www.americanii.com - Email: amin@americanii.com

FOR IMMEDIATE RELEASE

Houston/Kemah, Texas – April 16, 2008 American International Industries, Inc. (NasdaqCM "AMIN") Mr. Daniel Dror, Chairman and CEO, announced today that the board of directors of American International Industries, Inc. has declared a special dividend of shares of common stock of its subsidiary, Hammond Industries, Inc. (OTCBB: "HMDI") to AMIN shareholders. AMIN shareholders of record as of the close of business on Monday, May 12, 2008 will be issued one share of 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 Tuesday, August 12, 2008.

Mr. Dror stated, "This stock dividend reflects the Board’s continued policy in creating and delivering value to its shareholders by providing a direct benefit to them in the future growth of HMDI. Further, it is our belief that this dividend will improve the liquidity of HMDI’s common stock by increasing the number of HMDI shareholders."

The Company owns approximately 24 million shares, or 48%, of Hammonds Industries, Inc. common stock at a book value of $1.8 million. The current market value of the Company’s ownership in HMDI is $10.1 million. The difference between the current market value and the book value of this dividend will result in a gain on disposition of approximately $2.4 million for the Company. After the distribution of the special dividend of approximately 7.1 million shares with a current market value of $3.0 million, the Company’s ownership will be approximately 34%. The Company will continue to consolidate Hammonds although its ownership is less than 51%, because the Company appoints the members of Hammonds' board of directors.

This special dividend is considered a property dividend rather than a stock dividend.

For additional information, please refer to our Form 8-K filed with the SEC on April 16, 2008.

Hammonds Industries, the premier provider of military aviation fuel additive systems, is revolutionizing patented 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 has been granted more than 20 United States and foreign patents on its products. Hammonds’ major customers include Arch Chemical, CSX Railroad, Exxon/Mobil, BP Aviation, Chevron/Texaco, Tomco, KopCoat, Boeing, Defense Energy Supply, Lafarge, and Lockheed Martin. In addition, Hammonds has been a long time supplier to all branches of the United States Military with on-going contracts to supply equipment to the U.S. Army. Hammonds continues to experience revenue growth with an expanding presence in multiple markets, sectors and industries. During the past three fiscal years, Hammonds’ revenues increased by 90% from 2005 to 2006 and by 56% from 2006 to 2007.

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.