| **UNITED                  STATES**                                                       |
|------------------------------------------------------------------------------------------|
| ** ** **SECURITIES                  AND EXCHANGE COMMISSION**                  |
| **Washington,                  D.C. 20549**                                              |
|                                                                                     |
| **FORM                  10-K/A**                                                         |
|                                                                                     |
| xANNUAL                  REPORT UNDER SECTION 13 OR 15(d) OF THE                         |
| SECURITIES                  EXCHANGE ACT OF 1934                                         |
| **For                  the fiscal year ended September 30, 2006**                        |
|                                                                                     |
|  oTRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE               |
| SECURITIES                  EXCHANGE ACT OF 1934                                         |
|                                                                                     |
| Commission                  file number 1-10799                                          |
|                                                                                     |
| ADDVANTAGE                  TECHNOLOGIES GROUP, INC.                                     |
| (Exact                  name of registrant as specified in its                  charter) |

|                  Oklahoma                                                |  73-1351610                                    |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |
|                                                                          |                                                |
|  1221                E. Houston, Broken                Arrow, Oklahoma   |                  74012                         |
| (Address                of                principal executive offices)        | (Zip                code)                           |

| Registrant’s                  telephone number: (918) 251-9121                                                  |
|-----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |
|                        Securities registered under Section 12(b) of the                  Act |

|                  Title                of each class |                  Name of exchange on which registered |
|----------------------------------------------------------|------------------------------------------------------------|
| Common                Stock, $.01 par value              | NASDAQ                Global Market                        |

| Indicate                by check mark if the registrant is a well-known                seasoned issuer, as defined in Rule 405 of the Securities Act                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            Yes o                No x                               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| Indicate                by check mark if the registrant is not required to                file reports pursuant to Section 13 or 15(d) of the Act                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                            Yes o                No x                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| Indicate                by check mark whether the registrant (1) has                filed all reports required to be filed by Section 13 or 15(d) of the                Securities Echange Act during the past                12 months (or for such shorter period that the                registrant was required to file such reports), and (2) has been                subject to such filing requirements for thepast                90 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |             Yes                x                 No o                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| Indicate                by check mark if disclosure of delinquent filers                pursuant to Item 405 of Regulation S-K is not contained herein, and                disclosure will not be contained,                to the best of registrant's knowledge, in                definitive proxy or information statements incorporated by reference                in                Part III of this Form 10-K or any                amendment to this form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                     o |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| Indicate                by check mark whether the registrant is a large                accelerated filer, an accelerated filer, or a non-accelerated filer(as                defined in Rule 12b-2 of the Act)                                                     Large Accelerated Filer o                                         Accelerated Filer o                                                Non-accelerated                filer x |                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| Indicate                by check mark whether the registrant is a shell                company (as defined in Rule 12b-2 of the Act). The                aggregate market value of the outstanding shares of common                stock, par value $.01 per share, held by non-affiliates computed                by                reference to the closing                price of the registrant’s common stock as of March 31,                2006 was $34,446,944.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                           Yes o                No x                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                      |
| The                number of shares of the registrant’s outstanding common                stock, $.01 par value per share, was 10,232,756 as of December 12,                2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                      |

| **Documents                Incorporated by Reference**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| The                identified sections of definitive Proxy Statement to be filed as                Schedule                14A pursuant to Regulation 14A in connection with the Registrant’s 2007                annual meeting of shareholders are incorporated by reference into                Part III                of this Form 10-K. The Proxy Statement will be filed with the Securities                and Exchange Commission within 120 days after the close of the                registrant’s most recent fiscal                year. |

----

|                      |                                                                                                                                                             | Page                                              |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|                      | PART                  I                                                                                                                                          |                                              |
|                      | Explanatory                Note                                                                                                                                  |         3 |
| Item                  1.  | Business.                                                                                                                                                        |  3                                           |
| Item                  1A. | Risk                  Factors.                                                                                                                                   |  8                                           |
| Item                  1B. | Unresolved                  Staff Comments.                                                                                                                      |  12                                          |
| Item                  2.  | Properties.                                                                                                                                                      |  12                                          |
| Item                  3.  | Legal                  Proceedings.                                                                                                                              |  13                                          |
| Item                  4.  | Submission                  of Matters to a Vote of Security                  Holders.                                                                           |  13                                          |
|                      |                                                                                                                                                             |                                              |
|                      | PART                  II                                                                                                                                         |                                              |
|                      |                                                                                                                                                             |                                              |
| Item                  5.  | Market                  for Registrant's Common Equity, Related Stockholder                  Matters and Issuer                  Purchases of Equity Securities. |  13                                          |
| Item                  6.  | Selected                  Financial Data.                                                                                                                        |  14                                          |
| Item                  7.  | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operation.                                          |  14                                          |
| Item                  7A. | Quantitative                  and Qualitative Disclosures About Market                  Risk.                                                                    |  24                                          |
| Item                  8.  | Financial                  Statements and Supplementary                  Data.                                                                                   |  25                                          |
| Item                  9.  | Changes                  in and Disagreements with Accountants on Accounting and Financial                  Disclosure.                                          |  50                                          |
| Item                  9A. | Controls                  and Procedures.                                                                                                                        |  50                                          |
| Item                  9B. | Other                  Information.                                                                                                                              |  50                                          |
|                      | PART                  III                                                                                                                                        |                                              |
|                      |                                                                                                                                                             |                                              |
| Item                  10. | Directors,                  Executive Officers and Corporate                  Governance.                                                                        |  51                                          |
| Item                  11. | Executive                  Compensation.                                                                                                                         |  51                                          |
| Item                  12. | Security                  Ownership of Certain Beneficial Owners and Management and Related                  Shareholder                  Matters.               |  51                                          |
| Item                  13. | Certain                  Relationships and Related Transactions, and Director                  Independence.                                                |  51                                          |
| Item                  14. | Principal                  Accounting Fees and Services.                                                                                                         |  51                                          |
|                      |                                                                                                                                                             |                                              |
|                      | PART                  IV                                                                                                                                         |                                              |
|                      |                                                                                                                                                             |                                              |
| Item                  15. | Exhibits,                  Financial Statement                  Schedules.                                                                                       | 52                                                |

----

Explanatory      Note

**, **

**PART      I**

**Item      1.** **Business.**

**FORWARD-LOOKING      STATEMENTS**

**Background**

----

**Overview      of the Industry**

----

**Recent      Business Developments**

**Products      and Services**

----

**Revenues      by Geographic Areas**

**Sales      and Marketing**

----

**Suppliers**

**Seasonality**

**Competition      and Working Capital Practices.**

----

**Significant      Customers**

**Personnel**

**Item      1A. Risk Factors.**

***We        are highly dependent upon our principal executive officers who also own a        significant amount of our outstanding stock.***

----

***Our        business is dependent on our customers' capital        budgets.***

***The        markets in which we operate are very competitive, and competitive pressures        may        adversely affect our results of operations.***

***Consolidations        in the telecommunications industry could result in delays or reductions in        purchases of products, which would have a material adverse effect on our        business.***

----

***Our        success depends in large part on our ability to attract and retain qualified        personnel in all facets of our operations.***

***We        are substantially dependent on certain manufacturers, and an inability to        obtain        adequate and timely delivery of products could adversely affect our        business.***

***We        have a large investment in our inventory which could become obsolete or        outdated.***

***We        have purchased a large quantity of legacy digital converter boxes which could        become obsolete or outdated***

----

***Our        outstanding common stock is very thinly traded.***

***We        have not paid any dividends on our outstanding common stock and have no plans        to        pay dividends in the future.***

***Our        principal executive officers and shareholders have a number of conflicts        of        interest with us.***

***Our        international operations may be adversely affected by a number of        factors.***

----

**Item      1B.** **Unresolved      Staff Comments.**

**Item      2.** **Properties.**

| ·   | Broken                Arrow, Oklahoma - On November 20, 2006 Tulsat purchased a facility                consisting of an office, warehouse and service center of                approximately 100,000 square feet on ten acres, with an investment                of                $3,250,000, financed by a loan of $2,760,000, due in monthly payments                through 2021at an interest rate of LIBOR plus 1 1/2%. At December                1, 2006,                Tulsat also continues to lease a total of approximately 80,000 square                feet                of warehouse facilities in three buildings from entities which are                controlled by David E. Chymiak, Chairman of the Board, and Kenneth                A.                Chymiak, President and Chief Executive Officer. Each lease has a                renewable                five-year term, expiring at different times through 2008. At December                1,                2006, monthly rental payments on these leases totaled                $26,820. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deshler,                Nebraska - Tulsat-Nebraska owns a facility consisting of land and                an                office, warehouse and service center of approximately 8,000 square                feet. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Warminster,                Pennsylvania - NCS owns its facility consisting of an office, warehouse                and service center of approximately 12,000 square feet, with an investment                of $567,000, financed by loans of $419,000, due in monthly payments                through 2013 at an interest rate of 5.5% through 2008, converting                thereafter to prime minus 1⁄4%. NCS also rents property of approximately                2,000 square feet, with monthly rental payments of $1,250 through                December                2006. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sedalia,                Missouri - ComTech Services owns land and an office, warehouse and                service                center of approximately 25,000 square feet. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New                Boston, Texas - Tulsat-Texas owns land and an office, warehouse and                service center of approximately 13,000 square feet. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Suwanee,                Georgia - Tulsat-Atlanta leases an office and service center of                approximately 5,000 square feet. The lease provides for 36 monthly                lease                payments of $3,500 ending on March 31, 2008. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Oceanside,                California - Jones Broadband leases an office, warehouse and service                center of approximately 15,000 square feet for $12,000 a month. The                lease                runs through November 30, 2007 and has a one year renewal option. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Stockton,                California - Jones Broadband leases a warehouse of approximately                45,000                square feet for $6,032 a month. The lease ends February 28, 2007                and has a                one-year renewal option. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Chambersburg,                  Pennsylvania - Broadband Remarketing International leases an office,                  warehouse, and service center of approximately 10,000 square                  feet. The                  lease is month to month and the lease payment varies based on the                  volume                  of warehouse space used. The average rent for the year                  was $4,667 per month. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      3.** **Legal      Proceedings.**

**Item      4.** **Submission      of Matters to a Vote of Security Holders.**

**PART      II**

**Item      5.** **Market      for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases      of Equity Securities.**

| Year                  Ended September 30, 2006 | High   | Low    |
|------------------------------------------------|--------|--------|
| First                  Quarter                 | $7.10  | $3.51  |
| Second                  Quarter                | $9.09  | $5.75  |
| Third                  Quarter                 | $6.86  | $4.63  |
| Fourth                  Quarter                | $4.97  | $3.55  |
|                                           |   |   |
| Year                  Ended September 30, 2005 |   |   |
| First                  Quarter                 | $6.30  | $3.85  |
| Second                  Quarter                | $5.94  | $3.95  |
| Third                  Quarter                 | $4.25  | $3.03  |
| Fourth                  Quarter                | $4.05  | $3.10  |

----

**Dividend      Policy.**

**Item      6. Selected Financial Data.**

|                                           |   |  2006   |   |  2005   |   |  2004   |   |  2003   |   |  2002   |   |
|------------------------------------------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|--------------|--------|
|                                           |   |    |   |    |   |    |   |    |   |    |   |
| Net                Sales and service income    |   | $            | 52,541 |         | $      | 50,273       |   | $            | 47,071 |         | $      | 33,327 |   | $ | 25,409 |   |
|                                           |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Income                from operations          |   | $            | 8,117  |         | $      | 9,973        |   | $            | 9,484  |         | $      | 6,197 |   | $ | 3,550 |   |
|                                           |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Net                income                      |   | $            | 4,843  |         | $      | 5,814        |   | $            | 5,814  |         | $      | 4,493 |   | $ | 2,201 |   |
|                                           |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Earnings                per share              |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Basic                                          |   | $            | .39    |         | $      | .49          |   | $            | .46    |         | $      | .33 |   | $ | .10 |   |
| Diluted                                        |   | $            | .39    |         | $      | 49           |   | $            | .41    |         | $      | .30 |   | $ | .10 |   |
|                                           |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Total                assets                    |   | $            | 40,925 |         | $      | 39,269       |   | $            | 32,359 |         | $      | 31,748 |   | $ | 26,531 |   |
|                                           |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| Long-term                obligations inclusive |   |         |   |         |   |         |   |         |   |         |   |   |   |   |   |   |
| of                current maturities           |   | $            | 9,385  |         | $      | 9,382        |   | $            | 11,610 |         | $      | 6,912 |   | $ | 6,276 |   |

**Item      7.** **Management's      Discussion and Analysis of Financial Condition and ****Results      of Operation.**

----

**General**

**Overview**

----

----

**Results      of Operations**

*Year      Ended September 30, 2006, compared to Year Ended September 30, 2005 (all      references are to fiscal years)*

*Net      Sales*

*Cost      of Sales*

*Gross      Profit*

*Operating,      Selling, General and Administrative Expenses*

----

*Income      from Operations*

*Interest      Expense*

*Income      Taxes*

*Year      Ended September 30, 2005, Compared to Year Ended September 30, 2004*

*Net      Sales*
** **

*Costs      of Sales*

*Gross      Profit*

*Operating,      Selling, General and Administrative Expenses*

----

*Income      from Operations*

*Interest      Expense*

*Income      Taxes*

*Inflation.*

----

----

| Contractual                Obligations |   | Total |                      | Less                than 1 year |   |                  1- 3 years |   | 3-5                years |      | More                than 5 years |   |
|----------------------------------------|--------|-------|---------------------------|---------------------------------|--------|----------------------------------|--------|--------------------------|-----------|----------------------------------|--------|
| Long                Term Debt          |   | $     | 9,384,                808 |                            | $      | 4,718,070                        |   | $                        | 4,489,840 |                             | $      | 48,765 |   | $ | 128,133 |   |
| Capital                Leases          |   | $     | -                         |                            | $      | -                                |   | $                        | -         |                             | $      | - |   | $ | - |   |
| Operating                Leases        |   | $     | 928,592                   |                            | $      | 541,752                          |   | $                        | 386,840   |                             | $      | - |   | $ | - |   |
| Purchase                Obligations    |   | $     | -                         |                            | $      | -                                |   | $                        | -         |                             | $      | - |   | $ | - |   |
| Total                                  |   | $     | 10,313,400                |                            | $      | 5,259,822                        |   | $                        | 4,876,680 |                             | $      | 48,765 |   | $ | 128,133 |   |

----

----

----

**Item      7A. Quantitative and Qualitative Disclosures About Market      Risk.**

----

**Item      8.** **Financial      Statements and Supplementary Data**

| Index                  to Financial Statements                                                                                                                | Page     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                          |     |
| Report                  of Independent Registered Public Accounting                  Firm                                                                     |  26 |
|                                                                                                                                                          |     |
| Report                  of Independent Registered Public Accounting                  Firm                                                                     |  27 |
|                                                                                                                                                          |     |
| Consolidated                  Balance Sheets, September 30, 2006 and                  2005                                                                    |  28 |
|                                                                                                                                                          |     |
| Consolidated                  Statements of Income and                  Comprehensive Income, Years ended September                  30, 2006, 2005 and 2004. |  30 |
|                                                                                                                                                          |     |
| Consolidated                  Statement of Changes in Stockholders'                  Equity, Years ended September                  30, 2006, 2005 and 2004.  |  31 |
|                                                                                                                                                          |     |
| Consolidated                  Statements of Cash Flows, years ended                  September 30, 2006, 2005 and 2004.                                       |  32 |
|                                                                                                                                                          |     |
| Notes                  to Consolidated Financial                  Statements                                                                                  |  33 |

----

REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM

----

REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM

----

ADDVANTAGE      TECHNOLOGIES GROUP, INC.

CONSOLIDATED      BALANCE SHEETS

|                                                                                               |   |                            September 30,    |       |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|------------|
| **Assets**                                                                                         |   |                              2006 |       |                           2005 |   |
| Current                  assets:                                                                   |   |                                                                                     |       |   |   |
|                     Cash                                                                 |   | $                                                                                        | 98,898     |   | $ | 449,219 |   |
|                     Accounts receivable, net of allowance of $554,000               |   |                                                                                     |       |   |   |   |   |
|                       and $92,000, respectively                                |   |                                                                                     | 5,318,127  |   |   | 7,671,549 |   |
|                     Income tax refund receivable                                         |   |                                                                                     | 307,299    |   |   | - |   |
|    Inventories,                  net of allowance for excess and obsolete inventory |   |                                                                                     |       |   |   |   |   |
|                       of $1,178,000 and $1,575,395, respectively               |   |                                                                                     | 28,990,696 |   |   | 25,321,149 |   |
|                     Deferred income taxes                                                |   |                                                                                     | 1,074,000  |   |   | 968,000 |   |
| Total                  current assets                                                              |   |                                                                                     | 35,789,020 |   |   | 34,409,917 |   |
|                                                                                               |   |                                                                                     |            |   |   |   |   |
| Property                  and equipment, at cost:                                                  |   |                                                                                     |       |   |   |   |   |
|                     Machinery and equipment                                              |   |                                                                                     | 2,697,476  |   |   | 2,357,182 |   |
|                     Land and buildings                                                   |   |                                                                                     | 1,668,511  |   |   | 1,591,413 |   |
|                     Leasehold improvements                                               |   |                                                                                     | 205,797    |   |   | 565,945 |   |
|                                                                                               |   |                                                                                     | 4,571,784  |   |   | 4,514,540 |   |
| Less                  accumulated depreciation and amortization                                    |   |                                                                                     | (2,033,679 | ) |   | (1,811,784 | ) |
| Net                  property and equipment                                                        |   |                                                                                     | 2,538,105  |   |   | 2,702,756 |   |
|                                                                                               |   |                                                                                     |       |   |   |   |   |
| Other                  assets:                                                                     |   |                                                                                     |       |   |   |   |   |
|                     Deferred income taxes                                                |   |                                                                                     | 702,000    |   |   | 786,000 |   |
|                     Goodwill                                                             |   |                                                                                     | 1,560,183  |   |   | 1,150,060 |   |
|                     Other assets                                                         |   |                                                                                     | 335,566    |   |   | 220,275 |   |
|                     Total other assets                                                   |   |                                                                                     | 2,597,749  |   |   | 2,156,335 |   |
|                                                                                               |   |                                                                                     |       |   |   |   |   |
| Total                  assets                                                                      |   | $                                                                                        | 40,924,874 |   | $ | 39,269,008 |   |

----

|                                                                                                 |   |                       September 30, |       |
|------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|------------|
| **Liabilities                  and Stockholders’ Equity**                                      |   |    2006                                  |       |    2005 |   |
| Current                  liabilities:                                                                |   |                                                    |       |   |   |
|                    Accounts payable                                                             |   | $                                                       | 2,618,490  |   | $ | 4,958,834 |   |
|                    Accrued expenses                                                             |   |                                                    | 1,181,139  |   |   | 1,876,523 |   |
|                    Accrued income taxes                                                         |   |                                                    | -          |   |   | 110,691 |   |
|                    Bank revolving line of credit                                                |   |                                                    | 3,476,622  |   |   | 2,234,680 |   |
|                    Notes payable - current portion                                              |   |                                                    | 1,241,348  |   |   | 1,239,071 |   |
|                    Dividends payable                                                            |   |                                                    | 210,000    |   |   | 210,000 |   |
| Total                  current liabilities                                                           |   |                                                    | 8,727,599  |   |   | 10,629,799 |   |
|                                                                                                 |   |                                                    |       |   |   |   |   |
| Notes                  payable                                                                       |   |                                                    | 4,666,738  |   |   | 5,908,199 |   |
|                                                                                                 |   |                                                    |            |   |   |   |   |
| Stockholders’                  equity:                                                         |   |                                                    |       |   |   |   |   |
|                    Preferred stock, 5,000,000 shares authorized,                                |   |                                                    |       |   |   |   |   |
|    $1.00                  par value, at stated value:                                 |   |                                                    |       |   |   |   |   |
|    Series                  B, 7% cumulative; 300,000 shares issued and                |   |                                                    |       |   |   |   |   |
|     outstanding                    with a stated value of $40 per share          |   |                                                    | 12,000,000 |   |   | 12,000,000 |   |
|                    Common stock, $.01 par value; 30,000,000 shares                  authorized; |   |                                                    |       |   |   |   |   |
|    10,252,856                  and 10,093,147 shares issued and outstanding,          |   |                                                    |       |   |   |   |   |
|                      respectively                                                     |   |                                                    | 102,528    |   |   | 100,931 |   |
|                    Paid-in capital                                                              |   |                                                    | (6,474,018 | ) |   | (7,265,930 | ) |
|                    Retained earnings                                                            |   |                                                    | 21,863,685 |   |   | 17,860,967 |   |
|                    Accumulated other comprehensive income:                                      |   |                                                    |       |   |   |   |   |
|    Unrealized                  gain on interest rate swap, net of tax                 |   |                                                    | 92,506     |   |   | 89,206 |   |
|                                                                                                 |   |                                                    | 27,584,701 |   |   | 22,785,174 |   |
|                                                                                                 |   |                                                    |       |   |   |   |   |
|                    Less: Treasury stock, 21,100 shares at cost                                  |   |                                                    | (54,164    | ) |   | (54,164 | ) |
| Total                  stockholders’ equity                                                    |   |                                                    | 27,530,537 |   |   | 22,731,010 |   |
|                                                                                                 |   |                                                    |       |   |   |   |   |
| Total                  liabilities and stockholders’ equity                                    |   | $                                                       | 40,924,874 |   | $ | 39,269,008 |   |

----

ADDVANTAGE      TECHNOLOGIES GROUP, INC.

CONSOLIDATED      STATEMENTS OF INCOME AND 

COMPREHENSIVE      INCOME

|                                                                        |   |                           September 30, |       |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|------------|
|                                                                        |   |                      2006                                        |       |                     2005 |   |                       2004 |   |
| Net                  sales income                                           |   | $                                                                               | 47,400,816 |   | $ | 45,755,198 |   | $ | 42,293,046 |   |
| Net                  service income                                         |   |                                                                            | 5,140,393  |   |   | 4,517,997 |   |   | 4,778,283 |   |
| Total                  net sales                                            |   |                                                                            | 52,541,209 |   |   | 50,273,195 |   |   | 47,071,329 |   |
|                    Cost of sales                                       |   |                                                                            | 35,799,831 |   |   | 33,401,167 |   |   | 31,092,890 |   |
| Gross                  profit                                               |   |                                                                            | 16,741,378 |   |   | 16,872,028 |   |   | 15,978,439 |   |
|                    Operating, selling, general and                     |   |                                                                            |       |   |   |   |   |   |   |   |
|                    administrative expenses                             |   |                                                                            | 8,377,152  |   |   | 6,642,641 |   |   | 6,216,728 |   |
|                    Depreciation and amortization                       |   |                                                                            | 247,504    |   |   | 256,435 |   |   | 277,352 |   |
| Income                  from operations                                     |   |                                                                            | 8,116,722  |   |   | 9,972,952 |   |   | 9,484,359 |   |
|                    Interest expense                                    |   |                                                                            | 530,004    |   |   | 557,560 |   |   | 157,606 |   |
| Income                  before income taxes                                 |   |                                                                            | 7,586,718  |   |   | 9,415,392 |   |   | 9,326,753 |   |
|                    Provision form income taxes                         |   |                                                                            | 2,744,000  |   |   | 3,601,000 |   |   | 3,513,000 |   |
| Net                  income                                                 |   |                                                                            | 4,842,718  |   |   | 5,814,392 |   |   | 5,813,753 |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
| Other                  comprehensive income                                 |   |                                                                            |       |   |   |   |   |   |   |   |
|                    Unrealized gain on interest rate swap               |   |                                                                            |       |   |   |   |   |   |   |   |
|                    (Net of $2,000 and $54,000 in taxes, respectively). |   |                                                                            | 3,300      |   |   | 89,206 |   |   | - |   |
|                    Comprehensive Income                                |   | $                                                                               | 4,846,018  |   | $ | 5,903,598 |   | $ | 5,813,753 |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
| Net                  income                                                 |   |                                                                            | 4,842,718  |   |   | 5,814,392 |   |   | 5,813,753 |   |
|                    Preferred stock dividends                           |   |                                                                            | 840,000    |   |   | 840,000 |   |   | 1,240,000 |   |
| Net                  income attribute                                       |   |                                                                            |       |   |   |   |   |   |   |   |
|                    to common stockholders                              |   | $                                                                               | 4,002,718  |   | $ | 4,974,392 |   | $ | 4,573,753 |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
| Earnings                  per share:                                        |   |                                                                            |       |   |   |   |   |   |   |   |
|                    Basic                                               |   | $                                                                               | 0.39       |   | $ | 0.49 |   | $ | 0.46 |   |
|                    Diluted                                             |   | $                                                                               | 0.39       |   | $ | 0.49 |   | $ | 0.41 |   |
|                                                                        |   |                                                                            |       |   |   |   |   |   |   |   |
| Shares                  used in per share calculation                       |   |                                                                            |       |   |   |   |   |   |   |   |
|                    Basic                                               |   |                                                                            | 10,152,472 |   |   | 10,067,277 |   |   | 10,041,197 |   |
|                    Diluted                                             |   |                                                                            | 10,201,474 |   |   | 10,109,854 |   |   | 12,104,541 |   |

----

CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS'      EQUITY

|                                                        |   |                        |       |      |   | Series                A |   | Series                B |                     |           |   | Retained      |   | Other                                 |        |   |   |       |   |
|-------------------------------------------------------------|--------|-----------------------------|------------|-----------|--------|-------------------------|--------|-------------------------|--------------------------|----------------|--------|------------------------------|--------|---------------------------------------|-------------|--------|--------|------------|--------|
|                                                        |   | Common                Stock |       | Preferred |   | Preferred               |   | Paid-in                 |      | Earnings  |   | ComComprehensive   |   | T                  Treasury |        |   |   |
|                                                        |   | Shares                      |       | Amount    |   | Stock                   |   | Stock                   |                     | Capital        |   | (Deficit)                    |   | Income                                |        | Stock  |   | Total      |   |
| Balance,                September 30, 2003                  |   |                        | 10,030,414 |      | $      | 100,304                 |   | $                       | 8,000,000                |           | $      | 12,000,000                   |   |                                  | ($7,389,197 | )      | $      | 8,312,822  |   |   | - |   |   | ($54,164 | ) | $ | 20,969,765 |   |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                income                                   |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | 5,813,753  |   |   | - |   |   | - |   |   | 5,813,753 |   |
| Preferred                stock dividends                    |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | (1,240,000 | )      |   | - |   |   | - |   |   | (1,240,000 | ) |
| Stock                options exercised                      |   |                        | 51,375     |      |   | 514                     |   |                    | -                        |           |   | -                            |   |                                  | 103,633     |   |   | -          |   |   | - |   |   | - |   |   | 104,147 |   |
| Redemption                of Series A                       |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Preferred                stock                              |   |                        | -          |      |   | -                       |   |                    | (8,000,000               | )              |   | -                            |   |                                  | -           |   |   | -          |   |   | - |   |   | - |   |   | (8,000,000 | ) |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2004                  |   |                        | 10,081,789 |      | $      | 100,818                 |   |                    | -                        |           | $      | 12,000,000                   |   |                                  | ($7,285,564 | )      | $      | 12,886,575 |   |   | - |   |   | ($54,164 | ) | $ | 17,647,665 |   |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                income                                   |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | 5,814,392  |   |   | - |   |   | - |   |   | 5,814,392 |   |
| Preferred                stock dividends                    |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | (840,000   | )      |   | - |   |   | - |   |   | (840,000 | ) |
| Stock                options exercised                      |   |                        | 11,358     |      |   | 113                     |   |                    | -                        |           |   | -                            |   |                                  | 19,634      |   |   | -          |   |   | - |   |   | - |   |   | 19,747 |   |
| Unrealized                gain on interest swap             |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | -          |   |   | 89,206 |   |   | - |   |   | 89,206 |   |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2005                  |   |                        | 10,093,147 |      | $      | 100,931                 |   |                    | -                        |           | $      | 12,000,000                   |   |                                  | ($7,265,930 | )      | $      | 17,860,967 |   | $ | 89,206 |   |   | ($54,164 | ) | $ | 22,731,010 |   |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                income                                   |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   | $      | 4,842,718  |   |   | - |   |   | - |   |   | 4,842,718 |   |
| Preferred                stock dividends                    |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | (840,000   | )      |   | - |   |   | - |   |   | (840,000 | ) |
| Stock                options exercised                      |   |                        | 72,500     |      |   | 725                     |   |                    | -                        |           |   | -                            |   |                                  | 244,674     |   |   | -          |   |   | - |   |   | - |   |   | 245,399 |   |
| Unrealized                gain on interest swap             |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | -           |   |   | -          |   |   | 3,300 |   |   | - |   |   | 3,300 |   |
| Share                based compensation expense             |   |                        | -          |      |   | -                       |   |                    | -                        |           |   | -                            |   |                                  | 98,110      |   |   | -          |   |   | - |   |   | - |   |   | 98,110 |   |
| Shares                issued in exchange for certain assets |   |                        | 87,209     |      |   | 872                     |   |                    | -                        |           |   | -                            |   |                                  | 449,128     |   |   | -          |   |   | - |   |   | - |   |   | 450,000 |   |
|                                                        |   |                        |       |      |   |                    |   |                    |                     |           |   |                         |   |                                  |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2006                  |   |                        | 10,252,856 |      | $      | 102,528                 |   |                    | -                        |           | $      | 12,000,000                   |   |                                  | ($6,474,018 | )      | $      | 21,863,685 |   | $ | 92,506 |   |   | ($54,164 | ) | $ | 27,530,537 |   |

----

DDVANTAGE      TECHNOLOGIES 

|   |   |   |                               |   |   |  September                30, |   |   |       |
|--------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------|
|   |   |   |  2006                    |   |   |  2005                         |   |   |  2004 |
|   |   |   |  (as                Restated) |   |   |  (as                Restated) |   |   |       |

| **Cash                  Flows from Operating Activities**                   |   |                                                                                                         |
|-----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Net                  income                                                 |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 4,842,718 |   | $ | 5,814,392 |   | $ | 5,813,753 |
| Adjustments                  to reconcile net income                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| provided                  by operating activities:                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                     Depreciation and amortization                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 247,504 |   |   | 256,435 |   |   | 277,352 |
|                     Provision for losses on accounts receivable   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 445,541 |   |   | 40,080 |   |   | - |
|                     Provision for excess and obsolete inventories |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 439,625 |   |   | 482,395 |   |   | 645,900 |
|                     Loss on disposal of property and equipment    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 76,829 |   |   | - |   |   | 24,412 |
|                     Deferred income tax benefit                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (22,000) |   |   | (3,000) |   |   | (172,000) |
|                     Change in:                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                       Receivables                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,600,582 |   |   | (2,174,498 | ) |   | (1,004,069) |
|                       Inventories                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (4,109,172) |   |   | (1,927,585 | ) |   | 506,482 |
|                       Other assets                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (132,276) |   |   | (51,577 | ) |   | 8,406 |
|                       Accounts payable                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (1,985,706) |   |   | 2,855,516 |   |   | (872,526) |
|                       Accrued liabilities               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (660,242) |   |   | 233,181 |   |   | 208,086 |
| Net                  cash provided by operating activities                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 743,403 |   |   | 5,525,339 |   |   | 5,435,796 |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| **Cash                  Flows from Investing Activities**                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Additions                  to property and equipment                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (99,520 | ) |   | (446,534 | ) |   | (77,201) |
| Investment                  in Jones Broadband International,               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                       net of cash acquired of $100,322  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                    (500,471) |   |   | (2,884,614) |   |   | - |
| Net                  cash used in investing activities                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (599,991) |  |   | (3,331,148) |   |   | (77,201) |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| **Cash                  Flows from Financing Activities**                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Net                  change under bank revolving line of credit             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,241,942 |   |   | (990,503 | ) |   |                    (1,960,719) |
| Proceeds                  on notes payable                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | - |   |   | - |   |   | 8,000,000 |
| Payments                  on notes payable                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (1,239,184) |   |   | (1,250,455) |   |   |                          (1,342,067) |
| Proceeds                  from stock options exercised                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 343,509 |   |   | 19,747 |   |   | 104,147 |
| Payments                  of preferred dividends                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (840,000) |   |   | (840,000) |   |   | (1,340,000 |
| Redemption                  of preferred stock                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | - |   |   | - |   |   | (8,000,000 |
| Net                  cash used in financing activities                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (493,733) |   |   | (3,061,211) |   |   | (4,538,639 |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Net                  increase (decrease) in cash                            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (350,321) |   |   | (867,020) |   |   | 819,956 |
| Cash,                  beginning of year                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 449,219 |   |   | 1,316,239 |   |   | 496,283 |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Cash,                  end of year                                          |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 98,898 |   | $ | 449,219 |   | $ | 1,316,239 |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| **Supplemental                  Cash Flow Information**                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Cash                  paid for interest                                     |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 531,596 |   | $ | 557,560 |   | $ | 172,426 |
| Cash                  paid for income taxes                                 |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 3,019,768 |   | $ | 3,582,616 |   | $ | 3,669,170 |
| Value                  of shares issued in exchange for business and        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|                       certain assets                    |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 450,000 |   |   | - |   |   | - |

----

ADDVANTAGE      TECHNOLOGIES 

**Note      1 - Summary of Significant Accounting Policies**

*Description      of business*

*Principles      of consolidation*

*Accounts      receivable*

*Inventory      valuation*

----

*Property      and equipment*

*Income      taxes*

*Revenue      recognition*

*Derivatives*

----

*Freight*

*Advertising      costs*

*Management      estimates*

*Concentrations      of credit risk*

----

*Goodwill*

*Employee      stock-based awards*

*Earnings      per share*

*Fair      value of financial instruments*

*Impact      of recently issued accounting standards*

----

----

*Reclassifications*

**Note      2 - Inventories**

|                                                       |   | 2006   |       | 2005   |
|------------------------------------------------------------|--------|--------|------------|--------|
| New                                                        |   | $      | 21,012,912 |   | $ | 20,066,957 |
| Used                                                       |   |   | 9,155,784  |   |   | 6,829,587 |
| Allowance                for excess and obsolete inventory |   |   | (1,178,000 | )      |   | (1,575,395) |
|                                                       |   | $      | 28,990,696 |   | $ | 25,321,149 |

**.**

**Note      3 - Line of Credit, Stockholder Notes, Notes Payable and Interest Rate      Swap**

----

----

|                                                         2007       |   | $      | 4,718,070 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|
|                                                         2008       |   |   | 1,243,685 |
|                                                         2009       |   |   | 3,246,155 |
|                                                         2010       |   |   | 48,765    |
|                                                         2011       |   |   | 51,522    |
|                                                         Thereafter |   |   | 76,611    |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |           |
|                                                         Total      |   | $      | 9,384,808 |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |           |

**Note      4 - Income Taxes**

|     |   | 2006   |      | 2005   |   | 2004      |
|----------|--------|--------|-----------|--------|--------|-----------|
| Current  |   | $      | 2,766,000 |   | $      | 3,604,000 |   | $ | 3,685,000 |
| Deferred |   |   | (22,000   | )      |   | (3,000    | ) |   | (172,000) |
|     |   |   |      |   |   |      |   |   |   |
|     |   |   | 2,744,000 |   | $      | 3,601,000 |   | $ | 3,513,000 |

|                                           |   | 2006   |   | 2005   |   | 2004                  |
|------------------------------------------------|--------|--------|--------|--------|--------|-----------------------|
| Statutory                tax rate              |   |   | 34.0%  |   |   | 34.0%                 |   |   | 34.0% |
| State                income taxes, net of U.S. |   |   |   |   |   |                  |   |   |   |
| federal                tax benefit             |   |   | 4.9%   |   |   | 4.7%                  |   |   | 4.7% |
| Tax                credits and exclusions      |   |   | (1.7%) |   |   | (                .5%) |   |   | (0.6%) |
| Other                                          |   |   | (1.0%) |   |   | -                     |   |   | (0.4%) |
|                                           |   |   |   |   |   |                  |   |   |   |
|                                           |   |   | 36.2%  |   |   | 38.2%                 |   |   | 37.7% |

----

|                                                    |   | 2006   |      | 2005   |
|---------------------------------------------------------|--------|--------|-----------|--------|
| Net                  operating loss carryforwards       |   | $      | 1,117,000 |   | $ | 1,239,000 |
| Financial                  basis in excess of tax basis |   |   |           |   |   |  |
| of                  certain assets                      |   |   | (321,000  | )      |   | (397,000) |
| Accounts                  Receivable                    |   |   | 211,000   |   |   | 27,000 |
| Inventory                                               |   |   | 718,000   |   |   | 834,000 |
| Other,                  net                             |   |   | 51,000    |   |   | 51,000 |
|                                                    |   |   |           |   |   |  |
| Deferred                  tax assets, net               |   | $      | 1,776,000 |   | $ | 1,754,000 |
|                                                    |   |   |      |   |   |   |

| Deferred                tax assets are classified as: |   |   |      |   |
|-------------------------------------------------------|--------|--------|-----------|--------|
| Current                                               |   | $      | 1,074,000 |   | $ | 968,000 |
| Non-Current                                           |   |   | 702,000   |   |   | 786,000 |
|                                                  |   |   |      |   |   |   |
|                                                  |   | $      | 1,776,000 |   | $ | 1,754,000 |

**Note      5 - Stockholders’ Equity**

----

|                                          |   | 2006   |    | 2005                     |   | 2004   |
|-----------------------------------------------|--------|--------|---------|--------------------------|--------|--------|
|                                          |   |   |    | Wtd.                Avg. |   |   |   | Wtd.                Avg |   |   |   | Wtd.                Avg. |
|                                          |   | Shares |    | Ex.                Price |   | Shares |   | Ex.                Price |   | Shares |   | Ex.                Price |
| Outstanding,                beginning of year |   |   | 144,767 |                     | $      | 3.23   |   |   | 131,125 |   | $ | 2.83 |   |   | 179,000 |   | $ | 1.97 |
| Granted                                       |   |   | 35,000  |                     | $      | 5.78   |   |   | 25,000 |   | $ | 4.62 |   |   | 4,000 |   | $ | 4.40 |
| Exercised                                     |   |   | (72,500 | )                        | $      | 3.38   |   |   | (11,358 | ) | $ | 1.74 |   |   | (51,375 | ) | $ | 2.03 |
| Canceled                                      |   |   | (2,517  | )                   | $      | 1.50   |   |   | - |   |   | - |   |   | (500 | ) | $ | 1.50 |
|                                          |   |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,                end of year       |   |   | 104,750 |                     | $      | 4.01   |   |   | 144,767 |   | $ | 3.23 |   |   | 131,125 |   | $ | 2.83 |
|                                          |   |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of year       |   |   | 94,750  |                     | $      | 3.83   |   |   | 144,767 |   | $ | 3.23 |   |   | 108,500 |   | $ | 3.08 |

|                                                                                                                    Options Exercisable |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Number | Remaining |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Outstanding | Contractual |   |
| Exercise                Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | At                9/30/06 | Life |   |
| $5.780                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 25,000 | 9.5                years |   |
| $4.620                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 25,000 | 8.5                years |   |
| $4.400                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 4,000 | 7.5                years |   |
| $1.900                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 10,000 | 6.5                years |   |
| $1.650                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2,000 | 6.5                years |   |
| $0.810                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2,000 | 5.5                years |   |
| $1.500                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 13,750 | 4.5                years |   |
| $3.125                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 13,000 | 3.5                years |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                      94,750 |   |   |

----

----

|                                   | 2006       | 2005                                                                                                | 2004                                   |
|----------------------------------------|------------|-----------------------------------------------------------------------------------------------------|----------------------------------------|
| Expected                life in years  | 5.5        |                 6.0 | 6.0                                    |
| Expected                volatility     | 63.0%      | 55.0%                                                                                               | 142.0%                                 |
| Risk-free                interest rate |  4.7% |  4.3%                                                                                          |                    2.0% |
| Expected                dividend yeild | -          | -                                                                                                   | -                                      |

|                                                             |   | 2006                          |   | 2005   |   | 2004   |
|------------------------------------------------------------------|--------|-------------------------------|--------|--------|--------|--------|
|                                                             |   | (In                thousands) |
| Net                income as reported                            |   | $                             | 4,003  |   | $      | 4,974  |   | $ | 4,574 |
| Pro                forma compensation expense from stock options |   |                          | 0      |   |   | (65    | ) |   | (10) |
| Pro                forma net income                              |   | $                             | 4,003  |   | $      | 4,909  |   | $ | 4,564 |
|                                                             |   |                          |   |   |   |   |   |   |   |
| Earnings                per common share as reported:            |   |                          |   |   |   |   |   |   |   |
| Basic                                                            |   | $                             | .39    |   | $      | .49    |   | $ | .46 |
| Diluted                                                          |   | $                             | .39    |   | $      | .49    |   | $ | .41 |
| Proforma                earings per common share                 |   |                          |   |   |   |   |   |   |   |
| Basic                                                            |   | $                             | .39    |   | $      | .49    |   | $ | .46 |
| Diluted                                                          |   | $                             | .39    |   | $      | .49    |   | $ | .41 |

**Note      6 - Related Parties**

----

|   |    Name                  ofBeneficial                  Owner |  Percent                  ofCommon                  StockBeneficiallyOwned | Percent                  ofSeries                  BPreferred                  StockBeneficiallyOwned                  (A) |   |
|--------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------|
|   | David                  E. Chymiak                                           | 23%                                                                             | 50.0%                                                                                                                      |   |
|   | Kenneth                  A. Chymiak                                         | 20%                                                                             | 50.0%                                                                                                                      |   |

----

**Note      7 - Retirement Plan.**

**Note      8 - Earnings per Share**

|                                                   |   |                         |       |                         |   |                         |   |
|--------------------------------------------------------|--------|------------------------------|------------|------------------------------|--------|------------------------------|--------|
|                                                   |   | Year                ended    |       | Year                ended    |   | Year                Ended    |   |
|                                                   |   | September                30, |       | September                30, |   | September                30, |   |
|                                                   |   | 2006                         |       | 2005                         |   | 2004                         |   |
|                                                   |   |                         |       |                         |   |                         |   |
| Net                income                              |   | $                            | 4,842,718  |                         | $      | 5,814,392                    |   | $ | 5,813,753 |   |
| Dividends                on preferred stock            |   |                         | 840,000    |                         |   | 840,000                      |   |   | 1,240,000 |   |
| Net                income attributable to              |   |                         |       |                         |   |                         |   |   |   |   |
| common                shareholders - basic             |   |                         | 4,002,718  |                         |   | 4,974,392                    |   |   | 4,573,753 |   |
| Dividends                on Series A                   |   |                         |       |                         |   |                         |   |   |   |   |
| Preferred                Stock                         |   |                         | -          |                         |   | -                            |   |   | 400,000 |   |
| Net                income attributable to common       |   |                         |       |                         |   |                         |   |   |   |   |
| shareholders                - diluted                  |   | $                            | 4,002,718  |                         | $      | 4,974,392                    |   | $ | 4,973,753 |   |
|                                                   |   |                         |       |                         |   |                         |   |   |   |   |
|                                                   |   |                         |       |                         |   |                         |   |   |   |   |
| Weighted                average shares outstanding     |   |                         | 10,152,472 |                         |   | 10,067,277                   |   |   | 10,041,197 |   |
|                                                   |   |                         |       |                         |   |                         |   |   |   |   |
| Potentially                dilutive securities         |   |                         |       |                         |   |                         |   |   |   |   |
| Assumed                conversion of 200,000 shares of |   |                         |       |                         |   |                         |   |   |   |   |
| Series                A Preferred Stock                |   |                         | -          |                         |   | -                            |   |   | 2,000,000 |   |
| Effect                of dilutive stock options        |   |                         | 49,002     |                         |   | 42,577                       |   |   | 63,344 |   |
|                                                   |   |                         |       |                         |   |                         |   |   |   |   |
| Weighted                average shares outstanding -   |   |                         |       |                         |   |                         |   |   |   |   |
| assuming                dilution                       |   |                         | 10,201,474 |                         |   | 10,109,854                   |   |   | 12,104,541 |   |
|                                                   |   |                         |       |                         |   |                         |   |   |   |   |
| Earnings                per common share:              |   |                         |       |                         |   |                         |   |   |   |   |
| Basic                                                  |   | $                            | 0.39       |                         | $      | 0.49                         |   | $ | 0.46 |   |
| Diluted                                                |   | $                            | 0.39       |                         | $      | 0.49                         |   | $ | 0.41 |   |

----

**Note        9 - Subsequent Events**

**Note      10 - Quarterly Results of Operations (Unaudited)**

|                                             |   |                       |       |                    |   |                   |   |                        |
|--------------------------------------------------|--------|----------------------------|------------|-------------------------|--------|------------------------|--------|-----------------------------|
|                                             |   | December                31 |       | March                31 |   | June                30 |   | September                30 |   |
| **Fiscal                year ended 2006**        |   |                       |       |                    |   |                   |   |                        |   |
| Net                sales and service income      |   |                       | 14,753,611 |                    |   | 12,419,157             |   |                        | 13,199,459 |   |   | 12,168,982 |   |
| Gross                profit                      |   |                       | 5,070,522  |                    |   | 4,095,811              |   |                        | 4,195,569 |   |   | 3,379,446 |   |
| Net                income                        |   |                       | 1,741,594  |                    |   | 1,076,798              |   |                        | 1,342,699 |   |   | 681,627 |   |
| Basic                earnings per common share   |   |                       | .15        |                    |   | .09                    |   |                        | .11 |   |   | .05 |   |
| Diluted                earnings per common share |   |                       | .15        |                    |   | .09                    |   |                        | .11 |   |   | .05 |   |
|                                             |   |                       |       |                    |   |                   |   |                        |   |   |   |   |   |
| **Fiscal                year ended 2005**        |   |                       |       |                    |   |                   |   |                        |   |   |   |   |   |
| Net                sales and service income      |   | $                          | 12,261,125 |                    | $      | 9,894,886              |   | $                           | 12,093,891 |   | $ | 16,023,293 |   |
| Gross                profit                      |   |                       | 4,056,414  |                    |   | 3,519,716              |   |                        | 4,258,587 |   |   | 5,037,311 |   |
| Net                income                        |   |                       | 1,514,687  |                    |   | 1,088,238              |   |                        | 1,446,426 |   |   | 1,765,041 |   |
| Basic                earnings per common share   |   |                       | 0.13       |                    |   | 0.09                   |   |                        | 0.12 |   |   | 0.15 |   |
| Diluted                earnings per common share |   |                       | 0.13       |                    |   | 0.09                   |   |                        | 0.12 |   |   | 0.15 |   |

----

**Note        11 –        Restatement of the        Consolidated Statements of Cash Flows for the Years ended September 30, 2006        and        2005.**

*Statement of Cash          Flows*

*Net cash provided by operating            activities*

----

**ADDvantage        Technologies Group,        Inc.                           **

**Consolidated          Condensed Statements of Cash Flows**

| **                                                                                                                             Fiscal Year Ended September 30** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2006(as                    Restated) |   | Adjustment |   | Original2006 |   | 2005(as                      Restated) |   | Adjustment |   | Original2005 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                    Flows from Operating Activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 4,842,718 |   |   |   |   | 4,842,718 |   |   | 5,814,392 |   |   |   |   | 5,814,392 |
| Adjustments                    to reconcile net income to net cash provided by operating                    activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Depreciation                    and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 247,504 |   |   |   |   | 247,504 |   |   | 256,435 |   |   |   |   | 256,435 |
|   Provision                    for losses on accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 445,541 |   |   |   |   | 445,541 |   |   | 40,080 |   |   |   |   | 40,080 |
|   Provision                    for excess and obsolete inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 439,625 |   |   |   |   | 439,625 |   |   | 482,395 |   |   |   |   | 482,395 |
|   Loss                    on disposal of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 76,829 |   |   |   |   | 76,829 |   |   | - |   |   |   |   | - |
|   Deferred                    income tax benefit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (22,000 | ) |   |   |   | (22,000) |   |   | (3,000) |   |   |   |   | (3,000) |
|   Change                    in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,600,582 |   |   |   |   | 1,600,582 |   |   | (2,174,498) |   |   |   |   | (2,174,498) |
|     Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (4,109,172) |   |   |   |   | (4,109,172) |   |   | (1,927,585) |   |   |   |   | (1,927,585) |
|     Other                    assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (132,276) |   |   |   |   | (132,276) |   |   | (51,577) |   |   |   |   | (51,577) |
|     Accounts                    payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (1,985,706) |   |   | 354,638 |   |   | (2,340,344) |   |   | 2,855,516 |   |   | (172,311) |   |   | 3,027,827 |
|     Accrued                    expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (660,242) |   |   | 145,833 |   |   | (806,075) |   |   | 233,181 |   |   | (454,010) |   |   | 687,191 |
| Net                    cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 743,403 |   |   | 500,471 |   |   | 242,932 |   |   | 5,525,339 |   |   | (626,321) |   |   | 6,151,660 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                    Flows from Investing Activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additions                    to property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (99,520) |   |   |   |   |   | (99,520) |   |   | (446,534) |   |   |   |   |   | (446,534) |
| Investment                    in Jones Broadband International, net                    of cash acquired of $100,322                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (500,471) |   |   | (500,471) |   |   | - |   |   | (2,884,614) |   |   | 626,321 |   |   | (3,510,935) |
| Net                    cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (599,991) |   |   | (500,471) |   |   | (99,520) |   |   | (3,331,148) |   |   | 626,321 |   |   | (3,957,469) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                    Flows from Financing Activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    change under line of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,241,942 |   |   |   |   |   | 1,241,942 |   |   | (990,503) |   |   |   |   |   | (990,503) |
| Proceeds                    ion notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | - |   |   |   |   |   | - |   |   | - |   |   |   |   |   | - |
| Payments                    on notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (1,239,184) |   |   |   |   |   | (1,239,184) |   |   | (1,250,455) |   |   |   |   |   | (1,250,455) |
| Proceeds                    from stock options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 343,509 |   |   |   |   |   | 343,509 |   |   | 19,747 |   |   |   |   |   | 19,747 |
| Payments                    of preferred dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (840,000) |   |   |   |   |   | (840,000 | ) |   | (840,000) |   |   |   |   |   | (840,000) |
| Repurchase                    of preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | - |   |   |   |   |   | - |   |   | - |   |   |   |   |   | - |
| Net                    cash (used in) or provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (493,733) |   |   |   |   |   | (493,733 | ) |   | (3,061,211) |   |   |   |   |   | (3,061,211) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    (decrease) increase in cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (350,321) |   |   |   |   |   | (350,321) |   |   | (867,020) |   |   |   |   |   | (867,020) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,                    beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 449,219 |   |   |   |   |   | 449,219 |   |   | 1,316,239 |   |   |   |   |   | 1,316,239 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,                    end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $ | 98,898 |   |   |   |   | $ | 98,898 |   | $ | 449,219 |   |   |   |   | $ | 449,219 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Supplemental                    Cash Flow Information**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                    paid for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 531,596 |   |   |   |   | $ | 531,596 |   | $ | 557,560 |   |   |   |   | $ | 557,560 |
| Cash                    paid for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $ | 3,019,768 |   |   |   |   | $ | 3,019,768 |   | $ | 3,582,616 |   |   |   |   | $ | 3,582,616 |
| Value                    of shares issued in exchange for business and certain                    assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 450,000 |   |   |   |   | $ | 450,000 |   |   | - |   |   |   |   |   | - |

----

**Item        9.** **Changes        in and Disagreements with Accountants on Accounting and Financial        Disclosure.**

**Item      9A.** **Controls      and Procedures.**

**Evaluation          of Disclosure Controls and          Procedures**

*Statement of Cash        Flows*

**Item      9B.** **Other      Information.**

----

**PART      III**

**Item      10.** **Directors      and Executive Officers and Corporate Governance.**

**Item      11.** **Executive      Compensation.**

**Item      12.** **Security      Ownership of Certain Beneficial Owners and Management and Related Stockholder      Matters.**

**Item      13.** **Certain      Relationships and Related Transactions and Directors ****Independence.**

**Item      14.** **Principal      Accounting Fees and Services**

----

**PART      IV**

**Item      15.** **Exhibits,      Financial Statements Schedules.**

----

|                                                         |   | Balance                  at |      | Charged                  to |   |       |   |       |     | Balance                  at                                                                               |   |
|--------------------------------------------------------------|--------|-----------------------------|-----------|-----------------------------|--------|------------|--------|------------|----------|-----------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | Beginning                   |      | Costs                  and  |   |       |   |       |     |                                 End |   |
|                                                         |   | of                  Period  |      | Expenses                    |   | Write-offs |   | Recoveries |     | of                  Period                                                                                |   |
| **Period                  Ended September 30, 2006**         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |
| Allowance                  for Doubtful Accounts             |   | $                           | 92,000    |                        | $      | 445,541    |   |       | -        |                                                                                                      | $      | 16,459 |   | $ | 554,000 |   |
| Allowance                  for Excess and Obsolete Inventory |   |                        | 1,575,395 |                        |   | 439,625    |   |       | (837,020 | )                                                                                                         |   | - |   |   | 1,178,000 |   |
| Valuation                  Allowance of Deferred Tax Asset   |   |                        | -         |                        |   | -          |   |       | -        |                                                                                                      |   | - |   |   | - |   |
|                                                         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |   |   |   |   |   |
| **Period                  Ended September 30, 2005**         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |   |   |   |   |   |
| Allowance                  for Doubtful Accounts             |   | $                           | 68,063    |                        | $      | 40,080     |   |       | (16,143  | )                                                                                                         |   | - |   | $ | 92,000 |   |
| Allowance                  for Excess and Obsolete Inventory |   |                        | 1,093,000 |                        |   | 482,395    |   |       | -        |                                                                                                      |   | - |   |   | 1,575,395 |   |
| Valuation                  Allowance of Deferred Tax Asset   |   |                        | -         |                        |   | -          |   |       | -        |                                                                                                      |   | - |   |   | - |   |
|                                                         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |   |   |   |   |   |
| **Period                  Ended September 30, 2004**         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |   |   |   |   |   |
| Allowance                  for Doubtful Accounts             |   | $                           | 78,359    |                        | $      | -          |   |       | (19,968  | )                                                                                                         | $      | 9,672 |   | $ | 68,063 |   |
| Allowance                  for Excess and Obsolete Inventory |   |                        | 447,100   |                        |   | 645,900    |   |       | -        |                                                                                                      |   | - |   |   | 1,093,000 |   |
| Valuation                  Allowance of Deferred Tax Asset   |   |                        | -         |                        |   | -          |   |       | -        |                                                                                                      |   | - |   |   | - |   |
|                                                         |   |                        |      |                        |   |       |   |       |     |                                                                                                      |   |   |   |   |   |   |

|   | 3.1 |   | Certificate                of Incorporation of the Company and amendments thereto incorporated                by                reference to Exhibit 3.1 to the Annual Report on Form 10-KSB filed                with                the Securities Exchange Commission by the Company on January 10,                2003. |
|--------|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 |   | Bylaws                of the Company, as amended, incorporated by reference to Exhibit                3.2 to                the Annual Report on Form 10-KSB filed with the Securities Exchange                Commission by the Company on January 10, 2003. |
|--------|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 |   | Certificate                of Designation, Preferences, Rights and Limitations of ADDvantage                Media                Group, Inc. Series A 5% Cumulative Convertible Preferred Stock and                Series                B 7% Cumulative Preferred Stock as filed with the Oklahoma Secretary                of                State on September 30, 1999 incorporated by reference to Exhibit                4.1 to                the Current Report on Form 8-K filed with the Securities Exchange                Commission by the Company on October 14,                1999. |
|--------|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.1 |   | Lease                Agreement dated September 15, 1999 by and between Chymiak Investments,                L.L.C. and Tulsat Corporation (formerly named DRK Enterprises, Inc.)                incorporated by reference to Exhibit 10.3 to the Annual Report on                Form                10-KSB filed with the Securities Exchange Commission by the Company                on                December 30, 1999. |
|--------|------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 |   | Schedule                of documents substantially similar to Exhibit 10.1 incorporated by                reference to Exhibit 10.3 to the Annual Report on Form 10-KSB filed                with                the Securities Exchange Commission by the Company on December 30,                1999. |
|--------|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 |   | Revolving                Credit and Term Loan Agreement dated September 30, 2004 ("Revolving                Credit                and Term Loan Agreement"), incorporated by reference to Exhibit 10.5                to                the Company's Form 10-K filed December 22,                2004. |
|--------|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 |   | Third                Amendment to Revolving Credit and Term Loan Agreement dated November                20,                2006 incorporated by reference to the Company's Original Form 10-K                filed                in December 27, 2006. |
|--------|------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 |   | The                ADDvantage Media Group, Inc. 1998 Incentive Stock Plan, incorporated                by                reference to Appendix A to the Company's Proxy Statement relating                to the                Company's 1998 Annual Meeting, filed April 28, 1998. |
|--------|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 |   | First                Amendment to ADDvantage Media Group, Inc. 1998 Incentive Stock Plan,                incorporated by reference to Exhibit 4.4 to                the |
|--------|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 31.1 |   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002. |
|--------|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes                Oxley Act of 2002. |
|--|------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 |  | Certification                of Chief Executive Officer pursuant to Section 906 of the Sarbanes                Oxley Act of 2002. |
|--------|------|--|----------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 |  | Certification                of Chief Financial Officer pursuant to Section 906 of the Sarbanes                Oxley Act of 2002. |
|--|------|--|----------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

----

|   | 3.1 |   | Certificate                of Incorporation of the Company and amendments thereto incorporated                by                reference to Exhibit 3.1 to the Annual Report on Form 10-KSB filed                with                the Securities Exchange Commission by the Company on January 10,                2003. |
|--------|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 |   | Bylaws                of the Company, as amended, incorporated by reference to Exhibit                3.2 to                the Annual Report on Form 10-KSB filed with the Securities Exchange                Commission by the Company on January 10, 2003. |
|--------|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 |   | Certificate                of Designation, Preferences, Rights and Limitations of ADDvantage                Media                Group, Inc. Series A 5% Cumulative Convertible Preferred Stock and                Series                B 7% Cumulative Preferred Stock as filed with the Oklahoma Secretary                of                State on September 30, 1999 incorporated by reference to Exhibit                4.1 to                the Current Report on Form 8-K filed with the Securities Exchange                Commission by the Company on October 14,                1999. |
|--------|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 |   | Lease                Agreement dated September 15, 1999 by and between Chymiak Investments,                L.L.C. and Tulsat Corporation (formerly named DRK Enterprises, Inc.)                incorporated by reference to Exhibit 10.3 to the Annual Report on                Form                10-KSB filed with the Securities Exchange Commission by the Company                on                December 30, 1999. |
|--------|------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 |   | Schedule                of documents substantially similar to Exhibit 10.1 incorporated by                reference to Exhibit 10.3 to the Annual Report on Form 10-KSB filed                with                the Securities Exchange Commission by the Company on December 30,                1999. |
|--------|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 |   | Revolving                Credit and Term Loan Agreement dated September 30, 2004 ("Revolving                Credit                and Term Loan Agreement"), incorporated by reference to Exhibit 10.5                to                the Company's Form 10-K filed December 22,                2004. |
|--------|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 |   | Third                Amendment to Revolving Credit and Term Loan Agreement dated November                20,                2006 incorporated by reference to the Company's Original Form 10-K                filed                December 27, 2006. |
|--------|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 |   | The                ADDvantage Media Group, Inc. 1998 Incentive Stock Plan, incorporated                by                reference to Appendix A to the Company's Proxy Statement relating                to the                Company's 1998 Annual Meeting, filed April 28, 1998. |
|--------|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 |   | First                Amendment to ADDvantage Media Group, Inc. 1998 Incentive Stock Plan,                incorporated by reference to Exhibit 4.4 to                the |
|--------|------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 |   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002. |
|--------|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes                Oxley                Act of 2002. |
|--|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 |  | Certification                of Chief Executive Officer pursuant to Section 906 of the Sarbanes                Oxley Act of 2002. |
|--------|------|--|----------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 |  | Certification                of Chief Financial Officer pursuant to Section 906 of the Sarbanes                Oxley Act of 2002. |
|--|------|--|----------------------------------------------------------------------------------------------------------------------------------------|

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