DIT AMCON Distributing Co

AMCON Distributing Company (AMEX:DIT) is pleased to announce that it has issued its audited financial statements for the fiscal year end September 30, 2005. Concurrently, the Company filed its Form 10-K for the same period. AMCON Distributing Company's Chairman and Chief Executive Officer William F. Wright said, "The management and organizational changes that were made as part of our previously announced plan are what enabled us to complete this important task without losing focus on our primary strategic mission of being the premier service provider in each of our market segments." As previously reported, AMCON has internally organized itself in a holding company structure with each of the operating units reporting to The Office of The Chairman. Chris Atayan, AMCON's Vice Chairman and Chief Corporate Officer noted: "We have committed substantial management resources to ensure the integrity of our financial reporting and controls, have increased the size of our financial staff and now have a highly focused effort dedicated to the restoration of timely financial statements." Atayan also commented, "We are working closely with our bank group and are pleased to announce that they have initiated discussions with respect to a renewal of our credit facility." The two core businesses of AMCON continued to make solid progress. The Wholesale Distribution business reported sales of $800.0 million and income from continuing operations before taxes of $5.6 million for the year ended September 30, 2005. The Retail Health Food business reported strong sales growth and posted sales of $34.6 million for the year ended September 30, 2005. Kathy Evans, President of AMCON's Wholesale Distribution business, commented "We appreciate the confidence and support of our customers and vendors. Our operating strategy of providing superior service on competitive terms has enabled us to continue to be awarded new business from leading retailers in our market region. We have carried the momentum from 2005 into 2006 and are looking forward to another year of solid performance." Erik Hinkefent, President of AMCON's Retail Health Food business noted, "The strong performance across our stores was a function of the dedicated efforts of our team of associates. Our stores are well merchandised and customers appreciate the high levels of service we provide. We are continuing to explore opportunities to add additional stores." AMCON continues to evaluate strategic alternatives relating to its two water businesses, Hawaiian Natural Water Company ("HNWC") and Trinity Springs ("TSI"). AMCON installed an entirely new management team at HNWC and has expended considerable time and energy to restoring the financial reporting and controls. Several parties have expressed an interest in acquiring HNWC and discussions are continuing. AMCON ceased operations at TSI in March 2006 and is engaged in settlement discussions with respect to the pending litigation. Andrew Plummer, AMCON's Chief Financial Officer, reported: "Primarily as a result of the operating losses at the water businesses and a pre-tax non cash impairment charge totaling $13.1 million, the Company reported a consolidated net loss available to common shareholders of $13.0 million for the fiscal year ended September 30, 2005. Despite the reported losses our liquidity remains strong." AMCON continues to work with officials at the American Stock Exchange toward a plan of compliance with its listing standards. As part of this plan, AMCON's management intends to file its Quarterly Report on Forms 10-Q for each quarter of fiscal 2006 on an expedited basis in order to regain compliance with the listing standards of the American Stock Exchange. AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, food service, frozen and chilled foods, and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota and South Dakota. Chamberlin's Natural Foods, Inc. and Health Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge, Inc., operate health and natural product retail stores in central Florida (6), Kansas, Missouri, Nebraska and Oklahoma (4). The retail stores operate under the names Chamberlin's Market & Cafe and Akin's Natural Foods Market. Hawaiian Natural Water Company, Inc. produces and sells natural spring water under the Hawaiian Springs label in Hawaii and other foreign markets and purified bottled water on the Island of Oahu in Hawaii. The natural spring water is bottled at the source on the Big Island of Hawaii. This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. Visit AMCON Distributing Company's web site at: www.amcon.com