MIAMI--(BUSINESS WIRE)--May 21, 1999--Ezcony Interamerica Inc. (OTC BB: EZCOF) (the "Company"), announced on April 26, 1999 operating results for its fiscal year ended December 31, 1998. For 1998, net sales decreased 31% to $109 million, compared to 1997 net sales of $159 million. This decrease represents declining sales in the Company's existing Latin American markets, as well as the winding up of its business in the United States. The Company reported an operating loss of $2.9 million in 1998, compared to a loss from continuing operations of $933,000 in 1997. The change was primarily due to the 35% decrease in gross profit margins from $10.9 million in 1997 to $7.1 million in 1998 because of increased, low-priced competition and the decreased sales volume. Diluted earnings (loss) per share were ($.65) in 1998 versus ($.21) in 1997. The Company also announced a decrease in selling, general and administrative expenses from $10 million in 1997 to $7.9 million in 1998. The Company's working capital also decreased to $1.6 million at December 31, 1998, from $3.4 million at December 31, 1997, primarily due to loss from continuing operations and maintaining a lower inventory. Full details of the financial results are included in the Company's 1998 Annual Report on Form 10-K405/A. Ezra M. Cohen, the Company's President and Chairman of the Board stated, "1998 was a very difficult year principally due to the fact that the Asian economic crisis affected our marketplace with huge inventory availability as well as price declines. We expect to return to profitability during 1999." The Company is a leading distributor in Latin America of major brand name consumer electronics, including, but not limited to, Sony, Pioneer, AIWA, Samsung, Sharp, Motorola, Brother and Philips. The Company's consumer electronics products are sold principally to other wholesalers and distributors as well as directly to retail chains. The Company believes that it is one of the largest independent distributors of Sony and Pioneer products in Latin America. From time to time, the Company publishes "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, including certain statements in the "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Form 10K, which relate to such matters as anticipated financial performance, business prospects, technological developments, new products and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. Such factors include, among others: (i) the successful retrenchment of the Company's operations in Panama, (ii) the general availability of credit from its principal suppliers and banks to the Company to finance its inventory, specifically, the continued cooperation of its major suppliers and its banks to provide credit, and their forbearance from time to time as well as the successful consolidation of the Company's borrowings; (iii) the discontinuation of certain non-profit aspects of its business, e.g., certain products and customers; (iv) the Company's ability to maintain or increase the profit margins on its sales within the highly competitive markets in which it operates; (v) economic developments in those foreign countries in which the Company conducts a material amount of business, including Colombia, Paraguay, Ecuador and Venezuela, as well as in those markets which are the source of competition, principally in Asia. Ezra Cohen, President and Chief Executive Officer Apartado 3247 Zona Libre de Colon Colon, Republic of Panama (011) (507) 441-6566 (011) (507) 441-1860 - fax e-mail: ezra@ezcony.com  