AMERICAN INTERNATIONAL INDUSTRIES, INC.
(NasdaqCM: "AMIN")
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.americanii.com email: amin@americanii.com
FOR IMMEDIATE RELEASE
AMERICAN INTERNATIONAL INDUSTRIES, INC.
ANNOUNCES UPDATE ON
STOCK REPURCHASE PROGRAM
Houston / Kemah, Texas – February 9, 2009 Mr. Daniel Dror, Chairman and CEO of American International Industries, Inc. (NasdaqCM: AMIN), announced today that the Company has been actively repurchasing shares of its common stock under the repurchase program previously announced. To date, the Company has purchased approximately 60,000 shares under this plan and will continue to repurchase shares, as the Board of Directors believes that the price of the Company’s common stock is not a valid reflection of the underlying value of its shares. The Company is limited in its ability to purchase its own shares, due to regulation of stock repurchase programs under the Federal Securities Laws related to volume, price and timing of purchases, and because the Company’s shares are thinly traded.
The Company believes that the deconsolidation of HMDI from AMIN will unlock and highlight the value of its three remaining subsidiaries, which is not currently reflected in the price of the Company’s common stock. AMIN shareholders of record as of the close of business on Wednesday, December 31, 2008, will be issued two shares of Hammonds Industries, Inc. (OTCBB: HMDI) common stock (free-trading to non-affiliates) for each share of AMIN common stock owned and held on the record date. The shares of HMDI common stock will be issued on or about Wednesday, February 25, 2009. The difference between the current market value and the book value of the dividend shares resulted in a gain on disposition of approximately $4.9 million for the Company for the year ended December 31, 2008. This distribution of HMDI common stock was a key component to effect the deconsolidation of HMDI from AMIN, previously announced on January 5, 2009. The Company will recognize a substantial gain from deconsolidation. The net loss from operations of Hammonds for the year ended December 31, 2008, offset by the gain from deconsolidation, will be reflected as approximately $10.4 million, or $1.33 per share, in net income from discontinued operations for the year ended December 31, 2008 in the Company’s financial statements.
American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and Real Estate in Houston Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary’s access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.
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 acceptance of our products and services, continued growth in the energy sector, increased levels of competition, the dependence upon adequate financing, third party suppliers and the ability to hire and retain qualified management for its operating subsidiaries, and the regulatory environment in the segments in which we operate. 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.
Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com