American Vanguard Corporation Announces Fourth Quarter and Year End 1998 Results.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 31, 1999--

Company Declares $.06 Per Share Cash Dividend

American Vanguard Corp. (ASE:AVD) today announced results for the fourth quarter and year ended December 31, 1998. The Company also announced that its Board of Directors has declared a cash dividend of $.06 per share which will be distributed on April 19, 1999 to stockholders of record at the close of business on April 8, 1999. -0-

                   Quarter        Quarter         Year        Year
                     Ended          Ended         Ended       Ended
                   12/31/98       12/31/97     12/31/98    12/31/97

Net sales       $26,994,800 $   24,567,400   $67,015,600  $ 67,700,500
Cost of sales    16,410,900     13,952,500    39,908,800    40,315,600
Gross profit     10,583,900     10,614,900    27,106,800    27,384,900
Operating
 expenses         8,028,100      7,172,700    23,016,100    21,649,100
Settlement
 (income)
 /expense        (1,067,700)       412,300    (1,067,700)      951,000
Operating income  3,623,500      3,029,900     5,158,400     4,784,800
Interest expense
 - net              403,200        280,400     1,895,300     1,502,000
Income before
 income taxes     3,220,300      2,749,500     3,263,100     3,282,800
Income tax expense 1,119,500     1,034,200     1,136,600     1,258,100
Net income       $2,100,800 $    1,715,300   $ 2,126,500    $2,024,700
Basic and diluted
 net income per share $0.84  $        0.69   $      0.85    $     0.81
Weighted average
 number of
 shares           2,492,582      2,507,829     2,502,650     2,507,829

The fourth quarter continued to be the strongest quarter of the year again in 1998. Net sales for the fourth quarter increased 10% over 1997 levels to $26,994,800. Net income for the quarter increased 22% to $0.84 per share on a diluted basis due in part to settlement income of $1,067,700 related to an award rendered in favor of the Company.

For the full year, net sales were $67,015,600, as compared to $67,700,500 for the previous year. For the full year, net income increased from $2,024,700 or $0.81 per share in 1997 to $2,126,500 or $0.85 per share in 1998. Higher operating costs were incurred for field development in an effort to discover further markets for the Company's products, an effort begun in 1997. In addition the Company invested in additional organization to support two new products for 1999 and expand sales of the Company's existing products through a new subsidiary in Mexico.

Eric Wintemute, President and CEO of American Vanguard, commented, "I am pleased to report that the Company maintained its revenue base in what was a very challenging year for the agricultural industry. Looking forward to 1999, we expect good growth in revenue and earnings with the investments we have made in new products and organization. In 1999 the pattern of stronger second half sales will be accentuated by the acquisition of the DiBrom(R) business from Valent; however, we are confident that the move from contract manufacturing to becoming the manufacturer and marketer of DiBrom(R) will add to the marketing presence and profitability of the Company."

Mr. Wintemute added, "We continue to pursue our strategy to become a global company focused on niche agricultural products. We seek to acquire niche products from multinational research companies that are divesting mature products to focus their available resources on new molecules from their research and development pipeline."

Mr. Wintemute concluded, "In light of our favorable outlook for 1999, we are pleased to be paying our shareholders the fourth consecutive cash dividend, $.06 per share, on April 19th."

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 Mexican 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.