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

FOR IMMEDIATE RELEASE

Houston / Kemah, Texas – March 18, 2008 Hammonds Industries, Inc. (OTCBB: HMDI) Ms. Sherry Couturier, Chief Financial Officer of Hammonds Industries, Inc., a subsidiary of American International Industries, Inc. (NasdaqCM: AMIN), said that the Company reported record revenues of $10,096,538 for the twelve months ended December 31, 2007, compared to $6,467,393 in the prior year, an increase of approximately 56%. Increasing demand for Hammonds Water Treatment products and Hammonds Technical Services’ transport mounted injection systems is driving the increase in revenues.  Hammonds Water Treatment revenues increased by $1,113,616, or 54%, and Hammonds Technical Services revenues increased by $2,608,935, or 82%. Carl Hammonds, Founder and President of Hammonds, stated that "Hammonds is very well-positioned to take advantage of increasing demand for Hammonds’ innovative products and experience unprecedented growth. The infusion of capital during the past 18 months has allowed us to invest in the infrastructure and machinery that will serve as a platform to increase Hammonds’ manufacturing capability." Hammonds’ backlog of orders was $3.7 million at December 31, 2007. This backlog, as well as the increasing acceptance of our existing products and prospects for introduction of our technology in new markets, has the Company on track for substantial revenue growth for 2008 and 2009. Recent fuel cost increases have resulted in increased demand for injector technologies to achieve fuel economies. Also, recent acceptance of our ODV® by The Boeing Company and the U.S. Army present the potential for significantly increasing demand for our materials handling and aircraft positioning equipment.

During 2007, we made significant improvements to our financial position. Working capital increased by $905,695, or 52%, to $2,660,254 at December 31, 2007 compared to $1,754,559 at December 31, 2006. Our total assets at December 31, 2007 and 2006 were $10,815,238 and $10,384,397, respectively. Our long-term liabilities decreased by $1,358,446, or 28%, to $3,539,860 at December 31, 2007 compared to $4,898,306 at December 31, 2006.  During 2007, the note payable to our parent was reduced by $1,336,416. Stockholders’ equity increased by $1,914,189, or 50%, to $5,772,546 at December 31, 2007 compared to $3,858,357 at December 31, 2006.

Margins for the year ended December 31, 2007 increased to 22.2% of revenues compared to 17.5% of revenues for the year ended December 31, 2006. Margins are anticipated to continue to increase during 2008 as a percentage of revenues, as a result of improved absorption of fixed costs over an increasing revenue base and manufacturing efficiencies resulting from new, more efficient equipment and production techniques.

In 2007, selling, general and administrative expenses decreased to 43.0% of revenues compared to 51.2% of revenues in 2006. Selling, general and administrative expenses increased by $1,032,278 in 2007, primarily due to non-cash expenses, including stock based compensation issued to officers and key employees of $469,600 and increased depreciation and amortization expense of $201,273.

Our operating loss decreased to $2,107,035 in 2007 compared to $2,180,792 in 2006. Excluding non-cash expenses, our operating loss improved by $744,630, or 48%, from $1,553,292 in 2006 to $808,662 in 2007. Our 2007 and 2006 operating loss was mainly attributable to costs of manufacturing, including manufacturing components and direct and indirect labor costs for the production of Hammonds’ new line of ODVs®, injector systems and water purification systems. We expect that our operating loss will decrease with the anticipated growth in revenues and reduced expenses associated with research and development as a percentage of revenues.

Other income / loss for the Company in 2007 includes interest expense of $436,325 and a non-cash finance expense associated with the issuance and sale of Series A, B and C Convertible Preferred Stock of $386,334.

Our net loss was $2,671,904 in 2007 and $2,446,563 in 2006. Excluding non-cash items, our net loss improved by $661,887, or 36% from $1,819,063 in 2006 to $1,157,176 in 2007.

For more detailed information, please refer to our December 31, 2007 Form 10-K filing with the SEC on March 18, 2008.

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.