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

Houston / Kemah, Texas – May 17, 2010 American International Industries, Inc. (NasdaqCM: AMIN) reported that its loss before interest, taxes, depreciation and amortization (EBITDA) was $580,355, or $0.06 per share, for the three months ended March 31, 2010, compared to positive EBITDA for the three months ended March 31, 2009, of $331,710, or $0.04 per share. Gross margins for the three months ended March 31, 2010 were 29%, compared to 36% for the three months ended March 31, 2009. The primary reason for the decline in margins is due to a very soft market which resulted in low demand for pipe, and the sale of high-priced pipe from Delta’s inventory for almost cost. As a result, margins on pipe sales were 2% for the three months ended March 31, 2010, compared to 25% during the same period in the prior year. Margins on pipe sales improved near the end of the three months ended March 31, 2010, and we expect a substantial improvement for the rest of the year, primarily due to sales of lower-priced pipe remaining in inventory. Our loss was $1,104,409, or $0.12 per share, for the three months ended March 31, 2010, compared to $193,139, or $0.02 per share, for the three months ended March 31, 2009. Our loss for the three months ended March 31, 2010 included interest expense, taxes, and depreciation and amortization of $220,516, $16,212, and $287,326, respectively. Our loss for the three months ended March 31, 2009 included interest expense, taxes, and depreciation and amortization of $218,608, $12,684, and $293,557, respectively.

For the three months ended March 31, 2010, revenues were $4,996,513, compared to $6,195,014 for the three months ended March 31, 2009. During the three months ended March 31, 2010, Delta had revenues of $2,238,658, compared to $2,463,911 during the three-month period ended March 31, 2009. The decrease in revenues is due primarily to a decrease in rig service revenues of $200,505. Rig service revenues have decreased due to major maintenance on two rigs during the 2010 quarter. Revenues at SET for the three months ended March 31, 2010 were $1,206,356, compared to $2,086,821 during the three-month period ended March 31, 2009. SET revenues have decreased due to a decline in drilling activity. Revenues at NPI during the three months ended March 31, 2010 were $1,488,557, compared to $1,644,282 for the three months ended March 31, 2009. The revenue decrease at NPI was due primarily to a delivery anticipated for March that was delayed until April.

Selling, general and administrative expense for the three months ended March 31, 2010 was $3,424,379, compared to $2,653,086 for the three months ended March 31, 2009, representing an increase of $771,293, or 29%. The increase in general and administrative expenses is due primarily to non-cash stock-based compensation of $847,750 to the executive officers of Delta in consideration for extending their employment agreements. Stock-based compensation for the three months ended March 31, 2010 was $962,770, compared to $41,250 for the three months ended March 31, 2009, representing an increase of $921,520.

Other income was $556,506 for the three months ended March 31, 2010, compared to $121,850 for the three months ended March 31, 2009, representing an improvement of $434,656. Other income for the three months ended March 31, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit. For the three months ended March 31, 2009, American recognized other income in the amount of $195,146, of which $175,000 was for providing right-of-way access on the 287 acres in Galveston County.

For more detailed information, please refer to our March 31, 2010 Form 10-Q filing with the SEC on May 17, 2010.