AMERICAN INTERNATIONAL INDUSTRIES, INC.
(NasdaqCM: "AMIN")
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.americanii.com email: amin@americanii.com
FOR IMMEDIATE RELEASE
AMERICAN INTERNATIONAL INDUSTRIES, INC.
Update on sale of 287 acres OF
Waterfront property in galveston county
Houston / Kemah, Texas – May 19, 2008 American International Industries, Inc. (NasdaqCM: AMIN) Mr. Daniel Dror, Chairman and CEO, today announced that Westfield Forest, L.P., which is in contract to purchase the Company’s 287 acre parcel located in Galveston County, Texas, advised the Company of a progress report for the engineering study relating to the "wetlands issue", a prerequisite towards completion of the Company’s sale of the property. The engineering report indicated that certain acreage of the property will need to be mitigated in order to receive the final permits from government entities, such as the Corp of Engineers and Texas City, and other related permits, in order to proceed with Westfield’s development of the 287 acres. The property has approximately 4,200 lineal feet of water frontage on Dickinson Bayou and Galveston Bay in Galveston County. Due to the large water frontage of the property, the engineering necessary for the development of the site is both complex and lengthy. Westfield has informed the Company that they are optimistic about success in the mitigation process, thereby facilitating the development of the 287 acre site. The preliminary plans for the development can be viewed at the company’s website www.americanii.com.
The Company previously announced the contract for sale of the property for $16 million in cash. The Company is carrying this property on its books for $225,000, and the profit upon completion of the sale will be approximately $15 million. The Company has a tax loss carry-forward which will be used to substantially reduce any taxable income from the sale. The property values in close proximity to the site have increased substantially since the original date of the contract. The Company’s management believes that although the value of the property today could be substantially higher than the current $16 million sales price, the purchaser/developer of this property is investing a substantial amount of time and funds for the ultimate successful development of this property. As a result, the Company has determined to continue its planned sale to Westfield Forest, L.P. Westfield Forest, L.P. and the Todd Land Company, its parent, are recognized developers of waterfront properties in the Houston, Texas area.
Houston, Texas and surrounding areas have been enjoying great prosperity due to high oil and gas prices. Unlike other areas of the country, real estate development and the price of properties in the Houston area have continued to increase.
The Company will continue to update and inform the shareholders of the progress relating to the closing of this transaction.
American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and Real Estate in Houston Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary’s access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.
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 value of our real estate portfolio, the strength of the real estate market in Houston, Texas as a whole, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any potential 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: amin@americanii.com