American Vantage Cos. Reports Third Quarter Period Results.

LAS VEGAS & SANTA MONICA, Calif. -- American Vantage Cos. (Nasdaq: AVCS) today announced the results of its operations for the three and nine months ended Sept. 30, 2004, as well as other recent company developments.

For the three and nine months ended Sept. 30, 2004, the company's revenues totaled $5,646,000 and $14,341,000, respectively, and the company's net loss totaled $1,083,000 and $1,432,000. The comparable 2003 revenues totaled $433,000 and $899,000 and the company's net income totaled $264,000 and $108,000. The company's net loss for basic and diluted earnings per share for the three and nine months ended Sept. 30, 2004 was $(0.19) and $(0.25), compared to net income for basic and diluted earnings per share of $0.05 and $0.02 for the three and nine months ended Sept. 30, 2003.

Ronald J. Tassinari, chairman and CEO, said, "We have assembled assets that, based on prestigious film industry nominations and awards, box office receipts, publicity and television performance, have long-term value within the entertainment industry. To assist in best monetizing these assets, the company has retained Jefferies and Co. as its financial advisors to support the company in discussions regarding merger and acquisition activities, as well as to open new strategic alliance opportunities for the company. Although management is not yet satisfied with revenue levels generated from our operations, we are encouraged with their direction. The integration activities have resulted in an approximate $500,000 decrease in selling, general and administrative expenses between our second and third quarters of the current fiscal year. These ongoing integration activities will continue through calendar year 2004. Furthermore, revenue generated by our Wellspring subsidiary is expected to be strongest in the fourth quarter of each year."

American Vantage Media Corp. ("AVMC") Segment Highlights:

Filmed Entertainment

Through September 2004, the Filmed Entertainment segment has premiered seven cinematic releases: "Brown Bunny," "Red Lights," "Seducing Doctor Lewis," "29 Palms," "Crimson Gold," "Strayed" and "Father & Son." Released in October 2004, Jonathan Caouette's "Tarnation" has received an IFP Gotham Award nomination for Best Documentary Film and has also screened at the Director's Fortnight section of the 2004 Cannes Film Festival and at the 2004 Toronto International Film Festival.

The Filmed Entertainment division also derives DVD and VHS revenues from the distribution of its film library through catalog sales and to national and local retailers.

During the three months ended Sept. 30, 2004, the Filmed Entertainment division revenues totaled $5,458,000 with a net operating income of $830,000.

non-fiction films inc.

During September 2004, AVMC announced the launch of its documentary film label "non-fiction films." The first titles to be distributed in October 2004 include "In The Face of Evil: Reagan's War in Word and Deed," based upon Peter Schweizer's best-seller "Reagan's War," and "Going Upriver: The Long War of John Kerry," from award-winning documentary director George Butler.

Branded Content

During the three months ended Sept. 30, 2004, the Branded Content segment derived revenues primarily from completing its $1.2 million MasterCard agreement for development and production fees of a television program. For the three and nine months ended Sept. 30, 2004, the Branded Content division revenues totaled $113,000 and $1,918,000, respectively, with resulting operating losses of $174,000 and $277,000.

Film and TV Production

During the three months ended Sept. 30, 2004, the Film and TV Production segment derived revenues of $75,000 primarily from its overhead agreement with its studio partner and co-production fees generated from FOX Broadcasting's television series, "The O.C." Three new television pilots have also been ordered by network and satellite television broadcasters.

American Vantage Cos. -- Other Non-Operating Income -- Highlights:

Las Vegas Border Grill Restaurant

The Las Vegas Border Grill Restaurant recognized revenues of $1,942,000 for the three months ended Sept. 30, 2004, as compared to $1,658,000 for the three months ended Sept. 30, 2003. At July 1, 2004, the company's initial losses and investment in the Las Vegas Border Grill Restaurant were recovered resulting in future recognition of 49% of any gains or losses from the restaurant's operations. The company recognized income and received capital distributions totaling $157,000 and $184,000, respectively, from its unconsolidated investment in the Border Grill Restaurant for the three months ended Sept. 30, 2004.

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Such statements and all phases of American Vantage Cos.' operations are subject to known and unknown risks, uncertainties and other factors, including overall economic conditions and other factors and uncertainties as are identified in American Vantage Cos.' Form 10-KSB for the year ended July 31, 2003, Form 10-QSB for the quarter ended Oct. 31, 2003, transition Form 10-QSB for the two months ended Dec. 31, 2003, Forms 8-K and Forms 8-K/As (Dates of Forms 8-K and 8-K/A Reports: Dec. 31, 2003, Feb. 4, 2004, June 2, 2004 and Aug. 11, 2004) and Form 10-QSB for the quarter ended June 30, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. American Vantage Cos.' actual results, levels of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The company undertakes no obligation to update the forward-looking statements in this press release.

CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS (unaudited)

                         Three Months Ended       Nine Months Ended
                      ----------------------- ------------------------
                        Sept. 30,   Sept. 30,   Sept. 30,    Sept. 30,
                          2004        2003        2004         2003
                      ------------ ---------- ------------ -----------

Sales and services
 revenues              $5,646,000   $433,000  $14,341,000    $899,000
                      ============ ========== ============ ===========
Gross profit           $2,158,000   $180,000   $5,512,000    $453,000
                      ============ ========== ============ ===========
Selling, general and
 administrative        $4,018,000   $930,000  $11,985,000  $2,055,000
                      ============ ========== ============ ===========
Equity in income of
 unconsolidated
 investees, net          $385,000   $261,000   $1,206,000    $758,000
                      ============ ========== ============ ===========
Gain on sale of
 land                          $-         $-   $3,423,000          $-
                      ============ ========== ============ ===========
Net (loss) income     $(1,083,000)  $264,000  $(1,432,000)   $108,000
                      ============ ========== ============ ===========
Net (loss) income per
 common share -- basic
 and diluted               $(0.19)     $0.05       $(0.25)      $0.02
                      ============ ========== ============ ===========

Weighted average
 number of common
 shares and common
 share equivalents      5,824,107  5,690,667    5,741,995   5,373,432
                      ============ ========== ============ ===========



          CONSOLIDATED BALANCE SHEETS HIGHLIGHTS (unaudited)

                                               Sept. 30,     Dec.31,
                                                 2004         2003
                                             ------------ ------------

Cash and cash equivalents and restricted
 certificate of deposit                       $5,085,000   $8,628,000
                                             ============ ============
Accounts and other receivables, net           $5,482,000   $1,435,000
                                             ============ ============
Inventories                                   $1,217,000           $-
                                             ============ ============
Film inventory, net                          $12,778,000     $660,000
                                             ============ ============
Total assets                                 $32,670,000  $20,534,000
                                             ============ ============

Current liabilities                          $12,124,000   $2,625,000
                                             ============ ============
Notes payable - long-term                     $4,523,000     $523,000
                                             ============ ============
Total stockholders' equity                   $16,023,000  $17,386,000
                                             ============ ============