Good day everyone and welcome to American Vanguard’s First Quarter 2008 Financial Result Conference Call. I would like to inform you that this conference is being recorded and that all participants are currently in listen-only mode. I will now turn the conference over to Bill Kuser, Director of Investor Relations. Please go ahead, sir.

Thank you very much Tanya and welcome everyone to the first quarter 2008 American Vanguard earnings review. Our principal speaker today will be Mr. Eric Wintemute, President and CEO of the Company, and Mr. David Johnson, our CFO, will contribute on financial matters. Before beginning, we should touch on the usual cautionary reminder. In today’s call, the Company may discuss forward-looking information. Such information and statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause the results to differ from management's current expectations. Such factors can include weather conditions, changes in regulatory policy and other risks as detailed in the Company’s SEC reports and filing. All forward-looking statements represent the Company’s best judgment as of the date of this call. With that said, let me turn the conference over to Eric.

Thank you, Bill. Good morning and good afternoon to everyone. Thank you all for joining us today to discuss American Vanguard’s first quarter 2008 performance. As we first indicated in our performance update on April 1st, we have faced some recent challenges due to weather conditions and rising raw material and transportation costs. We will discuss those items and further elaborate on the actions that we are taking to achieve solid performance for the remainder of the year. But first, I would like to introduce Mr. David Johnson, our new CFO to overview our first quarter financial performance. David?

Thank you, Eric. Good morning and good afternoon to everyone. As detailed in our press announcement, net sales ended at 40.9 million, which is flat compared to the same period last year. Driving this sales performance were strong sales from some of our recently acquired products and some of our established products. This includes: our Herbicide products, IMPACT and Avenge, which are doing well; our Fungicide products including PCNB, which continues to grow; and our newly acquired Orthene product line, which had a strong first quarter. Offsetting these performances: our sales of mosquito product line Dibrom were down; our Thimet insecticide product was slower than expected; and Weather in the Mid West Corn Belt affected sales of our corn soil insecticides. Most of our other product groups, our soil fumigants, our plant growth regulators, our animal health products and our broad spectrum insecticides, were at or marginally better than last year. On a pleasing note, we can report that our international sales development continues to progress and was up 42% compared to last year. Our gross margin is down for Q1 2008 at 43.5%. This compares with 45% for the same period last year. This includes increased raw material costs offset by well controlled manufacturing costs. In raw materials, we have seen escalation in some base raw material commodity pricing. Examples include Sulphur, which is up 400% and Phosphorus, which is up 100% since this time last year. Our manufacturing costs overall have been well controlled. Although direct labor costs increased by 4.9%, total manufacturing costs were 3.7% lower than last year. This cost saving has been driven by: various individually small cost saving initiatives including rental equipment, manufacturing supplies, use of outside services, use of temporary employees, and lower waste disposal costs, totaling $228,000; also maintenance costs were down…

Thank you, David. Now, I would like to tell you about a number of significant accomplishments, and the status of several important initiatives, which should allow us to achieve better performance in the future. As you recall, in the fourth quarter, we acquired two fungicide product lines from Chemtura Corporation, and the Orthene insecticide product line from Valent Corporation. We already manufacture and market the PCNB fungicide products that we acquired from Chemtura, and we expect to gain a much stronger position in the turf & ornamental and international markets as a result of the purchase. With Orthene, we will be strengthening our participation in soybeans, tobacco, vegetable and specialty markets, and broadening our existing product offering in the cotton market, in a way that may offset some of the declines we have seen as a result of acreage shifting from cotton to other crops. Both product lines had excellent performance in the first quarter and are expected to exceed planned forecasts over the next several quarters. These efforts demonstrate our ability to constantly strengthen and refresh our portfolio of high-value products designed to serve specialty niche markets. As we have indicated in recent conference calls and presentations, American Vanguard has positioned itself to participate significantly in the dynamic US corn market. In herbicides, insecticides, resistance management, and specialized applications equipment, we find ourselves with the right solutions to fulfill grower needs. Our herbicide, Impact has emerged as one of the most comprehensive products for combating “tough-to-control” weeds and grasses that have developed resistance to traditional glyphosate herbicide treatment. And just this last month, Monsanto Corporation received a label revision in its industry leading Roundup brand of glyphosate products, citing Impact as a complementary herbicide to fortify the effectiveness of Roundup. Impact is a product that can achieve significant additional…

(Operator Instructions). Our first question comes from Mike Judd with Greenwich Consultant. Please state your question.

Good noon. My question is, I guess with the wet weather in the Midwest, does that create opportunities for you guys in the second quarter with fungicide sales. And maybe you could try to flush that out a little bit for us?

We currently don't have, if you are talking about for the grain market and crop, we don’t have fungicides sales in those markets. So our fungicides participate with potatoes and in the turf market or golf course market, which is pretty big. And obviously the snowfall might lead to some advantage there, but predominately what we were talking about as an opportunity in second quarter is with the late planting a number of pre-emergent applications that would go down as herbicides might be curtailed, and therefore rely more heavily on post-emergent application of herbicides, which would affect our IMPACT sales.

Okay. And does IMPACT or what are the margins in IMPACT relative to the some of the pre-emergent herbicides? What -- can you help us understand that a little bit please?

When you say margins, do you mean our margins compared to others?

No. I guess this is an opportunity cost if -- in other words, sales that could have occurred in the first quarter that will occur in the second quarter, I am trying to get an understanding of what your sales could have been in the first quarter given normalized weather conditions. Whether those margins are higher or lower than potential, additional IMPACT sales in the second quarter.

So first quarter sales that we were expecting that didn't happen were more along the lines of our corn soil insecticides. And as I mentioned earlier, we are probably going to wind up flat to last year. And we don't anticipate a huge increase in our corn soil insecticides over last year. So I am not going to (inaudible) I mean, our profit margins that we have on our product lines, we don't break out by product. Sometime we have indicated this is around or average of our margins, IMPACT certainly fits in that or slightly above.

Okay. And with -- I mean I’m just trying to get a sense of the corn soil products are those above or below average profitability?

We have a couple that might be below our average and I think the rest are at or above.

Okay. So it didn’t sound like there is much of an impact here from the weather, basically?

Well, as it turns out as far as the corn soil insecticides, I think the demand, I mean the weather -- one aspect of it is that we are expecting that growers may be rushed and maybe try to plant as fast as they can, again they are less than half of where -- almost a third of where they should be right now in planted acreage. And that rush may lead for them to cut some of their activity and that might be putting down corn soil insecticides. That being said, we expect they also may feel rushed enough to not do their pre-emergent herbicide practice to the degree that might normally, which would have to lead to post-emergent corn soil, which would be our piece. So I think on the IMPACT side we are at this point expecting a pretty good year.

So, if I could just try to summarize this; I’m sorry to beat this to death. But what you might have missed out perhaps on the first quarter you will make up in the second quarter. Is that a good way of looking at it?

So insecticide…

Not the same product, but just the mix is different, the volumes are different, but whatever you might have lost in terms of opportunity in the March quarter you should make up in the June quarter with a different product mix?

That's correct.

Okay, thanks.

(Operator Instructions). There are no further questions. I will now turn the conference back to management.

Okay. I would like to thank everybody and look forward to updating you at our shareholders meeting, which I believe is scheduled for June 6th out here in beautiful sunny Southern California. Thank you very much.

Ladies and gentlemen, this concludes our conference for today. Thank you all for participating and have a nice day. All parties may now disconnect.