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American Vantage Companies Announces Fiscal Year Results

31 October 2000

LAS VEGAS--(Press Release)--Oct. 30, 2000--American Vantage Companies (Nasdaq:AVCS) announced today the results of its operations for the fiscal year ended July 31, 2000 (``Fiscal 2000'').

Revenues for Fiscal 2000 decreased due to the premature termination by the Table Mountain Tribe (``Tribe'') of agreements the Company had for providing consulting services to the Table Mountain Casino. The Company previously filed a lawsuit against the Tribe to recover damages as a result of the termination and the Tribe had filed a counter claim against the Company.

In September 2000, the lawsuit was dismissed from the U.S. District Court -- Eastern District of California for lack of subject matter jurisdiction and not based on the merits of the case. The Company intends to file a similar suit in the California Superior Court and will vigorously pursue its litigation against the Tribe to enforce the provisions of its contracts with the Tribe.

In Fiscal 2000, the Company recorded revenues of $589,000 as compared to revenues of $6,660,000 in the year ended July 31, 1999 (``Fiscal 1999''). Recruitment and Internet revenues in Fiscal 2000 were derived from the Company's new 80% owned subsidiary, Placement 2000.Com Inc. (``Placement 2000'').

Placement 2000 had been developing a website for a resume and job-posting database for information technology candidates as well as resume forwarding and recruitment ``split'' marketing websites. Placement 2000 also operates a traditional job recruitment business. Placement 2000 is in need of additional working capital.

The Company is considering its strategic alternatives with respect to this subsidiary but no final decision has been made. Revenues in Fiscal 1999 were composed of casino consulting fees.

During Fiscal 2000, the Company began a corporate restructuring to divest itself of its non-core assets. Although the restructuring has not been finalized, the Company intends to sell certain of its principal assets in order to provide additional cash resources sufficient to acquire, merge into or make an investment in an existing business or businesses. The Company is currently reviewing opportunities in order to maximize its resources.

The restructuring included the closure of the WCW Nitro Grill as of September 30, 2000. In connection with the closing of the restaurant, the Company incurred a $1,119,000 loss, net of income tax benefits. The loss included the operating losses during the phase-out of the restaurant in August and September 2000. Operating losses, net of income tax benefits, from the discontinued restaurant operation totaled $968,000 and $455,000 in Fiscal 2000 and Fiscal 1999, respectively.

The Company's net loss from continuing operations for Fiscal 2000 was $1,765,000 ($0.36 basic and diluted loss per share) and in Fiscal 1999 net income from continuing operations was $2,481,000 ($0.49 basic earnings per share and $0.47 diluted earnings per share). Net loss was $3,852,000 ($0.79 basic and diluted loss per share) and net income was $2,026,000 ($0.40 basic earnings per share and $0.38 diluted earnings per share) for Fiscal 2000 and Fiscal 1999, respectively.

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