WOODLAND HILLS, CA -- (Marketwire) -- 08/16/10 -- Great American Group, Inc. (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuation and appraisal services, today announced financial results for its second quarter ended June 30, 2010.

Second Quarter Results

For the second quarter ended June 30, 2010, the Company reported total revenues of $5.2 million, compared to revenues of $15.0 million in the second quarter of 2009. Revenues from services and fees were $2.3 million, compared to $11.0 million the prior year. Revenues from sales of goods were $2.9 million, compared to $4.1 million in the second quarter the prior year. The decline in total revenues during the quarter was primarily the result of reduced revenues in the Company's auction and liquidation segment. This decline resulted from an overall lack of retail liquidation opportunities across the industry as economic conditions for retailers and credit markets have improved, estimated losses that were accrued at June 30, 2010 on the performance of retail liquidation services engagements where we guarantee a minimum recovery value for goods sold, as well as a decline in revenues from the auction of machinery and equipment.

"We are disappointed with our results during the second quarter. The auction and liquidations business environment continues to be challenging, as economic conditions for retailers and credit markets have improved. The result of this has been limited opportunities across our industry and a prolonged slowdown in retail disposition activity," said Andrew Gumaer, Chief Executive Officer of Great American Group. "We continue to take aggressive actions to mitigate the impact to our business. In addition to the previously announced amendments to our promissory notes to a more favorable interest rate and terms, we are evaluating our current business plan to streamline operations and reduce operating expenses. We expect to complete this review during the third quarter. We believe these steps will help position us for improved performance in the long term."

Direct costs of services were $2.9 million, compared to $3.8 million a year ago. The decrease in direct costs of services was the result of a decrease in the number of fee and commission engagements in the second quarter of 2010, where the Company contractually bills fees, commissions and reimbursable expenses. The decrease in costs of services was partially offset by an increase in costs of services in the valuation and appraisal services segment, as a result of an increase in headcount in that segment compared to a year ago. Cost of goods sold was $4.0 million in the second quarter of 2010, compared to $2.5 million in the same period the prior year, primarily as a result of $1.3 million in non-cash charges to increase the reserve for slow-moving goods held for sale or auction.

Selling, general and administrative expenses were $8.1 million, compared to $4.7 million in the second quarter of the prior year. The increase in selling, general and administrative expenses was primarily attributed to increases in payroll and operating expenses from the expansion of the Company's European operations, personnel costs due to the expansion of the U.S. business development team and advertising and promotional expenses. Selling, general and administrative expenses during the second quarter of 2009 included a $0.7 million credit from the deferred compensation plan for the Phantom Equityholders.

The operating loss during the quarter was $9.7 million, compared to operating income of $3.9 million during the second quarter of 2009.

Interest expense during the period declined to $0.8 million from $1.0 million a year ago, primarily as a result of a decrease in interest expense from significantly lower borrowings than utilized in the second quarter of 2009, when the Company had more retail liquidation engagements. Interest expense during the second quarter of 2010 was primarily comprised of interest expense on the notes payable to the former Great American Members and Phantom Equityholders. Interest expense also reflects the interest rate reduction from 12.0% to 3.75% on $52.4 million of the $55.6 million of notes payable to the former Great American Members and certain Phantom Equityholders that was effective February 1, 2010. Loss from operations before a benefit for income taxes was $10.9 million, compared to income from operations of $2.7 million in the year-ago period.

The Company recorded a benefit for income taxes of $4.2 million. For the second quarter of 2010, the Company generated a net loss of $6.6 million, or $(0.24) per diluted share, compared with net income of $2.7 million in the same period a year ago.

Six Month Results

For the first six months of 2010, the Company reported total revenues of $17.3 million, compared to $56.9 million in the first six months of 2009. Revenues from services and fees were $12.9 million, compared to $49.8 million generated a year ago. Sales of goods were $4.4 million compared to $7.1 million in the same period of 2009.

Total operating expenses were $30.2 million, compared to $32.3 million in 2009. The operating loss was $12.9 million, compared to operating income of $24.6 million in the prior year. Loss from operations before a benefit for income taxes was $15.4 million, compared to income from operations of $17.5 million during the first six months of 2009. The Company recorded a benefit for income taxes of $5.8 million during the first six months of 2010. Net loss during the first six months of 2010 was $9.6 million, or $(0.34) per diluted share, compared with net income of $17.5 million in the same period of 2009.

Financial Position

At June 30, 2010, the Company had $26.5 million in cash and cash equivalents, compared to $38.0 million at December 31, 2009. Working capital was $33.4 million, and total long-term debt was $53.9 million. During the second quarter of 2010, the Company used $8.0 million in cash from operations.

Supplemental Information

During the quarter ended June 30, 2010, the Company generated adjusted loss before interest, taxes, depreciation and amortization of $9.0 million.

Conference Call

The Company will host a conference call at 4:30 p.m. EDT on Monday, August 16, 2010, to discuss results for the second quarter ended June 30, 2010. To participate in the event by telephone, please dial (877) 941-2068 five to 10 minutes prior to the start time (to allow time for registration) and use conference ID 4351102. International callers should dial (480) 629-9712. A digital replay will be available beginning August 16, 2010, at 7:30 p.m. EDT, through August 23, 2010, at 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.), and use passcode 4351102. International callers should dial (858) 384-5517 and enter the same passcode. The call will also be broadcast live over the Internet and can be accessed on the Investor Relations section of the Company's Web site at www.greatamerican.com. To listen to the live webcast, please visit the site at least 15 minutes prior to the start of the call in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Web site.

About Great American Group, Inc.

Great American Group, Inc. is a leading provider of asset disposition solutions and valuation and appraisal services to a wide range of retail, wholesale and industrial clients, as well as lenders, capital providers, private equity investors and professional service firms. Great American Group has offices in Atlanta, Boston, Chicago, Dallas, London, Los Angeles, New York and San Francisco. For more information, please visit www.greatamerican.com.

*Great American Group and the Eagle Design are trademarks registered in the US Patent and Trademark Office and are exclusive property of Great American Group, Inc.

Forward-Looking Statements

This press release may contain forward-looking statements by Great American Group that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in Great American Group's filings with the SEC, including, without limitation, the risks described in Great American Group's proxy statement/prospectus dated July 17, 2010 and filed with the SEC on July 20, 2010, and its Annual Report on Form 10-K for the year ended December 31, 2009. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Great American Group undertakes no duty to update this information.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including Adjusted EBITDA, may be considered non-GAAP financial measures. Great American Group believes this information is useful to investors because it provides a basis for measuring Great American Group's performance against the contingent share earnout provisions in the AAMAC transaction. In addition, Great American Group's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Great American Group's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Great American Group may not be comparable to similarly titled amounts reported by other companies.

(FINANCIAL TABLES FOLLOW)

                GREAT AMERICAN GROUP, INC. AND SUBSIDIARIES
                  Condensed Consolidated Balance Sheets
                 (Dollars in thousands, except par value)

                                                  June 30,    December 31,
                                                    2010          2009
                                                ----------    ----------
                                                (Unaudited)
                        Assets
Current assets:
  Cash and cash equivalents                     $   26,493    $   37,989
  Restricted cash                                    1,895           459
  Accounts receivable, net                           1,915         2,628
  Advances against customer contracts                5,563            58
  Income taxes receivable                              851         1,100
  Goods held for sale or auction                    13,956        15,014
  Note receivable - related party                    2,706            --
  Deferred income taxes                              5,459         8,475
  Prepaid expenses and other current assets            955           981
                                                ----------    ----------
      Total current assets                          59,793        66,704
Property and equipment, net                          1,484         1,411
Goodwill                                             5,688         5,688
Other intangible assets, net                           302           382
Deferred income taxes                               12,088         3,238
Other assets                                           648         1,250
                                                ----------    ----------
      Total assets                              $   80,003    $   78,673
                                                ==========    ==========
  Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
  Accounts payable and accrued liabilities      $    9,726    $    9,192
  Auction and liquidation proceeds payable             683           446
  Mandatorily redeemable noncontrolling
   interests                                         2,661         2,619
  Asset based credit facility                        8,746            --
  Current portion of long-term debt                  1,724        11,123
  Note payable                                      11,705        11,705
  Current portion of capital lease obligation           25            25
                                                ----------    ----------
      Total current liabilities                     35,270        35,110
Capital lease obligation, net of current
 portion                                                57            69
Long-term debt, net of current portion              53,893        44,494
                                                ----------    ----------
      Total liabilities                             89,220        79,673
                                                ----------    ----------
Commitments and contingencies
Stockholders' equity (deficit):
  Preferred stock, $0.0001 par value;
   10,000,000 shares authorized; none issued            --            --
  Common stock, $0.0001 par value; 135,000,000
   shares authorized; 30,318,705 and 30,022,478
   issued and outstanding as of June 30, 2010
   and December 31, 2009, respectively                   3             3
  Additional paid-in capital                         1,121          (249)
  Retained earnings (deficit)                      (10,341)         (754)
                                                ----------    ----------
      Total stockholders' equity (deficit)          (9,217)       (1,000)
                                                ----------    ----------
      Total liabilities and stockholders'
       equity (deficit)                         $   80,003    $   78,673
                                                ==========    ==========




                GREAT AMERICAN GROUP, INC. AND SUBSIDIARIES
                  Consolidated Statements of Operations
                                (Unaudited)
                (Dollars in thousands, except share data)

                              Three Months Ended    Six Months Ended June
                                   June 30,                   30,
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------

Revenues:
  Services and fees         $    2,279  $  10,974   $   12,909  $   49,787
  Sale of goods                  2,936      4,066        4,373       7,141
                            ----------  ----------  ----------  ----------
    Total revenues               5,215      15,040      17,282      56,928
                            ----------  ----------  ----------  ----------
Operating expenses:
  Direct cost of services        2,882       3,848       8,086       7,748
  Cost of goods sold             3,993       2,513       5,537       5,702
  Selling, general and
   administrative expenses       8,083       4,733      16,599      18,838
                            ----------  ----------  ----------  ----------
    Total operating
     expenses                   14,958      11,094      30,222      32,288
                            ----------  ----------  ----------  ----------
    Operating income (loss)     (9,743)      3,946     (12,940)     24,640
Other income (expense):
  Other income (expense)          (455)       (257)       (867)       (239)
  Interest income                   87           4         177           8
  Interest expense                (759)     (1,014)     (1,792)     (6,944)
                            ----------  ----------  ----------  ----------
    Income (loss) from
     operations before
     benefit for income
     taxes                     (10,870)      2,679     (15,422)     17,465
Benefit for income taxes         4,263          --       5,835          --
                            ----------  ----------  ----------  ----------
    Net income (loss)       $   (6,607) $    2,679  $   (9,587) $   17,465
                            ==========  ==========  ==========  ==========

Weighted average basic
 shares outstanding         27,998,705  10,560,000  27,949,607  10,560,000
Weighted average diluted
 shares outstanding         27,998,705  10,560,000  27,949,607  10,560,000
Basic and diluted earnings
 (loss) per share           $    (0.24) $     0.25  $    (0.34) $     1.65
Diluted earnings (loss) per
 share                      $    (0.24) $     0.25  $    (0.34) $     1.65

PRO FORMA COMPUTATION
 RELATED TO CONVERSION TO
 C CORPORATION FOR INCOME
 TAX PURPOSES
 (unaudited):
Historical income from
 operations before
 income taxes                           $    2,679              $   17,465
Pro forma provision for
 income taxes                               (1,055)                 (6,881)
                                        ----------              ----------
Pro forma net income                    $    1,624              $   10,584
                                        ==========              ==========

Pro forma weighted average
 basic shares outstanding               10,560,000              10,560,000
Pro forma weighted average
 diluted shares outstanding             10,560,000              10,560,000
Pro forma basic and diluted
 earnings per share                     $     0.15              $     1.00
Pro forma diluted earnings
 (loss) per share                       $     0.15              $     1.00




                GREAT AMERICAN GROUP, INC. AND SUBSIDIARIES
              Condensed Consolidated Statements of Cash Flows
                                (Unaudited)
                          (Dollars in thousands)

                                                         Six Months Ended
                                                             June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------
Cash flows from operating activities:
  Net income (loss)                                     $ (9,587) $ 17,465
  Adjustments to reconcile net income (loss) to net
   cash provided by (used in) operating activities:
      Depreciation and amortization                          375       293
      Provision (recoveries) of doubtful accounts             45       (18)
      Impairment of goods held for sale or auction         1,308         -
      Share-based payments                                 2,398       200
      Guaranteed payment distributions                         -       534
      Non-cash interest                                        -         6
      Loss on disposal of assets                               2         -
      Deferred income taxes                               (5,835)        -
      Income allocated to mandatorily redeemable
       noncontrolling interests                              661     1,022
      Change in operating assets and liabilities:
        Accounts receivable and advances against
         customer contracts                               (4,837)     (386)
        Income taxes receivable                              249         -
        Goods held for sale or auction                      (250)    2,036
        Prepaid expenses and other assets                    629    (3,965)
        Accounts payable and accrued expenses                534     1,555
        Auction and liquidation proceeds payable             237       977
        Accrued compensation plans                             -     5,901
                                                        --------  --------
          Net cash provided by (used in) operating
           activities                                    (14,071)   25,620
                                                        --------  --------
Cash flows from investing activities:
  Purchases of property and equipment                       (370)     (262)
  Increase in note receivable - related party             (2,706)        -
  Decrease (increase) in restricted cash                  (1,436)   (3,574)
                                                        --------  --------
          Net cash used in investing activities           (4,512)   (3,836)
                                                        --------  --------
Cash flows from financing activities:
  Proceeds from asset based credit facility, net           8,746         -
  Repayments of long-term debt and capital lease
   obligations                                               (12)   (1,175)
  Payment of employment taxes on vesting of restricted
   stock                                                    (948)        -
  Distributions to stockholders                                -    (2,118)
  Distribution to noncontrolling interests                  (699)     (735)
                                                        --------  --------
          Net cash provided by (used in) financing
           activities                                      7,087    (4,028)
                                                        --------  --------
          Net increase (decrease) in cash and cash
           equivalents                                   (11,496)   17,756
Cash and cash equivalents, beginning of period            37,989    16,965
                                                        --------  --------
Cash and cash equivalents, end of period                $ 26,493  $ 34,721
                                                        ========  ========
Supplemental disclosures:
  Interest paid                                         $  2,350  $  5,892



                 GREAT AMERICAN GROUP, INC. AND SUBSIDIARIES
 ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
                            (ADJUSTED EBITDA)
                         (Dollars in thousands)


                                                     Three Months Ended
                                                          June 30,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------

Adjusted EBITDA Reconciliation:

Net income (loss) as reported                       $   (6,607) $    2,679
Adjustments:
  Benefit for income taxes                              (4,263)         --
  Interest expense                                         759       1,014
  Interest income                                          (87)         (4)
  Depreciation and amortization                            195         151
  Share based compensation                               1,040         100
  Non-cash charge for goods held for sale or
   auction                                               1,308          --
  Deferred compensation - Phantom stock plan                 -        (686)
                                                    ----------  ----------
    Total EBITDA Adjustments                            (1,048)        575
                                                    ----------  ----------

Adjusted EBITDA                                     $   (7,655) $    3,254
                                                    ==========  ==========

                                                       Six Months Ended
                                                            June 30,
                                                    ----------------------
                                                        2010        2009
                                                    ----------  ----------

Adjusted EBITDA Reconciliation:

Net income (loss) as reported                       $   (9,587) $   17,465
Adjustments:
  Benefit for income taxes                              (5,835)         --
  Interest expense                                       1,792       6,944
  Interest income                                         (177)         (8)
  Depreciation and amortization                            375         293
  Share based compensation                               2,398         200
  Non-cash charge for goods held for sale or
   auction                                               1,308          --
  Deferred compensation - Phantom stock plan                 -       6,433
                                                    ----------  ----------
    Total EBITDA Adjustments                              (139)     13,862
                                                    ----------  ----------

Adjusted EBITDA                                     $   (9,726) $   31,327
                                                    ==========  ==========

GAMR-F