American Stone Reports Improved Results for Full Year 2000.

Business Editors

AMHERST, Ohio--(BUSINESS WIRE)--Feb. 23, 2001

American Stone Industries, Inc. (OTCBB:AMST), a supplier of building stone products, reported net income of $174,317, or $0.09 per common share, assuming dilution, for the 12 months ended December 31, 2000. The results represent a significant turnaround from the net loss of $411,334, or $0.24 per share, reported a year ago. Sales for the year increased 10% to $3,778,681 from $3,439,798 in 1999. The sales gain was due to increased shipments of cut stone, primarily for a building project at Oberlin College, along with higher sales of slab stone, petroleum cores and standard products.

Due to the seasonal nature of the Company's business, the fourth quarter is normally the weakest of the year. American Stone reported a net loss of $20,031, or $0.01 per common share for the fourth quarter of 2000, compared with a net loss of $213,219, or $0.12 per share, a year ago. The 1999 results included a non-cash charge of $141,000 to account for the closing of the Company's Canadian office and a $20,000 charge for bad debt. Net sales for the fourth quarter of 2000 were $1,053,653, a 23% increase over 1999 net sales of $857,571. The improvement was due to higher sales of architectural stone, slab stone, petroleum cores and standard products.

Gross profit improved substantially over 1999 for both the full-year and latest three-month period. This was a result of manufacturing efficiencies, better pricing and a focus on higher-margin business. Selling and administrative expenses in 2000 were slightly below the prior year, due in large part to the positive effect of closing the Canadian office in late 1999. The Company increased selling and administrative expenses in the fourth quarter of 2000 for investments in new marketing resources as part of its growth strategy for 2001.

Interest expense fell 16% in the fourth quarter as a result of a substantial reduction in the line of credit during the third quarter. The Company used a portion of the proceeds from a previously disclosed $900,000 private placement of common stock to pay down the line of credit. Subsequent to year-end, the Company refinanced most of its long-term debt and negotiated a new $500,000 line of credit with Dollar Bank.

"I am proud of what we accomplished in 2000," said Jim Rallo, president and chief executive officer. "We said last year that we would return the Company to profitability by focusing on higher-margin products and improving operations, customer service and cash management. Thanks to the hard work of our employees, we accomplished virtually everything we set out to do.

"We intend to continue the progress in 2001," he said. "The private placement and new, lower line of credit put us on a more solid financial footing. We expect to grow sales at a faster rate in 2001 than we did last year and continue to improve our margins. We have specific plans in place to increase sales in each of our core markets. These plans include new marketing resources, an expanded sales force, new landscaping products, and having bigger inventories of stock products in place for the spring and summer selling season. Assuming the economy remains reasonably healthy, we look for a good year."

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. American Stone Industries' 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. The statements "intend to continue the progress into 2001," "expect to grow sales at a faster rate than we did last year while continuing to improve our margins," and "look for a good year" are forward-looking in nature. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, trends in the building construction industry, actions by competitors, equipment and operational problems, and changes in relationships with major customers or in the financial condition of those customers. Other risks include the adequacy of the Company's financial resources and general economic, business and market conditions. 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

                   Three Months Ended          12 Months Ended
Operations:    Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 1999
               ------------- ------------- ------------- -------------

Sales            $ 1,053,653  $   857,571   $ 3,778,681  $ 3,439,798
Cost of goods
 sold                734,545      716,231     2,647,865    2,754,424
                 -----------  -----------   -----------  -----------
Gross profit         319,108      141,340     1,130,816      685,374
Loss from closing
 Tyrrell Stone
 Design, Ltd.           --        140,895          --        140,895
Selling and
 administrative
 expenses            318,354      182,914       841,928      851,853
                 -----------  -----------   -----------  -----------
                     318,354      323,809       841,928      992,748
                 -----------  -----------   -----------  -----------

Income (loss)
 from operations         754     (182,469)      288,888     (307,374)
                 -----------  -----------   -----------  -----------
Other income
 (expense):
  Interest income      5,539          606        12,710        2,308
  Interest expense   (26,324)     (31,356)     (127,281)    (106,268)
                 -----------  -----------   -----------  -----------
     Total           (20,785)     (30,750)     (114,571)    (103,960)
                 -----------  -----------   -----------  -----------

Net income (loss)
 before provision
 for income taxes    (20,031)    (213,219)      174,317     (411,334)
Provision for
 income taxes           --           --            --           --
                 -----------  -----------   -----------  -----------
Net income (loss) $  (20,031) $  (213,219)  $   174,317  $  (411,334)
                 ===========  ===========   ===========  ===========
Net income (loss)
 per common share:
   Basic               (0.01)       (0.12)         0.10        (0.24)
                 ===========  ===========   ===========  ===========
   Diluted             (0.01)       (0.12)         0.09        (0.24)
                 ===========  ===========   ===========  ===========

Average common
 shares outstanding:
   Basic           1,936,364    1,723,364     1,831,350    1,716,652
   Diluted         1,936,364    1,723,364     1,857,708    1,716,652



Financial Condition:                      Dec. 31, 2000 Dec. 31, 1999
                                          ------------- -------------

Current assets                              $ 1,954,186  $ 1,690,139
Property, plant and equipment, net            3,351,817    3,001,369
Other assets                                     52,596       54,932
                                            -----------  -----------
          Total assets                      $ 5,358,599  $ 4,746,440
                                            ===========  ===========

Current liabilities                         $ 1,327,838  $ 1,576,505
Long-term liabilities                           268,375      527,366
Stockholders' equity                          3,762,386    2,642,569
                                            -----------  -----------
          Total liabilities and
               stockholders' equity         $ 5,358,599  $ 4,746,440
                                            ===========  ===========