ADDvantage Technologies Group Reports Record Financial Results for Fourth Quarter and Fiscal 2005

ADDvantage Technologies Group Reports Record Financial Results for Fourth Quarter and Fiscal 2005

BROKEN ARROW, Okla., Dec. 19 /PRNewswire-FirstCall/ -- ADDvantage Technologies Group, Inc. (AMEX:AEY), announced today revenue for the fourth quarter ended September 30, 2005, climbed 40% to $16 million from $11.4 million in the fourth quarter of fiscal 2004. Net income in 2005 fourth quarter increased by 88% to $1.6 million, or $0.15 per diluted share, from $0.9 million, or $0.08 per diluted share, in the same period last year.

ADDvantage reported revenue for fiscal year ended September 30, 2005 of $50 million, an increase of 6%, compared to $47 million in fiscal 2004. Net income for fiscal 2005 was $5.0 million, or $0.49 per diluted share, compared to $4.6 million, or $0.41 per diluted share, in fiscal 2004.

Ken Chymiak, President and Chief Executive Officer of ADDvantage, said, "Our record financial results for the fourth quarter and fiscal 2005 reflect strong growth across our core capabilities. We continue to capitalize on our unique position as the largest distributor of new and remanufactured CATV equipment to rapidly ship and supply products to a broad base of MSO customers across the U.S.

"In the fourth quarter, we experienced significant revenue growth as a result of our agreement with Scientific-Atlanta announced in June 2005 under which we became the exclusive distributor for the System Amplifier III RF platform as well as other select Scientific-Atlanta products to the U.S. and Latin America markets. We also experienced increased demand for Motorola broadband equipment, for which we are also a stocking distributor. Additionally, we recognized approximately $1 million of incremental revenue in the fourth quarter related to the active hurricane season as well as approximately $600,000 of increased revenue attributable to Jones Broadband International, which we acquired in August 2005. Our ability to deliver inventory from stock on demand played a significant role in our fourth quarter and fiscal 2005 revenues and net income."

Chymiak concluded, "We anticipate the continuation of our previously announced growth strategy in fiscal 2006 will produce another record year. We believe our strong relationships with leading product manufacturers, including Motorola and Scientific-Atlanta, and our positive reputation in the multi-billion dollar CATV industry positions ADDvantage Technologies for long-term success. Our plan is to drive future performance through an expanded sales force, both domestic and overseas; enhanced strategic partnerships; and additional strategic acquisitions that complement our existing 'one-stop-shop' capabilities and are accretive to earnings."

About ADDvantage Technologies Group, Inc.

ADDvantage Technologies Group, Inc. supplies the cable television (CATV) industry with a comprehensive line of new and used system-critical network equipment and hardware from leading manufacturers, including Scientific-Atlanta and Motorola, as well as operating a national network of technical repair centers. The equipment and hardware ADDvantage distributes is used to acquire, distribute, and protect the broad range of communications signals carried on fiber optic, coaxial cable and wireless distribution systems, including television programming, high-speed data (Internet) and telephony.

ADDvantage operates through its subsidiaries, Tulsat, Tulsat-Atlanta, Tulsat-Nebraska, Tulsat-Texas, NCS Industries, ComTech Services and Jones Broadband International. For more information, please visit the corporate web site at http://www.addvantagetech.com/.

The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company's reports and documents filed from time to time with the Securities and Exchange Commission.

ADDvantage Technologies Group, Inc
Statement of Operations

Year Ended Three Months Ended
September 30, September 30,

2005 2004 2005 2004

Revenues $50,273,195 $47,071,329 $16,023,293 $11,442,339

Operating Income $ 9,972,952 $ 9,484,359 $ 3,047,743 $ 2,223,045

Net Income $ 5,814,392 $ 5,813,753 $ 1,765,041 $ 1,181,725

Preferred Stock
Dividends $ 840,000 $ 1,240,000 $ 210,000 $ 310,000

Net Income Applicable
To Common Stock $ 4,974,392 $ 4,573,753 $ 1,555,041 $ 871,725

Net Income Per Share
of Common Stock
Basic $ 0.49 $ 0.46 $ 0.15 $ 0.09
Diluted $ 0.49 $ 0.41 $ 0.15 $ 0.08

Shares Used in Computing
Net Income Per Share:
Basic 10,067,277 10,041,197 10,072,047 10,060,689
Diluted 10,109,854 12,104,541 10,105,738 12,103,835

Source: ADDvantage Technologies Group, Inc.

CONTACT: Ken Chymiak, +1-9l8-25l-2887, or David Chymiak,
+1-9l8-25l-2887, both of ADDvantage Technologies Group, Inc.; or Michael
Cimini, +1-212-896-1233, mcimini@kcsa.com, or Garth Russell, +1-212-896-1250,
grussell@kcsa.com, both of KCSA Worldwide for ADDvantage Technologies Group,
Inc.

Web site: http://www.addvantagetech.com/

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