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

FOR IMMEDIATE RELEASE

Houston / Kemah, Texas – May 16, 2008 American International Industries, Inc. (NasdaqCM: AMIN) American International Industries, Inc. (the "Company"), reported revenues of $5,716,062 for the three months ended March 31, 2008, compared to $6,612,570 for the same period in the prior year, primarily due to the reduction in revenues of Delta Seaboard and NPI. Hammonds Industries, Inc., a subsidiary of American International Industries, Inc. reported record revenues of $2,205,157 for the three months ended March 31, 2008, compared to $1,619,399 in the prior year, an increase of $585,758, or 36%. The increase in revenues was due to higher demand for Hammonds Water Treatment products and increased sales of Hammonds Technical Services’ transport mounted injection systems and Hammonds’ line of Omni Directional Vehicles (ODVs®).  Hammonds Water Treatment revenues increased by $120,779, or 18%, and Hammonds Technical Services revenues increased by $501,389, or 77%.  In addition, Hammonds projected backlog of orders is $4.2 million as of March 31, 2008. The backlog is principally comprised of orders for injectors and skids. 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.

NPI reported revenues of $1,427,956 for the three months ended March 31, 2008, compared to $2,332,925 for the same period in 2007.  The decline in revenues of $904,969 is due to an overstock position from the 2007 holiday season from one large customer and an order for another large customer that was expected for the first quarter, but was delayed to the second quarter because the shipping vessel was overbooked.  Sales under the MOTOR TREND® and Good Choice® programs have remained steady or grown slightly during the first quarter.  A new 2008 "big box" customer has been ordering consistently and NPI received its first order from another new 2008 "big box" customer in the second quarter, which is ahead of NPI's forecast.  NPI's business is seasonal and historically, most of NPI’s revenues have been generated in the third and fourth quarters.  NPI is targeting one or two additional large accounts and adding more mid-size accounts. 

Delta reported revenues of $2,082,949 for the three months ended March 31, 2008, compared to $2,660,246 for the same period in 2007, or a decrease of $577,297.  Pipe sales revenues were $1,095,661 for the three months ended March 31, 2008, compared to $1,446,064 for the same period in 2007, representing a decrease of $350,403, or 24%.  This decrease is primarily due to two of Delta's larger pipe customers completing their drilling programs and selling their production at the end of 2007.  Delta is hopeful that these two companies will develop new drilling programs and pipe sales will begin to increase in the second or third quarter of 2008.  Rig service revenues for the first quarter of 2008 were $987,289, compared to $1,214,182 for the same period in 2007, representing a decrease of $226,893, or 19%.  This decrease is due to a rig being taken out of service for extensive maintenance in February.  Delta anticipates putting the rig back into service and will activate a seventh well service rig on or about May 15, 2008.

Excluding non-cash expenses, our net loss was $1,362,829 in the first quarter of 2008, compared to $771,891 for the three months ended March 31, 2008. Net loss was $3,180,812 in the first quarter of 2008, compared to $1,292,900 in the same period in 2007.  Our net loss of $3,180,812 included non-cash expenses of $1,817,983, including unrealized losses on the sale of trading securities of $1,304,853, depreciation and amortization of $339,097, and non-cash compensation of $174,033.  The net unrealized loss on trading securities of $1,304,853 was due primarily to declines in the market values of our investments in OI Corporation and Rubicon Financial Incorporated of $1,191,080.  Our net loss of $1,292,900 for the three months ended March 31, 2007 included non-cash expenses of $521,009, including compensation of $243,460 and depreciation and amortization expenses of $277,549.

American International Industries, Inc. is a growing diversified holding company with a business model emphasis on enhancing assets and stockholders’ equity to facilitate substantial future revenues and earnings per share. Ms. Sherry Couturier, Chief Financial Officer, stated "to that end, during the past five years, the Company has increased assets to $41,298,660 at March 31, 2008, or an increase of $30,131,511, or 270%, from $11,167,149 at December 31, 2002; the Company has increased stockholders’ equity to $24,236,786 at March 31, 2008, or an increase of $16,113,059, or 198%, from $8,123,727 at December 31, 2002."

For more detailed information, please refer to our March 31, 2008 Form 10-Q filing with the SEC on May 15, 2008.