American Stone Announces That Consortium Has Exercised Option to Buy Real Estate, Pending Completion of Negotiations to Acquire Entire Company.

AMHERST, Ohio -- American Stone Corporation, a subsidiary of American Stone Industries, Inc. (Pink Sheets:AMST), today announced that Trans European Securities International LLP, a European consortium, has exercised the option it holds to purchase approximately 900 acres of American Stone's real estate, pending completion of negotiations under which the consortium also would acquire all of American Stone Corporation for a total price of approximately $30 million.

The American Stone property is located in Lorain County, Ohio, and has frontage on State Route 113 and Quarry Road. It is approximately three miles from the Ohio Turnpike with access at Baumhart Road, Route 58 and Route 57.

In May 2004, American Stone announced that Trans European had acquired an option to purchase the real estate for $23,740,000 in three payments over two years. Trans European has since announced plans to build a $1.25-billion leisure resort on the site, including residential development, high-end retail, a hotel, a golf course, and a year-round aquatic center with a retractable roof. Under the terms of the option agreement, Trans European agreed to share with American Stone a portion of its earnings that would relate to other than residential sales of the real estate.

American Stone said neither the sale of the 900 acres of real estate nor the sale of the entire company would interfere with any of its existing or planned stone quarrying or processing operations. American Stone and Cleveland Quarries expect to continue to operate in all respects as they have previous to this transaction.

American Stone Industries is a holding company that mines and sells stone predominantly for the building stone market through its wholly owned subsidiary, American Stone Corporation. American Stone Corporation owns and operates Cleveland Quarries in Amherst, Ohio, one of the world's largest sandstone quarries. The Company reported net income of $152,935 on revenues of $2,399,098 for the 12 months ended December 31, 2004. For the six months ended June 30, 2005, the Company had net income of $8,347 on revenues of $1,143,500. As of August 30, 2005, the Company had 2,361,110 diluted shares outstanding. The Company's stock is traded on the Pink Sheets Electronic Quotation Service under the symbol AMST.

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are made based on Management's expectations and beliefs concerning future events affecting the Company and are subject to risks and uncertainties that could cause actual results to differ materially from the expectations expressed in or implied by forward-looking statements. Such risks include, but are not limited to, trends within the building construction industry, actions by competitors, equipment and operational problems, the success of advertising and promotional efforts, changes in relationships with major customers or in the financial condition of those customers, and the adequacy of the Company's financial resources and the availability and terms of any additional capital. On July 27, 2005, the Company reported that the deregistration application it had earlier filed with the U.S. Securities and Exchange Commission had become effective and all reporting obligations of the Company under the federal securities laws had ended, including forms 10-KSB, 10-QSB and 8-K.