Aviation Distributors, Inc. Books Two Large Jet Engine Sales for $3.4 Million.

IRVINE, Calif.--(BUSINESS WIRE)--July 16, 1997--Aviation Distributors, Inc. (NASDAQ:ADIN) announced today the sale of two jet engines with an aggregate transaction value of $3,405,000.

The first transaction involved the sale of a Pratt & Whitney 2037 jet engine for $2,475,000 which will be delivered later this week to a U.S. based company. The second transaction provided for the sale and delivery of a Lycoming ALF502 engine to a European-based air carrier for $930,000.

As in the normal course of operations, Aviation Distributors (ADI) received a purchase order from a customer for a specific Pratt & Whitney engine. ADI then sourced and acquired the engine from American TransAir in June this year and subsequently resold the engine to its customer in July. Similarly, in January, ADI received a purchase order for two Lycoming engines. After locating the items, they were purchased from China Eastern Airlines and overhauled to new specifications. The first engine was then sold in early May for $894,000 and the second has been sold as announced today.

Osamah Bakhit, President and Chief Executive Officer of the Company, commented on these substantial sales saying, "The sale of the PR2037 and our second ALF502 exemplifies the Company's increasing capability to participate in large transactions contributing not only to top line growth but substantially to profitability. While our core spare parts sales continue to drive the Company's aggressive growth, sales of higher ticket items such as these jet engines are becoming an integral part of the aggregate sales makeup and will accelerate our market share gain. This strategy is consistent with ADI's goal of becoming a market leader.

"With the additional working capital made available through our equity offering and recent bank line increase, we have been able to acquire special inventories and single-item parts quickly to satisfy our customers rather immediate needs. With purchase agreements for a high-ticket item in hand prior to our sourcing out their requirements, we effectively have pre-sells. This virtually eliminates our inventory risk and provides foreknowledge of our gross profit range. Essentially, these are very calculated sales and we expect more of them in the months to come as the trends worldwide exhibit air carriers reducing spare parts inventory levels and working with fewer approved suppliers like Aviation Distributors. To them, this is an effective solution to overhead reduction and maximizing invested capital."

Statements in this news release that relate to future plans, financial results or projections, events or performance 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. The Company's actual results and financial position could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including but not limited to, the price and availability of aircraft parts and other materials, successful execution of the Company's expansion plans, impact of competition, demand for its products, changes in accounting policies, the availability of additional financing and other risks and uncertainties described in detail under the "Risk Factors" section and elsewhere in the Company's Prospectus dated March 3, 1997. Copies of the Prospectus are available from Aviation Distributors' Investor Relations department.

Aviation Distributors (ADI) provides outsourcing services to major commercial airlines worldwide. ADI is one of the world's 10 largest aircraft part redistributors and inventory management service providers with agents in the US, UK, Australia, New Zealand, Jordon, Indonesia and Chile with its headquarters in Irvine, California.

CONTACT: Aviation Distributors, Inc.

Mark W. Ashton, 714/586-7558

or

Coffin Communications Group

Steven B. Johnson, 818/789-0100