601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077

Tel: (281) 334-9479 Fax: (281) 334-9508

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




Houston / Kemah, Texas – May 16, 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 $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, 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.

Margins for the three months ended March 31, 2008 increased to 20% of revenues compared to 10% of revenues for the three months ended March 31, 2007. 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.

For the three months ended March 31, 2008, selling, general and administrative expenses decreased to 51% of revenues compared to 53% of revenues for the same period in the prior year. Selling, general and administrative expenses were $1,127,100 for the three months ended March 31, 2008 compared to $864,719 for the three months ended March 31, 2007. The increase was primarily due to expenses associated with sales promotion for Hammonds' line of ODVs®.

Our loss from operations decreased by $23,966 for the three month period ended March 31, 2008 to $686,595 compared to an operating loss of $710,561 for the same period of the prior year.  Operating expenses include non-cash items, such as depreciation, amortization, and stock based compensation.  Excluding non-cash expenses, our operating loss improved by $77,365, or 15%, to $429,020 for the three months ended March 31, 2008, compared to $506,385 for the same period of the prior year. We expect that our operating loss will continue to decrease with the anticipated growth in revenues and reduced expenses associated with research and development as a percentage of revenues.

Our net loss decreased by $47,308, or 6%, to $798,559 for the three month period ended March 31, 2008, compared to a net loss of $845,867 for the three month period ended March 31, 2007.

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

About Hammonds Industries

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.

For more information about HMDI, contact Rebekah Ruthstrom at 281-334-9479 or e-mail amin@americanii.com.

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.