO of Andean, also announced that he intends to reinvest the dividends that he personally receives, based on his ownership of Andean stock, back into the company.

"We are committed to rewarding our shareholders as revenues and profits improve, and this dividend is evidence of the company's strong financial and operational performance," said Chairman and CEO Pedro Errazuriz. "Based on the fundamentals of our business, we see no reason why this performance should not be able to continue."

Through its two wholly owned Chilean subsidiaries, Andean Development represents foreign manufacturers in the sale of electrical and other turn-key projects in the rapidly growing South American nation, and provides engineering and consulting support services. "Chile is one of the most stable and liberalized economies in Latin America, with 13 consecutive years of growth, and Andean Development is positioned to take full advantage of this booming market," according to Errazuriz.

In the first six months of this year, the company posted a 46% jump in revenues, to more than $2.7 million from just under $1.5 million for the first half of 1996. Net income increased 17% to $816,365 or 35 cents per share, from $676,183, or 45 cents per share, in the first six months of last year. The 17% increase is based on a weighted average of 2,338,894 shares outstanding as of June 30, 1997, compared with 1.5 million shares as of June 30, 1996. For the full fiscal year ended Dec. 31, 1996, Andean Development reported a 26% increase in revenues to about $3.4 million, and a 43% surge in net income, to $1,342,074, or 48 cents per share.

Company revenues and profits have been increasing in tandem with Chilean involvement in utilities in Peru, Colombia, Argentina and Brazil, according to Errazuriz. Moreover, the company has continued to successfully implement a corporate strategy that capitalizes on opportunities in the robust Chilean economy. Among these opportunities are certain ecology-oriented and electrical utility-related projects in which Andean expects to acquire equity interests. Examples of such projects include small-to medium-sized hydroelectrical generating plants, electric utilities, waste water treatment facilities and other water-related projects. Andean already has a 6.75% stake, with options to increase its interest, in a Chilean corporation that provides waste water services to the municipality of Antofagasta. The company is also considering purchasing a Spanish manufacturer of electrical material. Additionally, the company has a 25% equity stake in a wine bottling and processing plant in Chile, which will begin to produce up to 2 million bottles of Chilean wine commencing in March of 1998.

For more information on Andean Development Corp., contact David Mayer at 1900 Glades Road, Boca Raton, FL 33431. Telephone [phone] and Fax [phone].

CONTACT: Andean Development Corp., Boca Raton

David Mayer, 561/416-8930

561/416-8962 (fax)