601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077

Tel: (281) 334-9479 Fax: (281) 334-9508

www.americanii.com email: amin@americanii.com





Houston / Kemah, Texas – January 16, 2008 Hammonds Industries, Inc. (OTCBB: HMDI) Carl Hammonds, President of Hammonds Technical Services, Inc., a wholly owned subsidiary of Hammonds Industries Inc., has announced receipt of an initial purchase order from The Boeing Company (NYSE: BA) for four G-90 Series Omni Directional Vehicles (ODV®). The vehicles have a 90,000-pound towing capacity and will be utilized to handle materials and fixtures supporting the assembly of Boeing’s new 787 Dreamliner. The unique material handling capabilities of a Hammonds’ ODV® make it possible to position large, heavy objects with surgical precision in confined areas with limited maneuvering room. "We are extremely pleased that Boeing has chosen the Hammonds’ ODV® as a preference over other competitors to support this exciting project. We intend to work closely with Boeing engineers to provide a production tool ideally suited for the demanding task of commercial aircraft manufacturing. The Hammonds’ ODV® is a highly versatile vehicle that has been configured to handle aircraft, position large components, and used as a platform for snow management equipment. We intend to demonstrate to Boeing a variety of applications designed around the ODV® that will enhance the efficiency and safety of their material handling needs", reported Hammonds.

Hammonds has multiple United States and foreign patents awarded on the ODV® covering forklifts, high capacity pallet jacks, people movers, security vehicles, highway mowing machines, and terminal freight tractors. The Hammonds’ ODV® has been selected by both the United States Air Force and Army to position materials and aircraft. "Boeing’s choice further proves that we have a unique opportunity to bring exciting new technology to the industrial materials handling industry", said Mr. Hammonds. Hammonds will continue to introduce the ODV® to other facets of the industrial materials handling industry in addition to general and commercial aviation.

Dreamliner is a registered trademark of The Boeing Company.

ODV® is a registered trademark of Hammonds Technical Services, Inc.

About Hammonds Industries

Hammonds Industries, the premier provider of military aviation fuel additive systems, is revolutionizing material handling and airline towing systems with its Hammonds’ ODV® – the omni directional vehicle which easily tows heavy loads in any direction. Hammonds Industries has designed and manufactured specialized products, primarily for government, aviation and military customers for over 25 years. Founded in 1982, the company has a long-standing reputation for innovation. Hammonds’ products include patented systems for blending and injecting fuel additives, systems for blending water treatment chemicals, as well as fuel handling products. Hammonds is a subsidiary of American International Industries, Inc. (NasdaqCM: AMIN).

To view Hammonds’s products and for additional information about the company, please visit http://www.hammondscos.com, http://www.hammondsodv.com, and http://www.waterchlorination.com.

For more information about HMDI, contact Rebekah Ruthstrom at 281-334-9479 or e-mail amin@americanii.com.

Private Securities Litigation Reform Act Safe Harbor Statement:

The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include without limitations, continued value of our real estate portfolio, the strength of the real estate market in Houston, Texas as a whole, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof.