Aviation Distributors Inc. Enters Into a Plea Agreement With United States Attorney.

Business Editors & Aerospace/Defense Writers

LAKE FOREST, Calif.--(BUSINESS WIRE)--Oct. 25, 2000

Aviation Distributors Inc. (OTCBB:ADIN), a leading aircraft parts redistributor and provider of inventory management services to major commercial airlines worldwide, announced the company has entered into a plea agreement with the government that will resolve ADI's involvement in the ongoing criminal investigation of the company that has been conducted by the United States Attorney's Office in Los Angeles, California.

Under the terms of the plea agreement, ADI will enter a guilty plea to a three count criminal information alleging that the company conspired to violate Title 15, United States Code, Sections 77q(a) and 77x, and violated Title 15, United States Code, Sections 77x, 78m(b)(2)(A), 78m(b)(5) and 78ff, and Title 17, Code of Federal Regulations, Section 240.13b2-1 in connection with the preparation of the company's financial records and the filing of the company's financial statements during the period through approximately August 1997.

As a part of the plea agreement, the company has agreed to pay a total fine of $750,000, which fine will be payable as follows: $50,000 to be paid at the time of sentencing; $150,000 to be paid on March 31, 2001; $250,000 to be paid on March 31, 2002; and $300,000 to be paid on March 31, 2003. In addition the company will be placed on probation until the fine is paid in full or until Dec. 31, 2002, whichever is later.

ADI's plea agreement with the government must still be submitted to the federal court in Los Angeles for approval. The court can either accept or reject the sentence contained in the plea agreement. No date has been scheduled for the court hearing on this matter.

Commenting on the announcement, William D. King, chairman and chief executive officer, remarked "Our shareholders and employees have been operating under this litigation cloud for more than three years. With the acceptance of this plea, the company will have achieved final closure on all outstanding material legal issues. The company can now bring unencumbered focus to achieving superior results for our shareholders."