ADDvantage Technologies Announces Financial Results for the Fiscal Fourth Quarter of 2012

BROKEN ARROW, OK, Dec 11 (Marketwire) --
ADDvantage Technologies Group, Inc. (NASDAQ: AEY) today announced its
results for the three month period and year ended September 30, 2012.

Revenue for the three months ended September 30, 2012 decreased 25% to
$8.5 million compared to $11.3 million for the same period last year. New
equipment sales were $5.1 million for the three months ended September
30, 2012 as compared to $7.0 million for the three months ended September
30, 2011. Net refurbished equipment sales were $2.2 million for the three
months ended September 30, 2012 as compared to $2.8 million for the same
period last year. Sales of new and refurbished equipment continued to be
negatively impacted by several factors including the continued decrease
in plant expansions and bandwidth upgrades in the cable television
industry. Service revenue decreased to $1.2 million for the three month
period ended September 30, 2012 compared to $1.5 million for the same
period last year.

Net income was $0.4 million, or $0.04 per diluted share, for the three
month period ended September 30, 2012, compared to $0.7 million, or $0.07
per diluted share, for the same period of 2011. Net income for the fourth
quarter of fiscal 2012 benefited from a $0.2 million reduction in
interest expense compared to the same period last year, which was a
result of the Company paying off one of its term loans in March 2012 and
the termination of the associated interest rate swap agreement.

For the twelve months ended September 30, 2012, revenue decreased to
$35.2 million from $38.1 million for the same period last year. The
decrease in equipment sales was primarily due to the continued decrease
in plant expansions and bandwidth upgrades in the cable television
industry, partially offset by revenue from Adams Global Communications,
which was acquired in May 2011.

Net income attributable to common stockholders for the twelve month
period was $1.3 million, or $0.12 per diluted share, as compared to $2.5
million, or $0.25 per diluted share, for the twelve months of fiscal
2011. Net income for fiscal 2012 included a charge to interest expense of
$0.8 million for the termination of the interest rate swap agreement,
partially offset by reduced interest expense of $0.4 million subsequent
to paying off one of its term loans and terminating the associated
interest rate swap agreement.

David Humphrey, President and CEO, commented, "Our results continue to
reflect a general weakness in equipment sales in the cable television
industry. However, we still maintained our gross margins at approximately
30% and generated $1.3 million of net income in fiscal year 2012. We also
improved our overall balance sheet position in fiscal year 2012 by paying
off one of our term loans and terminating the associated interest rate
swap agreement.

"This year, the Company began to make changes to the management team and
our business to better position our Company for growth both organically
and through acquisitions. There are more management changes that will be
made in the coming months in order to properly align our corporate
structure with our growth strategy.

"We continue to generate positive cash flow from our existing business
and have a strong balance sheet in order to implement this growth
strategy. This has been partially supported by acquisitions that have
added sales through new suppliers to our core resale business or expanded
our existing customer base within our current business, such as Adams
Global Communications in May 2011. Looking ahead, we are currently
seeking new acquisition opportunities that will enable us to expand the
scope of our business within the cable industry," concluded Mr. Humphrey.

Earnings Conference Call
As previously announced, the Company will host
a conference call on Tuesday, December 11, 2012, at 12:00 p.m. Eastern
Time featuring remarks by Ken Chymiak, Chairman of the Board, David
Humphrey, President and Chief Executive Officer, Dave Chymiak, Chief
Technology Officer, and Scott Francis, Chief Financial Officer. The
conference call will be available via webcast and can be accessed through
the Investor Relations section of ADDvantage's website,
www.addvantagetechnologies.com. Please allow extra time prior to the call
to visit the site and download any necessary software to listen to the
Internet broadcast. The dial-in number for the conference call is
(888)-503-8169 (domestic) or (719)-325-2455 (international). All dial-in
participants must use the following code to access the call: 1343147.
Please call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay
of the call will be available through December 25, 2012 at (877) 870-5176
(domestic) or (858) 384-5517 (international). Participants must use the
following code to access the replay of the call: 1343147. The online
archive of the webcast will be available on the Company's website for 30
days following the call.

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 Cisco, Motorola, ARRIS and
Fujitsu Frontech North America, 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 Adams
Global Communications. For more information, please visit the corporate
web site at www.addvantagetechnologies.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.

(Tables follow)

ADDVANTAGE TECHNOLGIES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended Year Ended
September 30, September 30,
2012 2011 2012 2011
------------ ------------ ------------ ------------
Sales:
Net new sales income $ 5,126,330 $ 6,956,791 $ 20,743,264 $ 25,467,734
Net refurbished sales
income 2,167,944 2,805,656 9,814,763 7,430,603
Net service income 1,188,005 1,495,727 4,658,376 5,181,193
------------ ------------ ------------ ------------
Total net sales 8,482,279 11,258,174 35,216,403 38,079,530
Cost of sales 5,975,012 7,838,998 24,854,960 26,528,682
------------ ------------ ------------ ------------
Gross profit 2,507,267 3,419,176 10,361,443 11,550,848
Operating, selling,
general and
administrative
expenses 1,843,382 1,939,857 7,231,097 6,625,907
------------ ------------ ------------ ------------
Income from operations 663,885 1,479,319 3,130,346 4,924,941
Interest expense 7,192 165,930 1,113,854 696,634
------------ ------------ ------------ ------------
Income before income
taxes 656,693 1,313,389 2,016,492 4,228,307
Provision for income
taxes 236,000 584,000 766,000 1,692,000
------------ ------------ ------------ ------------
Net income 420,693 729,389 1,250,492 2,536,307

Other comprehensive
income:
Unrealized gain
(loss) on interest
rate swap, net of
taxes - (11,528) 587,258 189,425
------------ ------------ ------------ ------------

Comprehensive income $ 420,693 $ 717,861 $ 1,837,750 $ 2,725,732
============ ============ ============ ============

Earnings per share:
Basic $ 0.04 $ 0.07 $ 0.12 $ 0.25
Diluted $ 0.04 $ 0.07 $ 0.12 $ 0.25
Shares used in per
share calculation:
Basic 10,189,120 10,207,390 10,196,241 10,175,213
Diluted 10,189,563 10,209,323 10,197,496 10,178,763

ADDVANTAGE TECHNOLGIES GROUP, INC.
CONSOLIDATED BALANCE SHEETS

September 30,
2012 2011
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 5,191,514 $ 10,943,654
Accounts receivable, net of allowance of
$300,000 3,050,796 4,244,049
Income tax refund receivable 409,386 349,745
Inventories, net of allowance for excess and
obsolete inventory of $1,000,000 and
$1,556,000, respectively 22,666,385 25,777,747
Prepaid expenses 129,357 177,486
Deferred income taxes 920,000 1,059,000
------------- -------------
Total current assets 32,367,438 42,551,681

Property and equipment, at cost:
Land and buildings 8,794,272 8,683,679
Machinery and equipment 2,953,949 2,856,615
Leasehold improvements 9,633 205,797
------------- -------------
Total property and equipment, at cost 11,757,854 11,746,091
Less accumulated depreciation and amortization (3,666,327) (3,392,329)
------------- -------------
Net property and equipment 8,091,527 8,353,762

Other assets:
Deferred income taxes - 403,000
Goodwill 1,560,183 1,560,183
Other assets 13,778 19,245
------------- -------------
Total other assets 1,573,961 1,982,428

Total assets $ 42,032,926 $ 52,887,871
============= =============

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,437,492 $ 2,675,907
Accrued expenses 1,030,174 1,240,224
Notes payable - current portion 184,008 1,814,008
------------- -------------
Total current liabilities 2,651,674 5,730,139

Notes payable, less current portion 1,502,612 10,244,120
Deferred income taxes 62,000 -
Other liabilities - 957,258

Shareholders' equity:
Common stock, $.01 par value; 30,000,000
shares authorized; 10,465,323 and
10,431,354 shares issued, respectively;
10,189,120 and 10,207,390 shares
outstanding, respectively 104,653 104,314
Paid in capital (5,748,503) (5,884,521)
Retained earnings 43,980,590 42,730,098
Accumulated other comprehensive loss:
Unrealized loss on interest rate swap, net
of tax - (587,258)
------------- -------------
Total shareholders' equity before treasury
stock 38,336,740 36,362,633

Less: Treasury stock, 276,203 and 223,964
shares, respectively, at cost (520,100) (406,279)
------------- -------------
Total shareholders' equity 37,816,640 35,956,354
------------- -------------

Total liabilities and shareholders' equity $ 42,032,926 $ 52,887,871
============= =============

ADDvantage Technologies Group, Inc.
1221 E. Houston
Broken Arrow, Oklahoma 74012

For further information
Company Contact:
Scott Francis
(918) 251-9121

KCSA Strategic Communications
Garth Russell / Diane Imas
(212) 896-1250 / (212) 896-1242
grussell@kcsa.com / dimas@kcsa.com

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