Aviation Distributors Inc. Reports Results for the Third Quarter 1999.

LAKE FOREST, Calif.--(BUSINESS WIRE)--Nov. 16, 1999--

Aviation Distributors Inc. (OTCBB:ADIN) (ADI), one of the 10 largest aircraft part redistributors and inventory management service providers to major commercial airlines worldwide, today reported its results from operations for the third quarter and nine months ended Sept. 30, 1999.

Revenues for the three months ended Sept. 30, 1999, were $5,396,347, compared with revenues of $7,568,074 for the same period a year ago. The company recorded net income for the quarter of $47,712, or $0.02 per basic and diluted share, compared with a net loss of $879,191, or a loss of $0.28 per basic and diluted share, recorded for the prior year.

Revenues for the nine-month period ended Sept. 30, 1999, were $16,335,080, compared with revenues of $22,916,672 for the prior-year period. The net loss for the nine-month period was $1,498,455, or a loss of $0.47 per basic and diluted share, a decrease of 56% when compared with a net loss of $3,439,827, or $1.09 per basic and diluted share, for the prior-year period.

Included in the calculation of net income for the third quarter and nine months ended Sept. 30, 1999, was an extraordinary gain of $171,000 related to negotiations with professional service vendors to reduce outstanding accounts payable to them.

Commenting on the announcement, Saleem Naber, president and CEO of the company, remarked: "We believe the third-quarter results reflect the progress that ADI has made moving towards profitability in 1999. With the burdensome non-recurring expenses reduced over 90% from the same period last year, we expect strides toward further profitability in the final quarter of this year and much of the same as we go forward into fiscal 2000."

Aviation Distributors 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, the United Kingdom, throughout Europe, Australia, India, Jordan, Indonesia and Chile, with its headquarters in Lake Forest.

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. -0-

                      AVIATION DISTRIBUTORS INC.
                            BALANCE SHEET

                                        September 30,   December 31,
                                            1999            1998

Restricted cash                         $      7,026    $      8,171
Accounts receivable, net                   5,541,220       4,767,470
Notes receivable, current portion                 --       1,276,750
Inventories                                8,755,323       9,356,386
Other current assets                         687,802       1,093,182
      Total current assets                14,991,371      16,501,959

Property and equipment, net                  580,190         645,907
Other assets                                 440,202         438,069
      Total assets                      $ 16,011,763    $ 17,585,935

Accounts payable                           3,796,773       3,120,953
Lines of credit                           13,886,494      12,791,538
Long-term debt, current portion              132,303       1,911,057
Other current liabilities                  1,179,651       1,235,229
      Total current liabilities           18,995,221      19,058,777
Other liabilities                            128,834         620,995
Shareholders' equity (deficit)            (3,112,292)     (2,093,837)
      Total liabilities & shareholders'
        equity                          $ 16,011,763    $ 17,585,935


                      AVIATION DISTRIBUTORS INC.
                       STATEMENTS OF OPERATIONS

                   Three months ended          Nine months ended
                      September 30,               September 30,
                   1999          1998          1999          1998

Net sales      $  5,396,347  $  7,568,074  $ 16,335,080  $ 22,916,672
Cost of sales     3,873,354     6,086,123    12,524,745    18,041,818
Gross profit      1,522,993     1,481,951     3,810,335     4,874,854
Selling,
 general &
 administrative   1,388,356     1,542,073     4,246,607     5,261,175
Non-recurring
 expenses            29,735       205,781       118,650     1,245,091
Income (loss)
 from operations    104,902      (265,903)     (554,922)   (1,631,412)
Interest income
 (expense), net    (316,958)     (411,522)   (1,203,913)   (1,610,983)
Other income
 (expense)            6,833           310         8,245         4,644
Income (loss)
 before
 provision for
 income taxes      (205,223)     (677,115)   (1,750,590)   (3,237,751)
Provision for
 (benefit from)
 income taxes       (81,397)      202,076       (80,597)      202,076
Net income
 (loss) before
 extraordinary
 item              (123,826)     (879,191)   (1,669,993)   (3,439,827)
Extraordinary
 item - Gain on
 restructuring
 of payables,
 net of
 applicable
 income taxes       171,538            --       171,538            --
Net income     $     47,712  $   (879,191) $ (1,498,455) $ (3,439,827)

Basic and
 diluted net
 income (loss)
 per share:
  Loss before
   extraordinary
   item               (0.04)        (0.28)        (0.53)        (1.09)
  Extraordinary
   item                0.05            --          0.05            --
Net income
 (loss) per
 share         $       0.02  $      (0.28) $      (0.47) $      (1.09)

Weighted average
 number of
 shares
 outstanding      3,179,000     3,122,000     3,179,000     3,146,000