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AMS Third Quarter 2000 Revenues Increase 9.4 Percent.


Business Editors

OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 7, 2000

Advantage Marketing Systems, Inc. ("AMS AMS - Andrew Message System ") (AMEX AMEX

See: American Stock Exchange
:AMM AMM Autorisation de Mise sur le Marche (French)
AMM Autorisation de Mise sur le Marché (French: Commission of Marketing Authorization)
AMM ASEAN Ministerial Meeting
AMM American Metal Market
) announced net sales Net Sales

The amount a seller receives from the buyer after costs associated with the sale are deducted.

Notes:
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight
 increased 9.4 percent to $6,807,883 in the third quarter compared to $6,223,895 in the same period in the prior year.

Net income for the quarter was $95,972, or two cents a share, compared to $396,614, or ten cents Ten Cents has several meanings:
  • Ten Cents, a worth of a dime
  • Ten Cents, a fictional character in TUGS
 a share, in the same period in the prior year.

AMS Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  John W. Hail Hail, city, Saudi Arabia
Hail (hä`ēl, hīl), city (1993 pop. 176,757), N central Saudi Arabia. The city grew because of its location on a pilgrimage route from Iraq to Mecca.
 pointed out that the Company's increase in net sales was primarily the result of expansion of the Company's network of independent distributors from 54,200 at September 30, 1999, to 77,800 at September 30, 2000. The reduction in earnings for the third quarter was the result of a combination of factors, including an increase in promotional costs of $399,000 designed to increase sales, increased payrolls of $300,000 as staff increases were made to support continuing sales growth and increases in other variable costs due to higher levels of activity.

Commenting on results, Mr. Hail said: "With sales increasing at a sustained rate of 9% or greater, we anticipate achieving impressive results over the next two years. It is no wonder that our stock receives buy recommendations."

Mr. Hail commented on the Company's balance sheet as "remaining very strong." He reported that the Company had cash and marketable securities Marketable Securities

Very liquid securities that can be converted into cash quickly at a reasonable price.

Notes:
Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has
 of $3,551,920 at September 30, 2000, and working capital of $2,544,455. Its ratio of current assets Current Assets

Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year.
 to current liabilities Current Liabilities

Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year.
 stood at 2.9 to one. Shareholders' equity Shareholders' Equity

A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares.
 amounted to $10,070,098, or 86.1 percent of total assets. Long-term debt Long-Term Debt

Loans and financial obligations lasting over one year.

Notes:
For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt.
 in the form of capital lease obligations totaled just $265,010.

AMS markets more than 100 natural supplements, weight management products, skin and hair care products and cosmetics based on herbal-based proprietary product formulations. The Company's products are distributed by more than 77,800 independent distributors.

For more information, visit the Company's web site at www.amsonline.com.

Certain statements in this release may constitute "forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon there·on  
adv.
1. On or upon this, that, or it.

2. Archaic Following that immediately; thereupon.

Adv. 1. thereon - on that; "text and commentary thereon"
on it, on that
, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.


                   ADVANTAGE MARKETING SYSTEMS, INC.
                           AND SUBSIDIARIES

              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
           FOR THE PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
                              (UNAUDITED)

                           Three Months Ended      Nine Months Ended
                                September              September
                                   30,                    30,
                           2000          1999        2000        1999
                           ----          ----        ----        ----
Net sales            $6,807,883    $6,223,895 $20,815,957 $16,150,491
Cost of sales         4,521,392     4,298,324  13,981,588  11,150,024
                      ---------     ---------  ----------  ----------
    Gross profit      2,286,491     1,925,571   6,834,369   5,000,467

Marketing,
 distribution and
 administrative
 expenses             2,229,419     1,362,277   6,221,664   3,725,489
                      ---------     ---------   ---------   ---------
 Income from
  operations             57,072       563,294     612,705   1,274,978

Other income
 (expense):
Interest and dividends,
 net                     88,915        75,993     248,098     228,765
Other income (expense)    7,326           --      (84,642)        --
                      ---------     ---------   ---------   ---------
  Total other income
   (expense)             96,241        75,993     163,456     228,765
                      ---------     ---------   ---------   ---------
INCOME BEFORE TAXES     153,313       639,287     776,161   1,503,743
TAX EXPENSE              57,341       242,673     293,774     533,683
                      ---------     ---------   ---------   ---------
NET INCOME           $   95,972    $  396,614  $  482,387  $  970,060
                      =========     =========   =========   =========
Net income per
 common share        $      .02    $      .10  $      .11  $      .23

                      =========     =========   =========   =========
Net income per common
 share -- assuming
 dilution            $      .02    $      .08  $      .08  $      .21
                      =========     =========   =========   =========


Weighted average
 common shares
 outstanding          4,344,578     4,141,651   4,261,011   4,141,651
                      =========     =========   =========   =========
Weighted average
 common shares
 outstanding --
 assuming dilution    5,118,398     5,194,786   5,679,437   4,708,759
                      =========     =========   =========   =========
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Nov 7, 2000
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