LOS ANGELES, Aug. 14 /PRNewswire-FirstCall/ -- AVP, Inc. (OTC Bulletin Board: AVPI), a lifestyle sports entertainment company focused on professional beach volleyball, today announced financial results for its 2008 second quarter ended June 30, 2008.



    Second Quarter 2008 Highlights:
    *  AVP CROCS TOUR -- AVP, Inc. kicked off the 25th season of the AVP Crocs
       Tour, the flagship property of AVP, Inc. The summer-long 18-stop tour
       brings the world's greatest beach volleyball athletes and competition
       to cities across the country.
    *  Finalized five-year partnership extension with Wilson Sporting Goods
       Co. to continue as the exclusive official game ball of the AVP Pro
       Beach Volleyball Tour.

For the six months ended June 30, 2008, the Company reported revenue of $8.8 million, compared to the $11.0 million reported for the same period in 2007. Net loss for the six months of 2008 was ($3.2 million), or a loss of ($0.16) per share, as compared to a net loss of ($1.2 million), or ($0.06) per share, for the same period last year. Included in the six month net loss of 2008 were a one time charge of $0.3 million related to a third-party service provider and $0.4 million of non-cash transactions related to share based payments for employee option grants.

"The AVP is focused on continuing to build our brand, the fan experience and increasing value to our shareholders," said Leonard Armato, Chief Executive Officer of AVP, Inc. "We were very pleased with the outcome of the NBC Sports broadcasts of our finals. We have such a strong fan base across the country, we would like to thank our supporters for their attendance and look forward to sharing our sport and bring the world's best beach volleyball to our fans and spectators."

"We are confident the performance of our athletes in the Olympic Games will serve as a catalyst for our sport as we continue the summer-long AVP Crocs Tour. We look forward with great anticipation to our flagship event, the historic Manhattan Beach Open in September and also, to the second year of the Hot Winter Nights Tour."

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. At the 2004 Athens Olympics, AVP athletes representing the United States won gold and bronze. The medals were the first won by the U.S. women in professional beach volleyball, and the 2007 World Champions in each gender are AVP athletes. 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)
                                                  June 30,        December 31,
                                                    2008              2007
    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents                  $1,468,212        $2,257,453
      Accounts receivable, net of allowance for
       doubtful accounts of $252,347 and
       $149,748                                   3,283,899         2,008,253
      Prepaid expenses                              823,631           388,649
      Other current assets                           38,882           116,393
      TOTAL CURRENT ASSETS                        5,614,624         4,770,748

    PROPERTY AND EQUIPMENT, net                     438,501           392,447

    OTHER ASSETS                                     42,562           115,496

      TOTAL ASSETS                               $6,095,687        $5,278,691

    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
    CURRENT LIABILITIES
      Accounts payable                           $1,439,047          $908,020
      Accrued expenses                            2,495,424         1,663,975
      Deferred revenue                            2,470,435           101,245
      TOTAL CURRENT LIABILITIES                   6,404,906         2,673,240

    NON-CURRENT LIABILITIES                          69,857            96,419

      TOTAL LIABILITIES                           6,474,763         2,769,659

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY (DEFICIT)

      Preferred stock, 2,000,000 shares authorized:

      Series B convertible preferred stock,
       $.001 par value, 250,000 shares authorized,
       44,944 and 47,152 shares issued and
       outstanding                                       46                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                 40,085,313        39,732,837

      Accumulated deficit                       (40,485,525)      (37,244,343)

      TOTAL STOCKHOLDERS' EQUITY (DEFICIT)         (379,076)        2,509,032

      TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY (DEFICIT)                          $6,095,687        $5,278,691


                                   AVP, INC
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                  (Unaudited)
                        Three Months Ended June 30,  Six Months Ended June 30,
                                2008        2007        2008         2007
    REVENUE
      Sponsorships/
       Advertising           $6,192,498  $8,990,790   $7,068,018   $8,990,790
      Other                   1,635,636   1,857,611    1,751,106    2,026,611
      TOTAL REVENUE           7,828,134  10,848,401    8,819,124   11,017,401


    EVENT COST                5,716,951   7,185,169    6,761,185    7,237,468
      GROSS PROFIT            2,111,183   3,663,232    2,057,939    3,779,933

    OPERATING EXPENSES
      Sales and marketing (1)   800,109     862,503    2,071,764    1,738,216
      Administrative (2)      1,570,616   1,958,237    3,241,329    3,404,540
      TOTAL OPERATING
       EXPENSES               2,370,725   2,820,740    5,313,093    5,142,756

      OPERATING INCOME (LOSS)  (259,542)    842,492   (3,255,154)  (1,362,823)

    OTHER INCOME (EXPENSE)
      Interest income             6,014      57,520       17,203      113,977
      Gain on sale of asset       3,500       1,325        3,500        9,774
      Foreign exchange loss      (5,581)        -         (5,581)         -
      TOTAL OTHER INCOME          3,933      58,845       15,122      123,751

      INCOME (LOSS) BEFORE
       INCOME TAXES            (255,609)    901,337   (3,240,032)  (1,239,072)

    INCOME TAXES                    -           -         (1,150)        (800)

      NET INCOME (LOSS)       $(255,609)   $901,337  $(3,241,182) $(1,239,872)

    Earnings (loss) per common
     share:
      Basic                      $(0.01)      $0.05       $(0.16)      $(0.06)
      Diluted                    $(0.01)      $0.03       $(0.16)      $(0.06)

    Shares used in computing
     earnings (loss) per
     share:
      Basic                  21,089,626  19,960,250   20,812,392   19,872,269
      Diluted                21,089,626  27,596,052   20,812,392   19,872,269

    (1)  Sales and marketing expenses includes stock-based expenses of $18,182
         and $9,313 for the three months ended June 30, 2008 and 2007,
         respectively, and $36,364 and $82,220 for the six moths ended
         June 30, 2008 and 2007, respectively.

    (2)  Administrative expenses includes stock-based expenses of $150,051 and
         $21,596 for the three months ended June 30, 2008 and 2007,
         respectively, and $353,074 and $42,956 for the six months ended
         June 30, 2008 and 2007, respectively.

SOURCE AVP, Inc.