AMERICAN INTERNATIONAL INDUSTRIES, INC.
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.americanii.com email: firstname.lastname@example.org
FOR IMMEDIATE RELEASE
AMERICAN INTERNATIONAL INDUSTRIES, INC.
TO ACQUIRE CONTROLLING INTEREST IN A
Kemah, Texas Ė March 28, 2005 American International Industries, Inc. (OTCBB: AMIN) today announced that it has signed a non-binding agreement to acquire a 51% equity interest in a refinery from International TransOil Corporation, Houston, TX, in exchange for cash and a $6,000,000 revolving credit facility.
The refinery is located is located on 57 acres near Nixon, Texas. It was built to provide military jet fuel to the US military and reached its maximum output of 18,000 bbl/d during the Gulf War in 1991. The refinery has 130,000 bbls of crude oil storage capacity and 260,000 bbls of refined product storage capacity.
A national pipeline is nearby for facilitate the refineryís trade and transport of refined product and because the refinery is near San Antonio, Houston and Corpus Christi, there are substantial low-sulphur crude available from local Texas sources.
The cash and credit line provided by AMIN will be used to upgrade and improve the refinery and will result in increased refinery capacity. Following the upgrade and improvement it is expected that the refinery will commence production at approximately 10,000 bbls per day. AMIN estimates annual revenues of approximately $150,000,000 from the refinery commencing in 2006 based upon current market prices..
The refinery was built in the early 1980ís and it has been represented to AMIN that the refinery compliesd with all EPA and OSHA laws and regulations and has had an impeccable environmental track record. Most recently, a phase one and phase two environmental site assessments have been completed. AMIN is conducting due diligence as a condition to closing.
American International Industries, Inc. believes that with this acquisition, it is well-positioned to participate in the increasing demand for refinery capacity. We expect that due to current and future supply and demand factors in the refinery market, that this acquisition will significantly increase AMINís revenues and net income in 2006. It is AMINís plan to make additional acquisitions of refineries and of other companies in the energy sector.
AMIN is a diversified corporation with interests in industrial companies, oil and gas service companies, and interests in real estate principally in the Houston area. AMINís business strategy is to acquire controlling equity interests in undervalued companies in which it takes an active role to improve their growth potential by providing its subsidiaries with access to capital, levering synergies and its management expertise.
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 the Company's products and services, continued growth in the energy sector, increased levels of competition, new products and technology changes, the dependence upon adequate financing, third party suppliers and the ability to hire and retain qualified management for its operating subsidiaries intellectual property rights, the rules of regulatory authorities and risks associated with any 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.
Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: email@example.com