Aviation Distributors, Inc. Reports Results for Third Quarter, Including an Eighty Seven Percent Increase in Sales and an Eight Fold Increase in Operating Profits.

Business Editors

LAKE FOREST, Calif.--(BUSINESS WIRE)--Nov. 17, 2000

Aviation Distributors, Inc. (OTCBB:ADIN) reported today its results from operations for the third quarter and nine month periods ended Sept. 30, 2000.

Revenues for the three months ended Sept. 30, 2000, were $10,112,580, an increase of more than 87 percent as compared to revenues of $5,396,347, for the same period a year ago. Operating profit, excluding settlement and non-recurring charges, increased more than eight fold from $134,637 for the quarter ended Sept. 30, 1999, to $1,140,527 for the current period.

Because of the previously reported U.S. Attorney settlement fine and attendant non-recurring legal expenses in the amounts of $642,016 and $215,985, respectively, net loss for the quarter was ($570,367), or ($.17) per share, compared to net income of $47,712, or $.01 per share, recorded for the prior year period.

Without the above one-time charges, net income for the quarter ended Sept. 30, 2000, would have been $287,634 or $.09 per share.

Revenues for the for the nine months ended Sept. 30, 2000, were $28,384,619, an increase of 74 percent as compared to revenues of $16,335,080, for the same period a year ago. The company incurred operating income (loss) of $2,708,164 and ($436,272) for the nine months ended Sept. 30, 2000 and 1999, respectively, excluding settlement and non-recurring charges.

Because of the non-recurring and legal settlement charges totaling $858,001 as stated above, the net loss for the nine months ended Sept. 30, 2000, was ($426,380) as compared to a loss of ($1,498,455) for the comparable prior year period.

Commenting on the announcement, William D. King, chairman and CEO of the company, remarked, "The financial results for the quarter ended Sept. 30, 2000, demonstrate the continued improvement in revenue and income from operations. Quarterly revenues rose to more than $10 million, and the gross profit margin was 26.5 percent.

"Most significantly, income from operations, excluding settlement and non-recurring charges, was $1,140,527, for the quarter ended Sept. 30, 2000, versus $134,637, for the three months ended Sept. 30, 1999, more than an eight fold increase.

"Now that the company is generating significant revenues, achieving good gross margins, earning income from operations, excluding settlement and non-recurring charges, of more than 11 percent of revenues in the current quarter, and has successfully settled all material litigation, our focus is on reducing our interest expense while continuing to profitably manage anticipated, significant revenue growth."

Aviation Distributors, Inc. is one of the world's 10 largest aircraft part redistributors and inventory management service providers to major commercial airlines worldwide with agents in the United States, United Kingdom, throughout Europe, Australia, India, Jordan, Indonesia and Chile, with its headquarters in Lake Forest, Calif.

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, the availability of additional financing and other risks and uncertainties described fully in the company's Form 10-KSB filed with the Securities and Exchange Commission. Copies of the most recent 10-KSB are available from Aviation Distributors' Investor Relations department.

                      AVIATION DISTRIBUTORS, INC.
                             BALANCE SHEET

                                         Sept. 30,         Dec. 31,
                                          2000               1999

Accounts receivable, net              $ 13,280,566     $  7,548,474
Other receivables                           87,554           44,739
Inventories                             12,344,734        9,008,560
Other current assets                       350,660          186,554
      Total current assets              26,063,514       16,788,327

Property and equipment, net                485,358          549,167
Other assets                             2,424,810          540,202
      Total assets                    $ 28,973,682     $ 17,877,696

Accounts payable                      $  3,528,866     $  2,587,403
Lines of credit                         23,600,111       15,677,982
Long-term debt, current portion            523,048          965,388
Other current liabilities                1,523,863          873,782
      Total current liabilities         29,175,888       20,104,555

Other liabilities                        3,506,011        1,098,731

Shareholders' deficit                   (3,708,217)      (3,325,590)
      Total liabilities &
       shareholders' deficit          $ 28,973,682     $ 17,877,696

                      AVIATION DISTRIBUTORS, INC.
                       STATEMENTS OF OPERATIONS

                         Three months ended       Nine months ended
                              Sept. 30,               Sept. 30,
                         2000         1999        2000        1999

Net sales             $10,112,580 $ 5,396,347 $28,384,619 $16,335,080
Cost of sales           7,432,087   3,873,354  21,112,590  12,524,745
Gross profit            2,680,493   1,522,993   7,272,029   3,810,335

Selling, general &
 administrative         1,539,965   1,388,356   4,563,865   4,246,607
Settlement fine           642,016       --        642,016       --
Non recurring expenses    215,985      29,735     238,361     118,650
Income (loss) from
 operations               282,527     104,902   1,827,787    (554,922)

Interest income
 (expense), net          (852,895)   (316,958) (2,259,058) (1,203,913)
Other income (expense)          2       6,833       4,891       8,245
Income (loss) before
 provision for
 income taxes            (570,366)   (205,223)   (426,380) (1,750,590)

Provision for
 (benefit from)
 income taxes               --        (81,397)      --        (80,597)

Net income (loss) before
 extraordinary item      (570,366)   (123,826)   (426,380) (1,669,993)

Extraordinary item - Gain
 on restructuring
 of payables, net of
 applicable income taxes    --        171,538       --        171,538

Net income              $(570,366)   $ 47,712   $(426,380)$(1,498,455)

Basic and diluted net
 income (loss) per share:
  Loss before
   extraordinary item       (0.17)      (0.04)      (0.13)      (0.53)
  Extraordinary item        --           0.05        --          0.05
Net income (loss)
 per share                $ (0.17)     $ 0.01     $ (0.13)    $ (0.47)

Weighted average number of
 shares outstanding     3,352,278   3,202,000   3,348,360   3,180,000