Applied Cellular Technology reports record first quarter revenue, earnings.

NIXA, Mo.--(BUSINESS WIRE)--May 7, 1997--Applied Cellular Technology Inc. (NASDAQ:ACTC) Wednesday reported that its revenues and net income for the first quarter ended March 31, 1997 were both at a record high.

First-quarter revenue of $18.13 million nearly equaled revenue for the entire 1996 calendar year and was up by 1,370 percent compared with last year's first quarter revenue of $1.22 million.

For the first quarter, net income was $279,000, or $0.05 per share, after preferred dividends of $18,000, vs. the year-earlier net income of $41,000, or $0.02 per share, a 580 percent increase. No preferred dividends were paid in the first quarter of 1996.

For the full year 1996, the company reported revenue of $19.9 million with net income, after $60,000 in preferred dividends, of $626,219, or $0.19 per share.

Chairman and Chief Executive Officer Richard J. Sullivan said that all three operating groups within Applied Cellular -- the Retail Group, Computer Group and Manufacturing Group -- reported strong increases year-over-year.

The specialty telecommunications company has made numerous acquisitions in the last 12 months as it executes its strategy to provide a full array of digital wireless services and applications to coordinate with broad industry trends away from analog wireline services.

Sullivan commented: "While first quarter results for all three operating groups, when compared to the first quarter last year, were up substantially due to the success of our strategic acquisition program, results from operations that have been in place for twelve months were strong as well.

"As the telecommunications industry moves to digital and wireless communications, we are convinced that we are well positioned to take advantage of this trend in two ways.

"First, through expanding the markets for our existing products and services, and second, through our ability to find, acquire and integrate high quality companies at attractive prices.

"At the heart of our successful acquisition program is a strict adherence to our acquisition model," Sullivan said. "We seek companies that are established niche-market leaders, with three to five years of continuous profitability, and that are synergistic with the other organizations within Applied Cellular.

"We provide each acquired company with capital to expand and we create a partnership with management based on strong performance-based incentives to ensure the continuation of their entrepreneurial drive to succeed.

"The company's management has demonstrated its confidence in our go-forward strategy as can be seen by a recent purchase of a large number of shares of the company's stock by a key member of our management team."

The balance sheet at the end of this year's first quarter remained strong with cash and cash equivalents of $1.19 million and total assets of $39.07 million. Shareholders' equity was $11.40 million.

Applied Cellular Technology Inc. is a specialty telecommunications company specializing in communication interconnect technologies, computer aftermarket products, and customized electrical component installation and manufacturing. -0-

                 APPLIED CELLULAR TECHNOLOGY
            Consolidated Statements of Operations
                        (Unaudited)

                                        Three Months Ended
                                             March 31,
                                      1997              1996

Net operating revenue             $18,127,000        $1,223,000

Cost of goods sold                 12,078,000           748,000

Gross profit                        6,049,000           485,000

Selling, general and
administrative expense              5,343,000           439,000

Operating income                      706,000            47,000

Interest income                        45,000            21,000

Interest expense                     (179,000)           (8,000)

Income before provision
for income taxes and
minority interest                     572,000            60,000

Provision for income taxes            205,000              --

Net income before
minority interest                     367,000            60,000

Minority interest                     (70,000)          (19,000)

Preferred Stock Dividends             (18,000)             --

Net income applicable to
common shareholders                  $279,000           $41,000

Net income per common share          $   0.05           $  0.02

Weighted average number of
common shares outstanding           6,145,000         2,287,000

Common shares outstanding
as of March 31,                     7,343,000         2,310,000

-0-

Note to Editors: Statements about the company's future expectations, including future revenues and earnings, and all other statements in this news release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results could differ materially from expected results.

CONTACT: Allen & Caron Inc., Irvine

Marty Tullio (investors)

Owen Daley (media)

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