AMCON Distributing Company Reports Fully Diluted Earnings Per Share for the Quarter Ended June 30, 2008

AMCON Distributing Company ("AMCON”) (AMEX:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.63 for the third fiscal quarter ended June 30, 2008. "This quarter’s performance was exceptional when all the external factors are taken into consideration. We experienced catastrophic floods in our market, all time record fuel prices and an overall declining economy. Despite this adverse background, our team was able to turn in another strong performance. Our corporate focus on delivering superior service to our customers continues to differentiate AMCON and as a result we were able to gain new customers in our wholesale segment and continue to show leadership in retail,” said Christopher Atayan, AMCON’s Chairman and Chief Executive Officer. "We emphasize fundamentals and that is why we can adapt in difficult conditions. Our banks recognized this and renewed our credit facility one year early.” AMCON reported revenues of $213.6 million in its Wholesale Distribution business and operating income before depreciation and amortization of $3.5 million in the third fiscal quarter. AMCON’s Retail Health Food business reported revenues of $9.8 million and operating income before depreciation and amortization of $0.9 million. Kathleen Evans, President of AMCON’s Wholesale Distribution business commented, "Our managers worked diligently to make sure our customer base in the flood impacted areas experienced minimal disruptions. Clearly the fuel environment is challenging for us, our customers and their retail consumers. We are working closely with our vendors and customers to create value added propositions that we believe enable the consumer to stretch their budget and enhance loyalty.” Eric Hinkefent, President of AMCON’s Retail Health Food business commented, "The market for natural products continues to be strong. We are committed to investing in our stores to maintain our position as the quality leader. We were especially pleased with the reintroduction of our website at our Akins subsidiary www.akins.com.” Income from continuing operations before income taxes was $1.5 million for the third fiscal quarter ended June 30, 2008 compared to $1.6 million in the comparable period in the prior year. The litigation matters that were resolved in the prior fiscal year have reduced our professional and legal costs during the period with significantly higher fuel costs partially offsetting that decrease. Additionally, interest expense decreased during the period because of lower borrowings and interest rates. "We are aggressively managing expenses in this tough environment,” commented Andrew Plummer AMCON’s Chief Financial Officer. "We are especially pleased to announce that we were able to renew our credit facility one year early and extend it for another three years. This is a testament to our conservative financial posture given the tight credit markets. There is a direct correlation between our liquidity and our ability to develop opportunities for our customers.” 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 Akins Natural Foods Market. 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 and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. 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 AMCON Distributing Company and SubsidiariesCondensed Consolidated Balance SheetsJune 30, 2008 and September 30, 2007   June 2008   September (Unaudited) 2007 ASSETS Current assets: Cash $ 646,696 $ 717,554 Accounts receivable, less allowance for doubtful accounts of $0.5 million and $0.3 million, respectively 25,537,979 27,848,938 Inventories, net 37,730,061 29,738,727 Deferred income taxes 1,588,880 1,446,389 Current assets of discontinued operations 3,485 18,897 Prepaid and other current assets   4,261,048   5,935,208 Total current assets 69,768,149 65,705,713   Property and equipment, net 11,080,791 11,190,768 Goodwill 5,848,808 5,848,808 Other intangible assets, net 3,373,269 3,400,070 Deferred income taxes 625,261 2,768,043 Non-current assets of discontinued operations 2,057,033 2,057,033 Other assets   1,346,397 1,093,150 $ 94,099,708 $ 92,063,585 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,017,107 $ 15,253,562 Accrued expenses 5,176,143 5,293,923 Accrued wages, salaries and bonuses 1,654,009 2,202,594 Income taxes payable 197,407 367,773 Current liabilities of discontinued operations 4,199,466 4,035,863 Current maturities of credit facility 3,046,000 3,046,000 Current maturities of long-term debt   726,548   568,024 Total current liabilities 30,016,680 30,767,739   Credit facility, less current maturities 35,354,698 35,808,180 Long-term debt, less current maturities 6,794,247 7,123,453 Noncurrent liabilities of discontinued operations 6,542,310 6,542,310   Series A cumulative, convertible preferred stock, $.01 par value 100,000 shares authorized and issued, liquidation preference $25.00 per share 2,438,355 2,438,355 Series B cumulative, convertible preferred stock, $.01 par value 80,000 shares authorized and issued, liquidation preference $25.00 per share 1,857,645 1,857,645 Series C cumulative, convertible preferred stock, $.01 par value 80,000 shares authorized and issued, liquidation preference $25.00 per share 1,982,372 1,982,372   Commitments and contingencies   Shareholders' equity: Preferred stock, $0.01 par, 1,000,000 shares authorized, 260,000 shares outstanding and issued in Series A, B and C referred to above - - Common stock, $.01 par value, 3,000,000 shares authorized, 568,564 shares outstanding at June 2008 and 529,436 shares outstanding at September 2007 5,686 5,295 Additional paid-in capital 6,817,726 6,396,131 Retained earnings (deficit)   2,289,989   (857,895) Total shareholders' equity   9,113,401   5,543,531 $ 94,099,708 $ 92,063,585   AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Operationsfor the three and nine months ended June 30, 2008 and 2007   For the three months ended June   For the nine months ended June 2008 2007 2008 2007   (As Restated) /1/   (As Restated) /1/ Sales (including excise taxes of $53.6 million and $54.5 million, and $151.5 million and $152.5 million, respectively) $ 223,397,392 $ 220,072,350 $ 624,472,299 $ 630,615,000 Cost of sales   207,135,083   203,027,613   577,272,429   583,227,961 Gross profit   16,262,309   17,044,737   47,199,870   47,387,039 Selling, general and administrative expenses 12,959,518 12,950,796 37,866,602 38,401,805 Depreciation and amortization   340,983   450,902   1,043,266   1,364,949   13,300,501   13,401,698   38,909,868   39,766,754 Operating income   2,961,808   3,643,039   8,290,002   7,620,285 Other expense (income): Interest expense 635,523 1,176,313 2,354,883 3,682,951 Other (income), net   (17,958 )   (81,510 )   (90,437 )   (144,816 )   617,565   1,094,803   2,264,446   3,538,135 Income from continuing operations before income tax expense 2,344,243 2,548,236 6,025,556 4,082,150 Income tax expense   857,000   995,000   2,226,000   1,586,000 Income from continuing operations 1,487,243 1,553,236 3,799,556 2,496,150 Discontinued operations Gain on disposal of discontinued operations, net of income tax expense of $0.6 million -   - - 829,090   Loss from discontinued operations, net of income tax (benefit) of ($0.1) million and ($0.1) million, and ($0.2) million and ($0.3) million, respectively   (98,441 )   (131,740 )   (291,881 )   (514,070 ) (Loss) income on discontinued operations   (98,441 )   (131,740 )   (291,881 )   315,020 Net income 1,388,802 1,421,496 3,507,675 2,811,170 Preferred stock dividend requirements   (104,386 )   (104,386 )   (314,306 )   (313,158 ) Net income available to common shareholders $ 1,284,416 $ 1,317,110 $ 3,193,369 $ 2,498,012 Basic earnings (loss) per share available to common shareholders: Continuing operations $ 2.57 $ 2.75 $ 6.50 $ 4.14 Discontinued operations   (0.18 )   (0.25 )   (0.54 )   0.60   Net basic earnings per share available to common shareholders $ 2.39 $ 2.50 $ 5.96 $ 4.74 Diluted earnings (loss) per share available to common shareholders: Continuing operations $ 1.75 $ 1.80 $ 4.46 $ 2.91 Discontinued operations   (0.12 )   (0.15 )   (0.34 )   0.37 Net diluted earnings per share available to common shareholders $ 1.63 $ 1.65 $ 4.12 $ 3.28 Weighted average shares outstanding: Basic 537,064 527,062 536,002 527,062 Diluted 851,911 862,598 850,898 858,085   AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Cash Flowsfor the nine months ended June 30, 2008 and 2007   2008   2007   (As restated) /1/ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,507,675 $ 2,811,170 Deduct: (Loss) income from discontinued operations, net of tax   (291,881 )   315,020 Income from continuing operations 3,799,556 2,496,150   Adjustments to reconcile net income from continuing operations to net cash flows from operating activities: Depreciation 1,016,465 1,335,149 Amortization 26,801 29,800 (Gain) on sale of property and equipment (36,417 ) (16,667 ) Stock based compensation 302,350 37,800 Deferred income taxes 2,000,291 1,815,598 Provision (benefit) for losses on doubtful accounts 238,000 (93,192 ) Provision for losses on inventory obsolescence 118,976 148,568 Changes in assets and liabilities: Accounts receivable 2,072,959 1,255,235 Inventories (8,110,310 ) (1,500,965 ) Prepaid and other current assets 1,674,160 (1,001,873 ) Other assets (253,247 ) 96,420 Accounts payable (236,455 ) (2,310,087 ) Accrued expenses and accrued wages, salaries and bonuses (666,365 ) 563,828 Income tax payable   (170,366 )   (13,220 ) Net cash flows from operating activities - continuing operations 1,776,398 2,842,544 Net cash flows from operating activities - discontinued operations   (112,866 )   (1,915,011 ) Net cash flows from operating activities 1,663,532 927,533   CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (667,268 ) (345,637 ) Proceeds from sales of property and equipment   74,821   34,275 Net cash flows from investing activities - continuing operations (592,447 ) (311,362 ) Net cash flows from investing activities - discontinued operations -   3,965,394 Net cash flows from investing activities (592,447 ) 3,654,032   CASH FLOWS FROM FINANCING ACTIVITIES: Net payments on bank credit agreements (453,482 ) (2,956,248 ) Dividends on preferred stock (314,306 ) (313,158 ) Dividends on common stock (45,485 )   - Proceeds from exercise of stock options 119,636   - Principal payments on long-term debt   (448,306 )   (415,288 ) Net cash flows from financing activities - continuing operations (1,141,943 ) (3,684,694 ) Net cash flows from financing activities - discontinued operations -   (789,874 ) Net cash flows from financing activities   (1,141,943 )   (4,474,568 ) Net change in cash (70,858 ) 106,997   Cash, beginning of period   717,554   481,138 Cash, end of period $ 646,696 $ 588,135   Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 2,488,101 $ 3,729,280 Cash paid during the period for income taxes 221,076 99,050   Supplemental disclosure of non-cash information: Buyer's assumption of HNWC lease in connection with the sale of HNWC's assets - discontinued operations - (225,502 ) Acquisition of equipment through capital leases 277,624   -   /1/ As previously disclosed in the Company’s Fiscal 2007 Annual Report on Form 10-K, during the fourth quarter of fiscal 2007, the Company changed its inventory valuation method from the Last-In First-Out (LIFO) method to the First-In First-Out (FIFO) method. As required by U.S. generally accepted accounting principles, this change in accounting principle was reflected in the Company’s financials statements through the retroactive application of the FIFO method and the restatement of prior fiscal periods, including the three and nine month fiscal periods ended June 2007.