AVP, Inc. Announces 2008 Third Quarter Financial Results

LOS ANGELES, Nov. 13  /PRNewswire-FirstCall/ -- AVP, Inc. (OTC:AVPI) (BULLETIN BOARD: AVPI) , a lifestyle sports entertainment company focused on professional beach volleyball, today announced financial results for its 2008 third quarter ended September 30, 2008.

Third Quarter 2008 Highlights:

-- AVP CROCS TOUR -- Successfully completed the 25th season of AVP Inc.'s flagship property, the AVP Crocs Tour.  The summer-long tour season brings the world's best beach volleyball competition and entertainment to each of the 18 tour stops.  The tour in Q3 featured both the men's and women's 2008 Olympic gold medal winning teams.

-- NATIONAL TELEVISION BROADCASTS -- Two AVP Crocs Tour finals were featured on national network television.  Following the Olympics, NBC extended its coverage of Beach Volleyball airing the women's final of the AVP Crocs Cup Shootout presented by Bud Light Mason and the AVP's Flagship event, the AVP Crocs Cup Shootout presented by Bud Light Manhattan Beach Open women's final featured on FOX Sports.

For the three months ended September 30, 2008, the Company reported revenue of $14.0 million, compared to the $12.8 million reported for the same period in 2007.  Net loss for the third quarter of 2008 was ($0.04 million), or a loss of ($0.00) per share, as compared to a net loss of ($0.76 million), or ($0.04) per share, for the same period last year.

Net loss for the first nine months of 2008 was ($3.3 million), or a loss of ($0.15) per share, as compared to a net loss of ($2.0 million), or ($0.10) per share, for the same period last year.

"Throughout these trying economic times, we continue to maintain our focus on the growth and development of our sport and brand and sharpen our focus on increasing value to our shareholders," said Leonard Armato, Chief Executive Officer of AVP, Inc.  "We could not be more proud of the performance of our athletes this summer on the AVP Crocs Tour and in Beijing.  Without a doubt our athletes are instrumental in the continued growth, awareness, and success of our sport and we look forward to seeing many of our world class athletes continue to compete in the winter tour."

"As we prepare to extend our elite competition into the winter months for a second year of the AVP Johnsonville Hot Winter Nights Indoor Beach Volleyball Tour, we are sure this one-of-a-kind tour will provide a slice of our summer tour at each stop, something we are confident everyone will enjoy."

About AVP, Inc

AVP, Inc. is a leading lifestyle sports entertainment company focused on the production, marketing and distribution of professional beach volleyball events worldwide.  One of the fastest growing entities in the sports world, the AVP operates two of the industry's most prominent national outdoor touring series, the AVP Pro Beach Volleyball Tour (1983) and the AVP Hot Winter Nights Indoor Tour (launched in 2008).  The AVP is set to stage more than 35 events throughout the United States in 2008 and features more than 150 of the top men and women competitors in the sport.  AVP athletes won both the women's and men's gold medals at the 2008 Games in Beijing, marking the first sweep of Olympic beach volleyball gold medals by a single country.  AVP is headquartered in Los Angeles, Calif., and the company's stock trades under the symbol AVPI on the OTC Bulletin Board.  For more information, please visit http://www.avp.com/.

Forward Looking Statements

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company.  We wish to caution you that these statements involve risks and uncertainties and actual results might differ materially from those in the forward-looking statements, if we receive less sponsorship and advertising revenue than anticipated, or if attendance is adversely affected by unfavorable weather.  Event-related expenses, such as for the stadium, transportation and accommodations, or security might be greater than expected; or marketing or administrative costs might be increased by our hiring, not currently planned, of a particularly qualified prospect. Additional factors have been detailed in the Company's filings with the Securities and Exchange Commission, including our recent filings on Forms 10- KSB and 10-QSB.

                                   AVP, INC
                         CONSOLIDATED BALANCE SHEETS

                                              (Unaudited)
                                             September 30,      December 31,
                                                  2008              2007
  ASSETS
  CURRENT ASSETS
    Cash and cash equivalents                  $3,225,432        $2,257,453
    Accounts receivable, net of
     allowance for
     doubtful accounts of $251,756
     and $149,748                               5,108,785         2,008,253
    Prepaid expenses                              429,660           388,649
    Other current assets                           43,543           116,393
    TOTAL CURRENT ASSETS                        8,807,420         4,770,748

  PROPERTY AND EQUIPMENT, net                     384,232           392,447

  OTHER ASSETS                                     42,562           115,496

    TOTAL ASSETS                               $9,234,214        $5,278,691

  LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
    Accounts payable                           $3,421,529          $908,020
    Accrued expenses                            2,346,670         1,663,975
    Deferred revenue                              115,953           101,245
    TOTAL CURRENT LIABILITIES                   5,884,152         2,673,240

  OTHER NON-CURRENT LIABILITIES                   256,571            96,419

    TOTAL LIABILITIES                           6,140,723         2,769,659

  NOTE/RESTRICTED SHARES                        2,621,413               -

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY

    Preferred stock, 2,000,000 shares
     authorized:

      Series B convertible preferred
       stock, $.001 par value, 250,000
       shares authorized, 94,944 and
       47,152 shares issued and
       outstanding                                     96                48

    Common stock, $.001 par value,
     80,000,000 shares authorized,
     21,089,626 and 20,490,096 shares
     issued and outstanding                        21,090            20,490

    Additional paid-in capital                 40,979,914        39,732,837

    Accumulated deficit                       (40,529,022)      (37,244,343)

    TOTAL STOCKHOLDERS' EQUITY                    472,078         2,509,032

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                    $9,234,214        $5,278,691


                                                      -                 -



                                   AVP, INC
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (Unaudited)

                            Three Months Ended        Nine Months Ended
                               September 30,             September 30,
                             2008         2007         2008         2007

  REVENUE
    Sponsorships/
     Advertising (1)     $11,185,387  $10,228,458  $18,253,405  $19,219,248
    Other                  2,853,899    2,577,980    4,605,005    4,604,591
    TOTAL REVENUE         14,039,286   12,806,438   22,858,410   23,823,839


  EVENT COST              11,524,174   10,761,071   18,285,360   17,998,538
    GROSS PROFIT           2,515,112    2,045,367    4,573,050    5,825,301

  OPERATING EXPENSES
    Sales and marketing
     (2)                     868,221      919,872    2,939,985    2,658,089
    Administrative  (3)    1,636,953    1,919,833    4,878,281    5,324,373
    TOTAL OPERATING
     EXPENSES              2,505,174    2,839,705    7,818,266    7,982,462

    OPERATING INCOME
     (LOSS)                    9,938     (794,338)  (3,245,216)  (2,157,161)

  OTHER INCOME (EXPENSE)
    Interest expense             -           (745)         -           (745)
    Interest income              769       44,748       17,972      158,725
    Gain on disposal of
     asset                       -            -          3,500        9,774
    Foreign exchange
     loss                         14          -         (5,567)         -
    TOTAL OTHER INCOME           783       44,003       15,905      167,754

    INCOME (LOSS) BEFORE
     INCOME TAXES             10,721     (750,335)  (3,229,311)  (1,989,407)

  INCOME TAXES                (9,793)      (8,610)     (10,943)      (9,410)

    NET INCOME (LOSS)            928     (758,945)  (3,240,254)  (1,998,817)

  Deemed Dividend to
   Series B Preferred
   Stock Shareholders         44,425          -         44,425          -
  Net Loss Available to
   Common Shareholders      $(43,497)   $(758,945) $(3,284,679) $(1,998,817)

  Loss per common share:
    Basic                       $-         $(0.04)      $(0.15)      $(0.10)
    Diluted                     $-         $(0.04)      $(0.15)      $(0.10)

  Shares used in
   computing  loss per
   share:
    Basic                 22,151,979   20,443,269   21,262,181   20,064,693
    Diluted               22,151,979   20,443,269   21,262,181   20,064,693


  (1) Sponsorship/Advertising includes $0 and $507,800 in stock based
      contra-revenue for the three months ended September 30, 2008 and 2007,
      respectively and $0 and $507,800 for the nine months ended September
      30, 2008 and 2007, respectively.

  (2) Sales and marketing expenses includes stock-based expenses of $18,182
      and $19,045 for the three months ended September 30, 2008 and 2007,
      respectively, and $54,545 and $101,266 for the nine moths ended
      September 30, 2008 and 2007, respectively.

  (3) Administrative expenses includes stock-based expenses of $156,216 and
      $21,236 for the three months ended September 30, 2008 and 2007,
      respectively, and $552,009 and $64,192 for the nine months ended
      September 30, 2008 and 2007, respectively.


DATASOURCE: AVP, Inc.



CONTACT:  AVP, Inc. Investor Relations, [phone]; or media,

Crystal Fukumoto of Brener Zwikel & Associates, [phone],

, for AVP



Web site: http://www.avp.com/ 

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