American Vanguard Announces Record First Quarter Sales And Earnings.

Business Editors

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--May 3, 2001

American Vanguard Corp. (AMEX:AVD) today reported record financial results for the first quarter ended March 31, 2001.

Net sales rose 26% to $14,863,300 compared to the first quarter of 2000. For the same period, EBITDA was up 56% to $2,061,100, while operating income increased 172% to $1,463,400. These figures included non-recurring income of $673,800, consisting of $208,300 from an insurance recovery and $465,500 from the sale of certain emission credits. Net income for the quarter rose to $597,700 or $.20 per diluted share from $77,700 or $.03 per diluted share in the first quarter of last year.

Eric Wintemute, President and CEO of American Vanguard, stated, "During the first quarter, historically our weakest period, we achieved impressive sales levels in the product lines we acquired last year. Business from our two corn soil insecticide products, Fortress(R) and Aztec(R) 4.67G, nearly doubled from the first quarter of last year. Additionally, we are pleased with the demand we are experiencing for Dacthal(R) since receiving approval for sale in the U.S. Due to a change in product mix, our margins for the quarter were lower."

Mr. Wintemute continued, "The acquisition of the DuPont manufacturing facility is progressing, and we anticipate completion within the next few weeks. This facility is an important addition as it will substantially expand our production capacity and flexibility."

Commenting on the outlook for the Company, Mr. Wintemute said, "We maintain our previously announced expectations for fiscal 2001 for sales to increase more than 10% over the 2000 level, and net income to rise at a faster rate. We remain focused on further expansion via product line acquisitions, a number of which we believe are available in our consolidating industry. Recent examples of this consolidation include the sale of the agricultural business of Rohm & Haas to Dow AgroSciences and the probable spin-off of the Aventis Ag-Chem business. As a result, the environment for new product acquisitions continues to improve. Our strong financial position, with working capital of $35.8 million and shareholders' equity of $29.2 million or $10.19 per share(1), enables us to pursue this growth."

American Vanguard Corporation is a diversified specialty and agricultural products company. Its subsidiaries include AMVAC Chemical Corporation, which develops and markets safe and effective products for agricultural and commercial uses; GemChem, Inc., a national chemical distributor; AMVAC Chemical UK Ltd., the Company's UK office; Quimica Amvac De Mexico S.A. de C.V., the Company's Mexico office; and Environmental Mediation, Inc., an environmental consulting firm.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking information are estimates by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include weather conditions, changes in regulatory policy, and other risks as detailed from time to time in the Company's SEC reports and filings. Forward-looking statements in this release represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update forward-looking statements.

            American Vanguard Corporation and Subsidiaries
                   Consolidated Statements of Income
                              (Unaudited)

                                                Quarter        Quarter
                                                 Ended           Ended
                                                3/31/01        3/31/00

Net sales                                    $14,863,300   $11,785,800
Cost of sales                                  9,062,400     6,283,500
                                              ----------    ----------
 Gross profit                                  5,800,900     5,502,300

Settlement income                              ( 208,300)            -
   -
Gain on sale of emission credits               ( 465,500)            -
  -
Operating expenses                             5,011,300     4,965,100
                                              ----------    ----------

 Operating income                              1,463,400       537,200

Interest expense-net                             467,200       407,600
                                              ----------    ----------

 Income before income taxes                      996,200       129,600

Income tax expense                               398,500        51,900
                                              ----------    ----------

 Net income                                $     597,700   $    77,700
                                              ==========    ==========

Earnings per common share (1)              $         .21   $       .03
                                              ==========    ==========

Earnings per common share -
 assuming dilution (1)                     $         .20   $       .03
                                              ==========    ==========

Weighted average shares outstanding (1)        2,869,927     2,970,703
                                              ==========    ==========

Weighted average shares outstanding -
 assuming dilution (1)                         2,951,870     3,011,024
                                              ==========    ==========

(1) Retroactively restated to reflect a 10% common stock dividend distributed April 13, 2001 to common stockholders of record as of March 30, 2001.