Aviation Distributors Inc. Reports Results for First Quarter 2001.

Business Editors

LAKE FOREST, Calif.--(BUSINESS WIRE)--May 21, 2001

Aviation Distributors Inc. (OTCBB:ADIN) reported today its results from operations for the three month periods ended March 31, 2001, and March 31, 2000.

Revenues for the three months ended March 31, 2001, were $11,711,060, an increase of 41.5 percent, as compared to revenues of $8,274,028 for the same period a year ago. Net income for the quarter was $74,892, or $0.02 per basic and diluted share, compared to net income of $63,549, or $0.02 per basic and $0.01 per diluted share, recorded for the prior year period.

Commenting on the announcement, William D. King, chairman and chief executive officer of the company, remarked: "The results of our most recent quarter demonstrate the company's continued, significant revenue growth. Our quarterly revenues for the three months ended March 31, 2001, grew both sequentially and comparably -- increasing 29.3 percent over the fourth quarter ended December 31, 2000, and 41.5 percent over the comparable first quarter ended March 31, 2000. Additionally, we were able to achieve a reasonable gross margin -- 22 percent -- in a very competitive environment, and our selling, general and administrative expenses as a percentage of net sales declined to 14.4 percent from 17.3 percent. Income from operations of $894,334 for the three months ended March 31, 2001, was 143 percent of the income from operations of $623,511 for the comparable three months ended March 31, 2000. The company paid $818,642 in net interest expense for the quarter; an improvement in the company's capital structure is required to reduce this expense item."

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 U.S., U.K., 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.
                       Statements of Operations

                                              Three months ended
                                                   March 31,
                                             2001              2000

Net sales                             $11,711,060       $ 8,274,028
Cost of sales                           9,120,732         6,216,996
Gross profit                            2,590,328         2,057,032

Selling, general & administrative       1,684,615         1,427,821
Non recurring expenses                     11,379             5,700
Income (loss) from operations             894,334           623,511

Interest income (expense), net           (818,642)         (559,962)
Income (loss) before
  provision for income taxes               75,692            63,549

Provision for (benefit from) income
  taxes                                       800                --

Net income                               $ 74,892          $ 63,549

Net income per share
Basic                                      $ 0.02            $ 0.02
Diluted                                    $ 0.02            $ 0.01

Weighted average number of
  shares outstanding
Basic                                   3,389,487         3,344,500
Diluted                                 4,450,000         4,406,800