American Stone Reports Second Quarter Results.

AMHERST, Ohio--(BUSINESS WIRE)--Aug. 5, 1999--

American Stone Industries, Inc. (OTC BB:AMST), a supplier of building stone products, reported net income of $52,293, or $.03 per share, on net sales of $1,037,324 for the second quarter of 1999, ended June 30, 1999. This compares with net income of $187,516, or $0.11 per share, in the second quarter of 1998, on net sales of $861,228. Net income in the year-ago quarter included a nonrecurring gain of $82,907, or $.05 per share, as a result of a statewide rebate from the Ohio Bureau of Workers' Compensation.

The 20% increase in sales was due primarily to production for several large commercial construction projects, including new buildings at Baldwin-Wallace College in Berea, Ohio, and Marist College in Poughkeepsie, N.Y., and restoration of Old City Hall in Toronto. Gross profit for the quarter decreased to 29% of sales compared with 36% in the comparable quarter of 1998, excluding the one-time gain. Problems with the installation of a new profile saw and new bridge saw accounted for the higher production costs in the current quarter.

Selling, general and administrative expenses continued to decline as a percentage of net sales, falling from 22% in the second quarter of 1998 to 21% in the latest quarter, due to higher sales volume. Interest expense for the quarter rose to $29,631 from $18,200 as a result of increased borrowings for the purchase of three new saws and for working capital.

For the first six months of the year, net income was $61,235, or $.04 per share, compared with $49,511, or $.03 per share in the prior-year period. Sales for the first six months increased 26% to $1,671,229 from $1,326,074 in 1998.

"The results for the quarter were not what we were projecting," said David Tyrrell, president and chief executive officer of American Stone. "We had to take out existing equipment to install the new Zambon saws in our No. 8 Mill, and we lost valuable production time when we encountered problems getting the new saws up and running. However, we believe the vendor has addressed the start-up issues with the saws, and we hope to make up some of the volume in the next few months."

He continued, "During the second quarter we completed work on the Marist College project, and we started production on stone for the new social sciences center and clock tower at Baldwin-Wallace College. We also picked up several new projects, and we continue to have a substantial backlog of work going into the second half of the year."

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 Tyrrell Stone Design, Ltd. American Stone Corporation owns and operates the Cleveland Quarries in Amherst, Ohio, one of the world's largest sandstone quarries. Tyrrell Stone Design provides design drawings to architects and acts as the Company's Canadian sales office. 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.

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This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, changes in local construction conditions and markets, actions by competitors and general economic conditions. Further information about these matters can be found in the information included in the annual report filed by the Company with the SEC on Form 10-KSB. -0-

                    AMERICAN STONE INDUSTRIES, INC.
                   CONSOLIDATED FINANCIAL HIGHLIGHTS

                    Three Months Ended          Six Months Ended
Operations:    June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
               --------------------------- ---------------------------
                 (Unaudited)  (Unaudited)   (Unaudited)   (Unaudited)

Sales            $ 1,037,324  $   861,228  $ 1,671,229  $ 1,326,074
Cost of goods sold   735,295      464,117    1,152,985      876,537
                 -----------  -----------  -----------  -----------
Gross profit         302,029      397,111      518,244      449,537
Selling and
 administrative
 expenses            220,660      192,002      404,393      369,596
                 -----------  -----------  -----------  -----------
Income (loss)
 from operations      81,369      205,109      113,851       79,941
Other income
 (expense)
  Interest income        555          607        1,702        1,573
  Interest expense   (29,631)     (18,200)     (54,318)     (32,003)
                 -----------  -----------  -----------  -----------
                     (29,076)     (17,593)     (52,616)     (30,430)
Net income (loss)
 before provision
 for income taxes     52,293      187,516       61,235       49,511
Provision for
 income taxes              0            0            0            0
Net income (loss)     52,293      187,516       61,235       49,511
Net income (loss)
 per common share
   Basic         $      0.03  $      0.11  $      0.04  $      0.03
                 -----------  -----------  -----------  -----------
                 -----------  -----------  -----------  -----------
   Diluted       $      0.03  $      0.11  $      0.04  $      0.03
                 -----------  -----------  -----------  -----------
                 -----------  -----------  -----------  -----------

Average common
 shares
 outstanding       1,716,364    1,631,364    1,716,364    1,631,364

Financial Condition:
                                    June 30, 1999  Dec. 31, 1998
                                    -------------  -------------
                                      (Unaudited)    (Audited)

Current assets                        $1,999,125    $1,859,851
Property, plant and equipment, net     2,996,579     2,652,704
Other assets                             201,947       200,855
                                      ----------    ----------
          Total assets                $5,197,651    $4,713,410
                                      ----------    ----------
                                      ----------    ----------

Current liabilities                   $1,522,124    $1,272,048
Long-term liabilities                    584,889       411,959
Stockholders' equity                   3,090,638     3,029,403
                                      ----------    ----------
          Total liabilities and
               stockholders' equity   $5,197,651    $4,713,410
                                      ----------    ----------
                                      ----------    ----------