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Kemah, Texas – July 12, 2005 American International Industries, Inc. (OTCBB: AMIN) Mr. Daniel Dror, Chairman and CEO, announced today that the Company accepted a cash offer of $14,525,000 from Cardon Group, LLC based in Mesa, AZ, to sell AMIN’s 287 acres of un-developed real estate on Dickinson and Galveston Bay, Texas. Mrs. Marie Janke of Texas Land Advisors-Houston, and Mr. Wayne Vitale and Mr. Ronald Simons of McDade, Smith, Gould, Johnston, Mason were the brokers handling the real estate sale. Mrs. Janke, Mr. Vitale and Mr. Simons specialize in Real Estate in the Galveston County, area. The brokers have informed AMIN they have received other cash offers for the 287 acres from other purchasers who are also major real estate developers, including a higher cash offer of $15,000,000 from Lakeland Partners III, an established developer in Houston, Texas area. The Company elected to accept the offer from Cardon Group, LLC, the Company’s Board of Directors determined to reject the Lakeland offer due to certain conditions in their proposed contract that were unacceptable to the Company. The accepted Cardon Group, LLC offer contemplates a closing in 120 days, subject to the customary contingencies of a real estate transaction, such as obtaining of certain permits and other due diligence. The Company believes that Cardon Group, LLC is a very qualified buyer. AMIN’s 287 acre property is highly desirable waterfront property located in one of the fastest growing waterfront areas in the Houston / Galveston market and is suitable for development into high-end uses such as marinas, hotels, shopping centers and other commercial and residential development. The 287 acres property has been carried on AMIN’s books for its historic cost basis, an amount substantially below the sales price. Based upon AMIN having approximately 3,000,000 common shares outstanding, the transaction would add approximately $5 per share to AMIN’s book value.

Mr. Dror stated "the real estate transaction, together with the results of 2004 Year End (announced in AMIN’s previous news release dated March 31, 2005) contained in our 10-KSB filing with the SEC, represent an affirmation of our vision to acquire companies and assets which not only meet our expectations regarding revenue and income, but also enhance shareholder value."

As we have previously announced, our subsidiary International American Technologies, Inc. (IMTG) has completed the acquisition of Hammonds Technical Services, Inc. and IMTG has filed the Form 8-K with the SEC on July 6, 2005 containing full disclosure of Hammonds business. Our subsidiary Northeastern Plastics, Inc. (NPI), as reported earlier, has secured a licensing agreement from Motor Trend and a licensing agreement from Good Housekeeping for its new family of products (Good Choice). As a result of the new NPI contracts, we expect significant growth in NPI during the next twelve months.

American International Industries, Inc. is a holding company. The Company has holdings in Industry, Oil and Gas Services, Finance, and Real Estate in Houston area. The vision of the Company is to acquire controlling interests in undervalued companies and assets in which it takes an active role to improve their growth and profitability, by providing its subsidiaries with access to capital, leveraging synergies and using AMIN’s management expertise. As a holding company, AMIN achieves economies of scale by consolidating administrative functions for each of its subsidiaries.