American Stone Reports Improved Results for First Quarter.

Business Editors

AMHERST, Ohio--(BUSINESS WIRE)--May 16, 2002

American Stone Industries, Inc. (OTCBB:AMST), a supplier of building stone products, reported a 132% increase in net sales in the first quarter of 2002 compared with the first quarter of 2001 and an improvement in its net results compared with the first quarter of 2001.

For the quarter ended March 31, 2002, the Company had a net loss of $145,343, or $0.08 per share, compared with a net loss of $309,332, or $0.16 per share, for the quarter ended March 31, 2001. Sales for the latest quarter were $855,486 compared with $367,875 a year ago.

The substantial increase in sales compared with a year ago was due to higher sales to new distributors added over the previous 12 months, the addition of Amherst Stone, which opened in April 2001, and a higher order backlog compared with a year earlier. The first quarter is normally the slowest of the year for American Stone because cold weather restricts both demand and quarrying operations.

Gross profit margin improved to 16% in the first quarter of 2002 from a negative 25% in the same period a year ago. The improvement was due to manufacturing efficiencies, a decrease in rework, and higher sales compared with a year ago. Selling, general and administrative expenses (SG&A) were higher overall in the first quarter of 2002 compared with a year ago due to the addition of Amherst Stone. As a percentage of net sales, SG&A improved to 32% in the latest quarter from 52% in the same period a year ago.

"First quarter sales were much better than a year ago, although still below the break-even level," said James Rallo, president and chief executive officer. "The higher sales combined with operating efficiencies led to the improvement in our net results."

He continued, "We are pleased with the progress of Amherst Stone, which continues to perform on track with plan. We are also encouraged by the flow of new business. At the end of April 2002, our backlog stood at $1.4 million compared with $300,000 a year ago."

At the Company's annual meeting of shareholders, held April 24, 2002, shareholders reelected board members Thomas H. Roulston, II, Enzo Costantino, Glen Gasparini, Jacquita K. Hauserman, Michael J. Meier, Timothy I. Panzica and Louis Stokes. Shareholders also elected John R. Male to the board. Male is chairman of the board and chief executive officer of PVF Capital Corp., Cleveland-based holding company for Park View Federal Savings Bank. No additional proposals were voted on at the annual meeting.

During the first quarter of 2002, the Company obtained a $500,000 loan from an individual investor. Under the terms of the agreement, the loan is convertible into common shares at $5.00 per share, the price of the stock at the time the agreement was signed.

American Stone Industries is a holding company that mines and sells stone predominantly for the building stone market through its wholly owned subsidiaries, American Stone Corporation and Amherst Stone at Cleveland Quarries. American Stone Corporation owns and operates Cleveland Quarries in South Amherst, Ohio, one of the world's largest sandstone quarries. Amherst Stone is a distributor of stone products to builders and landscapers in northern Ohio. The Company's stock is traded on the OTC Bulletin Board under the symbol AMST. For additional information, see the American Stone Web site at http://www.amst.com.

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, and changes in relationships with major customers or in the financial condition of those customers. Other risks include general economic, business and market conditions and the adequacy of the Company's financial resources. Further information about these matters is set forth in the Company's Form 10-KSB annual report filed with the Securities and Exchange Commission.

(table follows)

                    AMERICAN STONE INDUSTRIES, INC.
                   CONSOLIDATED FINANCIAL HIGHLIGHTS

                                      3 Months Ended   3 Months Ended
Operations                            March 31, 2002   March 31, 2001
                                      --------------   --------------
                                       (unaudited)      (unaudited)

Sales                                  $   855,486      $   367,875
Cost of goods sold                         716,778          460,657
                                      --------------   --------------
Gross profit (loss)                        138,708          (92,782)
Selling and administrative expenses        276,100          190,619
                                      --------------   --------------
Income (loss) from operations             (137,392)        (283,401)
Other income (expense):
 Interest income                                48            4,500
 Interest expense                          (23,594)         (30,431)
 Other income                               15,595                -
                                      --------------   --------------
                                            (7,951)         (25,931)
                                      --------------   --------------

Income (loss) before income taxes         (145,343)        (309,332)
                                      --------------   --------------
Provision for income taxes                       -                -
                                      --------------   --------------
Net income (loss)                      $  (145,343)     $  (309,332)
                                      ==============   ==============
Net income (loss) per common share,
 basic and diluted                     $     (0.08)     $     (0.16)
                                      ==============   ==============

Average common shares outstanding        1,936,364        1,936,364
                                      ==============   ==============


Financial Condition
                                    March 31, 2002   December 31, 2001
                                    --------------   -----------------
                                     (unaudited)         (audited)

Current assets                       $ 2,430,530        $ 2,086,594
Property, plant and equipment, net     3,472,217          3,491,349
Other assets                              50,293             50,293
                                    --------------   -----------------
   Total assets                      $ 5,953,040        $ 5,628,236
                                    ==============   =================

Current liabilities                    1,850,360          1,859,944
Long-term liabilities                  1,150,320            670,591
Shareholders' equity                   2,952,360          3,097,701
                                    --------------   -----------------
   Total liabilities and
    shareholders' equity             $ 5,953,040        $ 5,628,236
                                    ==============   =================