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Results for Fiscal 1995: Growth Slowed by an Overall Difficult Economic Situation - Positioning: Leader in its Market in Quebec No. 2 in Ontario.

MONTREAL--(BUSINESS WIRE)--March 7, 1996--ADVENTURE ELECTRONICS (ME, TSE: AVN ) For the year ended December 31, 1995, Adventure Electronics Inc. has announced sales of $276.2 million, compared with $236.9 million for fiscal 1994, an increase of 17 percent.

Earnings before depreciation, amortization, financial expenses and income taxes decreased by 25 percent to $11.8 million. Net earnings were established at $2.5 million or $0.23 per share (calculated on a weighted average of 10,866,599 shares) against $8.0 million or $0.75 per share (calculated on a weighted average of 10,685,328 shares).

Cash flow reached $8.1 million or $0.74 per share down from $13.8 million or $1.29 per share in 1994.

The end of 1995 was exceptionally difficult for the electronic products industry. The progression of Adventure Electronics Inc. was curbed by an overall difficult economic situation which spawned consumer uncertainty. In fact, the first two quarters went as we had predicted, the third experienced a slow down and the fourth was characterized by an important drop in sales. Existing stores recorded an 8 percent drop in sales. Nevertheless, the Adventure management team has a vast experience dealing with dismal economic times, a practical know-how of retailing and a capacity to react quickly to change. In October, we took drastic measures to cut costs, measures which were amplified in November and December and which will be maintained throughout 1996.

Adventure's balance sheet as at December 31, 1995 remains solid and shows our flexibility and ability to adapt. -0-

 NETWORK EXPANSION IN 1995:
 ADDITION OF 14 NEW OUTLETS (ONTARIO - QUEBEC)


 As at December 31
 1995 1994
 _________________________________________________________


 Quebec 88 80
 Ontario 64 58
 _________________________________________________________
 TOTAL 152 138




- The 17 percent growth in sales resulted mainly from the consolidation of the sales recorded by the 26 Ontario stores acquired in July 1994, the addition of 14 new outlets during the fiscal year and the strong increase in computer product sales.

- The 69 percent reduction of the net profit reflects the loss of volume in sales in the last quarter along with a $2 million rise in financial expenses from 1994. Moreover, the Company benefited from a reduced income tax rate as a result of the acquisition of Majestic in 1994.

OUTLOOK FOR 1996: CAUTIOUS GROWTH

The Company's primary objective is to increase its profitability and cash flow in order to support its future growth in the Canadian market, which has yet to be fully exploited. Adventure will continue to develop strategies to aggressively market products and services geared to new technological trends.

In 1996, we are committed to reducing costs, streamlining and consolidating our operations, and adapting our merchandising approach, while capitalizing on opportunities.

DIVIDENDS

Given the results of the fiscal year ended December 31st, 1995, the Company's Board of Directors has decided not to pay dividends and believes it is preferable to conserve its capital in order to finance its operating activities. -0-

STATEMENTS OF EARNINGS
(in thousands of dollars, except per-share amounts)
 For the years ended December 31,
 1995 1994
______________________________________________________________


SALES $276,205 $236,855


Cost of sales, operating
 and administrative expenses 264,424 221,128
 _____________________


EARNINGS BEFORE DEPRECIATION AND
 AMORTIZATION, FINANCIAL EXPENSE
 AND INCOME TAXES 11,781 15,727
Depreciation and amortization (Note 8) 5,309 4,009
 _____________________


EARNINGS FROM OPERATIONS 6,472 11,718


Financial expense (Note 6) 3,188 1,198
 _____________________


EARNINGS BEFORE INCOME TAXES 3,284 10,520
 _____________________


Income taxes (Note 9)
 Current 100 316
 Deferred 667 2,202
 _____________________
 767 2,518
 _____________________


NET EARNINGS $2,517 $8,002
 ____________________
 ____________________


Earnings per share $0.23 $0.75
Fully diluted earnings per share $0.23 $0.72
 ____________________
 ____________________


Weighted average number of shares
 outstanding (in thousands) 10,867 10,685
 ____________________




CONTACT: Adventure Electronics Inc.

Robert Fragman, Chairman of the Board and CEO

514/352-5000
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Date:Mar 7, 1996
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